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A
typical product at a
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passes through distinct stages during the course of its
life. During the market pioneering stage, the product is
in its introductory stage, and there may not be a ready
market for the product. Sales are low, and the product
undergoes teething troubles. Profits seen like they could
be a remote possibility but a demand have to be created
and developed, and customers have to be prompted to try
the product. One of the crucial decisions that need to be
making at this stage is the pricing strategy adopted for
the product.
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a product passes through certain distinct stages during
its life. This cycle is called "product life cycle or PLC.
The PLC is normally presented as a sales curve spanning
the products course from introduction to exit. Concept
lies in the fact that each stage in the
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Consequently each stage lends itself to the application of
a certain specific marketing strategy. Understanding the
PLC concept and managing it effectively can help prolong
the profitable phases of the life span of a product.
The
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ease and speed that allows competitors to introduce
similar products is perhaps the most important factor in
deciding the pricing strategy. Another crucial area
demanding attention is market development and promotion.
That's where demand has to be created and developed. The
firm has to invest heavily in promotion and wait for the
reward.
During
the market growth stage, the demand for the product
increases and the size of the market grows. That's when
one has to stay ahead of competitors and persuade
customers of the
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