...The Four Stages of The product cycle is four distinct stages in sales and profits. Introduction, growth, maturity, and decline. The product life cycle can describe a product class, product form or a brand or model. The amount of time that a product remains in any stage depends on customer needs and preferences, economic conditions, the nature of the product, and the marketer’s strategy. The introductory stage can determine the success or failure of your business. The introductory stage is a crucial phase that requires careful planning and considerable investment. The introductory stage is the first stage in the product life cycle which extends from the research-and-development phase. The growth stage can reap handsome profits for those who survive. The growth stage can cause a rapid jump in sales if the product is successful and usually an increase in the number of competitors and distribution outlet. As competition increases, so does the struggle for market share. The maturity stage is the longest in the product cycle, sales begin to level off. Most companies try to keep mature products alive s they can use the resulting profits to fund the development of the new product. Most products eventually enter the decline stage, when sales and profits slip and then fade away when products decline, the company must decide whether to reduce the products cost, or discontinue it altogether and focus on developing newer products Refrences Works Cited (n.d...
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...Unification Model 6 HHS – P, Coordination Model 7 HHS – RF, Coordination Model 7 Operating Model Summary 8 Steps to Implementing the Operating Model 9 Proposal for an Enterprise Architecture 11 IT Capability 12 Business Objectives 12 Funding Priorities 13 Key Management Capability 13 Who Defines Applications 13 Key IT Governance Issues 14 Strategic Implications 14 Summary of HHS Architectural Stage 14 Setting Priorities to implement Enterprise Architecture 15 Changes in Business Process 15 Changes in Business Roles 16 Rationale for Changes 16 Changes in Organizational Structure 16 Changes in Business Partner Relationships 17 Setting Priorities Summary 17 HHS IT Engagement Model Recommendations 18 Companywide IT Governance 18 Project Management 19 Linking Mechanisms 19 Business Partner Communications 21 New Opportunities 21 Outsourcing Opportunities - Recommendations 21 Size and Scale Matter 22 Simple Example 22 Not so Simple 23 Complex Outsourcing 23 Plug and Play 24 Growing the Organization - Recommendations 25 Organic Growth 25 Growth Through Mergers and Acquisitions 26 Optimization before Growth 26 Operating Model Dependency 26 Growth Summary 29 Summary of Enterprise Architecture Proposal for HHS 29 References 31 Executive...
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...Product Management and Strategy Dr. Prashant Mishra prashant@iimcal.ac.in A Business Strategy Product-Market Investment Decision • Product-market scope • Investment intensity • Resource allocation over business units Basis of SCAs • Assets/Competencies • Synergies Functional Area Strategies • Product • Price • Distribution • Etc. Figure 1.1 The Four Ps: The Tools The Four Cs: The Ends Marketing Mix Product Customer Solution Place ConvenPromotion ience Communication Price Customer Cost The Other 4Cs: The Participants The Participants Competitors Company Consumer Channel Views on the Marketing Processes 5-C Analysis Customer Competitor Company Collaborators Context S-T-P Marketing Segmentation Targeting Positioning 4 P’s Marketing Plan Product Pricing Promotion Place The Functional View Views on the Marketing Processes Understanding Customer Value Creating Customer Value Capturing Customer Value Delivering Customer Value Sustaining Customer Value The Process View Understanding Customer Value • Value is defined as the perceived worth in monetary units of the of the set of economic functional / technical and psychological benefits received by the customer in exchange for the price paid for for a product offering, taking into consideration the available offerings and prices. - Anderson, Jain and Chintagunta(1993) Understanding Customer Value Psychological Functional Economic Plea From an Anonymous...
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...Concept 16.2.2 Marketing versus Selling 16.2.3 Importance of Marketing in Small Business 16.2.4 Marketing of Services 16.3 Marketing Research 16.4 Market Segmentation 16.5 Marketing Mix 16.6 Other Marketing Strategies 16.6.1 Sub-Contracting Exchanges 16.6.2 Tender Marketing 16.6.3 Consortia Marketing 16.6.4 Government Stores Purchase Programme 16.7 Product Life Cycle: Concept and Significance 16.7.1 Stages in Product life cycle 16.8 Marketing Problems of Small-Scale Units Introduction The objective of all business enterprises is to satisfy the needs and wants of the society. Marketing is, therefore, a basic function of all business firms. When a salesperson sells washing machines, a doctor treats a patient or a Government asks people to take their children for getting polio drops, each is marketing something to the targets. Traditionally, small firm owners did not give as much importance to marketing as to other functions such as accountancy, production and selling. Training programmes, enterprise development and the current thrust for competitiveness have now given high priority to promoting marketing awareness among small business owners, and marketing is now assuming its rightful place along with other business functions. Since early 1990s there has been a change in the thinking of businessman from product orientation to consumer orientation. Modern business concerns lay emphasis on ‘selling satisfaction’ and not merely on selling products...
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...angel investor and venture capitalists Financing Options for Entrepreneurial Ventures: 1. Internal Funding a. Founder, Family and Friends (3Fs) b. Bootstrapping : internally generated retained earnings, credit cards, home mortgages, and customer advances c. Business Alliance: forming “cooperative agreements” with another firm to generate revenues and reduce costs 2. External Funding a. Angels: are successful business people who invest their own money. There are over 250 angels groups * Involved in the early stage of entrepreneurial ventures * Invest in technologies or in business in the areas that are known to them * Capital requirement of $50,000 to $250,000 * Sales potential of between $2 million and $20 million within 5 to 10 years * Invest alone or in angel organizations b. Venture Capitalists: are financial intermediaries, they take investors’ capital (not their own) and invest it directly into portfolio companies They utilized to fund the internal growth of companies and their primary goal is to maximize its financial return by exiting investments through sale or IPO. * Funding later stages firms * New emerging and middle-market private companies that will go public or merge within 4 to 7 years * Have $5 million to $200 million in sales with a billion-dollar potential, growing 25% per year, with gross margin 40% to 50% or more c. Corporate Investors:...
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...Nina Westrick 11/10/2014 Monday PM BU1110 Introduction to Business Unit 8 Assignment 1: The four stages of the Product Life Cycle Most products undergo a product life cycle, passing through four distinct stages in sales and profits: growth, maturity, and decline. The marketing challenge changes from stage to stage, sometimes dramatically. The product life cycle can describe a product class (gasoline-powered automobiles), a product form (sport utility vehicles), or a brand or model (Ford Explorer). Product classes and forms tend to have the longest life cycle, specific brands somewhat shorter cycles. The amount of time that a product remains in any one stage depends on customer needs and preferences, economic conditions, the nature of the product, and marketer’s strategy. The proliferation of new products, changing technology, globalization, and the ability to quickly imitate competitors is hurtling many product forms and brands through their life cycles much faster today than in the past. In categories such as smartphones, individual models can go through the entire life cycle in as little as nine months. (Bovee & Thill, 2013, p 317-318) Examples of each stage of each stage of the product cycles: 1. Introduction: 3D TVs 2. Growth: Blueray discs/DVR 3. Maturity: DVD 4. Decline: Video cassette (Bovee & Thill, 2013) (Productlifecycles.com, 2014) Works Cited Bovee, C. L., & Thill, J. V. (2013). Business in Action (6th ed.). Upper Saddle River, NJ: Pearson. Retrieved...
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...officer to illustrate the four stage process which influences the sales and profitability of the business. Shaving is a popular service offered by barbershops, PROCUTS target men living around the suburban location of the building. Men go in to get a professional look of an expansive array of services; cuts, grooming, styling and shaving. Women also visit the barbershop to get their eyebrows trimmed and shaped. These services are created to exceed the customers’ expectations and stand out from other firms in the market in close proximity. The Barbershop’s mission is to become the number one recognized leader in its targeted market for barbering and hair cutting services. They intend to reflect class, excellence and professionalism in all that they do and maintain quality standards and make customer satisfaction a priority. PROCUTS has three or four licensed hair stylist on staff to provide the mentioned cosmetology services; this will preliminary be the main source of revenue for the firm. At the introduction stage PROCUTS is launched, potential customers are unknown and very few, making revenue minimal and expenses incurred; building renovation, promotion and equipment costs high. A lot is spent on advertising, The marketing officer decides to put An A-Frame in the front of the building displaying services offered and prices, Advertisements are place in all possible medias; newspapers, radio and television. This has to be done to make the new business known. The marketing manager...
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...theory of product lifecycle. In the third section, two case studies are provided to illustrate how the theory of product lifecycle drives marketing strategies. The abbreviation PLC will be used for product lifecycle throughout this paper. Definitions In this section, a number of definitions of product lifecycle theory are provided and an outline of the stages of PLC is demonstrated. According to a prominent researcher in strategic marketing, the PLC is “a generalized model of the sales trend for a product class or category over a period of time, and of related changes in competitive behavior.” (Buzzell 1966; Brassington & Pettitt 2000) The definition states that PLC provides a basic model for organizations to manage products and that sales and time are the two factors to change the period of products. Another definition defines PLC as “ a concept reflects the theory that products, like people, live a life. They are born, they grow up, the mature and, eventually, they die” (Brassington & Pettitt 2000). Their definition indicates that products, which are similar to human beings, experience four different stages. Wood (2004) provided the definition of PLC as “ a product’s movement through the market as it passes from introduction to...
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...organizations around the globe. If analyzed correctly and quickly, but also implemented effectively, failure can transform negative situations into positive growth. Failure is generally discouraged and instinctively passed onto someone else if possible; this is called the Blame Game (Edmondson, 2011). The Blame Game (discovered at childhood) discourages people from taking the blame for a mistake or failure. It leads to unsolved problems and lessons unlearned. Leaders must combat the Blame Game with the construction of a learning culture. A learning culture “makes people feel both comfortable with and responsible for surfacing and learning from failures” (Edmondson, 2011). To build an effective learning culture a leader must strongly encourage a realization of what happened or caused the problem-not who did it (Edmondson, 2011). A learning culture deals with failure in three ways: detecting, analyzing, and experimentation (Edmondson, 2011). Detecting failure is important because the longer it remains unsurfaced the worse the damages will be. It’s also crucial to effective analyze failure. Companies shy away from this because it makes everyone uncomfortable and harms self-esteem (Edmondson, 2011). Analyzing failure obtains wisdom from the situation, and the lesson is learned. Finally, promoting failure through experimentation produces growth and teaches what doesn’t work. (Edmondson, 2011). It takes a leader who wants to grow in every situation to embrace failure. Reclaim Your Creative...
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...Sweet Moment: Business Description Traction Problem Australian gourmet desserts and sweets are becoming increasingly expensive despite the relatively low ingredient costs. On average, cupcakes cost $3.50-$4, and brownie and cake slices are over $4. Moreover, these desserts reflect western values and tastes. For a country as culturally diverse as Australia, there should be a cheaper, multicultural alternative. Solution We create gourmet, hand-made Brazilian desserts called brigadeiros for both an individual treat and as a gift. A traditional treat from Brazil, our brigadeiros are confections primarily comprised of condensed milk, organic cocoa powder, and unsalted butter. They have very low ingredient costs and are distinctive enough to break through the Australian ‘cupcake’ consciousness, thus allowing us to sell a cheaper and more unique product to the Australian market. Assessment of Market Size Target Market Sweet Moment’s primary target market is university students, as generally they are more open to new and innovative ideas. There are over 400,000 university students in Sydney alone, and more than one million university students Australia-wide. In 2013 there were 17,554 Brazilian international students, the large majority of whom would already have knowledge of the sweet. Therefore they will be more inclined to buy it and, through a referral program, can introduce it to friends who are not familiar with the brigadeiros yet. To stimulate growth in the number of...
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...How To Run a Successful Business Using Four Key Business Models Okay so you have started your business and now you're having trouble figuring out what comes next. Well here is the solution for you. This report will serve as a basic manual on how implement certain business plans that are important in running and maintaining a successful business. The Basics Before any business models are discussed it is important to understand the basic of running a business. To start off knowing what type of business you are running is very important. In today's society it is important to define an organizations type of business based on the types of customers it wishes to serve, the particular needs of the customers, and the means or technology by which the organization will satisfy these customers needs. Once your business is defined, the next step is to have a business mission which complements its business definition. The business mission statement should define what an organization is, why it exist, and its reason for existing. It should define who the primary customers are, what products and services your company provides and should reflect management's vision of what it seeks to do. A good mission statement can provide many benefits including: Clarifying managements long term vision and direction of the organization, providing guidance in identifying pursuing, and evaluating market and product opportunities, and motivating and challenging employees to do the things valued by their...
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...hand, if downsizing affects the sale of cars, Big Drive Auto can look at generating revenue in the other two areas listed. Generating revenue in the other two areas may not show a major increase in sales, but should give a positive growth within the next five years. Downsizing falls in the recession area of the business cycle. The recession phase is a “period of decline in total output, income, and employment.” (McConnell, Brue, & Flynn, 2009). Americans No Longer Driving The culture of owning a new vehicle is dropping. Consumers are no longer driving, which decrease sales at car dealerships. Higher gas prices and rising unemployment plays a role in consumers purchasing cars. Evidence of this change can be found in the model below, created by Nate Silver, which reveals a snapshot of a decline in American Driving. This information created from information listed in the Federal Highway Administration, writes Nate Silver. (Esquire, 2009) Mergers and Acquisitions within the Auto Industry Looking at the data provided by Big Drive Auto, see chart below. The data reflects the total revenue they receive far outweighs the total cost for the company. This economically would result in expanded production and movement, thus causing growth and competitiveness which would result in mergers and acquisitions (McConnell et al., 2009). Big...
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...This report will demonstrate that how product life cycle theory could be employ in Chinese Home Inns hotel which opened 810 stores in different area in China (168 main cities). At the first place, the product life cycle theory will be review, and the review also include product, price policy, distribution channel, advertising and promotion strategy in each stage of product life cycle (PLC). In the second part, the author will apply PLC theory into Chinese Home Inns hotel, depth analysis what kind of strategy (product, price policy, distribution channel, advertising and promotion strategy) could use in each stage and characteristics of each stage. 2 The concept of product life cycle The concept of product life cycle is mentioned by Raymond Vernon (1966). He indicated there are four main stages in a product (brand, industry) whole life, which include introduction stage, growth stage, maturity stage and decline stage. And the traditional four stages could present in a graph as follow: [pic] Figure 1. Product life cycle Source: David, M. (1996) Marketing. 2nd edn. Oxford: Blackwell Business. 2.1 Introduction stage Kotler, Bowen and Makens, (2010. p348) identified product introduction is a period of slow...
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...Life Cycle Stages Explained 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. Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage. Decline Stage – Eventually...
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...iPhone and the iPad will be over the next few years. It took the iPod five years to break the thirty million units per annum mark. The iPhone got there in four and the iPad will make it in year two of launch. As for the Sony Walkman it never made it, it took over ten years to top out, the iPod topped out within eight years of launch. Apple product Life Cycles are moving faster and higher sooner than ever before. iPod sales may have peaked in 2008 at just under 55 million units and may fall to around 45 million units this year but the iPhone is set to sell just under 70 million units and the iPad is chasing fast behind. It all adds up to an exciting phase of growth for Apple over the next four years with revenues set to rise over $100 billion in 2011. Students of corporate strategy and business theory are familiar with the concept of the Product Life Cycle. Generally the life cycle is perceived to have four specific stages, introduction, growth, maturity and decline generally plotted with volumes a function of time. In the introduction phase, costs are high, sales volumes are slow, there may be little or no competition and customers have to be stimulated to action. Profits are limited and the product is cash extensive as marketing costs are substantial. Key customers tend to be innovators and early adopters. In the growth phase, unit costs are reduced as volumes increase, advertising is amortised over greater volume, market awareness increases beyond the early adopters,...
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