A. Introduction Stage The introduction stage of the product life cycle occurs when a product is first introduced to its intended target market. During this period, sales grow slowly, and profit is minimal. The marketing objective is to create consumer awareness and stimulate trial. Companies often spend heavily on advertising and other promotion tools to build awareness. Gaining distribution can be a challenge because channel intermediaries may hesitate to carry the new product. 5 Introduction Stage Products: B. Growth Stage The second stage of the product life cycle, growth, is characterized by increased competition and a rapid increase in sales. Profits peaks during the growth stage as a result of economies of scale and increased demand. Product and promotional efforts focus on brand and product differentiation. Distribution levels tend to increase. 5 Growth Stage Products: C. Maturity Stage The maturity stage is characterized by a slow-down in the growth rate and an increased focus on price competition to differentiate products in the market. Promotional efforts focus on price. Distribution le tend to be saturated. Weaker competitors begin to leave the market. levels Learning Activity-Marketing 2150 Spring 2020 Chapter 8-New Product Development 5 Maturity Stage Products: D. Decline Stage During the decline stage category sales begin to decline and many competitors fall out of the market. There is very little promotional support other than price discounts. 5 Decline Stage Products:
A. Introduction Stage The introduction stage of the product life cycle occurs when a product is first introduced to its intended target market. During this period, sales grow slowly, and profit is minimal. The marketing objective is to create consumer awareness and stimulate trial. Companies often spend heavily on advertising and other promotion tools to build awareness. Gaining distribution can be a challenge because channel intermediaries may hesitate to carry the new product. 5 Introduction Stage Products: B. Growth Stage The second stage of the product life cycle, growth, is characterized by increased competition and a rapid increase in sales. Profits peaks during the growth stage as a result of economies of scale and increased demand. Product and promotional efforts focus on brand and product differentiation. Distribution levels tend to increase. 5 Growth Stage Products: C. Maturity Stage The maturity stage is characterized by a slow-down in the growth rate and an increased focus on price competition to differentiate products in the market. Promotional efforts focus on price. Distribution le tend to be saturated. Weaker competitors begin to leave the market. levels Learning Activity-Marketing 2150 Spring 2020 Chapter 8-New Product Development 5 Maturity Stage Products: D. Decline Stage During the decline stage category sales begin to decline and many competitors fall out of the market. There is very little promotional support other than price discounts. 5 Decline Stage Products:
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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