Search Results

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

Exploring Anti Aging Skin Care Products

There are thousands of anti aging skin care products on the market as you must be well aware of. However, the quality of these anti wrinkle skin products will vary from exceptionally lousy to outstanding. Not surprisingly, many of the companies will claim their special brand is the best there is.

Obviously not every product can be the best. That means there is a lot of misinformation about skin care out there. No wonder consumers looking for high quality anti aging skin care products often are unsure as to which specific product they should buy and use.

In general, products containing ingredients that have been proven effective by clinical tests can credibly be called good products. Let’s take a look at a few of these.

Any product containing ingredients that are 100 % natural would definitely be worth exploring. That’s because all natural anti aging skin care products typically avoid harmful or even toxic, which are still often used by even brand name companies that base their products on chemicals and mineral oil.

They will use preservatives and synthetic chemicals in order to make their creams have a nice texture, smell good or make it stay good for years on the supermarket’s shelf. While such properties are great for the company’s profits, they are unfortunately harmful to the people using these products: possibly causing skin irritation, rashes and even cancer.

But when you use all-natural products that are free of these potentially dangerous ingredients, you can avoid a lot of potential health hazards.

Of course, it is also important to do some research when on the lookout for the best anti aging skin care products. Such research could consist of reading user reviews, doing a little customer service research, or simply taking the good advice of a friend. Great products will eventually develop a reputation for being great – regardless of if they are widely advertised or not. When you find a product with a reputation like that, it is definitely worth trying out.

However, remember not to take all anti wrinkle cream reviews as the absolute truth, because different people have different opinions on what equals “good”, and what may work for someone else, may not be ideal for you.

My tip is to try out a few skincare product lines that are 100% natural and have good customer reviews. Try to find products containing a mix of natural substances designed not only to moisture, but also to boost your skin’s collagen production.

Some of the best all-natural ingredients include, but are not limited to, C-enzyme Q10, Xtend TK and Phytessence Wakame. These are all powerhouse ingredients proven to smooth out wrinkles and keep new ones away. Look for anti aging skin care products containing these three, and you should be seeing anti wrinkle effects in no time!

To learn more about anti wrinkle skin products and natural skin care, please visit my website today for founded, reliable information.

Boost Your Personal Productivity

Productivity, in any aspect, always starts at the personal level. No matter how small or big your goal may be, the first thing that you need to tweak in order to get timely yet effective results is your personal productivity. When you intend and plan from within and set yourself upon a task, there are more chances that you will get it accomplished on time. Setting personal goals and a time frame makes you proactive and productive in your approach, therefore it is very important that you learn HOW to set goals, WHEN to set them and WHAT to do in order to get them!

Creative visualization and positive imagination are keys to make you feel motivated from within and also enhance your personal productivity to a great extent. Nobody knows you better than yourself, and you can use this knowledge to assess your strengths and weaknesses in a better light and push yourself in the right direction. Once you have a thorough know-how of your positive aspects, you can use them to greater effect and achieve success by largely basing your tasks on them.

For example, if you think you have inborn leadership qualities, you can enhance and use them in order to lead a group project. By increasing your own productivity for this matter, you can achieve better opportunities for your whole group. Thus, if you look at this with a big picture perspective, increasing your personal productivity actually increases productivity on a larger scale as well, and makes the path to success shorter, surer and more achievable!

Time management is an essential part and principle of accomplishing your goals. Often, we know what we have to do and how to do it, but we still cannot complete the task at hand on time. This not only hampers our progress, but also makes us feel de-motivated and defeated. Increasing personal productivity is also dependent on effective time management and channeling your resources, interests and capabilities in the RIGHT direction at the RIGHT time. Time management comes with a proper attitude, proper planning and, of course, proper execution. Therefore, always choose the right time and prioritize your duties and responsibilities at home and at the workplace. Doing so will ensure that you perform to your full potential and do not end up feeling stressed out or frustrated.

While failures and mistakes can make you feel de-motivated and resigned at times, do not let them lower your productivity ratio. Instead, use defeat as a tool to sharpen your skills and make yourself more focused and targeted in your approach. The right kind of mindset and a positive thinking and attitude can work wonders not only in deciding your productivity, but also in shaping your life goals.

Once you learn how to manage success and failure with the right kind of attitude, there can be no boundaries to your achievements! Therefore, start thinking, planning and working on increasing your personal productivity today and be surprised and satisfied with the results that you get!