chapter 11 - Product life cycle stages a new product goes...

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Product life cycle – stages a new product goes through in the market place o Introduction Slow sales Minimal profit High advertising costs Primary demand – desire for product class Selective demand – demand for a specific brand Skimming strategy – high prices to help recover costs Penetration pricing – Low prices to have high sales o Growth Rapid increases in sales Competitors appear Reduction in price Repeat purchasers i.e. HDTV, Hybrids o Maturity Slowing of industry sales Weak competition is weeded out Not many new customers o Decline Sales begin to drop Deletion – dropping a product Harvesting – reducing marketing costs of a product Length of the product life cycle is differentiating o Generalized life cycle o High-learning product – education is required and it catches on slower o Low-learning product – immediate sales o Fashion product – product introduced, growth, decline, reemergence
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This note was uploaded on 04/14/2010 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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chapter 11 - Product life cycle stages a new product goes...

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