Introduction: low sales, high cost per customer acquired, negative profits,
innovators are targeted, little competition. Strategy: basic product, use cost-plus
basis pricing, build selective distribution, build awareness among early adopters
Growth: rapidly rising sales, average cost per customer, rising profits, early
adopters are targeted, growing competition. Strategy: offer product extensions,
use penetration pricing, intensive distribution, build awareness and interest
Maturity: sales peak, low cost per customer, high profits, early and late majority
are targeted, competition begins to decline. Strategy: diversify brand, match
competitions price, intensive distribution, stress benefits and brand differences.
Lasts longer than previous stages, poses more marketing challenges, most
products sold today are in maturity stage.
Decline: declining sales, low cost per customer, declining profits, target laggards,