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Steadily, the product's reputation should increase, most notably by word-of-mouth.
A knock-on effect of this product's stage is that new competitors (who are attracted by the opportunities for profit) will enter the market. They will introduce new product features thus the market expands. The increase in competitors results in the number of distribution outlets, and sales jump to build reseller inventories...
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They will introduce new product features thus the market expands. The increase in competitors results in the number of distribution outlets, and sales jump to build reseller inventories. Prices remain constant or perhaps decrease slightly, whilst promotion spending might increase slightly.
Profits increase during the growth stage, as the promotion costs are spread over a large volume and as unit-manufacturing costs fall...
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How Does A Firm's Pricing Poli
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