MGTA02H3 Chapter 6: Chapter 6 Notes
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MGTA02H3 Full Course Notes
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Www. notesolution. com: prototype development: production of a preliminary version of the product, product testing and test marketing: product is tested internally and becomes available to the test markets, commercialization: full-scale production and marketing of the product. Product life cycle (plc): the concept that the profit-producing life of any product goes through a cycle of introduction, growth, maturing and decline. Stages in the product life cycle: introduction: stage begins when the product reaches the marketplace. Marketers focus on making potential consumers aware of the costs and its benefits and because of extensive promotional and development costs, profits are nonexistent: growth: if the product attracts and satisfies enough consumers, sales begin to climb rapidly. The product begins to show profit, while other firms in the industry move to introducing their own versions: maturity: sale growth begins to slow. Although the product earns its highest profit level early in this stage, increased competition eventually leads to price cutting and lower profits.
