Guest User

Untitled

a guest
Feb 21st, 2018
63
0
Never
Not a member of Pastebin yet? Sign Up, it unlocks many cool features!
text 2.45 KB | None | 0 0
  1. The Introduction stage of the product life cycle, is a financially uncertain period of time after development, where the product is introduced to the market. Companies have spent money researching and developing their product, and for the beginning of the introduction stage the product has only incurred losses. Product introduction is an investment, as profits will not be seen until the end of the introduction period, leading into the growth period.
  2. It is important that the product address a consumer need, or offer an improvement over existing products, and that the product is marketed in such a way as to make these needs or improvements obvious to potential customers. This may be done through market segmentation for products that may only have a specific appeal to a certain group of consumers, such as a new de-icer, or products targeted at new mothers. If the product is not preforming to expectations in the market, it may be pulled to prevent further financial losses caused by marketing and manufacturing of the product.
  3. During the introduction stage, a products price may be higher in an attempt to quickly recover money spent on development, and to position it in the market. Throughout the product life cycle, the wholesale costs of a product should never be higher than during the introduction stage.
  4. An example of a succesful product introduction, would be HDTV's. HDTV's were introduced to the market at an exorbinantly high price, before a high level of market awareness had been reached. They were marketed more as an improvement over current television standards, than as a new product. While slow to catch on (compared to technology like smart phones) they quickly gained momentum in the market place, which could be seen as impressive as the benefits of high definition TV are difficult to explain, and impossible to show on standard definition television. The success of the HDTV could be attributed to placement, as many electronic retailers would set up displays near the fronts of their stores exposing customers to the new product.
  5. The introduction period of a product may be a stressful time for a company, filled intense market research and feedback, investment, and planning. If successful, the product may enjoy a period of intense growth, followed by a long maturity, and become very profitable. If not, the product may go the way of the tablet pc, and dissapear into obscurity, only to be reintroduced 10 years later branded with a half eaten apple.
Add Comment
Please, Sign In to add comment