INTRODUCTION TO MARKETING Essay Example | Topics and Well Written Essays - 1500 words

INTRODUCTION TO MARKETING - Essay Example When a company introduces a product in the market, it is very imperative that consumers should be aware of the benefits and specifications of the product, or else low sales will be confronted by the market. One of the usual steps that are taken by the companies is that the product is announced in the market, before its introduction, which results in a kind of curiosity among the consumers, which is an effective strategy during the introduction stage of the product life cycle. On the other hand, it often results in the provision of time to the competitors to prepare them. (Stark, pp. 20-22) During the introductory stage, high costs of advertising are borne by the company; however, such high costs are worth as they play the vital role in informing the consumers regarding the product. During the introduction stage, some of the significant factors of marketing mix are product, price, distribution, and promotion. In specific, one product is usually introduced by the company, and a skim pricing strategy is employed by the company, in order to acquire a high profit margin. In terms of distribution and promotion, generally specific areas are selected during the introductory stage, which helps in the development of brand awareness to the consumers. Rapid revenue growth is expected during the growth stage of the product life cycle. As more and more consumers are informed about the benefits of the product, high increment is observed in the sales of the company. Once the product is accepted by the consumers and is demanded in the market, more retailers are attracted to buy the product, which results in the increase of sales. During the growth stage of the product life cycle, the distribution plan is expanded by the marketing team, which helps in confronting the price competition with the competitors’ products. Increment in sales is the major and significant factor