Effect Does the Product Life Cycle have on the Advertising a Company uses
The
every product (tangible or intangible) follows all the logical product life
cycle therefore, it is important for marketers to understand and plan for the
various stages and also their unique challenges. They should have research on
the life cycle of the product they are creating. We have certain life phases of
the products that includes introduction phases, growth phases, maturity phases,
and decline phases. The four phases are explained more in detailed below.
Introduction:
When a business organization
introduces the product in the market, in that period the sales growth is slow.
During this phase, early adaptors or innovators would be the buyers of the
product or brand. Their first aim of the business would be to promote the
product and create awareness and develop a market of the product. Therefore, in
such introduction phase, when the advertising company does advertisement of the
product they are make advertisement with concerned with the awareness or the
use of the product and develop market of the product. Just like when there is introduction of first
apple mobile in the market.
Growth:
In this stage the product is stage
of growing up. Competitors are attracted in the market with similar offering.
And in growth stage, the firm seek to build brand preference and increase
market share. The marketer maintains the price to increase the demand with
little competition. Therefore, in such growth phase, when the advertising
company does advertisement of the product they are make advertisement with
concerned with the aimed to increase the number of audience for the use of
their product.
Maturity:
In this stage, the product is
reached to higher level of stage. In these sales becomes steady. Competition is
appearing similar product. The strong growth in sale also start gets
diminishing. The market in this case sees to defend market share while maximizing
profit. The price of product gets lower due to lots of competitions. Therefore,
in such maturity phase, when the advertising company does advertisement of the
product they are make advertisement with concerned with product differentiation
to gain competitive advantage.
Decline:
This stage of the product’s life
cycle is downturn in the market. Product sales decrease as the shifts in
consumers’ preference or technological innovations. There is intense price
cutting and many more products are withdrawn in the market. As a sales decline
the firm have to make the strategies where to add new features and gain
customer for losing, reduce the cost and continue the offer or discontinue the
product. Those who want to move to innovation the product in such decline phase,
when the advertising company does advertisement of the product they are make
advertisement with concerned with product awareness of new features of same
product.
For example,
when a company create the new product that is CD in the market, in the first
stage they do advertising to people about the use of CD. Then in order to
increase market share, they might advertise their product in broader audience.
And as they reach to maturity level the company sale might get reduce due to
competitors. Therefore, they might advertise their product with differentiation
with their competitors and why it is best. And when in the decline stage they
might make a strategy and add new features with high space CD which can format.
And can do advertising on the new feature in the market to increase sales and
number of customer.
References:
William, A., Weigold, M., & Arens, C. (14th-
2013).Contemporary Advertising.New York: McGraw-Hill.
Impact of the Product Life Cycle on
Marketing Strategy (n,d). From www.boundless.com
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