introduction stage

Definition

First stage in a product's life cycle. This is the point of product launch, market entry, and user-trial by the innovators. At this stage (while there is little or no competition) sales are slow and difficult, and the manufacture must incur heavy promotional expenditure to 'educate' the public. The main objective here is to generate primary demand (demand for the product class) instead of the selective demand (demand for a specific brand). Prices may be set high to cream the market (skimming strategy) before imitators appear, or set low to deter imitators with skimpy margins (penetration strategy).