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Growth Stage of the Product Life Cycle: Example & Overview

Growth Stage of the Product Life Cycle: Example & Overview
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  • 0:01 Growth Stage Defined
  • 1:17 Company Actions
  • 2:19 Impact on the Marketing Mix
  • 3:09 Lesson Summary
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Lesson Transcript
Instructor: James Carnrite

A marketing, communications, and supply chain professional who has a masters degree in IT Mangement. Has been working with young professionals to develop their leadership styles.

Approximately 5% of introduced products succeed in the market each year, leaving most to dissolve back into the ideas. This lesson assists you in understanding the growth stage cycle and its impact on the marketing mix.

Growth Stage Defined

Approximately 5% of introduced products succeed in the market each year, leaving most to dissolve back into the ideas. Each day, we (consumers) use and consume many different products. Each of these products has a specific life cycle that we refer to as the product life cycle. The product life cycle describes the length of time products are available on the market and is composed of five stages that are directly linked to the product's competition, technology, and the strength of the company's marketing mix.

The growth stage can be seen as when a product's sales begin to increase dramatically and when the product experiences high demand. At this stage a company will see a noticeable increase in competition as other firms develop similar products to compete for available revenue and market share.

The Internet is a current example of a product that can be found in the growth phase of its life cycle. The benefits the Internet has provided have resulted in rapid reception in consumer and business markets. In addition, some of the most popular household products today including the MP3 player, the Blue Ray DVD, and LED lighting, are also in the growth stage of their life cycles.

Company Actions

A common reaction for companies with products in the growth stage is to expand the supply chain distribution of the product to substantiate revenues from higher prices that can be warranted in this stage. It is common in the growth stage of the product life cycle to see the market leader set the price point and continue to control the price, supply, and demand of the product as a result of consumer acceptance. Companies will look to marketing research and gather consumer statistics to understand consumer behavior, buying patterns, and to determine how the product can be transformed to meet customer needs and extend the life cycle of the product.

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