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stages of the product life cycle
// May 28th, 2009 // No Comments » // Marketing and Sales
stages of the product life cycle:
Several experts in marketing agree that there are four stages that make up the product life cycle: 1) Introduction, 2) growth, 3) maturity, and 4) Declination.
INTRODUCTION:
This first stage of the product life cycle, begins when launching a new product to market, something that can be innovative (as at the time was the TV, cell phone or video player) or may have a novel feature that gives rise to a new category of product (as in the case of microwave and color television).
This stage is characterized by the following scenario:
Sales are low. ¡Business are business!
There are no competitors, and in the case that there are very few.
Prices tend to be high at this stage, because there is only one bid, or a few.
The promotion and distribution costs are high.
Distribution activities are selective.
Profits are negative or very low.
The main objective of the promotion is to inform.
Customers who purchase the product innovators.
The product life cycle is the set of stages
// May 28th, 2009 // No Comments » // Marketing and Sales
In short, the product life cycle is the set of stages (introduction, growth, maturity and decline) by passing through a generic category of products and concepts which are used as a management tool to learn about marketing and track the phase in which there is a certain category of products with the aim of identifying in advance the risks and opportunities posed by each stage to a particular brand.
It is worth noting that the concept of product life cycle (CVP) is a tool that applies to an individual mark, but a generic product category (cars, televisions, microprocessors, etc…). Therefore, one of the crucial tasks that are expert in the markets is to identify the stage which is going through the generic category in which your product is, then, to plan what will be done to address the risks posed by each stage, while taking advantage of the opportunities it offers. ¡Business are business!
What is the product life cycle?
// May 28th, 2009 // No Comments » // Marketing and Sales, Selling Your Business
What is the product life cycle?
In general, the product life cycle is a management tool that allows marketing and trace to know the stage in which there is a certain category or class of product, which is a prerequisite for properly setting goals Marketing for “x” product, and also to plan strategies for achieving those goals.
In more specific terms, the product life cycle has different definitions, why they include proposals by various experts in marketing topics:
According to Hair, and McDaniel Lamb, the product life cycle is a concept that provides a way to track the stages of acceptance of a product, since its introduction (birth) until its decline (death).
For Stanton, Etzel and Walker, the life cycle of the product consists of aggregate demand for a long time for all brands which include a generic product category. ¡Business are business!
Richard L. Sandhusen the product lifecycle is a model that assumes that the products brought successfully to the competitive markets go through a predictable cycle over time, which consists of a series of stages (introduction, growth, maturity and decline ), and each stage poses risks and opportunities that traders should take into account the revenue to maintain the product.
To Kotler and Armstrong, the product life cycle (CVP) is the ongoing sales and profits of a product throughout its existence.
Concept of product life cycle
// May 28th, 2009 // No Comments » // Business Plan Writing, Starting A Business
According to Lamb, Hair and McDaniel, the concept of product life cycle is very useful to stimulate the market expert in planning, in order to be able to take the initiative rather than reacting to past events.
In this regard it is noted that the product life cycle is especially useful as a tool for prediction or prognosis, since the products go through different stages which allow to calculate the location of a particular product life cycle using data historical, as in profits, sales and number of competitors, as they tend to follow a predictable path during the life cycle. This calculation is very necessary because the competitive environment and strategies for marketing to be used routinely depend on the particular stage of the product life cycle.
Therefore, it is vital that the expert in the markets know what the product life cycle, what are the stages of it and what features distinguish each particular stage, with the aim of having the basics for properly use this valuable tool for prediction or prognosis, with which you can get various elements that identify the opportunities and risks posed by the different stages that cross products since its introduction to its decline. ¡Business are business!
Classification of products according to their durability and tangibility
// May 28th, 2009 // No Comments » // Marketing and Sales
Classification of products according to their durability and tangibility: It is divided into three types of products, according to the number of times that can be used, the last time and tangibility:
Non-durable consumer goods: They are those who, being tangible, are often consumed quickly: beer or soap.
Durable consumer goods: These are tangible and can usually be used many times: refrigerators, power tools and clothing.
Services are intangible, inseparable, variable and perishable. Consequently, they often require greater control of quality, credibility by the supplier and adaptation to consumer preferences. Two examples: A haircut and a car repair service.
Other types of products:
According to Fischer and Laura Jorge Espejo, other important product classifications in the formulation of strategies, the following are popular consumer products: The products are manufactured and intended to end consumers without the need for additional industrial process. Are located in places accessible to the general public and are purchased regularly to meet a need and are intended for mass market products.
Hook Products: These products do not yield a considerable profit to the company, but they sell to others or to give an image to the consumer that the company has everything you need.
Products momentum: Van as a basis to make other products and recently established similar characteristics; sometimes make changes to your design before its decline.
High turnover of products: They are produced in great quantity, quickly and for a short period (eg holiday areas, bathing suits, tents, raincoats, etc.).
Products of medium and low turnover: These are not mass production. The production is low or intermediate according to the order of each company. Among others, include tiles, electrical equipment, stamens and screws.
Seasonal products: Those that occur in response to demand at different times of the year (eg toys, school supplies, etc.). ¡Business are business!
Products imported products are produced abroad, the price of which is sometimes very high.
