Please enable JavaScript.
Coggle requires JavaScript to display documents.
product life cycle(PLC), product pricing - Coggle Diagram
product life cycle(PLC), product pricing
PLC
The course of a product’s sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline.
Product development
-
During product development, sales are zero, and the company’s investment costs mount.
-
-
-
Decline
Decline can be slow or fast, steady or unsteady
-
-
-
-
Product pricing
Market-Skimming
Pricing Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price
Market-Penetration Pricing Setting a low price for a new product in order to attract a large number of buyers and a large market share.
-
-
Price Changes
Alternatives to raising prices, discover more cost-effective ways of production or distribution
Reduce product size, remove features
-
-
Responding to competitors’ price changes. Evaluate the competitor’s reason for the price change. Evaluate marketplace response to the price change