If you’re in the world of marketing, then you’ve surely come across the famous Product Life Cycle (PLC) model. This model describes a product’s journey from its conception to its ultimate saturation in the market. Every product goes through four different stages, namely Introduction, Growth, Maturity, and Decline. In this article, we’ll be focusing on one specific stage of the PLC and answer the question, “which of the following is a characteristic of the maturity phase of the product life cycle?”
Before we dive into the characteristics of the maturity phase, let’s first understand what this stage is all about. As the name suggests, the maturity phase is the third stage of the product life cycle. During this phase, the product has already received acceptance from the market and has gained a significant market share. The sales growth rate slows down, but revenue is still coming in. The competition is high, and companies need to focus on retaining their customers while making strategic decisions about the future of the product.
Now, let’s talk about the characteristics of the maturity phase:
1. Saturation: The market has reached its peak, and the product has achieved its maximum market share. There are no new customers to target, and therefore, the focus shifts to retaining existing customers.
2. Price wars: As the market becomes saturated, competition grows, leading to a price war amongst the competitors. Companies need to make strategic pricing decisions to maintain their market share and revenue.
3. Diversification: Companies may explore new sales channels or add product variations to keep their product relevant and exciting to their customers.
4. Marketing efforts shift from awareness to reminders: Since most customers are already aware of the product, marketing efforts shift from creating awareness to building reminders through advertising, promotions, and other marketing strategies.
5. Increased focus on customer service: With increased competition, companies need to differentiate themselves by providing excellent customer service to retain their customers.
In conclusion, the maturity phase of the product life cycle is characterized by saturation, price wars, diversification, a shift in marketing strategies, and increased focus on customer service. Companies need to make strategic decisions during this stage to maintain their market share and revenue. By understanding the characteristics of this phase, marketers can make informed decisions to ensure the success of their product in the long run.
