What is Growth Stage?
Growth stage is the second stage of the product life cycle, coming after Introduction and followed by Maturity and Decline.
It’s one of the most important parts of the product life cycle since it establishes the product’s position in the market, improves profit and increases sales. Your product moves on to this stage after you invest into marketing and promo activities and work additionally on recuding the costs of production.
Benefits of the Growth Stage
1. Reduced Costs
The fisrt phase of the product life cycle is usually the most expensive. On the other hand in the Growt phase manufacturers can already see where they can reduce the costs and establish more efficient routs to the market.
2. Consumer Awareness
This phase is also characterized by a great increase in the size of the target market. With the increase of the market, there will also be a greater demand for the product, which finally leads to an increase in sales.
3. Profit Increase
Lower costs and an increase in sales lead inevitably to bigger profits. This is not related only to the overall amount of profit a product brings. It also refers to the profit margin on each product sold.
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