Business Studies – 3.3.1 Product | e-Consult
3.3.1 Product (1 questions)
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Key Characteristics of the Maturity Stage:
- Sales Growth Slows: Sales growth begins to level off as the majority of potential customers have already purchased the product.
- Intense Competition: Many competitors are offering similar products, leading to increased price competition.
- Profit Margins Decline: Price wars and increased marketing expenses can reduce profit margins.
- Market Saturation: The market is becoming saturated, meaning most consumers who want the product already have it.
- Focus on Differentiation: Companies focus on differentiating their product from competitors through features, branding, or customer service.
Ways to Extend the Product Life Cycle:
- Product Modification: Introduce new features, improvements, or variations of the product to appeal to a wider audience and revitalize interest. This could involve new game releases, updated hardware, or accessories.
- Market Development: Identify and target new market segments. This could involve expanding into new geographic regions or targeting different demographics (e.g., younger gamers, families).