MKTG 341 Chapter Notes - Chapter 10: Permutation, Brand Equity, Product Manager
9 Dec 2014
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Document Summary
The concept of the product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. Occurs when a product is introduced to its intended target market. Lack of profit is often the result of large investment costs in product development. Marketing objective at this stage is to create consumer awareness and stimulate trial (the initial purchase of a product by a consumer) Companies spend heavily on advertising and other promotion tools to build awareness and stimulate product trial among consumer during this stage. Primary demand: the desire for the product class rather than for a specific brand, since there are few competitors with the same product. Selective demand: the preference for a specific brand. High price can be used as part of a skimming strategy to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers.
