Certified Production & Operations Manager (POM) Practice Exam

What is typically the main focus of the maturity stage in a product life cycle?

1. Product innovation

2. Market saturation and competitive pricing

3. Building brand awareness

4. Enhancing product features

The correct answer is: Market saturation and competitive pricing

The maturity stage of a product life cycle is characterized primarily by market saturation and competitive pricing. During this stage, the product has already reached a peak level of sales, and the market becomes increasingly competitive as numerous competitors offer similar products. This leads to a situation where the focus shifts from gaining new customers to retaining existing ones and defending market share. As competition intensifies, companies often resort to adjusting their pricing strategies to remain attractive to consumers while trying to differentiate themselves from competitors. This may involve price reductions, promotional offers, or bundled deals, aiming to stimulate demand in a saturated market. The emphasis on competitive pricing reflects the need to sustain profitability despite potentially declining sales growth. While product innovation, building brand awareness, and enhancing product features are also important aspects of managing a product, they typically play a more prominent role in earlier stages of the product life cycle, such as introduction and growth. During maturity, the urgency shifts toward maximizing efficiency, reducing costs, and ensuring that the product remains appealing to target customers amidst heightened competition.