Page 71 - EBOOK DPM 10013 POM-FINAL 25.10.2021
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5.4.2 Five distinct stages of the PLC:
Stage 1: product development
When a corporation discovers and develops a new product concept, product
development begins. Sales are zero during product development, and the company's
investment costs are high.
Stage 2: Introduction
When a product is first brought to the market, it experiences a period of modest sales
growth. Because of the high costs of product introduction, profits are non-existent at
this time.
Stage 3: Growth
A time of quick market acceptance and increasing profitability is known as growth.
Stage 4: Maturity
Maturity refers to a period when sales growth slows because the product has gained
acceptability from the majority of potential buyers. Profits are levelling off or declining
as a result of increased marketing efforts.
Figure 5.10: Introduction Stage of PLC
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