77
THE
PRODUCT LIFE CYCLE
Growth stage
The growth stage is characterised by a rapid increase in sales as the product starts to attract
different types of customers and repeat purchases may start (see Figure 3.9). Critically, it is
at this stage that competitors assess the product’s market and profit potential and decide on
their competitive moves. They may decide to modify or improve
their current offerings, or
enter the market with their own new products (for example, Microsoft Zunes as the ‘iPod
killer’). If not, they may use the other elements of the mix to detract attention from the
product, such as an advertising campaign or a price promotion. It
is possible that defensive
attacks may be required to prevent the curve from flattening.
Maturity stage
At this stage, the rate of growth slows down significantly. This
stage tends to last longer
than the previous ones and is probably the most challenging one. It is a fact of life for most
marketers that the markets they have to deal with are mature! This is a stage of severe
Airbus A380’s
development
costs
were €11bn!
Source: Susanne
Baumgarten/Vario
images
GmbH & Co.KG/Alamy
Stock Photo.
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