Market saturation

Apr 23, 2026 - 10:12
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Market saturation

Theory of natural limits

← Previous revision Revision as of 04:40, 23 April 2026
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==Theory of natural limits==
==Theory of natural limits==
{{Anchor|Theory of natural limits}}
{{Anchor|Theory of natural limits}}The ''theory of natural limits'' states: "Every product or service has a natural [[Consumption (economics) | consumption]] level. We just don't know what it is until we launch it, distribute it, and promote it for a generation's time (20 years or more) after which further investment to expand the universe beyond normal limits can be a futile exercise." —[[Thomas G. Osenton]], economist
The ''theory of natural limits'' states: "Every product or service has a natural [[Consumption (economics) | consumption]] level. We just don't know what it is until we launch it, distribute it, and promote it for a generation's time (20 years or more) after which further investment to expand the universe beyond normal limits can be a futile exercise." — attributed to [[Thomas G. Osenton]],
Compare:
{{cite book
|last1 = Wagter
|first1 = Herman
|last2 = Russell
|first2 = Jean M.
|date = 2 May 2016
|title = Cultivating Flows: How Ideas Become Thriving Organizations
|url = https://books.google.com/books?id=buOqDwAAQBAJ
|publication-place = Axminster, Devon
|publisher = Triarchy Press
|page = https://books.google.com/books?id=buOqDwAAQBAJ&pg=PT82
|isbn = 9781909470996
|access-date = 23 Apr 2026
|quote = Thomas Osenton, author of The Death of Demand, says, 'Every product or service has a natural consumption level. We just don't know what it is until we launch it, distribute it, and promote it for a generation's time (20 years or more) after which further investment to expand the universe beyond normal limits becomes a futile exercise.'
}}
economist


Osenton introduced the theory in his 2004 book, ''The Death of Demand: Finding Growth in a Saturated Global Economy'';
Osenton introduced the theory in his 2004 book, ''The Death of Demand: Finding Growth in a Saturated Global Economy'';
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| access-date = 24 August 2019
| access-date = 24 August 2019
}}
}}
it states that every product or service has a natural consumption level that is determined after a number of years of sales- and marketing-investment (usually around 20 to 25 years). In effect, a relative universe of regular users is naturally established over time, after which any significant expansion of that universe becomes extraordinarily difficult. The point at which these natural limits are reached is known as "innovation saturation".
it states that every product or service has a natural consumption level that is determined after a number of years of sales- and marketing-investment (usually around 20 to 25 years).
Compare:
{{cite book
|last1 = Osenton
|first1 = Tom
|author-link1 = Thomas G. Osenton
|year = 2004
|title = The Death of Demand: Finding Growth in a Saturated Global Economy
|url = https://books.google.com/books?id=XAtHgw5i8kYC
|series = Financial Times Prentice Hall books
|publication-place = Upper Saddle River, New Jersey
|publisher = FT Press
|page = 14
|isbn = 9780131423312
|access-date = 23 April 2026
|quote = Obviously, when a company launches, its rate of revenue growth trends upward. For a period of time it experiences an increasing rate of growth, the period when the rate of revenue growth is in a consistent state of upward movement over a number of years. Corporations can spend decades in this phase, but as a rule of thumb, it usually lasts 20 to 30 years or less.
}}
In effect, a relative universe of regular users is naturally established over time, after which any significant expansion of that universe becomes extraordinarily difficult. The point at which these natural limits are reached is known as "innovation saturation".


===Example===
===Example===
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