Decline:

The absolute level of sales decreases consistently. This decline can be slow or rapid depending on the existing market conditions as well as the strategy adopted by the marketer. As the sales and profits decline some firms withdraw from the market, those left may reduce product offering or withdraw from smaller market segments and weaker trade channels. The marketer must however decide very carefully when to quit since leaving the market too early or too late may be uneconomical. The strategies available to the manager at this stage are:

• Increasing the firm's investment to dominate or strengthen its competitive position
• Maintaining the firm's investment level until the uncertainties about the industry are resolved
• Decreasing investment selectively e.g. Dropping unprofitable customer groups
• Harvesting (milking) trying to recover cash very quickly
• Divesting the business quickly by disposing of its assets as advantageously as possible.