Product life cycle concept: isnt it like the life of a human being...slow sales during intro., then rapid pickup during growth phase,relatively constant growth during maturity and decreasing sales during decline.However not all life cycles are the same.mktg decisions cannot be based solely on this precept.
A particular products life cycle is not fixed.there is agin the TPC ( total prodyuct concept)GEAP Product circles (G-generic,E- expected product,A - augmnted ,P-potential product)Lot of R&D has to go to leap into the potential product category.Productisation of service --- this means u do customisation of a service and give it a name.A new company willing to enter the market must offer a potential product. something ahead of its times....that wil create the buzz.product differentiation can be either tangible or intangible. Tangible- ex a bike offering 120 km/l. Intagible benefits in the form of branding,through communication,peace of mind to customers.
FOR COMMODITIES, YOU CAN COMPETE ONLY ON PRICE.THATS WHY BRANDING IS SO IMPORTANT BECAUSE U CAN COMMAND A PRICE PREMIUM IF U BRAND.
marginns on services is always much higher than products.
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