Introduction of product. When the product is first introduced, sales are smaller in number due to a majority of consumers being hesitant to purchase a new or unproven product; resellers not wanting to take large amounts of unproven product because they don’t want to be caught with stock they may not be able to sell; and the manufacturers may not be able to produce the product at full speed to start with. Financial losses are usual at this stage. The marketing mix strategies that would be used at this stage are: product quality level and branding would be determined; promotion would be heavy (maybe giving something extra on purchase of the new product) or some kind of convincing publicity. Heavy advertising in newspapers, magazines, radio, television; pricing may be reduced or be put ‘on special’ in order to get consumers to try the product and build market share; distribution would be selective until customers show acceptance of the product.
Growth. Market acceptance of the product has now been obtained and sales and profits are rising, along with increased promotional costs due to the increased demand for the product. Competitors launch products to compete with yours Production costs are down due to production now running at full capacity. Marketing mix strategies that would be used at this stage: Product quality continued, any tweaking to improve it or add extra features is done, pricing is maintained or made slightly lower due to competitors launching products to compete with yours. Distribution is now more intensive as customers accept the product and demand increases. Promotion is still heavy and aimed at a wider audience.
Maturity. Strong sales growth slows down. Market share has to be retained while still trying to make a good profit. Low profit selle ...