Chapter_11_Study_Gui - Robert Abelson Chapter 11 Managing Products and Brands Product Life Cycle(stages a new product goes through in the

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Robert Abelson Chapter 11: Managing Products and Brands Product Life Cycle: (stages a new product goes through in the marketplace) -Introduction Stage: GAIN AWARENESS (Objective is to create awareness and stimulate trial) (Use price skimming strategy: high initial price) (Use penetration pricing : price low) -Growth Stage: STRESS DIFFERENTIATION -rapid increase in sales due to repeat purchases/ competitors usually appear in this stage/ profit usually peaks -Maturity Stage: MAINTIAN BRAND LOYALTY - slowing total industry sales/ marginal competitors leave / hold market share by product differentiation and new buyers - Decline stage: HARVESTING, DELETION - sales drop(usually due to environmental changes) Deletion : dropping product from company’s line Harvesting: company retains the product, but reduces marketing costs (TAB- by coca-cola) Dimensions of Product Life cycle: - Length : no exact time it takes for product to move between cycles - Shape of sales curve : not all products the same ( high-learning curves, low- learning, fashion, fad products) high learning example: computers, convection ovens Low learning examples: Gillette fusion razor Fashion: hosiery Product level : Class & Form High learning Low Fashion Fad Time Sales
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Class: refers to the entire product category or industry (pre-recoded music) Product form: variations within the product class(tapes, compactdiscs, mp3) The life Cycle and Consumers: for product success, must be first purchased by innovators and early adopters
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This test prep was uploaded on 02/01/2009 for the course AEM 240 taught by Professor Mclaughlin during the Fall '08 term at Cornell University (Engineering School).

Page1 / 4

Chapter_11_Study_Gui - Robert Abelson Chapter 11 Managing Products and Brands Product Life Cycle(stages a new product goes through in the

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online