Professional Documents
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Product Development
Introduction
Growth
Maturity
Summary of Characteristics, Objectives, & Strategies Sales Rapidly rising Sales Rapidly rising
Costs Costs Profits Profits Marketing Objectives Marketing Objectives Product Product Price Price Distribution Distribution Promotion Promotion Average cost per customer Average cost per customer Rising Rising Maximize market share Maximize market share Offer extension, service, warranty Offer extension, service, warranty Penetration strategy Penetration strategy Build intensive distribution Build intensive distribution Reduce to take advantage of demand Reduce to take advantage of demand
Phase out weak items Phase out weak items Cut price Cut price
Selective: phase out unprofitable outlets Selective: phase out unprofitable outlets Reduce to minimum level Reduce to minimum level
Continued
A Style is a basic and distinctive mode of expression appearing in a field of human endeavor. Styles appear in homes, clothing, art etc. A Fashion is a currently accepted or popular style in a given field. Fashion pass through four stages: Distinctiveness, emulation, mass fashion, decline. Fads are fashions that comes quickly into public view , are adopted with great zeal, peak early, and decline very fast.
Promotion
Low
Price
Low
Continued..
Increase the usage rate among users Have consumers use the product on more occasions. Have consumers use more of the product on each occasion Have consumers use the product in new ways. Product modification Trying to stimulate sales by modifying the products characteristics through
Continued..
Quality improvement: Aims at increasing the products functional performance. Eg: Aashirvaad, Annapoorna, Pillsbury, Naturefresh Feature improvement Aims at adding new features, such as size, weight, materials, additives, and accessories, that expand the products performance, versatility, safety, or convenience. Style improvement Aims at increasing the products esthetics appeal. Eg; New car models, New Coke
Decline Stage
Increase investment Resolve uncertainties - stable investment Selective niches Harvesting Divesting To establish a system for identifying weak products. Some firms abandon declining markets earlier than others.
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