Select two 2 stages of the Product Life Cycle Describe the m

•Select two (2) stages of the Product Life Cycle. Describe the methods for strategically and tactically managing products during each of the selected stages. Relate the selected stages to two (2) real-life examples of strategic or tactical initiatives within a health care organization.

Solution

Yes, the Product Life Cycle can help health care managers in promoting portfolio planning, strategy formulation and forecasting. You should advertise according to the stage the product is in. Getting the word out is important in the introduction stage. However, it should not be in the same manner as the maturity stage. Maintaining customer relations will be more important at this stage. In essence, the cycle enables managers to use their resources more effectively.

Introduction Stage

The introduction stage of the product life cycle is when people start finding out about it. Product quality is important during this state, as companies want to build repeat business. Additionally, a company may either choose to price its products relatively high or lower than average. Companies can quickly recoup production costs with higher prices. However, a company may use a lower

pricing strategy to build market share or a loyal customer base.

Growth Stage

If the demand for the product is high, sales will soar in the growth stage. Companies may also add product variety to appeal to more customers. Companies will, often, keep their prices stable during the growth stage, according to QuickMBA.com, an online business reference site. Companies are using the higher profit margins for advertising or gaining additional business from repeat customers. Companies will, usually, need to hire more people during the growth stage to better service customers. Advertising departments may increase their expenditures to appeal to a broader audience.

Refences:

http://www.ehow.com/way_5261583_product-life-cycle-planning.html

http://www.ehow.com/info_8123597_four-stages-product-life-cycle.html