(c) Distribution – Distribution becomes more intensive. (b) Price – Maintained at a high level if demand is high, or reduced to capture additional customers. (a) Product – New product features and packaging options improvement of product quality. The marketing mix may be modified as follows: During the growth stage, the goal is to gain consumer preference and increase sales. In this stage effective distribution advertising and sales promotion are considered as key factors. Profits also increase at an accelerated rate. In this stage, the product achieves considerable and wide spread approval in the market, the demand and sales improves very rapidly due to promotional efforts. The introductory promotion also is intended to convince potential resellers to carry the product.Īfter the product is introduced in the market the product enters its second stage of the life cycle called as the Growth-stage.
#STAGE PLOT PRO 5 TRIAL#
Samples or trial incentives may be directed toward early adopters. (b) Promotion – Promotion is aimed at building brand awareness. (c) Distribution – Distribution is selective and scattered as the firm commences implementation of the distribution plan. In some cases a penetration pricing strategy is used and introductory prices are set low to gain market share rapidly. (b) Price – Generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly. (a) Product – one or few products, relatively undifferentiated The following are some of the marketing mix implications of the introduction stage: This stage is characterized by slow rise in the sales and profit margin from direct competitors, high production and marketing costs, narrow product line, greater emphasis on advertising and sales promotion, high prices, limited distribution, frequent production modification and above all purchases by customers are made cautiously on a trial basis.ĭuring the introduction stage, the primary goal is to establish a market and build primary demand for the product class. In this stage the product is absolutely new and distinctive.
The product is first introduced in the market. It is the first and the most important stage in the life of a product. “The product life cycle is an attempt to recognize distinct stages in the sales history of the product”. Afterwards its market declines and finally its life come to an end. Like a human being, all products have certain length of life during which they pass through certain identifiable stages through the conception of the product, during its development and up to the market introduction, then goes through a period during which its market grows rapidly, eventually, it reaches at maturity and then stands saturated.
If it is not possible or there are heavy losses, the manufacturer may seek merger with a strong firm. As far as possible, attempts should be made to postpone the decline stage.īut if the decline is rapid, the product model may be abandoned and the new model with unique features may be introduced. Innovative products are introduced in the market to take place of the abandoned products.
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Many firms abandon the obsolete product in order to put their resources to better use.
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