PLC and Advertising

Product Life Cycle
What is PLC ?
• When a product enters the market, often unknown to the consumer, it
has a life cycle that carries it from being new and useful to eventually
being retired out of circulation in the market. This process happens
continually - taking products from their beginning introduction stages
all the way through their decline and eventual retirement.
• Example
• Mobile phones- Right from the time Nokia 1100 was introduced when
calling was very expensive through cell phones , to a time when people
started to buy it , to a time when almost every body used Nokia 1100,
to its place being occupied by sleeker and colored screen phones
What is PLC?
• Any product has a life cycle starting from the time the product is
introduced in the market, when the product is at the stage of its
infancy to a stage of growth which culminates into a stage of Maturity
and a final decline.
• Marketing and advertising strategies employed in each stage of the
cycle are different.
• Conveys when to rebrand the product or to launch a new product in
the market to take the space of the old one.
• PLC of the competing products helps to gain advantage while
launching a new product.
Stage 1: Introduction
• Once a product has been developed, the first stage is its introduction stage.
• In this stage, the product is being released into the market.
• During the introduction stage, marketing and promotion are at a high - and the
company often invests the most in promoting the product and getting it into the
hands of consumers.
• The sales of the product are low because people are not aware of the product yet.
So advertising is intensive to create the awareness and interest in the product.
• Costs are generally very high and there is typically little competition.
• The principle goals of the introduction stage are to build demand for the product
and get it into the hands of consumers, hoping to later cash in on its growing
popularity
Stage 2: Growth
• This is the stage where sales are increasing. Product’s market share is also
growing.
• If competition for the product is especially high, the company may still
heavily invest in advertising and promotion of the product to beat out
competitors. As a result of the product growing, the market itself tends to
expand.
• As the market expands, more competition often drives prices down to make
the specific products competitive. However, sales are usually increasing in
volume and generating revenue.
• Marketing in this stage is aimed at increasing the product's market share.
• Advertising keeps the product well within the minds of the consumers
Stage 3: Saturation
• Sales tend to slow or even stop.
• It is signaling a largely saturated market.
• Pricing at this stage can tend to get competitive, signaling margin shrinking as prices
begin falling due to the weight of outside pressures like competition or lower demand.
• Marketing at this point is targeted at fending off competition, and companies will
often develop new or altered products to reach different market segments.
• The Advertising in this time becomes selective as the producer does not want to spent
the money on advertising that he may not be able to recover
• The Advertisements are focused on keeping the product and its usefulness alive in the
minds of existing users and comparative tactics are used in advertising.
• The maturity stage may last a long time or a short time depending on the product. For
some brands, the maturity stage is very drawn out, like Coca-Cola, surf- excel, Maggie
etc.
Stage 4 : Decline
• In the decline stage, product sales drop significantly and consumer
behavior changes as there is less demand for the product.
• The company's product loses more and more market share, and
competition tends to cause sales to deteriorate.
• Marketing in the decline stage is often minimal or targeted at already
loyal customers, and prices are reduced.
• Eventually, the product will be retired out of the market unless it is able
to redesign itself to remain relevant or in-demand.
• Advertising is minimal at this stage, until and unless rebranding is
needed for the same product.
PLC and Promotion

PLC and Advertising

Uploaded by

Copyright:

Available Formats

PLC and Advertising

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PLC and Advertising

Uploaded by

Copyright:

Available Formats

Product Life Cycle

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.