Maturity Stage - Strategic Management

The maturity stage is the most profitable. While sales continue to increase into this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be reduced. Competition may result in decreased market share and/or prices. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. The firm places effort into encouraging competitors' customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. 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. Distribution-New distribution channels and incentives 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.

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Strategic Management Topics