Product Life Cycle

Product conduct CycleThe theory of , divides the life cps of a fruit into four different phases : 1 .Introduction , 2 .Growth , 3 .Maturity , and 4 .Decline1 . IntroductionDuring the inlet grade a product is conceptualized and commencement ceremony brought to market . In the introduction phase , gross revenue may be slow as the comp both(prenominal) builds awareness of its product among potential customers Advertising is crucial at this stage , so the marketing bud occupy is often substantial . The goal of any impudent product introduction is to meet consumer s needs with a quality product at the lowest possible represent in to return the highest level of profit2 . GrowthIf a product has survived its introduction it moves on to the addition phase , which occurs when the product has begun to be observe in the marketplace . At this stage , a alliance can decide if it wants to go for increased market per centum or increased profitability . This is the boom time for any product . Production increases , leading to lower unit cost Sales momentum builds as advertising campaigns target troop media audiences instead of specialized markets3 . MaturityAt the maturity stage , the gross revenue growth of the product slows down and the product has begun to approach the point where the required decline go forth begin . Defending market allot becomes the chief concern , as marketing staffs have to cast more and more on promotion to entice customers to demoralise the product . Additionally , more competitors have stepped forward to take exception the product at this stage , some of which may exsert a higher quality version of the product at a lower price4 . DeclineDecline occurs when the product peaks in the maturity stage and then begins a downward slide in sales . Eventually , revenues will drop to the point where it is no interminable economically feasible to continue making the product . investment is minimized .

The product can simply be give up , or it can be sold to another lodgeExtending the Life Cycle of the ProductThere are various methods that a savvy company social occasions to extend the lifecycle of the productDuring the maturity stage the business firm will seek to lower unit costs as much as possible so that profits can be maximized . The money earned from the mature products , are then utilize in research and development to come up with new product ideas to replace the maturing products . Operations are to be slick , cost efficiencies sought and hard decisions madeTo extend the life cycle of a product a company may use defensive or offensive strategiesDefensive strategies incorporate of special sales , promotions , cosmetic product changes , and other sum of shoring up market share . In other words , it means defending the quality and integrity of your product versus your competitionWhile offensive strategies consist of marketing offensively , and looking beyond current markets to look for to gain new buyers . The relaunching of the product is also an option . other(a) offensive tactics include changing the price of a product (either higher or lower ) to appeal...If you want to get a full essay, order it on our website: Orderessay

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