Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
For second-tier PC manufacturers this is the phase of the product lifecycle where pricing becomes the competitive weapon of choice, and in many cases, the other aspects of the marketing mix are ignored. Pricing as the only differentiator used during this phase often impacts the largest, most capital-intensive vendors the greatest. Prior to their acquisition by HP, Compaq was well-known for having one of the highest cost structures in the industry, which inevitably lead Compaq to offer price protection on inventories that are obsoleted due to lack of sales through distribution channels (Lee, Padmanabhan, Taylor, and Whang 2000).
The next phase of the product lifecycle is typically called the maturity phase. For products that have been successfully launched and nurtured through their lifecycles, this is the phase where sales are at their peak, the cost per customer is low, and as costs of the products' development have been covered in previous phases, profitability is high. As a result, the marketing mix concentrates on maximizing profits while looking to diversify product lines through either product line extensions or the introduction of entirely next generation products. This is also the phase where pricing becomes the most dominantly used competitive differentiator as by this point many other PC manufacturers have been able to either develop or acquire feature-based technologies and functionality. Price wars are common during this phase of a PCs' product life cycle, and advertising often shifts from purely concentrating on the product's benefits to focusing more on the entire brands' value and its trustworthiness and service reputation. An example of this is Dell's reliance on brand messaging in their enterprise-oriented and large-business oriented laptop and PC systems marketing strategies.
The last phase of the product lifecycle is called decline or harvesting, and concentrates on overcoming pure price competition through intensive bundling, extensive use of price protection to move quickly obsoleting products through indirect distribution channels, and a heavy reliance on brand-based selling. The promotional efforts at this point in a product's life are aimed at moving the PCs off the shelves of retailers through cash incentives to sales people and the use of sales contests as well. Typically manufacturers will move their products in this phase of their lifecycle into alternative distribution channels as well, hoping to gain sales with a minimal erosion of their own gross margins. It is the most unprofitable and most difficult phase of the product lifecycle to manage, where PC manufacturers must think through the decisions around pricing to retain as much of the gross margins they can earn as possible.
The phases of the product lifecycle form an excellent framework for evaluating how PC manufacturers manage their marketing mix strategies over time. As the PC industry is renowned for rapid product lifecycles driven by innovation and price pressure, the use of each attribute or strategy of the marketing mix is critical for anticipating both opportunities and risks in each phase and reacting to them successfully and profitably.
Barry L. Bayus (1998). An analysis of product lifetimes in a technologically dynamic industry. Management Science, 44(6), 763-775. Retrieved December 10, 2007, from ABI/INFORM Global database. (Document ID: 32306221).
Jim Burruss, Dorothea Kuettner. (2002). Forecasting for short-lived products: Hewlett-Packard's journey. The Journal of Business Forecasting Methods & Systems, 21(4), 9-14. Retrieved December 11, 2007, from ABI/INFORM Global database. (Document ID: 305703281).
George Deltas, Eleftherios Zacharias. (2006). Entry order and pricing over the product cycle: The transition from the 486 to the Pentium processor. International Journal of Industrial Organization, 24(5), 1041. Retrieved December 12, 2007, from ABI/INFORM Global database. (Document ID: 1152034371).
Mika Gabrielsson, VH Manek Kirpalani, Reijo Luostarinen. (2002). Multiple channel strategies in the European personal computer industry. Journal of International Marketing, 10(3), 73-95. Retrieved December 11, 2007, from ABI/INFORM Global database. (Document ID: 212269951).
Hau L. Lee, V Padmanabhan, Terry a Taylor, Seungjin Whang. (2000). Price protection in the personal computer industry. Management Science, 46(4), 467-482. Retrieved December 12, 2007, from ABI/INFORM Global database. (Document ID: 54542679).
Jay Rao, Sam Perkins. (2004). Testing…[continue]
"Product Lifecycle Of A Personal" (2007, December 13) Retrieved October 26, 2016, from http://www.paperdue.com/essay/product-lifecycle-of-a-personal-33296
"Product Lifecycle Of A Personal" 13 December 2007. Web.26 October. 2016. <http://www.paperdue.com/essay/product-lifecycle-of-a-personal-33296>
"Product Lifecycle Of A Personal", 13 December 2007, Accessed.26 October. 2016, http://www.paperdue.com/essay/product-lifecycle-of-a-personal-33296
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
The use of forecasting and supply chain management techniques is also pervasive throughout Dell's product life cycle planning programs (Fields, 2006). How different Issues for Product Development are applied in the organization? Dell is best known for its innovation of the direct sales model and rapid pace of innovation in the build-to-order sales model of personal computers, peripherals and entire networks (Salvador, de Holan, Piller, 2009). The build-to-order selling strategy which
Those points are inherent in the approach the company takes to integrating Computer-Aided Design (CAD) data into the broader series of systems and strategies used for constructing boats. The company is also open to taking design, boat interiors and hull style considerations from customers, consultants and dealers. This approach to capturing requirements is often called Voice of the Customer (VoC) research and is typically included as part of the
The strategy would prove successful in assisting the rapid proliferation of the Norton Antivirus packages. Accordingly, Wikipedia (2010) reports that "Norton AntiVirus and Norton Internet Security, a related product, held a 61% U.S. retail market share for security suites as of the first half of 2007." (Wikipedia, 1) In addition to casting a dominant shadow over its sector of the technology industry, this would make Symantec a leading developer
Brand Relationships "Having a Relationship" with a Brand Establishing and maintaining a "relationship" with a brand is a complex concept that often is taken for granted. Much of the complexity arises out of the fact that goods are inanimate objects and do not fall under the traditional notion of a subject of a relationship since the good or product can interact with an individual with human-like qualities. However, at the same time,
In the most successful SMB implementations of collaborative new product development tools including PLM and PDM, priority is put first on process definition and process improvement. Once processes have been defined, continually managed to greater efficiency and as optimized as possible, then the use of information systems technologies and platforms to automate them are added (Christensen, Magnusson, Zetherstrom, 2006, 583-585). PLM as a technique or strategy is not automated
Marketing Analysis Strategies and Techniques Keeping products and services relevant to the rapidly changing needs of prospects and customers is a daunting task. The need for keeping products accurately positioned as customers' needs change, continually evaluating and fine-tuning competitive position, monitoring and evaluating customer perceptions are all critical for creating a cohesive strategic marketing plan (Silverblatt, Korgaonkar, 1987). Distribution channels also must be continually evaluated and analyzed as to their