Introduction stage is when a new product is introduced in the market. The first stage of the product life cycle is called introduction stage. In introduction stage, a product is launched into the market and the consumer uses the product on trial bases.
Introduction stage is the initial time period in the product life cycle (PLC) for any brand, product or service. The following stages in the PLC after introduction stage are growth stage, maturity stage and then decline stage.
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Once a company makes a product, the company needs to launch & introduce the product for the market. The introduction stage is the prime stage for the promotion and creating awareness about the product and informing the consumers about the perceived benefits. This initial stage is also important as once an image is set into the mind of the consumer it is difficult to break it.
A company has to put in a lot of efforts to ensure that customers are aware of the new products which are introduced in the market. Introduction stage requires higher investments as a company needs to aggressively promote the brand & products. At the introduction stage, the company doesn't think too much about competition as the only objective is to ensure that the customers have awareness about the products offered.
Initial promotion and discounts can be helpful to promote the product in the introduction stage but the main focus should be on providing value to the customers rather than focusing on making quick profit. A company has to put in initial investments to ensure that customers are aware of the offerings given by the company. The challenge is to ensure that the correct positioning of the products are done in this stage. A good initial marketing strategy can help in building a strong brand equity, which can help in the growth stage as well as maturity stage.
Since a new product is being launched in the market, a company needs to have a definitive strategy in the introduction stage. A few strategies are:
1. Aggressive promotion using media channels.
2. Discounts to be given to customers on products in the introduction stage.
3. Sample merchandise to be made available across stores.
4. New products can be introduced as bundled offers for customers to try & use.
Hence, this concludes the definition of Introduction Stage along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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