Introduction Stage of the Product Life Cycle

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Maturity Stage of the Product Life Cycle

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:04 Introduction Stage
  • 1:30 Benefits
  • 2:03 Limitations
  • 2:32 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Noel Ransom

Noel has taught college Accounting and a host of other related topics and has a dual Master's Degree in Accounting/Finance. She is currently working on her Doctoral Degree.

The introduction stage is the first of the four stages in the product life cycle. In this lesson, we will explore the various characteristics of the introductory stage through examples and explanation.

Introduction Stage

During the introduction stage, the product is unknown to the market and often requires a large business investment to produce the product. The first stage is the point in which the product is presented to the public for the first time. Because there's no demand for the product, marketing and branding are important to attract customers. The primary objective of the introduction stage is to launch the product and build product demand.

Let's use an example to illustrate the introduction stage. First off, Peter owns a yogurt company. No other company has launched a yogurt product, and this will be the first time anyone has ever heard of yogurt. Peter obviously has a challenge on his hands because he needs to launch his product and begin to increase demand for the product. Peter has invested thousands of dollars into market research and development of his yogurt product line. However, since no one knows how awesome yogurt tastes, Peter cannot simply market his product as a great tasting snack because no one will believe him.

Peter decides to launch his yogurt line during the introductory stage as a healthy alternative to a morning or afternoon snack. Peter only has three flavors: plain yogurt, strawberry yogurt, and peach yogurt. During the product launch, Peter's sales are slow, and customer demand gradually increases. As Peter's demand grows, he learns more about his product demographics, the type of people who like the yogurt, and when and where they purchase the product. Peter can collect this data and use the trends to move through the next phase of the product life cycle.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support