Question

How does the 'Market Maturity' stage affect the demand for a product?

The 'Market Maturity' stage in a product's lifecycle is characterized by a leveling out of demand. During this stage, the product has reached its peak in the market and demand grows mostly at the replacement and new family-formation rate. This means that most of the sales are from customers replacing their old products or new customers entering the market. The rate of growth of demand slows down and the market becomes saturated with the product.

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Market Development – the period when a new product is first introduced to the market with a proven demand for it, but without the full proof of technically in all respects. At this stage, sales are usually low and increase slowly. Market Growth (a.k.a. "Takeoff Stage") – the period when demand begins to accelerate and the size of the total market expands rapidly. Market Maturity – the period when demand evens out and grows, mostly only at the replacement and new family-formation rate. Market Decline – the period when the product begins to lose its appeal to consumers and sales drop.

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