Product Life Cycle and New Product Pricing and Mix Product Pricing Strategy

Product animation Cycle Strategies Product, which is anything that is capable of satisfying customers unavoidably. both merchandise have a life beat which standardized as living organism, product will growth, twist bestride and decline. The introduces of products teaching, send fored Product Life Cycle. Product Life Cycle include five salutes: Product Development, Introduction, festering, Maturity and Decline. veritable merchandise situation 1. Introduction Stage As the communicate apart meaning, the product in this stage is youthful and barely contract to enter the foodstuff. For example, in the year 2004, chromatic introduces a new product, which is the 3G (Third Generation) mobile phones into the securities industry. The company had spent vast fare of victimization and research cost for the product in the ontogenesis stage. At the excogitation stage, chromatics main objective is to build up the commercialize awareness. Therefore, the marketing and distri bution cost of Orange is really huge which aiming to establish branding and quality of product in this stage. Its tall(a) to have profit at this stage, its only a stage to testing the market. Companies may accept market skimming as the pricing strategy of the product in order to call up the huge development cost. Or they may choose market penetration in order to build up market share.

At the very beginning stage of introduction of 3G mobiles, Orange wanted to recover the huge cost in development and chose market skimming. However, successful market skimming depends on inflexible market demand. There were so many substitut es of 3G mobiles in the market so that make ! market demand to a greater extent elastic. So, Orange suffered great loss in marketing skimming. 2. Growth Stage The product in this stage has increasing gross sales volume and profits. confederacy spend much on publicize and willing allow market share which has been more stabilize than pervious stage. For example, in the earlier... If you want to get a beat essay, order it on our website: OrderCustomPaper.com

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