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The definition of a product is

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The definition of a product is "anything that is capable of satisfying customer needs", this includes both physical products, like cars, cell phones, machines, as well as services like banking, and insurance. Businesses manage and modify their products over time so that they constantly meet the changing demands of their customers, the methods used to manage a number of brands and product lines is known as Portfolio Managing. The different stages through which these individual products develop in time in terms of the sales they generate is known as Product Life Cycle. A product life cycle is based on the biological life cycle. For example, when a seed is planted in the soil, it is the introduction phase, then it starts to sprout, which is the growth stage, the next stage is maturity, where it grows leaves and roots, finally after a long period it begins to shrink and eventually dies out, which is the decline stage. In theory, a product goes through the same stages. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilizes and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. ...read more.


Other tools in this system can be, for example, offering extensions on warranties, offering new product features and other extra services. In terms of distribution, the demand and sales growth cause a big increase. An example, of a product at this stage are the new mobile phones. Currently, there are many competitors in this market and companies are going out of their way to introduce new features to cell phones, like polyphonic ring tones, built in cameras, computer connections and free after sale services. With so many brands to choose from, the prices have also decreased and the major market holders are differentiating themselves from each other, for example Nokia, stresses on "Connecting People", while Siemens promises everyone the "DigitALL Experience". The next stage for products is the Maturity stage. Typically, this is the longest part of the cycle. At this point of time, their sales peak, there are also many number of competitors and because of this, the brands starts to look very much alike. With a high number of sales and competitors the price drops further for customers. The product diversifies in terms of brands and models. The advertising team tries to further stress brand differences and benefits, while the marketing department tries to maximize profits while defending the market share and extending the lives of their brands. ...read more.


Adexa Product Life Cycle Management gives companies the information and software to plan, manage and schedule product lifecycles by accelerating the introduction of new products, and optimizing all product life cycle phases. Adexa is able to do this by creating product demand forecasts based on the history of similar products, allocate production capacity across new and existing products and analyze inventory, capacity, and profit margins to determine the optimal end-of-life timeframes In general, the life cycles of products are much shorter, which is the reason for extensive research and development. Most companies try to take advantage of their existing strengths when manufacturing new products. This strategy is known as Product Life Extension Strategy, the best example of this would be Coke Cola. In the eighties, there was just one Coke, nowadays we have Diet Coke, Caffeine Free Coke, Cherry Coke, Diet Cherry Coke, Vanilla Coke, Diet Vanilla Coke and not to forget - Coke Classic! Another commonly used strategy used in Brand Franchise Extension is using an existing well known brand to promote new products. An example of this is Nike, who started of with sports shoes, and has now moved into the watch, clothes, accessories market. Sources : 1) Schoell, Dessler, Reincke Introduction to Business, 7th Edition Allyn Bacon Publishing 1993 2) www.adexa.com Global Site Product Solutions ...read more.

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