Which term describes a long-run drop in sales?

The term that describes a long-run drop in sales is the decline stage. During this phase, a product or service experiences a consistent decrease in sales volume over time, often due to factors such as market saturation, changing consumer preferences, technological advancements, or the introduction of superior alternatives.

In the decline stage, businesses may see their market share diminishing as they struggle to maintain interest in their offering. This stage typically follows the maturity stage, where sales levels off, and can lead to businesses needing to reevaluate their strategies, either through product innovation, cost-cutting measures, or phasing out the product altogether.

The other stages—introduction, growth, and maturity—characterize the lifecycle where products are either being launched, enjoying rising popularity, or maintaining stable sales, respectively. None of these stages include a long-term decrease in sales, making the decline stage distinct in this regard.