I'm not kidding you - that's what the article states. If you don't believe me, just read the column. After you read the article, I would ask you to consider just one thing.
If a curve is drawn showing product revenue over time, it may take one of many different shapes, an example of which is shown below: Product Life Cycle Curve The life cycle concept may apply to a brand or to a category of product.
Its duration may be as short as a few months for a fad item or a century or more for product categories such as the gasoline-powered automobile. Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product.
As the product progresses through its life cycle, changes in the marketing mix usually are required in order to adjust to the evolving challenges and opportunities.
Introduction Stage When the product is introduced, sales will be low until customers become aware of the product and its benefits.
Some firms may announce their product before it is introduced, but such announcements also alert competitors and remove the element of surprise. Advertising costs typically are high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters.
During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs coupled with a low sales volume usually make the introduction stage a period of negative profits. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class.
The following are some of the marketing mix implications of the introduction stage: Product - one or few products, relatively undifferentiated Price - Generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly.
In some cases a penetration pricing strategy is used and introductory prices are set low to gain market share rapidly. Distribution - Distribution is selective and scattered as the firm commences implementation of the distribution plan. Promotion - Promotion is aimed at building brand awareness.
Samples or trial incentives may be directed toward early adopters. The introductory promotion also is intended to convince potential resellers to carry the product.
Growth Stage The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it.
The marketing team may expand the distribution at this point. During the growth stage, the goal is to gain consumer preference and increase sales. The marketing mix may be modified as follows: Product - New product features and packaging options; improvement of product quality.
Price - Maintained at a high level if demand is high, or reduced to capture additional customers. Distribution - Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product.
Promotion - Increased advertising to build brand preference. Maturity Stage The maturity stage is the most profitable. While sales continue to increase into this stage, they do so at a slower pace.
Because brand awareness is strong, advertising expenditures will be reduced. The competing products may be very similar at this point, increasing the difficulty of differentiating the product.
The firm places effort into encouraging competitors' customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products.
During the maturity stage, the primary goal is to maintain market share and extend the product life cycle.Watch video · Bankers and investors had concerns about nonnegotiable conditions made by Snap ahead of its IPO, plus broader worries about the app-maker’s .
First increase the demand curve and you will see the price rise as we extend up the supply curve. Then think about the new equilibrium. Why on earth should it change? Welcome to Rise of Mythos! Rise of Mythos is a true online collectible trading card game with an MMO twist.
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Introduction. Return to Main Menu. Expand All Collapse All. What is TB? Tuberculosis (TB) is a disease caused by bacteria called Mycobacterium tuberculosis. The bacteria usually attack the lungs.