MKT 407 Lecture Notes - Lecture 10: Product Lifecycle, Nylon, Hosiery
Document Summary
Market development: when new product is first brought to market, before there is a proved demand for it and often before it has been fully proved out technically in all respects. Sales are slow and creep along slowly. Demand has to be created during the product"s initial market development stage. Market growth: demand begins to accelerate and size of total market expands rapidly- takeoff stage . Increase in consumer demand occurs and sales take off. Potential competitors who have been watching the developing stage jump into the fray. Product and brand differentiation begin to develop. As the rate of consumer acceptance accelerates, it generally becomes increasingly easy to open new distribution channels and retail outlets. Market maturity: demand levels off and grows, for the most part, only at the replacement and new family-formation rate. Most consumer companies or households that are sales prospects will be owning or using the product. No more distribution pipelines need to be filled.
