As defined by Perrault, Cannon, and McCarthy (2014), the product of life cycle is a four step process that discusses the stages a product experiences from the beginning to the end (p. 235). A product first begins with the market introduction. This is where the new product is introduced to the market, therefore sales tend to be low considering consumers are unaware of what product is being offered. During this stage it is essential to develop and invest in the marketing mix, however this results in a lose for the company (Perrault, Cannon, & McCarthy, 2014, p. 236). The authors explain that next comes marketing growth. During this stage, the company will begin to see that this is the time where their sales and profits increase tremendously
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According to Tom Oakley those four stages are discussed. First, the introduction stage of the iPod started with the launch of a basic model. They inform the consumer of the product, Apple began using television ads to attract their market by showing off the new benefits of having an iPod (2014). Oakley (2014), continues to explain that during their growth stage Apple faced competitive competition from the MP3 player. To deal with them, in 2004 Apple felt the need to expand their market by making little changes to the appearance of the iPod, by introducing iPod Mini, Nano, Shuffle, and Touch. By 2008, Apple reached the maturity stage with the iPod producing global sales up to 54.8m units (Oakley, 2014). With each new change to the iPod, Apple was able to successfully differentiation themselves from the competition (Oakley, 2014). Lastly, Oakely explains that by 2013 the iPod has dropped to 26.3m from their shocking 54.8, resulting in a decline of the iPod business. With the change of the technology and the changing demands of society, the iPhone and iPad have closed out the iPod. With the iPhone launch, the need for a separate iPod did not exist anymore …show more content…
Exporting is selling products to foreign markets that the firm produced (Perrault, Cannon, & McCarthy, 2014, p. 284). Exporting is usually a first choice because it has low costs and low levels of risk, however, it is limited due to transportation costs and market competition (Morello, 2014). Next, licensing according to Perrault, Cannon, and McCarthy (2014), is selling someone the right to use a trademark or patent, if they pay a fee (p. 284). With licensing, expenses and time with expanding overseas is eliminated, but monitoring, training, permits, and renewal play a major role in licensing and require full attention (Morello, 2014). Licensing was used as a way for Gerber to enter the Japanese baby food market (Perrault, Cannon, & McCarthy, 2014, p. 284). In addition, management contracting as defined by the authors (2014), is when the seller only gives management and marketing skills and the production and distribution centers are owned by others. Hilton operates hotels around the world using management contracting (p. 284). This is a good choice because risks are low and commitment levels are low (p. 285). Perrault, Cannon, and McCarthy (2014), discuss that J.P. Morgan entered China used joint venture as a way to do so. Joint venture is when a domestic firm becomes partners with a foreign firm (p. 285). Using joint venture allows for double financial power and
According to Tom Oakley those four stages are discussed. First, the introduction stage of the iPod started with the launch of a basic model. They inform the consumer of the product, Apple began using television ads to attract their market by showing off the new benefits of having an iPod (2014). Oakley (2014), continues to explain that during their growth stage Apple faced competitive competition from the MP3 player. To deal with them, in 2004 Apple felt the need to expand their market by making little changes to the appearance of the iPod, by introducing iPod Mini, Nano, Shuffle, and Touch. By 2008, Apple reached the maturity stage with the iPod producing global sales up to 54.8m units (Oakley, 2014). With each new change to the iPod, Apple was able to successfully differentiation themselves from the competition (Oakley, 2014). Lastly, Oakely explains that by 2013 the iPod has dropped to 26.3m from their shocking 54.8, resulting in a decline of the iPod business. With the change of the technology and the changing demands of society, the iPhone and iPad have closed out the iPod. With the iPhone launch, the need for a separate iPod did not exist anymore …show more content…
Exporting is selling products to foreign markets that the firm produced (Perrault, Cannon, & McCarthy, 2014, p. 284). Exporting is usually a first choice because it has low costs and low levels of risk, however, it is limited due to transportation costs and market competition (Morello, 2014). Next, licensing according to Perrault, Cannon, and McCarthy (2014), is selling someone the right to use a trademark or patent, if they pay a fee (p. 284). With licensing, expenses and time with expanding overseas is eliminated, but monitoring, training, permits, and renewal play a major role in licensing and require full attention (Morello, 2014). Licensing was used as a way for Gerber to enter the Japanese baby food market (Perrault, Cannon, & McCarthy, 2014, p. 284). In addition, management contracting as defined by the authors (2014), is when the seller only gives management and marketing skills and the production and distribution centers are owned by others. Hilton operates hotels around the world using management contracting (p. 284). This is a good choice because risks are low and commitment levels are low (p. 285). Perrault, Cannon, and McCarthy (2014), discuss that J.P. Morgan entered China used joint venture as a way to do so. Joint venture is when a domestic firm becomes partners with a foreign firm (p. 285). Using joint venture allows for double financial power and