Initial phase of a product's market entry
Duration: typically lasts from a few months to one year or more
Very low sales performance
Dependent on product awareness, acceptance, and trials (AAT)
Investment-spending strategy for promotion and distribution
Targeting clientele creatively
Profits are often negative or breakeven during this phase (from 1-2 years)
Causes of low profitability (LHSO):
Low sales output
High production costs
Significant promotional costs
Other marketing-related expenses
The introduction stage is critical for building awareness and trial among potential customers.