Explain the maturity stage and abandonment stage of product life cycle.

Maturity Stage:

During this stage, sales continue to grow but at a decreasing rate. Competition increases further and markets get stabilised.

Characteristics:

• The product is known all over the market and a low-income group market may emerge.
• Prices are reduced due to competition, but promotional expenditure remains high.
• Profits decline and marginal producers are forced to leave.
• Supply exceeds demand for the first time, leading to saturation.
• New models are introduced and product lines are broadened.

Abandonment Stage:

This is the final stage of the product life cycle. Most firms shift their attention to other products and gradually phase out the declining product.

Characteristics:

• The product is removed from the market to make better use of resources.
• Preferences of consumers change, and new innovations enter the market to take the place of abandoned products.
• Firms try to postpone abandonment by introducing new models with unique features.
• In case of heavy losses and no future, the firm may sell out and merge with a stronger enterprise.

For example, the typewriter was abandoned with the introduction of computers, and keypad phones are gradually being abandoned in favour of touchscreen smartphones.