...MARKETING AND PLANNING MANAGEMENT COURSE CODE: MKTG 627 PARTICIPANTS NAME: SAITOT K JOEL REG //: 2015010034 NAME: STEPHEN L SULTAN REG //: 2015010035 LECTURER’S NAME: Dr. JANETH ASSIGNMENT N0 1 Describe the stages of the product life cycle and how marketing strategies change during the product life cycle. INTRODUCTION All products and services have certain life cycles. The product life cycle refers to the period from the product’s first launch into the market until its final withdrawal and it is split up in phases. During this period significant changes are made in the way that the product is behaving into the market i.e. its reflection in respect of sales to the company that introduced it into the market. Since an increase in profits is the major goal of a company that introduces a product into a market, the product’s life cycle management is very important. Some companies use strategic planning and others follow the basic rules of the different life cycle phase that are analyzed later. The understanding of a product’s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product’s success or failure. For a company to fully understand the above and successfully manage a product’s life cycle, needs to develop strategies and methodologies. The product’s life cycle - period usually consists...
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...Product Life Cycle-------Nick Combs The concept of product life cycle concerns the life of a product in the market with respect to business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life Cycle management makes three assumptions. They are: Products have a limited life and thus every product has life cycle. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage. The product life cycle is broken down into 4 stages. The first is the market introduction phase. In this phase, cost are very high, there is very small competition, customers have to introduced to the product and there is very little profit. The second stage is the growth stage. Here, costs are reduced due to economies of sale, you begin to see a profit, consumers are aware of the product, there is more competition which leads to decreases in price. The third stage is the maturity stage. Costs are lowered as a result of production increasing and experience, increase in competitors in the market, and industrial profits start decreasing. The last stage is the saturation and decline stage. Here we have sales declining, profitability falls due to an abundance of competition and costs...
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...Product Life Cycle Description The Product Life Cycle is like a snapshot in time. Pick 3 of your favorite products and identify it's current Life Cycle Stage and the marketing activities they are using. Evaluate the applicability of their activities and the effectiveness of them. Provide recommendations for additional actions. 300 words Product life cycle is the concept according to which there are four phases a product goes through during its life. They are named as introduction, growth, maturity, and decline stages. In first stage of a product, the company normally does not earn profits. Since after the introduction, it takes a certain time for the people to know about the product. It is, however, dependent on the suitability of the way with which the company markets the product. The second stage is growth during which the product becomes pretty much popular, so more and more people tend to purchase it. During the third stage the revenue generated by the product reaches its culmination point. Beyond this point you may find the product demand gradually declining towards its end. Likewise, iPod touch is now viewed as in its final stage of product life cycle. Although, the company has taken a step by redesigning it but the sales are yet expected to be limited. One of the most reasonable suggestions for the company is to improve the product by adding more features. This will increase the possibility for the product to survive in the market. One of the most...
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...1 This is a report on a ideal product life cycle and its deviations from reality using the example of Volkswagen 2 Table of Contents Page 1. Introduction 2. The ideal product life cycle 2.1 Definition 2.2 Stages and characteristics 2.2.1 Market introduction stage 2.2.2 Growth stage 2.2.3 Maturity stage 2.2.4 Saturation and decline stage 3. Discrepancy between idealism and reality 3.1 Differences in product selection 3.2 Differences in duration 4. Conclusion 5. List of graphs 6. Reference section 1 1 1 2 3 3 4 4 5 5 6 7 8 8 3 2. Introduction The following report contains information about an ideal product life cycle and its characteristics unlike reality influences. It is an important part of managing marketing aspects and is classified as an economic basis of the instrumental marketing concept. Going back to the first models, Vernon, an American economist built up the theory that every product which is supplied to consumers changes in regard to the sales market and the productions function by passing different stages of lifetime (Kruber, 2008). Products such as other ephemeral objects or creatures take up a subordinate role to the cycle of life which remains to the process of life and death. They all go through similar stages of growth and decline until they disappear from the stage of life. Specific reasons for such a behavior of products include changes in population and hence resulting changes in demand. Other reasons to consider can be technological innovation and changes...
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...Another example is my favorite restaurant Wishbone, recently the service quality seemed very poor to me as the staffs do not greet in a friendly manner plus the food takes so much time to get served which makes us even more frustrated. As with manufacturing firms, successful service businesses use marketing as a tool to strongly position themselves to selected target markets. These firms develop their positions by using marketing mix activities. Since services are different from tangible products, they need additional marketing approaches. For example, products of Pure Fiji are manufactured to the premier American Quality Control Criteria with the use of the proper manufacturing guidelines. Pure Fiji produces in bulk, stocks their outputs and sells them as orders pour in. Even procedures and tests of the products are tested on a person’s skin to check for allergies or to see if it is suitable for their skin type. Thus, at the end of the day, the buyer is fully satisfied purchasing the product due to good internal quality service or greater service value. Another example is Rewa Co-Operative Dairy Company. It adds value to local raw milk...
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... Level First cycle Progression G1F Date of Ratification Approved by Organizational Committee 20091218 The syllabus is valid from the autumn term 2010 Prerequisites Program course from the customer's perspective Learning outcomes After completing the course students are expected Expected learning outcomes The student shall Have broad knowledge of * Competition Profile * Differences Between Product, Service & Experience * Product Life Cycles * Differentiation versus Commodification * Innovation and Product Development * Branding * Pricing Methods * Pricing Tactics Be able to apply * Competition profile as "brief" for product development * Strategies for Product Development * Management of Product Development * Pricing Understand * Differentiation and Commodification * Innovation and product development * Differences between products, services and experiences * Separation, "Detachment", the needs and solution information * Differentiation and Commodification * Innovation and product development * Differences between products, services and experiences * Separation, "Detachment", the needs and solution information * Innovation, product development against, for, with and by customer * Branding * Contents Content From need to offer; from value analysis of competitive profile; competitive profile as a brief for innovation and product Competition, competition...
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...New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as a product goes...
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...model for NPD: "The New Product Development Cycle" The NPD cycle is a circular arrangement of product development stages that result in the commercialization of new products. The stages for NPD consist of planning, design and prototype, production and pilot production, distribution, sales and marketing, and after sales servicing stages. Although there is a logical progression through the stages, after a product is developed, the cycle is continuous in order to promote improvement. Different phases of the projects rotate through the NPD cycle at the discretion of senior management. Planning Planning stages of NPD project are usually geared toward international business when feasible in order to increase geographical markets and market potential. With an increased market potential, the NPD investment decisions become more salable (Terpstra & Sarathy, 1991). Concept development occurs during the planning stages and includes new product and process ideas from many sources. Inputs from all areas of the organization, customers, noncustomers, suppliers and external research organizations are taken into consideration for new product concepts. The organization constantly expands its knowledge base and access to information to increase the number of new product and process ideas considered for development. Instituting procedures and incentives that encourage innovation and input from all parts of the organization continually increase the number of product concepts considered. ...
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...Product Life Cycle Stages Explained The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage. Decline Stage –...
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...PRODUCT DESIGN Product Decision / Analysis / product Development Product Design 1) Product is anything that is capable of satisfying a felt need. A new product is the one which is truly innovative and is significantly different from other products. 2) Product Design specifies which materials are to be used, determines dimensions and tolerances define appearances of the product and sets standards of the performance. 3) Service Design specifies what physical items, sensual benefits and psychological benefits the customer is to receive from the service. Design has a tremendous impact on the quality of product or service. An Effective Design Process 1) Matches the product or service characteristics with customers requirement 2) Ensures customers requirements are met in simplest and least costly manner 3) Reduces the time required to design a new product or services 4) Minimize the revisions necessary to make a design workable. Product Design and Development 1) New Product Design 2) Improvement in the design of existing product due to life cycle of a product Product Decision: 1) the selection, definition and design of the products. The existing of the organization depends upon how well it provides goods and services to society. Since every product has life cycle the old product live for some time and die and hence new product are required for society this is due to changing societies, habits, tastes, liking etc. Thus operation...
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...OF PRODUCT LIFE CYCLE ON STRATEGIC ORIENTATION OF A ENTREPRISE Mohammad N. Shahidi, KIMEP, Almaty, Kazakhstan ABSTRCT The impact of product life cycle (PLC) on strategic orientation (SO) in dynamic environment, which is a subject that has interested strategic management scholars, is the focus of this proposal. The literature reviewed shows that despite the worldwide research on strategic management, there is still not a single definition for such a term. As a result, a wide range of conceptual frameworks exists for the formulation and implementation of strategies. There is no consensus on the factors among the scholars that affect strategic orientation of a enterprise. The consideration is mostly towards market/costumer satisfaction, technology, competition, with the enterprise’s capabilities affecting the most. Some of the scholars emphasize management issues and strategic thinking. Others such as Porter, focus on typology and resource bases. However, few scholars focus on the impact of product life cycle on strategic orientation. The attempt in this paper is to show that not only does the PLC orient strategy of an enterprise faster and straight forward than any other factors, but it also takes all other factors into account. The main question is “how product life cycle affects the strategic orientation of a enterprise”. This study began by defining strategic orientation, product life cycle, and their analysis. The study is focused on how the product life cycle...
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...Changes in the Business Environment that have contributed to the growth and importance of Management Accounting. ii) Role of Management Accountant play in a company`s value chain function. Management accounting nowadays are growing and it is becoming more and more important in the current trend. Management accounting is a process of measurement, accumulation, identification, preparation, analysis, communication and also interpretation of all the information of finance used by the management to evaluate, control and plan an organization with addition to assure the correct use and responsibility for the resource that are available. Management accounting likewise contains the arrangement of money related reports for non-administration groups, for example, shareholders, regulatory agency, creditor and the authorities for the tax (Ed, 2008). There are few factors that lead to the importance and growth of the management accounting. First of all are the globalization. Globalization is important and also a big role for the organization to sustain and survive in the current trend. This globalization are one of the factor that cause management accounting to be important because of the increasing of the communication and also the advancement of the transportation which allow company to penetrate into the market that have more potential customer has been widely expand. Therefore company product are able to move around the world which going towards the international market and will face...
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...14:49 Page 1 www.thetimes100.co.uk The product life cycle and online fashion Introduction ASOS.com is the UK’s market leader in online fashion retailing. It offers own-label, branded fashion and designer goods. Its headquarters are in Camden Town in North London. ASOS.com originally stood for As Seen on Screen. The company was set up in June 2000 with just two people to bring the latest fashion trends to shoppers as quickly as possible. It has rapidly grown to become the UK’s largest independent online fashion retailer. It stocks over 22,000 product styles on its website and introduces up to 1,000 new products to its ranges each week. The ASOS.com website attracts over five million visitors a month and the company currently has around 1.2 million active customers (that is, people who have bought in the last six months). It was named Online Retailer of the Year in 2008 by Retail Week Awards. ASOS.com provides high fashion clothing for women, men and children, as well as footwear, accessories, jewellery and beauty products. It aims these primarily at a target audience of 16-34 year olds. However, as the company continues to grow and diversify its product ranges and increase awareness, it appeals to a much wider online fashion market. Over 20% of its current customer database is aged over 35. Each week ASOS.com delivers 70,000 packages to the homes of its online customers. CURRICULUM TOPICS • Product life cycle • Extension strategies • Boston Matrix •...
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...[pic] MKTG Principles of Marketing TABLE OF CONTENTS Abstract Introduction Product concept Development of the Volkswagen New Beetle New Beetle adoption Marketing throughout the product life cycle Beetle brand Findings Conclusions Reference list Abstract *** “The Beetle is different, it makes you feel different. It is like a magnet”, - Volkswagen Chairman, Ferdinand Piech (Keith Naughton and Bill Vlasic, 1998) *** The present paper is the case study of the Volkswagen New Beetle from the marketing perspective. The thesis will analyze the product concept, and examine the New Beetle in terms of the concept in question. The purpose of the paper is to identify the issues in the application of theory with regard to the New Beetle as a product, describe the function and operation of this element of the marketing mix in Volkswagen, as well as to review the status of the identified issues in the reviewed company. The paper will consider the introduction of the New Beetle to the market and examine the respective phases of the product development. The thesis will also examine the adoption of the New Beetle as a product, overview the product lifecycle and the issues with regard to the Beetle brand. Overall, New Beetle is unique from other cars and can be the good example of the successful product development and adoption. The Beetle Brand is a successful brand that enjoys customer’s loyalty, perceived...
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...Understanding the Product Life Cycle (PLC) is of critical importance to a firm launching a new product. It helps a firm to manage the risk of launching a new product more effectively, whilst simultaneously maximising the sales and profits that could be achieved throughout the product's life cycle. 1. What is the product life cycle? The PLC indicates that products have four things in common: (1) they have a limited lifespan; (2) their sales pass through a number of distinct stages, each of which has different characteristics, challenges, and opportunities; (3) their profits are not static but increase and decrease through these stages; and (4) the financial, human resource, manufacturing, marketing and purchasing strategies that products require at each stage in the life cycle varies (Kotler and Keller, 2006). Whilst there is a common pattern to a product's life cycle, which is bell-shaped in nature, this pattern does vary depending on the specific characteristics of a given product. These life cycle patterns are illustrated and discussed in the subsequent section. 2. What are the main aspects of the product life cycle? The typical PLC consists of five main aspects: (1) product development; (2) introduction; (3) growth; (4) maturity; and (5) decline. In the diagram below, the respective sales (in red) and profits (in blue) across these five stages are illustrated. Figure 1 The PLC begins with product development, during which time the firm devises and creates...
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