The Product Life-Cycle Concept

Because we live and work in a dynamic market situation, managers must accept as the normal state of affairs that all products have a limited life. This fact is commonly expressed in the form of the product life-cycle curve. Products during their existence go through the phases indicated on the curve, as follows:

1. Starting before, sometimes long before, a product reaches the marketplace, there is a development phase. Market research must be undertaken, the product designed, prototypes built, plants laid down. While costs can be very high, income will initially be nil and will probably grow only slowly. Profits are a long way off yet. Many products are slow to ‘catch on’ and this part of the curve typically does not rise steeply.

2. During the growth phase the product reaches general acceptance, and sales increase steeply. Profits mount as development costs are recovered and unit costs decrease with greater volume of production.

3. As the product reaches maturity, initial demand is beginning to be satisfied, competitors may have arrived on the scene, and there will be greater reliance on replacement sales. Sales increase more slowly, and profits come under pressure and may start to decline.

4. When the market is fully saturated, sales will ‘peak off’ and profits decline still further.

5. Finally, sales will go into definite decline and margins come under very severe pressure as it becomes increasingly costly to maintain sales at a reasonable level.

The curve for any particular product may be steeper or flatter, the time-scale may be longer or shorter. Some products seem to go on for a very long time. For this reason the pattern must be applied with care. In addition, we must be careful what we mean by a product in this context: for example, the market for glass has risen steadily over the past 50 years, but within this period the sale of lamp glasses has declined and that of milk bottles has risen steeply (to decline again in some countries in face of competition from waxed cartons or plastic and the change from doorstep delivery to bulk purchase from the supermarket).

Nonetheless the typical pattern stands as a warning that it is dangerous to rely too heavily for too long on one product, so that, as profit from one declines, profit from its successor rises to fill the gap. Ideally this will give a steadily rising profit for the company as a whole, even though some products have entered the ‘decline’ phase of the product life-cycle.

It must be emphasized that the product life-cycle diagram is not a rigid description of exactly how all products always behave. Rather it is an idealized indication of the pattern most products can be expected to follow.

There is nothing fixed about the length of the cycle or the lengths of its various stages. It has been suggested that the length of the cycle is governed by the rate of technical change, the rate of market acceptance and the ease of competitive entry. So, each year numerous new fashion styles are introduced, many of them to last only a few months. At the other extreme, a new aircraft must have many years of life if it is to be commercially worthwhile.

The main importance of the life-cycle concept is to remind us constantly of the three following facts:

1. Products have a limited life;
2. Profit levels are not constant but change throughout a product’s life in a way that is to some extent predictable;
3. Products require a different marketing programme at each stage of their life-cycle.

Implications of the Product Life-cycle

If we have to accept that no product will go on earning profits indefinitely, then we must plan so as to have a whole succession of new products coming ‘through the pipeline’. Peter Drucker has drawn attention to the need to keep all products under review to ensure that not too high a proportion are at the end of their life-cycle. He describes the following six categories:

1. Tomorrow’s breadwinners – new products or today’s breadwinners modified and improved;
2. Today’s breadwinners – the innovations of yesterday;
3. Products capable of becoming net contributors if something drastic is done;
4. Yesterday’s breadwinners – generally products with high volume, but badly fragmented into ‘specials’, small orders and the like;
5. The ‘also raps’ – generally the high hopes of yesterday that, while they did not work out well, nevertheless did not become outright failures;
6. The failures.

Product Elimination

From the product life-cycle concept and Drucker’s analysis of product categories, it follows that all products must be kept under review to assess their present and likely future contribution to profits. A common mistake of marketing management is to keep in the range products that have little or no prospect of contributing to profits. Products are kept in the range until they fade away, meanwhile consuming valuable resources, which could be more profitably utilised elsewhere. These marginal products lower the company’s profitability, and it is essential to control them.

Source: http://en.articlesgratuits.com/the-product-life-cycle-concept-id1560.php

Acne Skin Care And Treatment Products

If you are currently dealing with the pressing problem of acne, do not fret. There are actually thousands upon thousands of people dealing with the same problem. Acne can indeed victimize just about anyone, provided that the right circumstances occur. Thus, it is important to discuss the various acne skin care and treatments in the market right now. In general, there are many acne products that you can use and treatment methods that you can employ. One thing is for certain though, and that is, you should not try just about any product or treatment method on your own. What is effective for a certain person may not necessarily bring about the same results for you. Thus, it is of import to check in with your dermatologist, to determine which acne skin care and treatment products would be appropriate for you.

If you are dealing with acne, then you surely must have heard about proper skin care routine. This is actually an essential part of the whole treatment. Treating acne is not as simple as merely dabbing your face with acne gel that you can easily purchase over the counter. Treating acne goes beyond that simple act. Being stubborn won’t help because self-treatment just might lead to the condition becoming worse. There is also that risk of formation of more acne on your face. And this is something you should definitely avoid.

The important thing in solving the problem of acne is to keep your skin’s production of natural sebum oil under control. One effective product that you can easily use is mild facial wash that contains salicylic acid. But why salicylic acid in particular, you may ask. This is because salicylic acid has properties that can prevent the overproduction of sebum oil. It is actually the sebaceous gland that is overactive here. Salicylic acid works to inhibit the producing properties of your sebaceous glands. Once the salicylic acid components take effect, the clogging of your pores would be reduced significantly. You can then do away with oil and dirt on your face.

Another highly recommended treatment method is the combination of using a topical application consuming supplements specially prescribed for acne. For the appropriate combination to be prescribed, you should still consult your dermatologist. In general, products, such as Acnezine or ClearPores, are highly recommended. These are indeed amongst the top acne skin care and treatment products out in the market today. It also helps to be vigilant about the application and the consumption of acne products, to ensure the proper treatment of the condition.

Secrets to Personal Productivity

To achieve optimal personal productivity, one must be aware of himself, the situation as well as the other party. Who are the other party? They can be your co-workers, bosses, director, vendor, etc. in a workplace context. We can also describe personal productivity as an awareness of three things: Me, You and Situation. This is not something special and it had been mentioned in Sun Tzu’s Art of War quote:

It is said that if you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle.

In our modern day context, we are not trying to win a war. We know “war” is too costly (it’s all in the news). The fundamental objective is to achieve personal productivity through understanding ourselves, the other party and the situation. Understanding ourselves involves awareness of our choices of actions, responses, our thinking, self-discipline and exertion of self-control. Strengthening the “me” is our core principle of understanding oneself. Understanding the other party involves awareness of their thoughts, anticipated responses within the given situation. We cannot change the perspective of another person, working styles, life’s need or nor a situation, but what we can do is to prepare our state of mind and body to adapt and handle various situations when they arise. Through this, we can “position” ourselves and influence any decisions and outcome. It goes the same when you enter the wrong “position”, the results are negative consequences.

How does it have any relation with improving personal productivity? Chances of us knowing the other party (or person) and situation dynamics is limited. But we have awareness and control of ourselves. Having being able to control what we can, we then anticipate and influence what is out of our control. Understanding oneself is one part of the equation to personal productivity. To further enhance personal productivity, it is necessary to complete the other half of the equation: understanding and reacting appropriately to other’s behavior in different situations. Sun Tzu’s Art of War quotes have been widely used in the business world. In our context, we bring it a level down to for the purpose of enhancing personal productivity at work.

Throughout the journey of finding productivity (is it work or life) with us, you will find that we begin working on one’s personal awareness and self-control (Me factor). Following through to understanding of the other party (You factor) and handling of situation dynamics (Situation factor). You will find what’s written here able to address your needs, if you have trouble finding personal productivity at work or having a grumpy boss always concerned with your performance. Simple as the concept is, we believed that what we are sharing here will be helpful in your search of personal productivity at work.