 Show DefinitionThe maturity stage of the product life cycle comes after growth, in the concept of the product life cycle. The concept implies that a product, like a living being, progresses through various stages of life. These stages include development, active growth, maturity, and decline. Marketers can use the concept to define the life cycle stage of their product and apply the most efficient marketing strategies for the given stage. By the time a product has reached maturity it has established brand awareness, a chain of distributors, and stable sales. At the same time, competition will have entered the market. The challenges of the maturity stageKeeping sales volumes upDuring the growth stage, sales increased at a constant rate. But by maturity, the market is usually saturated, and the sales stabilize or plateau. They may even start to drop off. For the company keeping sales volumes up is the primary challenge driving all marketing decisions. Maintaining the market shareAs the competition is high, it has become harder to maintain market share. Many manufacturers offer the same product, often, at lower prices. This is when price wars usually begin. Retaining the profitThe product usually makes the most profit during the maturity stage. But it’s also the point at which the sales stop increasing. Marketing campaigns no longer result in any meaningful increase in revenue and they’re often just a waste of money. Marketing ImplicationsMarketing emphasisThe main goal is to prolong the maturity stage, successfully getting ahead of the competition and generating profits. At this stage, the manufacturer can benefit from high sales volumes and produce at lower costs due to economies of scale. During the growth stage, the business would have discovered more efficient, cost effective production methods, helping it to stay competitive and prolong the maturity stage. Through applying the right strategies, it’s possible to retain and even increase the market share during maturity. So which strategies are right? Let's look at Marketing Mix strategy during maturity stage in terms of 4p’s. Product strategyMost manufacturers add new features, at this stage, to diversify the product. They may make changes based on research in the existing audience or among non-users, to find out what would make the product more attractive for them. It’s still important to maintain consistent product quality and maintain the brand’s reputation. Pricing strategyThe prices should match or beat those of the competition. Usually, at the maturity stage, the prices are lower than they were in the previous life cycle. The means of competing on price should be built into the initial pricing strategy. Promotional strategyCampaigns should aim at expanding the customer base. Where a company expands to other countries, they should create localized content. At this stage promotions could target new segments, for example, younger customers or new geographic regions. Distribution strategyThe brand has to maintain distribution channels. Many companies choose to expand to new markets. They must then establish distribution channels in the new locations. While in the growth stage, the distributors would have advocated the company’s products, now they need only sell. The maturity stage is characterized by a peak in sales and a market that is almost saturated.Marketing strategies include diversifying the product, lowering prices, and communicating to a broader audience the benefits of the given brand. As consumers, we purchase and use millions of products every year. These products have a life cycle of their own same as we do. Long-established products eventually phase out from the demand for new, more modern products. The demand usually increases quite rapidly after they are launched and cater to the problem in an efficient manner. All successful companies understand the different product lifecycle stages, and that the products they sell all have a limited lifespan(for example Apple considers the lifespan of iPhone to be 1 year which is much lower their actual performing lifespan), the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow and remain competitive in this globalized world. Product Life Cycle Stages ExplainedThe product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
This is the stage where the company makes money after investing in the product 3. Maturity Stage – During the maturity stage, the product is established in the market with constant sales and the aim for the company owner is now to maintain the market share. This is probably the most sensitive time for the products and company need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage. This is the stage where the company makes money but prepares for the last stage or a new product for the market. 4. Decline Stage – Eventually, the market will start to shrink, and this is known as the decline stage in the product lifecycle. This shrinkage could be due to the market becoming saturated with many players (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product(people shifting from feature phones to smartphones). While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and other markets where the product hasn`t been launched. As a Product Manager, you need to understand each and every stage of the product lifecycle. As most of the products reach only 2 stages of their life cycle, most of the product managers don`t have experience handling the other 2 stages of the product. If you like this article then please like, share as well follow me for future content |
Which stage of the product life cycle is characterized by increasing sales and profits?
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