Developing and Managing Offerings

Read this chapter. Pay attention to the section on managing new products and the product life cycle, and watch the videos.

Explain what a firm that sells a product with a limited life cycle (such as software) should do in each stage so there is not a lot of inventory left over when a newer version is introduced?
Explain why the marketing costs related to a product are typically higher during the introduction stage and why companies must generate awareness of the new product or service and encourage consumers to try it.
Explain why and when penetration and skimming pricing are used in the introduction stage.
What stage of the life cycle is a product in when the company cannot meet the demand for it and competitors begin to enter the market?
What different strategies do firms use to extend the life cycles of their products throughout the maturity stage?
How did Kraft extend the mature stage of the product life cycle of Wheat Thins crackers?
Explain the difference between harvesting and a divesting when a firm enters the decline stage.