Product life cycle is the different stages of a product's life. The stages are introduction, growth, maturity and decline (QuickMBA, 2010). The marketing decisions will vary depending on which stage of the life cycle the product is in. The self-driving car will be in the introductory life cycle phase when it is launched. During this stage a number of things occur. The brand must be developed and introduced to the market. The distribution strategy must be determined. Promotion should be aimed at early adopters during this phase. In addition, the pricing structure may incorporate elements of either skimming or penetration pricing (QuickMBA, 2010). The self-driving car is expected to move slowly through the introduction stage of the product life cycle into the growth stage. The reason the pace of this movement is expected to be slow relates to the fact that the technology is revolutionary. Consumer acceptance of the technology will have a major...
Typically, the product life cycle for new technology is rapid, because technology changes so quickly (eHow, 2011). This is going to be true to some extent with the self-driving car in that the iterations (models) will progress quickly, with a new one introduced each year. In automobiles, however, each model year is not viewed as a new product, but as a product that matures and builds on itself year over year. The self-driving car is expected to take 2-3 years to become established among early adopters. One reason is buyer skepticism. The product has merit, but consumers are accustomed to driving their own cars, so are expected to be somewhat reluctant to make the switch. The other reason is that new car purchases are only made every few years for most consumers. As a result of this, many early adopters who are interested will not make their purchase for 2-3…
Product Life Cycle No matter the product, every product goes through what is known as the product life cycle. The stage of the cycle that a product is in dictates how much of a focus the product gets and what will happen going forward in terms of that product being added to, updated or even entirely replaced. The author of this report will speak of a fictional company with a fictional
The manager's understanding of the product nature as well as its place on the cycle are essential to a complete understanding of the need to act or not act. Product life cycles can vary considerably in terms of length. The steam locomotive made its debut in the early 19th century and disappeared from regular service in the UK towards the end of the 1960s. One can still, of course, find
This means that the company must be smart with its distribution, focusing on key retailers and channels to introduce the product to the public. There are exceptions, however. For a lot of consumer electronic products -- smartphones, for example -- companies prefer nationwide rollouts of new products through major telecom distributors. Such a strategy is often supported, however, with penetration pricing and extensive ad campaigns. For companies that cannot
Product Life Cycle Analysis Products, like living creatures, have a specific life cycle. A product is born, it grows up, and eventually it dies. A product's birth is its creation -- the first moment that a brand new device or invention rolls off the assembly line and is made available to consumers. In the case of a color television, its life cycle would commence at the time a brand model first
Product Strategy The development of a product strategy is one of the most important components of introducing new products into the market. A product strategy is defined as a roadmap that provides an outline of the end goal of a product and what it would become upon completion. Business organizations increasingly develop and utilize product strategies because of their significance in strategic planning and marketing with regards to the achievement of
In developed or developing markets, more competition will exist, decreasing demand for the company's specific product and also increasing the marketing struggle, as brand loyalties and simple recognition will be higher for companies already established in the market (Foley 2010). Beginning entry into such a market with simple exporting is advisable, as it has reduced costs and lower risks than other entry methods (provided that manufacturing in the country
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