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MARKETING STRATEGIES OF SMEs BASED ON PRODUCT LIFE
MARKETING STRATEGIES OF SMEs BASED ON PRODUCT LIFE

... There are different views about the contribution of Small & Medium sized Enterprises (SMEs) in the economy of a country. One side tries to argue that are the largest contributors to the reduction of unemployment in a country), while other researchers believe that small businesses are irresistible in ...
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... What does she look like, what kind of clothes does she wear, where does she live, what does she drive, how many kids, dogs, cats, birds, etc., does she have—and, of course, what does she like to eat and where does she buy her groceries? Stay Connected—Online and Offline The Internet and social media ...
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Planned obsolescence

Planned obsolescence or built-in obsolescence in industrial design is a policy of planning or designing a product with an artificially limited useful life, so it will become obsolete, that is, unfashionable or no longer functional after a certain period of time. The rationale behind the strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as ""shortening the replacement cycle"").Companies that pursue this strategy believe that the additional sales revenue it creates more than offsets the additional costs of research and development and opportunity costs of existing product line cannibalization. In a competitive industry, this is a risky strategy because when consumers catch on to this, they may decide to buy from competitors instead.Planned obsolescence tends to work best when a producer has at least an oligopoly. Before introducing a planned obsolescence, the producer has to know that the consumer is at least somewhat likely to buy a replacement from them. In these cases of planned obsolescence, there is an information asymmetry between the producer – who knows how long the product was designed to last – and the consumer, who does not. When a market becomes more competitive, product lifespans tend to increase. For example, when Japanese vehicles with longer lifespans entered the American market in the 1960s and 1970s, American carmakers were forced to respond by building more durable products.
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