Which of the following best defines the decline stage?

The decline stage is characterized by a long-run drop in sales, which is the essence of option C. This phase typically occurs after a product has reached maturity and starts to lose market appeal. Various factors, such as changing consumer preferences, technological advancements, or increased competition, contribute to this decline in sales.

During the decline stage, businesses may experience reduced revenue, which can lead to decisions such as discontinuing the product, repositioning, or finding new markets in an attempt to revive sales. Understanding this stage is crucial for businesses as it prompts them to strategize and adapt to their shifting market landscape to maintain profitability.

The other options highlight different stages of a product's lifecycle. For instance, a plateau in sales refers to the maturity stage, where sales stabilize after significant growth, while steady increases represent growth. A peak followed by stabilization is also indicative of the maturity stage. Recognizing these distinctions is important for effectively managing product life cycles and making informed business decisions.