DECA Marketing Cluster Practice Exam

During the decline stage of the Product Life Cycle, it is common that sales and profits are decreasing, which is often due to market saturation, changes in consumer preferences, or the introduction of new products. At this stage, many customers may have already purchased the product or may not be interested in it as they shift their preferences elsewhere. This shift creates a scenario where the remaining customer base is dwindling, leading to a natural reduction in overall sales.

In contrast, the peak in sales and profits typically occurs during the growth or maturity stages, not during decline. While investment in advertising may fluctuate during the decline stage, it usually decreases as companies try to minimize expenses and may even reduce product offerings. New competitors typically enter during the growth stage, seeking to capitalize on emerging opportunities rather than during the decline phase when the focus is on managing an established product in a shrinking market.