Product_life_cycle

Product_life_cycle - 1 Product life cycle Marketing...

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Marketing strategies: Introduction Stage Profit low or negative because of low sales Reason is informing consumer, product trial, setting up distribution channel Rapid Skimming: High price High promotion Strategy works when buyers unaware but those who become aware are eager pay asking price Slow Skimming : High price low promotion Strategy works when market limited in size Most buyers(market) aware of product , willing to pay Potential competition not imminent Rapid Penetration: low price High promotion Strategy works : when market large and unaware of product, buyers price sensitive Strong potential competition, unit cost fall with production Slow penetration : Low price low promotion Works : market large, highly aware of product, price sensitive and potential competition. The pioneer advantage Being the first is rewarding but risky and expensive Pioneer gets the most advantage normally a competitive edge But pioneers could be beaten by competitors who can come up with better tech, quality and brand strength etc. Giant firm can
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This note was uploaded on 10/29/2010 for the course MBA 4701 taught by Professor Wasif during the Spring '10 term at Andhra University.

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Product_life_cycle - 1 Product life cycle Marketing...

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