Name: Karl Jason Comin

Subject: BM 215 Philosophy of Business

Philosophy of the Product – The Material Cause of business

(part 2)

I. Introduction

The product life cycle is from the time the product is born to the time it fades

out. The sales life cycle starts when the product is introduced to the market, and

therefore the product development stage is not considered since there is no sale

during the development stage. The profit life cycle which also starts with product

development; profit computation includes the cost of development and therefore the

profit curve starts from there.

II. Summary of the Topics/Topics Digest

Stages in the Product Life Cycle

1. Development Phase: A product starts with an idea, either a new or a copy of an

existing idea or modification of an existing one. The fate of the product is determined

initially by how it is designed & given existence. If design is quality oriented, it’s likely

to enter the market with success, otherwise, the design is product's death warrant.

2. Introduction Phase: introduces product line to market; perceived in 2 perspectives:

a. Marketer's Perspective - A product is introduced to make itself felt in the market,

addressing itself not only to the consumers but to the competitors as well.

b. Consumers' Perspective - Either (1) a product is introduced in order to offer

something that will satisfy an existing need or (2) a need is created in order to sell an

existing product. Market Recognition and Acceptance

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3. Growth Phase: The market recognition and acceptance achieved by a product in

the introduction phase is given meaning al the product's growth phase in terms of

sales that continue to build up. It is at the growth phase where the sales of the

product reach break-even and go beyond it towards profitability. If this is not

achieved, the product dies before its time and the venture is written off as a loss.

4. Maturation: The stabilization phase, this phase is the peak of growth, the most

desired phase in the life cycle of the product. It is the profit stage, when the

businessman makes the most out of his product. Once reached, this phase is

maintained for as long a duration as the businessman can hold.

5. Decline Phase: also called the obsolescence stage. When the product fades out of

the market either through natural or through planned obsolescence, the cycle sees

the product losing its grip on the market for varied reasons. When this happens,

there are three dying-out options open to the businessman:

-Sunset strategy: businessman continues selling the product until it naturally dies out

-Harvest strategy: businessman applies all possible ways of converting inventory to

cash before it finally dies

-Concentrated Sale: businessman concentrates only on one target market excluding

all others.

Quality is both intrinsic (objective) and extrinsic (subjective).

Intrinsic: Quality is in the product expressed in terms of its attributes: what producer

creates, introduces into the product & presents to the consumer. It is internal to the

product, the product's innate excellence expressed in its: Core Service & Material

Constitution. Core service is ability of the product to provide the utility it is intended to

provide; the expression of the goodness principle of a product. Material constitution

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includes the materials used & the product design, ie, the way a product is styled

expressive of its aesthetics seen in its use of color, material, texture, and form.

Extrinsic: It is viewed in relation to the user/perceiver; defined as ability of product to

meet or exceed consumer's expectation in the overall performance of the product;

expressed in how product adequate user's expectations based on his perceptions of

things & his perspective of value, how a person perceives it, what he expects from

the product to suit his needs, whether he is a producer, a marketer or a user.

III. Recommendations

Consumer protection serves as the immediate guideline in the industry's

concept and standard of quality. It is very general in nature and applies as a basic

standard according to which products, in their specific quality attributes, must

conform. Customer satisfaction is in line with the State prescription and the industry

standard according to which the producer develops his own prescription of right

quality that will satisfy the customer in the product he accepts.

IV. Conclusion

The product is produced in time and is therefore subject to the consequences

of time: it has a beginning and an end. Like a living organism, it is born in production,

lives through its life span and finally dies into obsolescence or oblivion.