BSM 600 Chapter Notes - Chapter 5: Risk Aversion, Isomorphism, Commoditization
17 May 2016
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Document Summary
Product life cycle best-known and most enduring marketing concept: products are born -> sales grow -> reach maturity -> decline -> die. Industry life cycle supply-side equivalent: multiple generations of a product or service therefore longer than the product life cycle, four phases: Two factors that drive industry revolution: demand growth, production and diffusion of knowledge. Intro sales = small, market penetration = low: high costs, low quality, customers = affluent, risk-tolerant, innovation-oriented, novelty of tech, small scale production, lack of experience. Growth market penetration = accelerating: tech improvements, increased efficiency, mass market opening. Maturity caused by increasing market saturation: demand is wholly for replacement. Decline challenged by new industries producing tech superior substitutes. Intro tech advances rapidly: no dominant tech, rival tech = competing for attention, competition = between alt tech and design configurations, sales focus = enthusiasts and pioneers.
