In order to enhance the chances of a new product succeeding, the company should follow a systematic new product development process Highlight the major stages in new product development

The Major Stages in New Product DevelopmentMajor stages in new product development

Products tend to go through five stages:

New product development stage
*very expensive
*no sales revenue

Market introduction stage
*cost high
*sales volume low
*high prices

Growth stage
*costs reduced due to economies of scale
*sales volume increases significantly
*prices to maximize market share

Mature stage
*costs are very low
*sales volume peaks
*prices tend to drop due to the proliferation of competing products
*very profitable

Decline stage
*sales decline
*prices drop (lower prices may lead to lower value perception)
*profits decline

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