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@ Growth stage is marked by a rapid climb in sales.
@ Early adopters like the product and additional consumers start
buying it.
@ New competitors enter and introduce new product features and
expand distribution.
@ Prices remain where they are or fall slightly.
@ Sales rise faster than promotional expenditures.
@ Profits increase as promotion costs are spread over a larger
volume and unit manufacturing costs fall faster than price
declines.
 

 

 




@ mprove product quality and add new product features and
improved styling.
@ Add new models and flanker products.
@ Enter new market segments.
@ ncrease its distribution coverage and enter new distribution
channels.
@ Shift from product-awareness advertising to product-preference
advertising.
@ Lower prices to attract the next layer of price-sensitive buyers.
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@ At some point of time growth of product slows down.
The product now enters a stage of maturity.
@ This stage is likely to last longer than previous
stages.
@ Most products today are in maturity stage. Hence,
most of marketing management deals with maturity
stage.
@ Maturity stage is made up of 3 sub-stages:- Growth,
stable and decaying maturity.
Growth maturity:
-Sales growth rate starts to decline.
-No new distribution channels to fill.

Stable maturity:
-Sales flatten on a per capita basis because of
market saturation.
-Future sales are governed by population growth
and replacement demand.

Decaying maturity:
-Absolute level of sales starts to decline
-Customers begin switching to other products.
@ The sales slow-down creates overcapacity in the
industry, which leads to intensified competition.
@ Competitors try to find out new/ niche products.
@ They increase advertising, trade and consumer
promotion.
@ As a result, weaker competitors may withdraw.
@ Dominating the industry are a few giant firms which
are: - Quality leader
- Service leader
- Cost leader.
@ Market strategies here could be:
- Market Modification
- Product Modification
- Marketing Program Modification.
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Ñ A co. might try to expand the market for its mature brand
by working with the two factors that make up sales
volume:
Volume = no. of brand users x usage rate per user
Ñ No. of brand users can be expanded by:
- Converting nonusers.
- Entering new market segments.
- Winning competitors¶ customers.
Ñ Volume can also be increased by convincing current
users to increase their brand usage:
- Use the product on more occassions.
- Use more of the product on each occasion.
- Use the product in new ways.
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@ Sales are also modified through modifying the
product¶s characteristics through quality
improvement, feature improvement or style
improvement.
@ Quality improvement aims at increasing product¶s
functional performance.
@ Feature improvement aims at adding new features
such as size, weight, accessories that expand the
product¶s performance, versatility, safety or
convenience.
@ Style improvement aims at increasing the product¶s
esthetic appeal.
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@ Sales may be stimulated by modifying marketing program
elements. The following question need to be answered:
-- Prices: Would a price cut attract new buyers?
-- Distribution: Can the company obtain more product support and
display in existing outlets?
-- Advertising: Should advertising expenditures be increased?
Should the message be changed?
Should the media mix be change?
-- Sales Promotion: Should the company step up sales
promotion?
-- Personal Selling: Should the number or quality of sales people
be increased?
-- Services: Can the company speed up delivery?
Can it extend more credit?
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@ Sales decline due to no. of reasons such as:
- Technological advances.
- Shift in consumer taste.
- Competition.
@ This may result in:
- Over Capacity.
- ncreased Price Cutting.
- Profit Erosion.
@ Following strategies could be adopted to handle declining sales:
- ncreasing firms investment.
- Maintaining the firms investment level until the uncertainties
about the industry are resolved.
- Decreasing the firm¶s investment level selectively, by dropping the
unprofitable customer groups and focusing on niches.
- Harvesting.
- Divesting.