What characterizes the maturity stage in the product life cycle?

The maturity stage in the product life cycle is characterized by sales peaking and then starting to decline. This stage follows the growth phase, where initial increases in sales slow down, and the market becomes saturated with the product. At this point, most potential customers have already adopted the product, resulting in a stabilization of sales levels followed by a gradual decline as new products emerge and customer preferences evolve.

During the maturity stage, competition generally intensifies as more competitors enter the market, often leading to price wars and the need for differentiation strategies. Companies often look to maintain their market share through improvements, variations, and marketing strategies, but inevitably, sales cannot continue to rise indefinitely.

In contrast, significant sales increases would typically characterize the earlier growth phase, while minimal competition is more typical in the introductory stage, where a new product has just been launched. Maximum product awareness is usually seen during the growth stage as marketing efforts peak to attract customers. Thus, sales peaking and starting to decline is the defining feature of the maturity stage.