decline

Examples of decline in the following topics:

• Decline

  • During decline, sales growth becomes negative, profits decline, competition remains high, and the product ultimately reaches its 'death'.
  • A decline in sales volume as competition becomes severe, and popularity of the product falls;
  • However, the market became saturated after 2000 and went into decline.
  • The PC is still used all over the world, but its popularity has declined dramatically.
  • 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 decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point.

• 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.
  • 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.

• 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.

• Maturity

  • The company will want to prolong this phase so as to avoid decline, and this desire leads to new innovation and features in order to continue to compete with the competition which, by now, has become very established, advanced and fierce.
  • But, these sales will peak and ultimately decline, as the graph shows.

• Concentrated Targeting

  • If demand declines, the organization's financial position will also decline.

• Impact of the Product Life Cycle on Marketing Strategy

  • 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.

• Cost-Based Pricing

  • A remedy would be to increase prices in this situation, but a time of declining sales is hardly the right environment for a move such as this.

• Competitor-Based Pricing

  • For example, if a firm sets a market share objective when the market size is fixed or declining, then this immediately signals that this gain in market share will come at the loss of a competitor.

• Evaluating Market Segments

  • If demand declines, the organization's financial position will also decline.