Product Life Cycle

SuzanneM

Hi Guys,

Would any of you be kind enough to explain the appropriate pricing at the different stages of the Product Life Cycle. I am trying to answer a question to maximise revenue at each stage, and so far I think that during the introduction stage either penetration or skimming pricing strategies should be used. (To recoup development, production and high marketing costs). During Growth and Maturity a more competitive price should be set, perhaps product enhancements can be made or it be targeted to a different market segment and then for the decline stage - practically give it away to avoid holding costs and being left with obsolete stock.

Does this sound about right? I'd appreciate any feedback - good or bad!

Thanks!