What is the international product life cycle?
The international life cycle of the product is a theoretical model describing how industry develops over time and through the national borders. This theory also maps the development of the company's marketing program when they compete on domestic and foreign queues. The concepts of the International Product Life Cycle combine economic principles, such as market development and scope savings, with product life cycle marketing and other standard business models.
The four primary elements of the theory of the life cycle of the international product are: the structure of product demand, production, international competition and marketing strategy and marketing strategy of the company that has invented or innovated. These elements are categorized depending on the product phase in the traditional product life cycle. Introduction, growth, maturity and decline are the phases of the basic life cycle of the product.
The product is new in the introduction and not completed most consumers. Customers who understand the product mayt willing to pay a higher price for top good or service. Production depends on qualified workers who produce short runs with rapidly changing production methods. Innovator markets mostly on the domestic market, sometimes branched and sell products to consumers in other developed countries.
International competition usually does not exist during the initial phase, but during the growth phase competitors on developed markets are beginning to copy the product and sell on the domestic market. These competitors can also branch and export, often from the region that originally innovated the product. The growth stage is also marked by a newly emerging standard of mass -based product. Price wars often begin when an innovator breaks into a growing number of developed countries, introducing the product to new and unused markets.
At some point, the product enters into the renown phaseThe international product life cycle and even on the global market are saturated, which means that almost anyone who bought the product bought it, either from an innovation company or one of its competitors. Businesses compete for the remaining consumers through reduced prices and advanced product functions. Production is stable with a focus on methods of cost reduction, so decreased prices can be transferred to consumers with knowledge of value.
products must be protected by foreign and domestic markets from international competition, and finally divided into more risky development markets in finding new customers. When the product reaches a drop phase, innovators can move production to these developing countries in an effort to increase sales and maintain low costs. During the decline, the product can become outdated in most developed countries, or the price is so low that the market is close to 100% saturated.