Maturity Stage

What is Maturity Stage?

What is Maturity Stage?A period of slowdown in sales growth because the product

has already achieved acceptance by most potential

buyers. Profits stabilize or decline because of increased

competition.

Maturity Stage This stage is characterized further by the following: Sales settle down as the

product becomes well-known;

Price reductions are used as a tool of competition;

Competition is intensified; and

The market becomes saturated.

3 Sub stagesGrowth maturity - holds some remnants from the last major product life cycle stage, growth stage. Though all distributions channels are full, new competitors may enter the market and try to undercut in prices or rise above with value.

Stable maturity - is the classic feature of the mature stage because sales completely flatten and the market becomes completely saturated for all competitors.

Decaying maturity - guides the product into the last major product life cycle stage, decline stage.

Marketing mix decisions may

include:Product - Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced.Price - Possible price reductions in response to competition while avoiding a price war.Place - New distribution channels and incentives are given to resellers in order to avoid losing shelf space.Promotion - Emphasis on differentiation and building of brand loyalty. Incentives to get competitors' customers to switch 

Stages Introduction

Growth Maturity

Decline

Objectives Create product

awareness and Trial

Maximize market share

Maximize profits and

defend market share

Reduce expenses & milk brands

Sales Low Sales Rapidly Increasing

Sales

Peak Sales Declining Sales

Costs High cost per

customer

Average cost per

customer

Low cost per

customer

Low cost per

customer

Profits Negative More Profit High Profit Declining Profit

Customer Innovators Early Adopters

Early Majority +

Late Majority

Laggards

Competitor

Few More in number

Stable number,

beginning to decline

Declining numbers

Marketing Strategies

When the company is the leader in a mature market, it must aim at maintaining and

protecting its market share. In this case, the marketing strategies that can be followed

coincide with those in the growing markets. Fortress or defense position Flanker Confrontation Market expansion Contraction or strategic withdrawal

Product ModificationManagers try to stimulate sales by modifying product characteristics which can be done in three ways:

Improvement in qualityImprovement in featuresImprovement in style and

looks

Product ModificationQuality improvement tries to increase the final performance of a particular product in terms of:DurabilityReliability Feature improvement aims at improving:UsabilityVersatilitySafety

Style improvement aims at increasing products’ aesthetic appeal.

Product ModificationExamples

Market Modification

Sales volume can be increased by influencing

constituent variants or by modifying the market

itself.

In depth market modification strategies

Extensive penetration strategy – aims at converting current non-users to users in the target market. The conditions favoring the implementation of this strategy are the following:

There is large number of non-users; Competitors hold relatively small market shares,

and have limited resources;

Extensive penetration strategyThe marketing tools that can be used as part of the extensive penetration strategy include:

• Increasing the value of the product by adding new

features or services• Enhancing distribution coverage

through innovative networks;• Sales promotion in the form of

couponing, tie-in sales and sampling

In depth market modification strategies

 

Use expansion strategy – aims to expand the use of the product

by current users.This can be achieved through the following three methods:

Increases in the frequency of use; -providing reminder communications, positioning

for frequent or regular use, making the use easier or more convenient, providing incentives, reducing undesirable consequences of frequent

use.

Increases in the quantity used; - providing reminder communications, using incentives, affecting the usage level norms, reducing undesirable consequences of increased use level, developing positive associations with use occasions.

Development of new product uses. - using the product on different occasions, at different locations and for different purposes.

Use expansion strategy

In depth market modification strategies 

New market strategy – aims at serving yet unreached segments. This strategy can take the form of geographic expansion, defining a new market and distribution channel.

 There are certain conditions under which the new market strategy is highly applicable, namely:

Certain regions are underserved The market can be segments using a

variety of segmentation criteria; The market leader has sufficient

resources to cultivate underdeveloped new market segments; Competitors have insufficient resources

to preempt underdeveloped segments.

New market strategy

Some marketing tactics, which can be used as part of the new market strategy, includes:

o Line extensions especially developed with new features for regional or application segments;

o Advertising and sales promotions emphasizing product features and applications;

o Distribution networks that allow access to the underserved segments.

New market strategy

GROUP ABSBA-Mm3A

Agban, ZandroCembrano, AllisonFernandez, Elsa

Joven, JoyPalabasan, Miguel

Soriano, Madel