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Question
Explain the decline stage of the product life cycle.
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Solution
During this stage, either the product is gradually replaced by better alternatives or consumer purchasing habits shift. Sales decline significantly, necessitating drastic reductions in promotional expenditure to minimize losses. The emphasis is on efficient distribution at the lowest cost. If no new applications are discovered for the product, sales may plummet, and it may eventually become obsolete.
The following strategies may be used to avoid a sharp decline in sales:
- Additional features may be added to the product.
- To revive the market, consider introducing economy pack models.
- New and attractive packaging may be used to attract customers.
- Selective promotion may be used to lower distribution costs.
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