BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In the market introduction stage (following product development), the product is released on to the market. Sales are low and costs are high in the market introduction stage, thus, no profits are made. There is little to no competition and demand must be created through heavy promotion.

Detailed explanation-2: -There is almost no competition at this stage in the market, if the competition exists, it is very small. The new products still have not gotten the desired level of demand. At first, there do not seem opportunities for the competitors.

Detailed explanation-3: -The introduction stage happens when a product is launched in the marketplace. This is when marketing teams begin building product awareness and targeting potential customers. Typically, when a product is introduced, sales are low and demand builds slowly.

Detailed explanation-4: -Due to the high cost of advertising and low initial sales, it is possible that you won’t make immediate profits or you may even find that the product is producing negative profits. However, you should make up for this with increasing revenue generated at the growth and maturity stage of a product life cycle.

Detailed explanation-5: -During the maturity stage, competition is at the highest level. Rival companies have had enough time to introduce competing and improved products, and competition for customers is usually highest. Sales levels stabilize, and a company strives to have its product exist in this maturity stage for as long as possible.