Extending the Product Life Cycle


The concept of the product life cycle tells us that a sequence of actions is required to maintain a product’s sales and profits. The goal of the planning is to stretch out the life of the product, thus keeping it profitable longer. The following techniques are often effective in extending a product’s life cycle:

  1. New or extended uses: The sales of rugged four-wheel drive sport utility vehicles, ranging from inexpensive jeeps to Range Rovers, increased dramatically once they became accepted as family automobiles.
  2. b. Reduce price and build volume: Tylenol became a much more successful product after Johnson & Johnson reduced its price.
  3. c. Increased frequency of Use: Trade associations that are connected to the poultry and fish industries have been successful in informing the public that their products are low in cholesterol and should be eaten frequently as part of a healthy diet.
  4. d. Broaden the target market: As the ethical issue, American tobacco firms have successfully enlarged the market for American cigarettes by focusing on Japan. They have also been very successful in expanding the market for tobacco products in Europe and South America.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Advertisements

Business Ethics


Business ethics provide guidelines to what is right, good, or moral in commercial relationships. Should an older employee who is no longer fully productive be fired? Should a purchasing agent accept a present from a supplier? Should a magazine accept ads for products that may be harmful to users, such as cigarettes? In practice, answers to these and other ethical questions are usually based on moral or religious standards, on the situation, or on the perceived self-interest of the individual or firm.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.