ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This is why it becomes important to know what product life cycle is at first. When a product is in the decline stage, the sales drop due to a change in consumer behaviour and demand. The product loses its market share and competition also deteriorates.

Detailed explanation-2: -Maturity At this point, companies begin to reduce their prices so they can stay competitive amongst the growing competition. This is the phase where a company begins to become more efficient and learns from the mistakes made in the introduction and growth stages.

Detailed explanation-3: -Decline. A product’s decline is its final stage in the life cycle. It begins when a product starts to lose consumer interest and sales begin to dip. Often, a product’s decline will be triggered by alternative options, but it may also occur as new innovations and trends emerge.

Detailed explanation-4: -Maturity When sales begin to level off from rapid growth, you’re entering the maturity stage. You may have to reduce prices to stay competitive. Now, your marketing campaigns focus on differentiation instead of awareness, pointing out your superior product features.