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  • Shane COST

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    Shunganga
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    The document discusses the sales life cycle of a product including the growth, maturity, and decline phases and how management focus shifts from development to cost control and quality over the cycle. It also covers strategic pricing strategies like penetration pricing. Finally, it outlines cost management techniques like target costing, value engineering, and kaizen costing that are used to help design and manufacture products at their target cost.

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    The document discusses the sales life cycle of a product including the growth, maturity, and decline phases and how management focus shifts from development to cost control and quality over the cycle. It also covers strategic pricing strategies like penetration pricing. Finally, it outlines cost management techniques like target costing, value engineering, and kaizen costing that are used to help design and manufacture products at their target cost.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    7 views8 pages

    Shane COST

    Uploaded by

    Shunganga
    The document discusses the sales life cycle of a product including the growth, maturity, and decline phases and how management focus shifts from development to cost control and quality over the cycle. It also covers strategic pricing strategies like penetration pricing. Finally, it outlines cost management techniques like target costing, value engineering, and kaizen costing that are used to help design and manufacture products at their target cost.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Sales Life Cycle Of The Product

    Maturity
    Decline
    Growth

    Introduction
    Management Focus

    • Cost control
    • Product • Quality
    development • Service
    • Design • Pricing strategy
    • Differentiation
    • Marketing

    Maturity
    Decline
    Growth

    Introduction
    Strategic Pricing Strategy

    Penetration pricing
    High
    High

    Maturity
    Decline
    Growth

    Introduction
    Cost Management System

    Cost Leadership
    Value chain analysis

    Maturity
    Decline
    Growth

    Introduction
    Target Costing
    Marketing &
    R&D Design Manufacturing Customer Service
    Distribution

    Target A technique in which the firm determines the desired cost for

    Costing the product or service.


    Steps in implementing a Target Cost Approach

    1. Determine the market price.

    2. Determine the desired profit.

    3. Calculate the target cost at market price less desired profit.

    4. Use value engineering.

    5. Use kaizen costing and operational control.


    Consumer analysis Functional analysis

    Role of Value Engineering

    Design analysis Benchmarking

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