GENERAL KNOWLEDGE

Detailed explanation-1: -The maturity stage is when the sales begin to level off from the rapid growth period. At this point, companies begin to reduce their prices so they can stay competitive amongst the growing competition.

Detailed explanation-2: -Decline Stage Product sales begin to drop due to market saturation and alternative products, and the company may choose to not pursue additional marketing efforts as customers may already have determined whether they are loyal to the company’s products or not.

Detailed explanation-3: -Decline: During the decline stage, sales and profits start to decline. Companies may start to reduce their spending on the product and look for ways to cut costs. Discontinuation: The final stage is when the product is discontinued from the market.

Detailed explanation-4: -Maturity At this point, sales may start to drop. Pricing at this stage tends to get competitive, so profit margins shrink as prices begin to fall due to the weight of outside pressures like increased competition and lower demand.

Detailed explanation-5: -During the growth stage, sales rise rapidly as consumers begin to accept the product. The production runs become longer, and economies of scale are achieved, reducing per-unit cost, and also helping profits to increase rapidly. Sales Promotion Strategy: Reduce to take advantage of heavy consumer demand.