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Hello Sir.
Can you please tell me what is a ‘Saturated Market”.And in which stage of the life can we say that the market related to the product has become saturated (Maturity or Decline Stage) and what are its implications?
A saturated market is where the overall market demand stops growing and there are many suppliers. So a business can only increase its sales by taking market share from other companies. If the don’t find ways of gaining market share then their sales will enter the decline stage. To try and avoid this they need to consider such things as reducing the price or changing their product to make it more attractive to customers.
So Sir, can we say that the time when the Sales for the product reaches to it’s peak and almost gets stabilize is the Saturation points?
And therefore the Saturation Point occurs at mid or latter part of Maturity Stage?
In that case sir why the following statement is False?
“Maturity Stage occurs when the Market for the product has reached “Saturation Point”No. If the market is already saturated then the product will have entered the decline phase.
Sir, I’m unable to understand.
Can you please explain me why Market Saturation will arise in Decline Stage and not in Maturity Stage?
If the market is saturated then the product has already passed the maturity stage and had entered the decline stage. The company will be losing sales to other suppliers because there are now many alternative suppliers who supply an identical product and so the company’s sales will be falling.
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