Question

What happens during the maturity stage of the product life cycle?

a. management considers pruning items from the product line to eliminate unprofitable ones.
b. marketing strategy typically encourages strong brand loyalty.
c. prices are usually high, sales are low, and development, promotion, and distribution costs are high.
d. promotion costs climb, and competitors cut prices to attract business.

Answer 1

The maturity stage of the product life cycle is characterized by management pruning unprofitable items, marketing strategy focusing on brand loyalty, and high prices with low sales.

Step-by-step explanation:

The maturity stage of the product life cycle is characterized by several key factors:

1. Management considers pruning items from the product line to eliminate unprofitable ones. In this stage, companies evaluate their portfolio of products and may decide to discontinue certain items that are not generating enough profit.
2. Marketing strategy typically encourages strong brand loyalty. Companies focus on maintaining and strengthening customer loyalty, often through targeted marketing campaigns and customer retention programs.
3. Prices are usually high, sales are low, and development, promotion, and distribution costs are high. The product has reached a point of market saturation, and sales growth slows down. As a result, companies may increase prices to maximize profitability, while continuing to invest in marketing and distribution to maintain market share.