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Mature And Mature Market

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Characteristics of Mature and Growing markets University Student University of the People Abstract Every product or service in the market place follows a defined life cycle. This is the introduction of the product to the market, the growth phase where more and more consumers buy the product and the maturity phase. This are the phases of active consumption of products and services. During the growth phase, there is exponential increase in sales and competition starts setting in as a result. Prices will tend to remain constant or decline to penetrate the market. More advertisements and distribution channels are put in place. At maturity, this is where competition is stiff and very few new consumers enters the market place. Prices…show more content…
It is also difficult and or expensive to reach the non-buyers. This implies that any attempt to reach the non-buyers would involve use of lots of funds to get them and still they may not respond to the adverts. Additionally, the consumers in mature markets are sophisticated and well versed with product features and their benefits. Stark and Stewart (2017) states that customers’ needs don’t appear to be rapidly evolving. Based on your answer to #1, how are the decisions on price, advertising, and distribution channels different for the two brand managers? In growing a market, we noted that the consumers are more knowledgeable about the products and they begin to exert pressure on price to come down or remain relatively constant without increasing. In most cases, prices remain constant or may decrease to penetrate the market. This is supported by the influx of suppliers of the same or related goods and services. The consumers can switch between suppliers depending on price offered. Increase in competition precipitates creation of more distribution outlets or channels. The suppliers want to reach the consumers at their door steps. In this case, suppliers will appoint distributors, agents and foot soldiers to promote the sales. Sales promotion costs are spread over large volume of sales hence decreasing costs. This is economies of scale and it leads to high profits. Advertisement is either maintained or increased. Some advertising is shifted from creation of awareness about the product or service to building product or service conviction and
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