The Major Stages in New Product Development
Products tend to go through five stages:
New product development stage
*very expensive
*no sales revenue
*losses
Market introduction stage
*cost high
*sales volume low
*losses
*high prices
Growth stage
*costs reduced due to economies of scale
*sales volume increases significantly
*profitability
*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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