Product life cycle is the period of time from the beginning till the end of product demand in the market. It also can be described as the time period, during which the goods exists in the market, ranging from its release into the market and ending with its departure from the market. Goods are highly competitive in the market, so they tend to appear in the market and to be replaced by more qualitative product. Today this is one of the fundamental concepts of modern marketing. Product life cycle consists of series of stages that describe how products appear in the market (introductory stage), capture the market (growth stage), become popular in it (maturity stage) and ending of its existence in the market (decline stage).
Introductory stage can be characterized as the appearance of the product in the market and a gradual increase in the volume of its sales. It is one of the most important steps in product life cycle (PLC). Sales at this stage tend to be small and highly dependent on the degree of product novelty. Thus, the increase of well known product sales is higher that of fundamentally new one. The main objective of marketing at this phase of PLC is to create a market for new products, which requires big expenses on the advertising, informing customers and explaining them the properties and qualities of the product. During the first stage of PLC competition is limited and the cost of producing and marketing are extremely high. This stage characterized by the limited competition because at this stage the new product is present and competitors may not catch to launch it by their company. Also low competition can be explained by the low evidence of customers about the product, even if two companies will introduce the same product at the same time. This happens because only limited segment of customers (pioneers) will buy this product, and as we have limited customers, the competition will be also limited.
At this stage of PLC the marketing mix should be created, as it would explain all aspects of launch strategy and would show how to avoid or decrease the rate of possible competition. The best choice is to make sure that you targeting the segment that will bring you the highest profits, likewise the competitor may be ahead.
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