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The pricing decision

7.3 Maturity

 The increase in demand slows down in this stage, as the product reaches the
mass market.

 The sales curve flattens out and eventually begins to fall. As market maturity is
reached the organisation becomes more interested in minimising elasticity.

 Products have to be differentiated in order to maintain their position in the
market and new users for mature products need to be found to keep demand
high.

 Generally, profits will be lower than during the growth stage.

7.4 Decline

 Saturation point: sales curve begins to decline.

 Price wars erupt as organisations with products which have elastic demand
seek to maintain full utilisation of their production capacity.

 Profits can still be made during the early part of this stage, and the products will
be managed to generate cash for newer products.

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