Business Studies – 3.3.1 Product | e-Consult
3.3.1 Product (1 questions)
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Introduction Stage: This is the initial phase when a new product is launched into the market. Key characteristics include:
- Low Sales Volume: Sales are typically low as the product is new and awareness is limited.
- High Costs: Production and marketing costs are often high due to small production runs and significant investment in advertising and promotion.
- Little or No Profit: Due to high costs and low sales, profit margins are usually low or even negative.
- Limited Competition: There is usually little or no direct competition at this stage.
- Focus on Awareness: Marketing efforts are primarily focused on creating awareness of the product and educating potential customers about its benefits. This often involves extensive advertising and promotional activities.
Marketing Strategies: Common strategies include:
- Heavy Advertising: To build awareness and generate interest.
- Selective Distribution: Initially, the product may be available in limited locations.
- Promotional Offers: Introductory offers and discounts may be used to encourage trial.