The transition of a product into the decline stage of its plc is most likely a result of:12/28/2022 Other tools such as the Boston Consulting Group matrix and the General Electric approach (see Chapter 2 “Strategic Planning” for discussion) may also be used to manage and make decisions about what to do with products. The PLC is a beneficial tool that helps marketers manage the stages of a product’s acceptance and success in the marketplace, beginning with the product’s introduction, its growth in market share, maturity, and possible decline in market share. Just as children go through different phases in life (toddler, elementary school, adolescent, young adult, and so on), products and services also age and go through different stages. The product life cycle (PLC) includes the stages the product goes through after development, from introduction to the end of the product. Other organizations, such as Coca-Cola, decide to compete in markets worldwide 1. Given many possible constraints in international markets, companies might initially introduce a product in limited areas abroad. Companies also need expertise to successfully launch products in foreign markets. Before introducing products in global markets, an organization must evaluate and understand factors in the external environment, including laws and regulations, the economy and stage of economic development, the competitors and substitutes, cultural values, and market needs. The process involves making many complex decisions, especially if the product is being introduced in global markets. Only if this is done will the product’s producer achieve its profit objectives and be able to sustain the offering in the marketplace. Once a product is created and introduced in the marketplace, the offering must be managed effectively for the customer to receive value from it. The 100 Calorie Packs offered by Nabisco proved to be extremely popular.
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