At the introductory stage, the product has relatively little competition, more variable pricing (it may be either set low to build market share, or high to recover development costs), and selective distribution.
Promotional efforts at this stage are designed to raise awareness, establish brand association, and to educate potential consumers about the product.
At the growth stage, the emphasis is on increasing market share and building selective demand.
During this time, the product or service is refined. Quality is maintained, while additional features or support services may be developed. Multiple versions of the service or product may be available, either through one provider or due to competition. Pricing is set with the intention of expanding market share, and promotion stresses the differences between the offered product or service and the competition. Distribution is widespread.
The product or service reaches its peak market share, causing sales growth to diminish. An increase in competition, the saturation of the market, demographic impactors, or other influences may help to bring about this change.
At this point, market share may be defended through feature enhancement, price lowering, incentives, or promotion emphasizing differentiation of product/service.