Which term characterizes the stage where a product has reached its highest market potential?

The term that characterizes the stage where a product has reached its highest market potential is maturity. During the maturity stage of the product life cycle, sales growth slows as the product saturates the market, and the number of potential new customers decreases. At this point, the product has typically achieved its maximum market penetration, meaning that most of the target audience has already adopted the product.

In the maturity phase, competition is intense, and businesses often focus on differentiating their offerings to maintain market share. Strategies may include enhancing product features, optimizing pricing, or increasing promotional efforts to retain existing customers and attract those who have not yet purchased. Understanding maturity is crucial for marketers, as managing products effectively during this time can determine long-term profitability and sustainability in the market.

The other stages—introduction, growth, and decline—represent different phases of a product's life cycle, where the market dynamics and strategies differ significantly from those encountered during maturity.