457 Chapter 8

457 Chapter 8 - 8.1 Generalized Product Life Cycle 8.2...

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8.1 Generalized Product Life Cycle 8.2 Expected Characteristics and Responses by Major Life Cycle Stages 5 distinct stages: introduction, growth, shakeout, maturity and decline Introductory Stage: new product’s purchase is limited b/c people are unaware of existence and product lacks easy availability - Once a product is launched, a firm’s goal should be to move it through the introductory stage as quickly as possible - Research, engineering, and manufacturing capacity are critical to ensure the availability of quality products - Competitive advantage is established by differentiating the new product from solutions customers previously employed to satisfy a want/need - Price: affected by product’s value to end user, how quickly it can be imitated by competitors, presence of close substitutes, and the effect of price on volume o Skimming: obtain as much margin per unit as possible; used in niche markets where consumers are insensitive to price o Penetration Pricing: enables firm to strive for quick market
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This note was uploaded on 12/14/2010 for the course BMGT 457 taught by Professor Staff during the Fall '08 term at Maryland.

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457 Chapter 8 - 8.1 Generalized Product Life Cycle 8.2...

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