Emphasis switches from primary demand promotion to aggressive brand advertising and communicating the differences between brands. Large companies may start to acquire small pioneering firms that have reached this stage. In this stage, sales grow at an increasing rate, profits are healthy, and many competitors enter the market. Growth: If a product survives the introductory stage, it advances to the growth stage of the life cycle. Hence, profits are usually small or negative. Production and marketing costs are also high, and sales volume is low. Although competition may be light, the introductory stage usually features frequent product modifications, limited distribution, and heavy promotion. Introduction: When a product enters the life cycle, it faces many obstacles. Stages of the Life CycleĪs illustrated in Exhibit 11.7, the product life cycle consists of the following stages:
As the product moves through the stages of the life cycle, the firm must keep revising the marketing mix to stay competitive and meet the needs of target customers. The product life cycle is a pattern of sales and profits over time for a product (Ivory dishwashing liquid) or a product category (liquid detergents). Product managers create marketing mixes for their products as they move through the life cycle. What are the stages of the product life cycle?.
