Maturity Stage : During this stage, sales continue to grow but at a neutral rate. Competition increases further and markets get stabilised. Prices are reduced due to competition but promotional expenditure remains high. As a result, profits decline. Manufacturers broaden their lines and new models of the product are introduced. Supply exceeds the demand for the first time. After sometime there is a saturation in the market. There is no possibility of increasing sales and sales curve is levelling off.
Abandonment Stage: Most firms shift their attention to other products gradually phasing out the declining product. They abandon the product in order to make better use of their limited resources. Preferences of consumers may change and new innovations enter into the market to take place of the abandoned products.