Product Lifecycle

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Introductory stage.

Growth stage.



Introductory stage:

-High failure rates.

-Lots of modification.

-Negative profits.

-Large amounts spent marketing to raise awareness and inform.

-Low sales increase.

-Aim to stimulate primary demand.

-Limited distribution due to many distributors not wanting to take on new products.

-Low economies of scale.

-Low competition.

-Innovative buyers

-Lots of promoting to end-users and dealers.

Growth stage:

-Mass media advertising of brand image.

-Promotion may be used instead of price cutting, having the same effect but keeping up sales revenue.

-Entrance of competition.

-Wider distribution.

-Increase market share, often sacrificing short term profitability.

-Aggresive advertsising comparing other brands.

-Initial healthy profits.

-Lower cost per customer.


-Fight of competition.

-Generate profits.

-Market brand strengths.

-Maintain distribution.

-Increase in sales decreases, new customers are just replacing old ones.

-Yearly models appear.

-Saturated market.

-Service and repair become more important (Kobo).

-Lengthened product line.

-Niche markets appear.


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