Question

WHAT ARE THE STAGES OF MARKET NAME THEM AND EXPLAIN THEM ????????

Answer 1

Answer:

Some of the most important stages through which market passes are as follows: (i) Introduction (ii) Growth Stage (iii) Maturity Stage (iv) Saturation Stage (v) Decline Stage.

(i) Introduction:

The product is developed keeping in view a particular need of a set of consumers, and introduced in the market by initiating its commercial production.

At this stage product is new in the market, consequently its demand is low and requires vigorous sales efforts. The promotional costs are, therefore, high at this stage and the production costs are also not fully recovered due to low volume of sales.

(ii) Growth Stage:

There is a rapid expansion in sales as the cumulative impact of the promotional expenditure helps in the market acceptance of the product as well as the reputation of the product gains around. But this rapid expansion can be sustained only by the maintenance of product quality.

(iii) Maturity Stage:

When the product enters the maturity stage the rate of growth of its sales declines, though the volume of sales keeps on increasing. This is so because most of the persons needing the product-had; already adopted it during the growth stage and now when the product enters its maturity stage, it faces a small and declining number of potential buyers. Consequently, the firm has to spend relatively increasing amount of sales promotion.

(iv) Saturation Stage:

At this stage, the sales volume of the product ceases to grow. The only additional demand for the product happens to be its replacement demand.

(v) Decline Stage:

Ultimately the product enters a stage of decline where its sale volume starts shifting down. The competitors have by then entered the market with substitutes and imitations and the product distinctiveness starts diminishing. Consequently, the sale of the product also starts declining.

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