BUS-PM-w2d1
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peer_response_1.docxGuided Response:
Review several of your peers’ posts. Respond to at least two of your peers to provide recommendations to extend their thinking. Challenge your peers by asking a question that may cause them to rethink the product life cycle.
he vision or plan of the product life cycle as we have read in our text has been around for a very long time and I believe the significant or main reason is that manufacturers must grasp it basically to stay in business and make profits. Businesses or manufacturers do not just need to comprehend the product life cycle to build their profits and business I think should organize each product based on their usefulness and existence. I feel that this could be done by utilizing the suitable materials and plans that are determined by what particular stage a product is at in the life cycle (White 2012).
I have decided to choose music in the form of CD’s. There are four stages of the product life cycle as we have been learning in our text. These are very clear and concise stages but can vary from business to business with different goals and characteristics depending on the products and the manufactures. Way back when music came in the form of A-Track, then cassette tapes, and then CD’s. I think the ways to listen to music has went through every stage of the product life cycle.
The first stage is the introduction stage which could ultimately be the most costly for a company pitching a new product (Bilir, 2014). In this stage depending on the size of the market for a particular product sales could be low. The music industry is huge as we all listen to some form whether a radio, phone, iPod, etc... Of course CDs were popular in the 90’s era.
The next stage is the growth step which naturally distinguished by a rather powerful increase in profits and sales from a particular product (White 2012). Ultimately this stage allows a business to fund more money for the advertisement or element to capitalize on the possibility of this stage. Copy writing started becoming a huge problem of the CD industry.
The third stage will be the maturity stage which is where the product has been accepted and the direction for the manufacturer at this point is to retain a specific quota of complete sales on a precise product attained by a company for a certain time period (Bilir, 2014). CD’s then started fading out because you could download CDs you already had to a device.
The decline stage which is the final stage where in time the market for a particular product will begin to dwindle. This stage or dwindling of a product could take place following a market becoming flooded or over supplied. This could be a result of customers already having the product or customers are shifting to a whole new sort of product. It was evident that in time no one was purchasing CDs because of the many ways we could get music.
Bilir, K. (2014). Patent Laws, Product Life-Cycle Lengths, and Multinational Activity. American Economic Review. Retrieved from http://dx/dpo/org/10.1257/aer.104.7-1979.
White, S. (2012). Principles of marketing. (1st ed.). San Diego, CA: Bridgepoint Education, Inc.
Peer Response 2:
Everyday, technology unveils a new upgraded trend from the last innovation. The PlayStation has been a high commodity to many gamers throughout the world. With the PlayStation 4 still at its sales peek, the life cycle is holding its value and profit for a lot longer than most. “Technology research firm IHS has estimates the cost of building a PlayStation 4 (PS4) to be $381, i.e. only $18 lower than its retail price in the USA and Canada. With the huge success on day one, that already equates to a gross profit of $18 million, though Sony still relies on profits coming from customers buying the complementary good to the PlayStation 4 — video games” (Hoang, 2013). The name Sony PlayStation, holds a lot of value and therefor making an impact on marketing and the product life cycle.
There are 4 stages in the product life cycle; The market introduction, the growth, maturity, and the decline stage. For the PS4 the introduction stage launched at Christmas time and gamers were awaiting the doors of its seller to open, hours beforehand. Wanting/ needing the newest innovation to the gaming world was the perfect hook to cast right around Christmas. “In the introduction stage costs are high, but sales and profit are low” (White, 2012). This is then balanced in the phases to follow.
In the growth phase of the PS4, its supply was able to catch up to its demand and therefore continue bringing in profit. The growth in sales enabled the prices to be discounted and then appealing to more consumers. Although the product hasn’t seen the decline phase at this point, it is important to marketers to foresee when decline is starting. The decline in the product demand can be caused from competitors (x box), the product has reached its audience, or the need is perishable.
To keep up with the decline, products need to keep up with the new niches or trends. PS4 uses online tools, upgraded controllers, games, and many interactive devices. The name says is all, well it says a lot about the product and personality of its use. The customers create the brand and the narrative should align with the target audience. “Branding is the DNA of promotions” (White, 2012). The brand characteristics are what the customers rate the product. The brand is the identity, so if the identity is poor, the ratings are not going to be a #1 recommended product.
Although the product life cycle is a roller coaster of cost, supply, and demand, the distribution channel will keep up with the next line extension throughout the products development within the life cycle. This is an ongoing process and if played out correctly, a very successful one.
References:
Hoang, P (2013). PlayStation 4 Gets A Head Start. Retrieved from: http://www.hoddereducation.co.uk/media/Documents/Magazines/e-Reviews/BR/Business-e-Review_December-2013.pdf
White, S. (2012). Principles of marketing. (1st ed.). San Diego, CA: Bridgepoint Education, Inc.
