Preview

Use Extended Examples to Compare and Contrast the Characteristics of a Growing and a Mature Product Market. Discuss How Different Product Market Phases Affect a Company's Cost Recovery

Better Essays
Open Document
Open Document
1185 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Use Extended Examples to Compare and Contrast the Characteristics of a Growing and a Mature Product Market. Discuss How Different Product Market Phases Affect a Company's Cost Recovery
Use extended examples to compare and contrast the characteristics of a growing and a mature product market. Discuss how different product market phases affect a company’s cost recovery. In order to answer this question I will try to give a brief explanation of such business concepts as product life cycle and its stages which are development and research, introduction, growth, maturity, saturation and decline. Also I will discuss how some of these phases can affect company’s cost recovery. Each company nowadays is finding ways to make a product by which their customers will be satisfied and happy. Each product has its life cycle and it progresses through the sequence of stages. This sequence is known as product life cycle (M.Surridge, A. Gillespie, 2004). First stage is the development and research, during this stage main idea is to test and develop product (M.Surridge, A. Gillespie, 2004). For chemical industries this stage of product life cycle is usually one of the most important and difficult stages, because in this phase their product is tested many times in order to be able to put this product on the sale. Sometimes such products can’t get beyond this phase. The second stage is introduction where the product is introduced to the market and put on sale (M.Surridge, A. Gillespie, 2004). In this stage vast majority of companies are unlikely to cover initial cost of this product, because the distribution and promotion costs are likely to be too high. In this stage the aim of firm is to increase brand loyalty and try to increase demand of the customers. The third stage is growth. If product has reached this phase it means that public awareness has increased and sales started to rise significantly (M.Surridge, A. Gillespie, 2004). Distributors will accept this product much easier because they will be confident in of sales. Also in this stage company starting to earn profit and covering the initial cost of this product. Lastly in this stage firm


Bibliography: “Product Life cycle management”, Retrieved 03.03.2009, 2009, from http://en.wikipedia.org/wiki/Product_life_cycle_management “Product Life Cycle”, retrieved 03.03.2009, 2009, from http://www.netmba.com/marketing/product/lifecycle/ “The Product Life Cycle”, Retrieved 03.03.2009, 2009, from http://www.bizhelp24.com/small-business-portal/guarantee-your-sales-growth-8.html “Product Life Cycle”, retrieved 03.03.2009, 2009, from http://www.projectalevel.co.uk/business/lifecycle.htm “Product Life Cycle graph” , retrieved 03.03.2009,2009 from http://www.fao.org/docrep/V4450E/V4450E03.gif M. Surridge, A. Gillespie (2004). Business Studies, Hodder Arnold

You May Also Find These Documents Helpful

  • Powerful Essays

    Unit 3 P1 M1 And D1

    • 7258 Words
    • 20 Pages

    In other words, the development stage provides a foundation for the selected product as it will be built as a prototype to be later sold to the public in order to increase sales and profits.…

    • 7258 Words
    • 20 Pages
    Powerful Essays
  • Better Essays

    MKT 650

    • 4716 Words
    • 19 Pages

    As the text book says, “The product life cycle is concerned with the sales history of a product class which holds that a product’s sales change over time in a predictable way and that products go through a series of five distinct stages: introduction, growth, shakeout, maturity, and decline”(Mullins & Walker, 2010, p271). Each of these stages has opportunities and threats for the firm, and they can affect the strategy of the company. Thereby, the product life cycle is an important way for managers to make decisions in the future.…

    • 4716 Words
    • 19 Pages
    Better Essays
  • Better Essays

    CopelandR MKTG600 MidTerm

    • 966 Words
    • 4 Pages

    Products go through a cycle which phases goes from introduction to decline. This pattern is based on a lot of factors to include the current marketing situation which could greatly impact the product. The following stages are:…

    • 966 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    MRKT 339 Study gUide

    • 301 Words
    • 2 Pages

    2. Understand four stages of the product life cycle – introduction, growth, maturity, and decline.…

    • 301 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Success inevitably leads to increased competition. Other companies eventually will start introducing similar products, especially if the initial product is highly successful. Consequently, the demand for the product and its competitors will peak at some point. Sales growth will start to decline. The plan in maturity stage are following: 1) developing new product features to differentiate its products from the competition's; 2) enhancing its customer-service department to establish itself as the service leader…

    • 1283 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Internet Exercise

    • 1886 Words
    • 8 Pages

    During this first stage, the consumer recognizes a need that can be satisfied by a purchase.…

    • 1886 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Pmbok Chapter 2 Summary

    • 1186 Words
    • 5 Pages

    The product life cycle consists of generally sequential, non-overlapping phases determined by the need and manufacturing of the organisation. The last phase in a project could be the handing over of a building to the client.…

    • 1186 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Delta Beverage Case

    • 2136 Words
    • 9 Pages

    Delta Beverage is a bottler company which is an important part of the franchise system of PepsiCo, Inc. Over the years Delta Beverage has also become an important manufacturer of cans, bottles, PET and other packaging for other several brands. The concentrate and syrup for the soft drinks are bought from PepsiCo, where the prices are establishing annually by PepsiCo. Delta processes all the other raw materials which are needed to produce these soft drinks.…

    • 2136 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    All products have a lifecycle. They begin as an idea that needs Research and Development (R&D) or time to develop. This is a direct cost to the company. Once the product and/or service is ready to be marketed, it goes through five stages: development, introduction, growth, maturity, and decline.…

    • 1196 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Plc and Marketing Mix

    • 704 Words
    • 3 Pages

    The Product Life Cycle can reduce time to market, improve product quality, reduce pro-totyping costs, identify potential sales opportunities and revenue contributions, and re-duce environmental impacts at end-of-life. To create successful new products the com-pany must understand its customers, markets and competitors.…

    • 704 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Product Life Cycle Stages

    • 546 Words
    • 2 Pages

    The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.…

    • 546 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Marketing Principles

    • 1223 Words
    • 5 Pages

    Stage 3: Concept developing and testing- after choosing best idea, there is needed testing with our targeted market, (how they going to like the new idea, will it be benefit for customers, etc.)…

    • 1223 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    In a growing industry, most companies would like to achieve superior productivity. Superior productivity is often associated with the advances a company’s production system will achieve through technological and managerial changes. In order to evaluate the necessity of growing product market as a precondition for superior productivity, one must understand the growing stage of the Product Life Cycle. The Product Life Cycle (PLC) has four stages; introductory, growth, mature and decline stage. The growing stage is like the transition period from the first to the second stage. Since companies experience the highest level of competition in a growing product market, they try to expand their market share and indulge in different marketing, pricing and advancing methods to be the leaders of the market. Thus,…

    • 1793 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Mfn-Case

    • 2765 Words
    • 12 Pages

    Stark, J. (2011). Product Lifecycle Management: 21st Century Paradigm for Product Realisation. Springer London. 3-16.…

    • 2765 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Marketing vs Selling

    • 1424 Words
    • 6 Pages

    The objective of all business enterprises is to satisfy the needs and wants of the society.…

    • 1424 Words
    • 6 Pages
    Powerful Essays