Advertising strategies change with the change in stages of a product life. i.e. PLC This article focuses on changes in way of advertising when PLC stages changes.
Every product goes through a series of stages, namely the introduction, growth, maturity, decline.
After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. However, most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers.
Thus in this case, a suitable advertising and promotion campaign is required to be identified and followed. Strategies for the differing stages of the PLC
Introduction stage of PLC
The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Advertising differentiates the product.
Print ad of a Printer giving details about its specifications Growth stage of PLC
Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilise. Advertising establishes participation with the marketplace. Maturity stage of PLC
Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilise. Producers attempt to differentiate products and...