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Chapter 8
The length of the life cycle varies considerably from a year to hundreds
of years. Four basic stages, each with different aims and expectations.
Price is a major variable over the product life cycle. Different pricing strategies will be
appropriate for different stages in the cycle.
7.1 Introduction
Demand will be low when a product is first launched onto the market.
Heavy advertising expenditure required to bring it to consumers’ attention.
7.2 Growth
Steady and often rapid increase in demand.
The cost per unit falls because of economies of scale with the greater level of
production.
The aim at this stage is to establish a large market share.
The most profitable stage for the initial supplier.
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