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These four stages are collectively known as the Product Life Cycle (PLC).
The first stage is the introduction stage, when the product is first launched. Sales growth tend to be low as consumers are ?introduced' to the existence of the product. At this stage therefore, profits are negative or low because of the low sales and high distribution and promotion expenses. Much money is needed to attract distributors and build their inventories. Promotion spending is especially high to inform customers of the new product and get them to try it.
One of the biggest launches in recent history is that of the DVD player...
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