Characteristics of Product introduction Stage

 Characteristics of Product introduction Stage

Introduction stage is very critical for the product and therefore a proper management is required at introduction stage. Some important characteristics of introduction stage have been explained below;

1.    Market Demand

Create market Demand for the product is one of the main objectives of introduction stage. This is done by heavy advertisement of the product.

2.    No Competition

In introduction stage, there is no competition in the market, therefore organization is market leader. This concept is valid (where new product or new feature is being introduced)

3.    Losses are expected

There are so many costs involved at introduction stage, and market demand is limited. Therefore company may suffer losses at this stage.

4.    High Advertising Cost

Advertising cost is expected to be high in the introduction stage. More customers are engaged by media. High advertising cost is must for creating initial Demand and future growth of product.

5.    Price is High

Price kept at high side to get the maximum benefit from the willing customer. This high price compensates the high advertisement budget in the initial stage.

6.    Distribution

Distribution will be targeted and scattered. It is kind of a test of the product, because there are fair chances that product may not be able to attract customer. Therefore selected area/customer are preferred at this stage.

7.    Promotion is extensive

Promotions activities are extensive, initial user are given trial usage. It is believed that satisfied customer will bring new customer, so many promotional activities are started for the customers.