February 23, 2024

What is the Marketing Objective for the Introduction Stage of the Product Life Cycle?

The marketing objective for the introduction stage of the product life cycle is to create consumer awareness, stimulate trial and initiate initial purchases. Profits are often negative during the introductory stage as distribution and promotion expenses outweigh sales volumes. Many products fail to make it out of the introductory stage and are remembered only as fads.

During the growth stage, production and distribution costs decline as economies of scale kick in. This allows you to lower per-unit production costs and increase sales volume to generate higher profits. Public awareness grows through continued promotions, visibility and word of mouth. Your competition may also enter the market, attempting to capture your market share.

During this phase, it is important to continue adding new features to your existing product or introduce entirely new products that are compatible with your existing lines. This enables you to differentiate yourself from the competition and avoid entering the maturity stage too soon.

As the product reaches maturity, the demand for it begins to level off. You may experience a price war with competitors, or your technology might become obsolete or less expensive to produce. You can combat this by investing in marketing campaigns that emphasize a product's benefits or by capitalizing on brand loyalty to attract consumers away from competitors. You may also consider reducing prices or adding new features to your existing product to remain competitive. This can be a tricky phase for businesses, as it is easy to stray from the classic product life cycle model.

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