Market Saturation

Market Saturation
When the amount of product provided in a market has been maximized in the current state of the marketplace. At the point of saturation, further growth can only be achieved through product improvements, market share gains or a rise in overall consumer demand.

Many companies are already aware of the problems of market saturation and have intentionally designed their products to "wear down" or otherwise need replacement at some point. For example, selling a light bulb that never burned out would limit consumer demand for more of this product.

Services revenue also becomes an important consideration when product revenue begins to slow; IBM smartly changed its business model toward providing services once it saw saturation in the large computer server market.


Investment dictionary. . 2012.

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  • saturation — /ˌsætʃə reɪʃ(ə)n/ noun 1. the process of filling completely ♦ saturation of the market or market saturation a situation where the market has taken as much of the product as it can buy ♦ the market has reached saturation point the market is at a… …   Marketing dictionary in english

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  • saturation advertising — /ˌsætʃə reɪʃ(ə)n ˌædvətaɪzɪŋ/ noun a highly intensive advertising campaign ● Saturation advertising is needed when there are large numbers of rival products on the market …   Marketing dictionary in english

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