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Product Change
The most effective way to sustain high consumption is to maintain it at its high initial level. This is done by launching a constant stream of new products.

Consequently, as the market gets saturated with one product, a new one is launched. Powerful advertising is then used to induce consumers to replace the old product with the new one even before the old one has reached the end of its useful life. This creates an on-going sequence of population growth peaks as each new product is launched.

The combined demand - the total consumption - and hence production - for all these products is therefore the sum of the instant values for each of these successive peaks. This resolves into a constant high demand, consumption and production represented by a curve which resembles the original product population growth curve.

However, this curve now represents a dynamic rate of production: not a static market population. The resulting constant high demand allows a high unit price to be charged. It also creates a high rate of consumption which translates into an equally high rate of production (units per day).


Start of book. This page's parent. About this book. About its author. ©Sep 1995 Robert J Morton