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DEVELOPING AND MANAGING PRODUCT, High failure rates
Little competition
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- High failure rates
- Little competition
- Frequent product modification
- Limited distribution
- High advertising & production costs
- Negative profits
- Promotion focuses on awareness & information
- Intensive personal selling to channels
- Increasing rate of sales
- Entrance of competitors
- Market consolidation
- Initial healthy profits
- Aggressive advertising of the differences between brands
- Wider distribution
- Prices normally fall
- Sales increase at a decreasing rate
- Saturated markets
- Annual models appear
- Lengthened product lines
- Service and repair assume important roles
- Heavy promotions to dealers & consumers
- Marginal competitors drop out
- Prices and profits fall
- Niche marketers emerge
- Long-run drop in sales
- Large inventories of unsold items
- Elimination of all nonessential marketing expenses
- "Organized abandonment"