In the _________ stage of the product lifecycle, sales level off and competition continues to increase. Competition becomes the most intense of any phase. Promotion costs increase and price competition cuts into profits.
At the maturity stage the company is running at full capacity and is charging lower prices because the competitors has entered the market and it is more likely that the they affect the customer's choices. To retain this customer the company will have to offer the product at a lower price and increase the promotion cost to retain the share of the market share which means the profit per unit will decrease.
