A product can be something you can touch (tangible) like a toy or something you can't (intangible) like a music streaming service. Both aim to satisfy what people need or want.

🔄 Product Life Cycle (PLC) - A roller-coaster ride showing the journey of a product in the market.

• The "Let's invent something cool!" stage.
• Steps include

  • Brainstorming Ideas: Think of it as a pizza party where everyone throws in their toppings (ideas). You get ideas from employees, bosses, and even customers.

    • Real-world example: Apple might have brainstormed the idea of the first iPhone by noticing people carrying both an iPod and a phone.

  • Screening Ideas: Deciding which pizza toppings (ideas) don’t fit.

  • Creating a Prototype: The first 'draft' of the product.

    • Example: Before finalizing the iPhone design, Apple probably had a basic version tested internally.

  • Test Marketing: Like a movie trailer! A sneak peek to gauge reactions.

  • Commercialization: The big movie release or product launch.

    🚫 During development, costs are high, sales = zero, and cash flow = negative.

• The "Meet our new product!" stage.
• Slow sales since not everyone knows about it yet.
• Pricing strategies
  • Price Skimming: High price for brand-new cool gadgets.
    • Example: Launching the new iPhone at a high price because it's the latest and greatest.
  • Penetration Pricing: Start with a low price to attract attention.
    • Example: Spotify offering discounted premium memberships for newcomers.

• The "Look, everyone loves our product!" stage.
• Sales shoot up. Profits rise. Cash flow = positive.
• Adjust prices, promote to build brand loyalty, and reach more places.
  • Example: As the Nintendo Switch became popular, more stores carried it, and more game developers jumped on board.