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Basic Marketing Concepts
Basic Marketing Concepts

... concept must consider is customer satisfaction. In general, value is the personal satisfaction gained from the use of a good or service. Customers compare the price they pay for a product with all the benefits that come with it. What is one product that your have found valuable? How about one in whi ...
ProDif
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chapter 2
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... marketing aims to reach a specific “high quality” audience. An example is Huggies or Pampers. 3. The customer is placed in the center of the four P’s because this strategy is showing that all of these variables are necessary to effectively target a customer. Example of mine is this Christmas I was s ...
Lecture Notes
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... Product: The product aspects of marketing deal with the specifications of the actual goods or services, plus how it relates to the end users’ needs and wants. The range of a product normally includes supporting elements such as warranties, guarantees, and support. Placement: This refers to how the p ...
Multiple Choice Question
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... monitoring can allow for fine tuning and continuous improvement in the way the business serves its customers. ...
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Marketing Crash Course
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Product Strategy
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The Product Life Cycle - Deans Community High School
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Explain Marketing
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SEM I-201
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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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