Question

in which product life cycle stage managers make trade offs between high market share and high current profit? how and why ?

subject : strategic marketing management

Answer 1

In the growth stage

In this period the product eventually increases the acceptance of the product in the view of customers. During this stage product accepted in the market as a results in increasing revenue and sales.

Through continuous development of customer demand and using a promotional activities will direct to to the growth stage.

Why and how there is a high market share and high profit in the growth stage.

• Because under this stage the cost of the product is reduced. Growth stage can be more profitable part of the whole product life cycle. In which the production increases to meet the demand and the manufacture reduce the cost.
• In the growth stage more and more customer become aware of new product, it means the size of market will start increase. Then there will be a greater demand of a product it will leads to to increase sales.
• The help of lower in cost and increase in sales manufacturer will see an increase in a profit during the growth stage.