Question

The introduction phase of the product life cycle for an industry is usually characterized by ________.

Answer 1

Answer) Introduction phase of the product is the first stage in the marketing process whereby the product is launched for the first time in the market in order for people to purchase it and therefore, this stage is primarily characterized by: -

1) Low level of sales: - Intially, when a product is launched, it might not be so easy to persuade people purchase it, as they might be apprehensive about its quality, usage and other related things, hence, the sale of the newly introduced product is generally low.

2) High promotion and distribution costs: - It takes a lot of financial and physical resources in order to promote a product such as advertisement costs and the cost of discovering new channels of production and distribution.

3) Prices in this stage may be high or low depending upon whether the firm prioritize a) to recover its high production, distribution and promotion costs (prices will be high in this case) or b) gain larger market share by building brand such that prices will be low.