MKT 301 Lecture Notes - Lecture 22: Price Skimming, Monopolistic Competition
22 Mar 2016
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Document Summary
The product life cycle theory: a theory that describes the behavior of products once they are introduces into the market place. The theory says that products go through stages over time that are similar to the stages of human development. Products go through stages of maturity just like humans (longest stage) Products go through stages called decline (when it ends) Sales are very slow because: people don"t know about the product yet, many customers wait to buy a product until later, you do not have too much inventory at the beginning. Selective distribution: since you haven"t got that much inventory, you put it in the best biggest channels at the beginning, this could be exclusive distribution. Promotion: informative advertising: inform people what the product is about, use coupons. Competitive environment: competition comes in: move form monopoly to monopolistic competition, maybe you have a monopoly in perception but now in competition.
