Program capstone IP5 Essay Example | Topics and Well Written Essays - 1000 words

Program capstone IP5 - Essay Example The introduction stage occurs after a product has been effectively been marketed and surveys carried out and as a result achieved its desired marketing goal. The product is then introduced into the market with an aim of creating immediate demand. At this stage, there is very little competition in the market and the sales volume of the product increases rapidly. The prices are very high as well as promotion methods leading to the firms registering high profits. The maturity phase of the product life cycle is marked by an increase in sales volume at a decreasing rate. At this stage, imitations of the product begin to emerge in the foreign markets causing the firm to begin lowering its exportation of the product. The manufacturers are forced to lower the market price of the product in order to maintain its market share as well as supporting its sales. Despite a decrease in the profit levels, the firm’s product still remains attractive due to high volumes available in the market. The saturation period is marked by stability in the product line. The sale volume is at its peak and there is no possibility of extending it further. Sales at this stage undergo stability initially but then begin to fall as many substitutes of the product enter the market. At this stage, the manufacturing firms must aim at developing new alternative uses of the product through effective differentiation which can be either vertical or horizontal (Chitale, 2013). In order to sustain the maturity period, firms will tend to introduce alterations as well as innovations to the product so as to keep the interest of the customers high so that they keep on buying the product. The phase can also be lengthened through variations in terms of prices due to the stiff competition in the market. Some of the popular and well known products such as the iPod together with the iPhone are currently in the maturity stage. Apple has however been very