Discuss the product life cycle.
In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:
Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained.
Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs.
Distribution is selective until consumers show acceptance of the product.
The model applies to labor-saving and capital-using products that (at least at first) cater to high-income groups.
In the new product stage, the product is produced and consumed in the US; no export trade occurs. In the maturing product stage, mass-production techniques are develo ...more