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The stages of the product life cycle and the marketing strategies - Essay Example
Major characteristics of the growth stage are customers become responsive towards new products and growth of sales. This growth comes through the innovation’s acceptance by the target customers…
Moreover, product life cycle ends with the removal of that product from the specific market place. Product life cycle can be characterized by several stages, such as research, development, introduction, growth, maturity, decline and obsolescence (Moore, Palich and Petty, 2006, p.312). Each and every stage is generally linked with the changes in the streams of parts, raw materials and distribution of the products. Generally product life cycle includes four traditional stages, such as introduction, growth, maturity and decline. These four stages of product life cycle are described below.
Low sales growth rate of the products is the major characteristic of the introduction stage. In introduction stage the organizations launch or introduce new products in the market. Monopoly can be developed by the organizations depending upon the need and efficiency of the products to the customers (Saaksvuori and Immonen, 2011, p.103). During this stage the organizations generally accrue losses rather than business profit. It is true that if the organizations introduce products of new product class, the target customers may not be aware of true effectiveness and potential of these products. It is important for the organization to transfer information about the product among the target customers through several Medias in order to achieve potential competitive edge within the market place (Kumar and Korb, 2005, p.21). Introduction stage has two major characteristics namely low market competition and incurring loss rather than profit.