Page 303 - Foundations of Marketing

270 Part 4 | Product and Price Decisions

CR-V, Audi Q 5 , and Volvo XC 60 . Hybrid SUVs are also an option for consumers who like the
horsepower of traditional SUVs. Automakers are responding to this interest with more models
and features. With their improved ride, handling, and fuel economy, crossovers and hybrids
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are in a rapid sales growth stage at the expense of traditional SUVs.
During the maturity stage, marketers actively encourage resellers to support the product.
Resellers may be offered promotional assistance in lowering their inventory costs. In general,
marketers go to great lengths to serve resellers and provide incentives for selling their brand.
Maintaining market share during the maturity stage requires moderate, and sometimes
large, promotion expenditures. Advertising messages focus on differentiating a brand from
the field of competitors, and sales promotion efforts may be aimed at both consumers and
resellers.

Decline

During the decline stage , sales fall rapidly (see Figure 10.3 ). When this happens, the mar-
keter considers pruning items from the product line to eliminate those not earning a profit. The
marketer also may cut promotion efforts, eliminate marginal distributors, and finally, plan to
phase out the product. This can be seen in the decline in demand for most carbonated bever-
ages, which has been continuing for several years as consumers turn away from higher-calorie
soft drinks. Experts predict that soft-drink sales will continue to fall at least 1.5 percent each
year for the next 5 to 10 years. This shift in consumer preferences are already changing the
way companies produce and market bottled beverages, with companies expanding their offer-
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ings of juices, waters, and healthier drink options.
In the decline stage, marketers must determine whether to eliminate the product or try
to reposition it to extend its life. Usually a declining product has lost its distinctiveness
because similar competing or superior products have been introduced. Competition engen-
ders increased substitution and brand switching as buyers become insensitive to minor
product differences. For these reasons, marketers do little to change a product’s style,
design, or other attributes during its decline. New technology or social trends, product
decline stage The stage of a substitutes, or environmental considerations also may indicate that the time has come to
product’s life cycle when sales delete the product. Consider the incandescent light bulb. As consumers switch to “greener”
fall rapidly compact fl uorescent bulbs and LED lighting—increasingly prompted by government bans

Decline Stage
As more consumers choose to
stream music, compact discs © iStockphoto.com /kyoshino
are on the decline. Many retail
stores are offering CDs at lower
prices to try and spur demand.

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