Question

Explain the third stage of product life cycle.

Answer 1

Maturity Stage: During this stage, sales continue to grow, but at a slower rate. As competition increases, markets become more stable. The product is well-known in the market, with a potential third-level market (poor-income group) emerging. While prices have decreased due to competition, promotional expenditure remains high. As a result, marginal manufacturers face declining profitability and may exit the market. Manufacturers expand product offerings and release new models. For the first time, supply has exceeded demand. Eventually, the market becomes saturated. The sales curve has plateaued, with no potential for further growth. For products with long-term demand, the mature stage may last a long time. Product demand eventually decreases when new products enter the market. This stage involves differentiating products, improving them, and identifying new market segments.

The maturity stage may be lengthened by using the following strategies:

1. Making the product stand out from competitors.
2. Focusing on brand image.
3. Extending warranty periods, such as a lifetime warranty for typewriters.
4. Introducing reusable packaging.
5. Developing new markets.
6. Finding new uses for the product.