Which product life cycle stage involves innovation and new product introduction?

The stage of the product life cycle that involves innovation and new product introduction is the introduction stage. During this phase, a product is developed and brought to market for the first time. This stage is characterized by significant investment in marketing and promotion to create awareness among potential customers and to stimulate demand. The focus is on building a market for the new product, establishing its brand, and positioning it against existing competitors.

At this point, the product is typically not yet widely adopted, and sales may be slow as consumers become familiar with the innovation. Companies often use this stage to refine product features based on feedback and to establish a distribution network. This process of launching and introducing a new product is crucial as it sets the groundwork for future growth, provided the product resonates well with the target audience.

Other stages like growth, maturity, and decline have different characteristics where the focus shifts from innovation to market saturation, competitive advantage, or managing a decreasing market share respectively.