What type of marketing strategy is typically employed during the decline stage of a product's life cycle?

During the decline stage of a product's life cycle, businesses often resort to discount pricing as a key marketing strategy. This approach is critical for several reasons. As products approach the end of their life cycle, demand typically decreases, and consumer interest wanes. To stimulate sales and maintain cash flow, companies may lower prices to attract remaining customers and clear out inventory, especially if the product is being phased out.

Discount pricing serves to encourage purchases among price-sensitive consumers who may not have previously considered the product at its regular price. Additionally, it can help match or compete with rival products that may have emerged or gained popularity during this decline stage.

While increased advertising, enhanced features, and expanded distribution may be viable for products in the growth or maturity stages, those strategies often do not yield effective results during the decline phase when consumers are more focused on value rather than new features or extensive marketing campaigns. Therefore, discount pricing is a practical and widely used tactic to manage products in their final stages effectively.