MKT 421 Week 3 Assignment Help 2 | University Of Phoenix
- University of Phoenix / MKT 421
- 08 Jun 2019
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MKT 421 Week 3 Assignment Help 2 | University Of Phoenix
BMW: "Newness" and the Product Life Cycle
Products, like people, are viewed as having a life cycle. BMW manages the product life cycle of its models very carefully. Introducing new generations of models and new features are carefully timed in order to keep the desired stage of the product life cycle.
The concept of the product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. The introduction stage of the product life cycle occurs when a product is introduced to its intended target market. During this period, sales grow slowly, and profit is minimal. The growth stage of the product life cycle is characterized by rapid increases in sales. It is in this stage that competitors appear. The maturity stage is characterized by a slowing of total industry sales or product class revenue. Also, marginal competitors begin to leave the market. Most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it. The decline stage occurs when sales drop. Frequently, a product enters this stage not because of any wrong strategy on the part of companies but because of environmental changes.