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Tuesday, November 24, 2009

PRODUCT LIFE CYCLE IN THE INTERNET


The third step in selling products on the internet is to understand the product life cycle stages on the internet. Life cycle on the Internet include product introduction stage, the stage of retail products in the season, the final stage of product life and product liquidation phase. Product introduction phase is also known as the product launch phase. This stage occurs when the product was introduced to the market and the product is very new thing for the customer's mind. At this stage the product in warm conditions or product supply exist or can not meet all the demand. Circumstances like this cycle is known as the state of the product life cycle healthy. Usually the time between 1 year to 3 years. Conversely, if the supply of products is greater than the demand indicates unhealthy conditions or product failure, the time between 6 to 12 months or less. For example, when Apple took the iPod Mini, an MP3 player has been sold out for three months at the introductory stage. In contrast, the electronics company that sells kitchen equipment $ 1,000 for 2 months on the Internet have failed and ended with a discount at this stage of its introduction.
Phase retail products is a step in season, most companies require retailers to provide product prices in accordance with recommended. Digital cameras, cars, books, television and clothing are the latest and greatest products in the retail season. For example, if you bought a digital camera to Best Buy, Circuit City, Electrinic Boutique, Sears and other stores, will find the same prices, except maybe a package price in the context of specific events, but basically the price at any cost the same otulet.
The final stage of product life is usually caused by the introduction of new products in the category of products by companies or competitors. At this stage manufacturers and retailers pulled the old product as soon as possible by replacing the new product is still warm. At this stage the product sold as a cost or a small loss, as customers shifted from older products to newer products. In the old product seller using a high discount rates to attract customers to buy the old product. For example, old products we call P100, the new product that replaces with a new model we call P200. This applies to the automotive, electronics, computers, clothes and so on.
Liquidation phase is the phase of the excess inventory of products, produces waste and product updates. This stage is the stage avoided by producers and retailers, as it suffered heavy losses. Usually sold products 10% to 20% of the cost or a loss of 80% to 90%, so that producers and retailers to remove these products. For example, companies want to sell in large numbers for women's leather jacket for winter and autumn. Companies producing in large quantities and menyetok in large numbers in the thousands of shops and the city. It turned out that the estimate is wrong, because only certain cities are in dire need leather jacket. So the only way to sell only to give a big discount to sell the leather jacket and the resulting loss.



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