User:Boykovladimir/Mature Products

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Regardless oh how successful a product is, when it has reached its maturity, there is a need to give products a push or update. This is to deter it from going into decline and at the same time to make good use of the product’s accumulated competency (Michael, 1998). The stage is associated with reduced variable cost particularly in advertising and promotion. Marketing strategies shift to brand differentiation because of competition products (Johansson, 2001).

One way of viewing the situation is that the challenge for the products changes from being able to present a unique product proposition to being able to present a unique value proposition (Buchanan, 1994). The usual strategies for the stage include diversification of the product or redevelopment for new features and uses (Orr, 2000). However, to be able to effectively maneuver these strategies, the product must have a solid market share and position because strategies react sensitively to captured markets particularly those that have no significant switching cost for the product (Farrell & Klemperer, 2002).

Currently, mature products have displayed greater sensitivity to price than in previous years (Hoos, 2000). Historically, markets would not react aggressively to new entrants using price as their primary entry due to the constraints of buyers’ learning curves. However, with better information afforded them through the internets or other media that usually is part of the competency of an existing brand, these limitations have been decreased (Tubbs & Schulz, 2005).