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Maturity stage

The product life-cycle stage in which sales growth slows or levels off.

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At some point, a product's sales growth will slow down, and the product will enter a maturity stage. This maturity stage normally lasts longer than the previous stages, and it poses strong challenges to marketing management. Most products are in the maturity stage of the life cycle, and therefore most of marketing management deals with the mature product.

The slowdown in sales growth results in many producers with many products to sell. In turn, this overcapacity leads to greater competition. Competitors begin marking down prices, increasing their advertising and sales promotions, and upping their product development budgets to find better versions of the product. These steps lead to a drop in profit. Some of the weaker competitors start dropping out, and the industry eventually contains only well-established competitors.

Although many products in the mature stage appear to remain unchanged for long periods, most successful ones are actually evolving to meet changing consumer needs.

Product managers should do more than simply ride along with or defend their mature products—a good offense is the best defense. They should consider modifying the market, product, and marketing mix.

In modifying the market, the company tries to increase the consumption of the current product. It may look for new users and new market segments, as when equipment-maker John Deere targeted the retirees with the Gator, a utility terrain vehicle traditionally used on a farm. For this new market, Deere has repositioned the Gator, promising that it can "take you from a do-it-yourselfer to a do-it-a-lot-easier." As one ad for the Gator XUV puts it, "When your plans include landscaping, gardening, or transporting people and materials on your property, the XUV provides a smooth, comfortable ride with heavy-duty performance."

The manager may also look for ways to increase usage among present customers. AFor example, Glad

Continue reading here: Factors Marketing Must Consider When Setting Price

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