1. Product Life Cycle
a. 1. Product development begins when the company finds and develops a new-product idea. During product development, sales are zero and the companyA?s investment costs mount.
2. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.
3. Growth is a period of rapid market acceptance and increasing profits.
4. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition.
5. Decline is the period when sales fall off and profits drop.
b. 1. Introduction: Product- offer a basic product
Price- Use cost-plus formula
Distribution- build selective distribution
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