Introduction Stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features.
Explanation:
We buy millions of goods every year as customers. And these goods have a life cycle just as we do.
The process of life of the product has 4 stages, each of which has specific characteristics, which mean different for the organisation trying to handle the life cycle of its individual products.
Introduction Stage : This stage of the cycle could make the company announcing a new product the most expensive. The item's market size is too small, which means that sales are weak, but they will be rise.
Growth Stage: The growth phase usually features a significant increase in sales and earnings, which will boost the gross margin as well as the general profit ratio as the enterprise will continue to benefit from economy of scale in manufacturing.
Maturity Stage: The product will now be developed during the maturity stage, and the manufacturer's goal will now be to maintain their market share.
Decline Stage: Ultimately, a commodity demand may continue to decrease, and this is known as the period of decrease.
