The Product Life-Cycle Concept

Because we live and work in a dynamic market situation, managers must accept as the normal state of affairs that all products have a limited life. This fact is commonly expressed in the form of the product life-cycle curve. Products during their existence go through the phases indicated on the curve, as follows:

1. Starting before, sometimes long before, a product reaches the marketplace, there is a development phase. Market research must be undertaken, the product designed, prototypes built, plants laid down. While costs can be very high, income will initially be nil and will probably grow only slowly. Profits are a long way off yet. Many products are slow to ‘catch on’ and this part of the curve typically does not rise steeply.

2. During the growth phase the product reaches general acceptance, and sales increase steeply. Profits mount as development costs are recovered and unit costs decrease with greater volume of production.

3. As the product reaches maturity, initial demand is beginning to be satisfied, competitors may have arrived on the scene, and there will be greater reliance on replacement sales. Sales increase more slowly, and profits come under pressure and may start to decline.

4. When the market is fully saturated, sales will ‘peak off’ and profits decline still further.

5. Finally, sales will go into definite decline and margins come under very severe pressure as it becomes increasingly costly to maintain sales at a reasonable level.

The curve for any particular product may be steeper or flatter, the time-scale may be longer or shorter. Some products seem to go on for a very long time. For this reason the pattern must be applied with care. In addition, we must be careful what we mean by a product in this context: for example, the market for glass has risen steadily over the past 50 years, but within this period the sale of lamp glasses has declined and that of milk bottles has risen steeply (to decline again in some countries in face of competition from waxed cartons or plastic and the change from doorstep delivery to bulk purchase from the supermarket).

Nonetheless the typical pattern stands as a warning that it is dangerous to rely too heavily for too long on one product, so that, as profit from one declines, profit from its successor rises to fill the gap. Ideally this will give a steadily rising profit for the company as a whole, even though some products have entered the ‘decline’ phase of the product life-cycle.

It must be emphasized that the product life-cycle diagram is not a rigid description of exactly how all products always behave. Rather it is an idealized indication of the pattern most products can be expected to follow.

There is nothing fixed about the length of the cycle or the lengths of its various stages. It has been suggested that the length of the cycle is governed by the rate of technical change, the rate of market acceptance and the ease of competitive entry. So, each year numerous new fashion styles are introduced, many of them to last only a few months. At the other extreme, a new aircraft must have many years of life if it is to be commercially worthwhile.

The main importance of the life-cycle concept is to remind us constantly of the three following facts:

1. Products have a limited life;
2. Profit levels are not constant but change throughout a product’s life in a way that is to some extent predictable;
3. Products require a different marketing programme at each stage of their life-cycle.

Implications of the Product Life-cycle

If we have to accept that no product will go on earning profits indefinitely, then we must plan so as to have a whole succession of new products coming ‘through the pipeline’. Peter Drucker has drawn attention to the need to keep all products under review to ensure that not too high a proportion are at the end of their life-cycle. He describes the following six categories:

1. Tomorrow’s breadwinners – new products or today’s breadwinners modified and improved;
2. Today’s breadwinners – the innovations of yesterday;
3. Products capable of becoming net contributors if something drastic is done;
4. Yesterday’s breadwinners – generally products with high volume, but badly fragmented into ‘specials’, small orders and the like;
5. The ‘also raps’ – generally the high hopes of yesterday that, while they did not work out well, nevertheless did not become outright failures;
6. The failures.

Product Elimination

From the product life-cycle concept and Drucker’s analysis of product categories, it follows that all products must be kept under review to assess their present and likely future contribution to profits. A common mistake of marketing management is to keep in the range products that have little or no prospect of contributing to profits. Products are kept in the range until they fade away, meanwhile consuming valuable resources, which could be more profitably utilised elsewhere. These marginal products lower the company’s profitability, and it is essential to control them.

Source: http://en.articlesgratuits.com/the-product-life-cycle-concept-id1560.php

Choosing a Niche Product to Dropship

Time and time again I recommend that you choose a niche product to dropship from your website or sell on eBay. But how do you choose your niche? The following are brainstorming tips to help you come up with a niche product that can be sold online.

First: Check Your Purchases. Many prospective online entrepreneurs try to think of really out-there products like unicycles or bamboo knitting needles so they can enter a market that isn’t too saturated. This is a good idea in some respects, but one of the most important factors when choosing a product is to choose something that people actually buy online. One way to brainstorm this type of product is to think what you yourself buy online.

In the past month, I’ve bought three second-hand novels written by Mildred Walker, a pair of studded motorcycle boots, a Hebrew-printed t-shirt, tickets to a murder mystery play, a pair of Cubs swim trunks, and a calligraphy set. Not surprisingly, almost all of my purchases represent niche markets. Why is that? Because with the exception of a few broad categories like electronics, most items bought online are niche products. This is because common, general products can easily be purchased at physical locations close to your home. You go online to find unusual items that can’t be bought at the mall.

Second: Check Logistics. Let’s assume that I want to dropship my products, not purchase them wholesale. This means that some of the products I purchased last month are out of the running for my niche inspiration. Used books aren’t generally dropshipped, and neither are theater tickets. Shoes and clothing are usually sold wholesale, but in this case the items that I bought might still be appropriate since they weren’t common apparel and accessories. The studded motorcycle boots might be a good candidate for a dropship niche product for a few reasons: first, they are a product that’s not easily found in local stores. I bought those boots online because after searching the three malls in my area I couldn’t find anything quirky enough to satisfy my Sarah Connor Chronicles obsession.

The studded motorcycle boots are a good pick for another reason: they’re a theme product that I could easily build a whole product line around. With the boots as my central product, I could have a goth/punk/emo website, a motorcycle apparel site, or a studded leather accessories site. Finally, while I might not be able to find this product through a dropship supplier, they are expensive enough that I could possibly use a wholesaler to dropship them. Let’s say my wholesale supplier has a $100 order minimum: if a single pair of studded boots costs $125, I can likely have single pairs shipped directly to my customers even though the supplier is ostensibly a wholesaler.

Stay tune for more tips on choosing a niche to dropship products.

Productivity and Motivation

Motivation and productivity are two interrelated concepts, the latter fuels the former and the former is the ending result of the latter.

Productivity is a measure of performance to show how effective an organization can turn its resources into products (or services) intended.

Measure

Productivity is known as a relative measure despite its many forms, since being used for comparing the effectiveness of many different entities. These may be individuals, countries or organizations.

Productivity can show how effective an organization can transform the inputs into the outputs. Usually it is expressed as a ratio output/input in the manufacturing area.

What Multi-factor Measurement is

Productivity may be stated as multi-factor measures, partial measures or overall measures.

Partial productivity is single input. (for calculate products (or services) produced per hour, per plant or per worker etc.)

Multi-factor productivity measures can show the use of multiple inputs (for example output units in the total of labor, energy, capital or production units in the total of labor and materials).

What Productivity Motivation is

Productivity motivation is in relation to the way for motivating a person is performing an activity or task. Improvement programs for workers are based on the way to motivate workers to improve productivity.

Some organizations nowadays offer their workers the recreational activities and sports, leisure and fitness activities and several programs orienting to family.

This approach to increase the performance of employees can capitalize on quality measures such as value, quality circles, Total Quality Management (aka TMQ), performance and innovation standards (on-time delivery, profitability, customer satisfaction, efficiency) as well as bring a variety of team and personal incentives and rewards.

General Knowledge of Mutual Reward Theory

Mutual reward theory (MRT) is known as a very incentive program to help their employees of an organizations or company achieve their goals. This is achieved while meeting production goals of the company.

The greatest rewards are obtained when profits are optimal for all people. Generally, productivity is proportional to the success degree of MRT directly.

How to Calculate the Growth of Productivity

The growth of productivity is known as the measure of the sum of services and products produced within a given period of time. First, it is necessary to determine a standard. Next, the standard (or benchmark) can become the measure against that most of productions in the future will be measured against.

The annual growth rate In a country is being observed. The growth rate of productivity may be proportional to the people’s wealth directly. If the productivity levels increase, so the buying power of people increase too. The sum economy can benefit from the increase in turn.

Most valuable resource

Many researchers of productivity agree that people are the most valuable of all resources of the world. It has been suggested training and education are responsible to raise the productivity levels of individuals.

The researchers of productivity also suggested that achieving expertise through training and education could be maximized by the development of the ones wanting to work and learn and improve continuously at their potential.

Motivation

As there are motives for employees to be proud of who and what they are working for, these employees are able to add a remarkable value to the company or organization. They are able to contribute more to the productivity for themselves, their company or organization and the economy in general.

Choosing Skin Care Products – What Are the Factors You Should Look Out For?

Skin care products can be of many different kinds. They depend up on many factors like the intensity of sunlight exposed to, the type of skin, the presence of acne or pimples and many more individual specific factors. The real fact is that the judgment of the best skin care products should be left to the individual alone.

The overall skin types are classified into five categories. They are normal, oily, dry, combination and sensitive. Those in the normal category are the luckiest because their skin has the right texture, blush and the inherent glow that we so aim for. They are naturally so beautiful that they only require a mild support of skin care products.

The natures of oily and dry categories are amply clear from their names themselves. Products targeting oily and dry categories are completely different from each other. Generally products for oily skin aim at managing the excess oil and the products for dry skin aim at adding moisture and protecting the oil glands. The importance of adding moisture is same in all skin types though. Moisture replenishes the skin of its weariness always. That is the reason why the best skin care products most often have moisturizing action.

Combination skins are generally a plus of two different skin types. The most common combination types are normal skin and oily skin and oily skin and dry skin. The way to care generally is concentrated in two specific regions of the face. One is the T-region and the other region is the cheeks and the chin region. People with combination skin types usually use two different products for these two different types that make up their complexion.

Products for sensitive skin types are difficult to suggest, but a general rule of thumb is to use the those that are labeled to suit such sensitive skin. It is widely suggested to try mild amounts and then see how your skin is reacting to the products.

Aging is only a natural process although it can be delayed or stalled if proper care is taken at the proper time. It is important to accept the process of aging as nothing alarming. Until you accept your skin naturally, you will keep worrying. And who does not know what worry can do to the skin? The skin care products for aging skins should be chosen with special care that the product should not be any way is harsh.

Xtend-Life skin care products are specifically designed to meet the anti aging and cell restructuring needs of a skin. Their products have a mixed ingredient list of organic components and cosmetic components. While selecting the ingredients, it has been ensured that any harmful ingredient has not been included. The anti-aging skincare products of Xtend-Life works primarily on the threefold principles of specially active Cynergy TK, boosting of hyaluronic acid generation in the skin and the action of a powerful antioxidant nanobelle Q10. These three, along with other unique ingredients that make their products the best skin care products in the anti wrinkle and cosmetic face-lift genre.