Advertisements
Advertisements
Question
Explain the maturity stage of the product life cycle.
Answer in Brief
Advertisements
Solution
- During this stage, sales continue to grow but at a decreasing rate. Competition increases further and markets get stabilised. The product is known all over the market and a third level market (low income group) may emerge.
- Due to competition prices are reduced but promotional expenditure remains high. As a result profits decline and marginal producers are forced to go out of the market. Manufacturers broaden their lines and new models of the product are introduced.
- Supply exceeds demand for the first time. After some time there is saturation in the market. There is no possibility of increase in sales and the sales curve is levelling off.
- For products with long-run demand, maturity stage may last for a long period. But sooner or later product demand starts declining as new products are introduced in the market. Thus, this stage is characterised by product differentiation, product improvement and identification of new market segments.
shaalaa.com
Product Life Cycle (PLC)
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Which stage of the product life cycle is marked by falling costs and rising revenues?
In declining stage of PLC, which tool would be more preferred?
A high percentage of new products fail during this period of Product Life cycle:
Which feature is pertaining to Introduction stage of PLC?
| Soon you could get a colour mobile handset which offer an MP3 player, FM radio and a removable flash memory card for about ₹ 800. A Netherlands-based semi-conductor firm has launched a new single chip solution that promises to make this happen. The company is targeting the rural market in India. During the next phase of rapid expansion of mobile communication in the rural and semi-urban areas of India, the firm would like to fulfill the aspirations of first-time handset users by offering the next experience in Multimedia. |
- Explain the stage of the Company's Product Life Cycle mentioned in the paragraph with the help of a diagram.
- Name the service to be offered by the Company in the next phase. Explain any two characteristics of Services.
- Suggest any two modern ways of marketing the concept of a product. Explain.
How is the product life cycle advantageous?
Explain the decline stage of the product life cycle.
Explain the abandonment stage of the product life cycle.
What is the product life cycle?
"Introduction Stage in a product life cycle is not very risky." Justify either or against.
