decline stage
(noun)
when a product is not predicted to continue to be successful or upgraded
Examples of decline stage in the following topics:
-
Decline
- During decline, sales growth becomes negative, profits decline, competition remains high, and the product ultimately reaches its 'death'.
- The decline stage of the product life cycle is the one where the product ultimately 'dies' due to the low or negative growth rate in sales (see ).
- However, the market became saturated after 2000 and went into decline.
- This stage of the product life cycle is the terminal stage where sales drop and production is ultimately halted.
- Identify the characteristics of a product in the decline stage of the product life cycle.
-
Stages in the Product Life Cycle
- There are four stages in the product life cycle: introduction, growth, maturity, and decline.
- There are four stages in the product life cycle: introduction, growth, maturity, and decline .
- In the maturity stage of the product life cycle, sales will reach their peak.
- In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point.
- There is no set schedule for the stages of a product life cycle.
-
The Product Life Cycle
- Every product goes through the various life cycle phases of introduction, growth, maturity and decline.
- It is important that businesses continually develop new products to replace those that are declining.
- The product life cycle begins with the introduction stage (see ).
- A good product manager should find new products to replace those that are in the declining stage of their life cycles; learning how to manage products optimally as they move from one stage to the next.
- However, this stage also offers its share of opportunities.
-
Product Life-Cycle Curve
- A rise in sales per se is not necessarily evidence of growth, just as a fall in sales does not typify decline.
- Some products like Coca Cola and Pepsi may not experience a decline at all.
- Differing products possess different product life cycle "shapes. " A fad product develops as a steeply-sloped growth stage, a short maturity stage, and a steeply-sloped decline stage (for instance, the pet rock phase in the 1970s).
- The duration of each product's life cycle stage is unpredictable, making it difficult to detect when maturity or decline has begun.
- Thus, we can say that Facebook is comfortably in the maturity stage.
-
Maturity
- The maturity stage follows the growth stage in the product's life cycle (see ).
- Ultimately, during this stage, sales will peak.
- But, these sales will peak and ultimately decline, as the graph shows.
- The stage that lasts the longest in the product life cycle is the Maturity stage.
- So, during the maturity stage, the following occurs:
-
Growth
- During the growth stage, the public becomes more aware of the product; as sales and revenues start to increase, profits begin to accrue.
- Mini tablets, such as the iPad mini, Google Nexus 7, or Amazon Kindle Fire, are in the growth stage at the moment.
- If a monopoly was initially created, then it still exists in this stage.
- The graph shows the growth stage in the overall product life cycle.
- Identify the conditions that exist when a product is in stage 2, growth of the Product Life Cycle
-
Impact of the Product Life Cycle on Marketing Strategy
- The stage of the life cycle of the product affects how it is marketed.
- Products typically go through four stages:
- Then after a period of time, the product is overtaken by development and the introduction of superior competitors, goes into decline, and is eventually withdrawn.
- In the growth stage, the firm seeks to build brand preference and increase market share.
- Those products that survive the earlier stages tend to spend longest in this phase.
-
When to Modify Products
- While the decision to modify products happens ideally at the design stage, products can be changed during any phase of the life cycle.
- Products travel through market introduction, growth, maturity, saturation and decline, posing different challenges, opportunities and problems to manufacturers and sellers depending on industry and target audience.
- At the design stage, developers and engineers must assess the importance of various requirements from a wide range sources.
- Factors that can influence whether products are modified at the design stage include:
- Product recalls, which can happen at any stage of a product life cycle, are costly and can severely damage a brand's reputation if managed poorly.
-
Stages of Adopters
- Everett Rogers categorizes the five stages (steps) of adopters as:
- The five stages of the adoption process are:
- Due to the individualistic nature of this stage, Rogers notes that it is the most difficult stage to acquire empirical evidence.
- Confirmation: Although the name of this stage may be misleading, in this stage, the individual finalizes his or her decision to continue using the innovation and may end up using it to its fullest potential.
- This chart depicts the five stages of the diffusion of innovation.
-
General Economic Conditions
- Marketers must be aware of the business cycle, and react appropriately according to which stage of the cycle the economy is in.
- The four stages in the business cycle are: prosperity, recession, depression, and recovery (see and try to identify the different stages).
- Unemployment rises and consumer buying power declines.