Purchase Solution

Pricing in decline stage of product life cycle

Not what you're looking for?

Ask Custom Question

1. When a product is in the sales decline stage of the product life cycle, new products will be introduced to replace the old. It sounds from your posting that the video recording machine may become obsolete. When this occurs, typically prices are lowered to clear out inventory.

In a competitive market, what strategy would you recommend to a company when they introduce a replacement product?

2. Most retailers and wholesalers set their prices by using a markup. A markup is added to the price of a product in order to cover operating expenses and make a profit. Markup can be a fixed amount or a percentage of the total cost or selling price.

What are some of the problems with having a markup set too high or too low?

Purchase this Solution
Solution Summary

This answer provides you an excellent discussion on Pricing in decline stage of product life cycle

Solution Preview

1. When a product is in the sales decline stage of the product life cycle, new products will be introduced to replace the old. It sounds from your posting that the video recording machine may become obsolete. When this occurs, typically prices are lowered to clear out inventory.

In a competitive market, what strategy would you recommend to a company when they introduce a replacement product?

In a competitive market the strategy I recommend to a company when they introduce a ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • How does pricing strategy change over the product life cycle

    483892 pricing strategy Explain the way pricing strategy changes over the course of the four stages of the product (category) life cycle: introduction, growth, maturity, and decline.

  • Marketing - Price and Margins

    In the decline stage, if the product is not upgraded or rejuvenated or new features are not added, the pricing is reduced drastically. The margin is reduced as the product moves from the growth and maturity stages towards the decline stage.

  • Products, services, or social products and Pricing

    EXAMPLE: EXCERPT The Product Life Cycle A new product progresses through a sequence of stages from introduction to growth, maturity, and decline.

  • Product Life Cycle Worksheet for Marketing Mix

    Product Life Cycle Worksheet For each part of the marketing mix for REI, list several marketing tactics that would be used for each stage of the product life cycle. .

  • Pick a 'fad' product and explain the life cycle, promotion and pricing strategies

    What promotion and pricing strategies are key at each step of this cycle? Why? There are many factors that influence the product life cycle of any given product campaign.

  • Blu-Ray DVD Players

    240550 Product life cycle of Blu-Ray DVD players What stage is Blu-Ray DVD players at in the product life cycle? Provide rationale for your answer.

  • Pricing Over a Product's Lifecycle

    92135 How should pricing strategy fluctuate over the product/service life cycle? How should pricing strategy fluctuate over the product/service life cycle? Can you give an example. Products tend to go through four stages: 1.

  • There are four cycles for product life:

    Describe the pace at which your product will move through the product life cycle and the factors that will impact its movement. How will the product life cycle impact the marketing of your selected product or service?

  • Marketing: The Product Life Cycle

    133017 Marketing: The Product Life Cycle Task: Select a product (name it) with which you are familiar. What stage is your selected product at in the product life cycle? Provide a rationale for your answer.

View More Related Solutions