Market Evolution

Marketing dictionary

Market Evolution

The market (or industry) life cycles describe the evolution of the market. These cycles have a similar shape to the product life cycle and similarly, have a number of distinct stages: (1) embryonic-the product class and industry definitions are virtually synonymous, diffusion rates are gradual, and there is considerable uncertainty about the product; (2) growth-the industry structure develops, the introduction of new product classes becomes easier as consumers become more knowledgeable, and the channels facilitate the marketing of new product classes established; and (3) maturityan established infrastructure facilitates rapid introduction and diffusion of new product variants or product classes, competitors jockey for position, and older products have to make adjustments to protect their declining position. Source: AMA

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