LEARNING OBJECTIVES OF MANAGING PRODUCTS LIFE CYCLE:
INTRODUCTION:
The product life cycle is marked by four stages :
A. Introduction
B. Growth
C. Maturity
D. Decline
PRODUCT LIFE CYCLES STAGES
1. Introduction : Research or engineering skill leads to product development. The product is put on the market; awareness and acceptance are minimal. There are high promotional costs. Sometimes a product may generate a new demand, for example, Maggi. Volume of sales is low and there may be heavy losses.
2. Growth :The product begins to make rapid sales gains because of the cumulative effects of introductory promotion, distribution, and word-of-mouth influence. High and sharply rising profits may be witnessed. But to sustain growth, consumer satisfaction must be ensured at this state.
3. Maturity : Sales growth continues, but at a diminishing rate, be"cause of the declining number of potential customers who remain unaware of the product or who have taken no action. Also, the last of the unsuccessful competing brands will probably withdraw from the market. For this reason, sales are likely to continue to rise while the customers for the withdrawn brands are ,mopped up by the survivors. There is no improvement in the product but changes in selling effort
Ethics and Marketing
Marketers are responsible to a variety of groups. Cer¬tainly their customers depend on them to satisfy their needs. Also, their employers expect them to generate sales and profits, suppliers and distributors look tq them for their continued business, and society expects them to be responsible citizens. The frequently divergent in¬terests of these groups create a wide variety of ethical challenges for marketers.
Ethics are the standards of behavior generally ac¬cepted by a society. Note that ethics goes beyond laws, which establish the minimum rules a society agrees to follow. Thus, it is possible to behave legally but still be unethical.
INTRODUCTION:
The product life cycle is marked by four stages :
A. Introduction
B. Growth
C. Maturity
D. Decline
PRODUCT LIFE CYCLES STAGES
1. Introduction : Research or engineering skill leads to product development. The product is put on the market; awareness and acceptance are minimal. There are high promotional costs. Sometimes a product may generate a new demand, for example, Maggi. Volume of sales is low and there may be heavy losses.
2. Growth :The product begins to make rapid sales gains because of the cumulative effects of introductory promotion, distribution, and word-of-mouth influence. High and sharply rising profits may be witnessed. But to sustain growth, consumer satisfaction must be ensured at this state.
3. Maturity : Sales growth continues, but at a diminishing rate, be"cause of the declining number of potential customers who remain unaware of the product or who have taken no action. Also, the last of the unsuccessful competing brands will probably withdraw from the market. For this reason, sales are likely to continue to rise while the customers for the withdrawn brands are ,mopped up by the survivors. There is no improvement in the product but changes in selling effort
Ethics and Marketing
Marketers are responsible to a variety of groups. Cer¬tainly their customers depend on them to satisfy their needs. Also, their employers expect them to generate sales and profits, suppliers and distributors look tq them for their continued business, and society expects them to be responsible citizens. The frequently divergent in¬terests of these groups create a wide variety of ethical challenges for marketers.
Ethics are the standards of behavior generally ac¬cepted by a society. Note that ethics goes beyond laws, which establish the minimum rules a society agrees to follow. Thus, it is possible to behave legally but still be unethical.
