Situations the hard core loyalty may remain strong

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situations the hard-core loyalty may remain strong enough to allow marketing the product at a greatly reduced level of promotion, and at the old or even a higher price, both of which mean good profits. The drop decision : When a product has been singled out for elimination, the firm faces some further decisions. First, it has the option of selling or transferring the product to someone else or dropping it completely. It will usually prefer the farmer because this will bring in some cash and will minimize the hardship to customers and employees. Second, the organization has to decide when the product should be terminated. It could be dropped quickly and decisively so there would be no chance for resistance to building up and reverse the decision. Or it could discontinued gradually with a timetable to allow resources to transfer out in an Annamalai University
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86 orderly way and to allow customers to make other arrangements. Management will also want to private a stock of replacement parts and service to stretch over the expected life of the most recently sold units. This is a descriptions of the typical product life cycle. This does not mean that every single product necessarily passes through all these stages. Several new products, all of a sudden, find their way into decline before entering the growth stage. However, most successful products can be seen to pass through the typical life cycle. The knowledge that a product will pass through such a cycle of life is helpful in evolving proper product policies and promotion and pricing strategies. A market can also try to foresee at the very outset the pattern of life of the proposed product and plan the product strategy, pricing strategy and promotion strategy, so as to shape the life cycle of the product to suit his objectives and requirements. SUMMARY It is the starting point for entire marketing programme in a firm. It enbles all activities which enable producers and middlemen to determine what should consist a company like of products. Product planning has been defined as the act of marketing out and supervising the reach, screening, development and commercialization of new products the modification of existing lines and the discontinuance of marginal or unforfitable items”. Product development embra ces the technical activities of product research engineering and design. It requires the collective participation of production marketing engineering and research departments. The scope of product planning and product development activities covers the devision making and programming. Key concept Product development Product life cycle. Marketing strategies in the introduction stage Marketing strategies in the growth stage. Marketing strategies in the mature stage.
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