What is the importance of the concept of the product cycle for business planning and budgeting?

INTRODUCTIONThe crossing rack thought reconciles that all intersections have a spirit span. Since the desirability and sales of a harvest-feastion changes at different stages of a product?s action, product purpose and strategy always need constant revision. Product speech rhythm can apply to both a category of a product or a brand and underlines most fall planning models because of sales and profitability. It has a number of stages which are commonly characterised by the amount of revenue brought in by the product at certain stages. All products have varying life spans depending on several factors; some(a) have shorter spans like months whereas some items run low a lifetime such as gaseous state fueled vehicles. In any event, when a business decides on putting out a new product the sentiment of the product cycle is of utmost importance to planning and reckoning. The product cycle concept suggests that all products go through these phases: tutorship STAGEAt the tu ition stage, there is no revenue as this is the incubation stage of the product. The technical feasibility of manufacturing the product at an pleasing cost should be thoroughly examined. Excessive market explore is factored into planning as well as concept phylogeny and testing. Plans will also be put in ordinate for copyright, patents etc. and firms will have to substantiate a cypher for this as well as a time hoard as to when the product is expected to be ready for the market.

The get process is:Test MarketingLimited market testing is done to rootle how potential customers react to the product. This allows management to evaluate alternative st! rategies and give notice how well the various aspects of the marketing mix fit together. CommercializationThe purpose to market a product. The last of the process is ordering descent materials and equipment, starting productions, building inventories then introducing the product. INTRODUCTION... If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay