yc-chinaelectronics1 - Product Development Engineering...

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Unformatted text preview: Product Development / Engineering Professor Y. C. Chan Professor (Chair) of Electronic Engineering Engineers in Society ( EE3014 ) Lecture Series Product Life Cycle Figure 1 shows the hypothetical course of a product’s sales and profits from inception to demise. The product life cycle begins when the company finds and develops a new product idea. During product development, the company accumulates increasing investment costs. After the company launches the product, sales pass through an introductory period, then through a period of strong growth, followed by maturity and eventual decline. Meanwhile profits go from negative to positive, peak in the growth or mature sales stages, and then decline. The product life cycle presents companies with two major challenges. First, because all products eventually decline, the firm must develop a process for finding new products to replace aging ones (the problem of new product development .) Second, the firm must understand how its products age, and adapt its marketing strategies for products as they pass through different life-cycle stages.) Source: Principles of Marketing, Prentice-Hall International Editions, Philip Kotler (8 th Edition, 1999) Engineers in Society Lecture Series Product Life Cycle Source: Principles of Marketing, Prentice-Hall International Editions, Philip Kotler (8 th Edition, 1999) Engineers in Society Lecture Series F...
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This note was uploaded on 01/11/2011 for the course EE 3014 taught by Professor Various during the Spring '10 term at City University of Hong Kong.

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yc-chinaelectronics1 - Product Development Engineering...

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