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Production Life Cycle

Products, like people, have been viewed as having a life cycle. The products life cycle concept describes the stages a new product goes through in the marketplace: introduction, growth, maturity and decline.

The introduction stage of the product life cycle occurs when the product first enters the market, sales grow slowly, and profit is little.

The second stage of the product life cycle, growth, is characterized by rapid increases in sales, and it is in the stage that competitor appear.

The third stage, maturity, characterized by a leveling off of total industry sales revenue. Also, marginal competitors begin to leave the market. Most consumers who would by the product are either repeat purchases of the item or have tried and abandoned it.

The decline stage is the beginning of the end and occurs when sales and profits are steadily dropping. Frequently a product enters this stage not because of any wrong strategy of the company but because of environmental changes.


Ex. 12 Read the text. What is it about? Give the title to the text.

Marketing is closely related to economics, the social science concerned with the production, distribution, and consumption of useful goods and services. In traditional economic thought economic activity creates utilities of form, place, time, and possession. To marketers the form created is the product; place and time refer to having the product available where and when it is needed; and possession relates to ownership or transfer of title. Marketing is a part of the broad field of economics and helps to create these four all-important utilities.

Marketing is also related to other social sciences. It draws freely from sociology, the scientific analysis of social institutions as a functioning whole and as they relate to the rest of society. Marketing studies people in a social context, as members of different groups. Advertisers, for example, aim their appeals at particular market segments, such as the youth market, the urban market, the black market, or the farm market. Sociology helps us understand the differences not only between our society and those of other nations but also between various subcultures within our own country.

Psychology is the study of the mental, attitudinal, motivational, or behav­ioral characteristics of an individual or a group of individuals. Marketing practitioners find knowledge of psychology helpful in formulating adver­tising and sales campaigns. How do people think? What motivates them to buy? How can we change their buying habits? What price will have the strongest appeal? Psychological research has become a major tool of mar­keting analysts.

-- How does the study of marketing relate to economics ( sociology, psychology)?


Ex.13 Speak about marketing. Use the texts of the unit.


Ex.14 Read the text and copy out new words.


Date: 2015-01-12; view: 1591

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