Product Life Cycle

Product
Life cycle
IN ADVERTISING
You cannot bore people into
buying your product, you can
only interest them in buying it .
- DAVID OGILVY
As the quote Mentions. ..
Advertising is one of the ways in which potential costumers are targeted to catch their
attention and to create their interest in the product.
Advertising through creative and Innovative message creations tries to reach the
potential customers or the existing consumers to motivate and persuade them to the act
of buying the product and to the consistent buying of the product.
The Creation of the messages to be advertised to gain the consumer's attention

depends on many variables. One such factor that affects advertising is the life cycle of
the product and the stage of life cycle the product is in.
Introduction
When a product enters the market, often unbeknownst 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
The mobile phone are one of the latest products have passed through various stages
right Infront of us. 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 sleaker and colored
screen phones.
Product life cycle
Product Life cycle states the 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.
PLC becomes significant in the light that marketing and advertising strategies employed
in each stage of Product’s life cycle are different.
PLC is also important for any product to know 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 competitors products can help to gain a competitive advantage while
launching a new product.
Significance of PLC
It becomes important to understand what stage of its life product is so as :
1. To optimize the reach of the product to the consumers,
2. By devising most apt advertising and marketing strategies accordingly
3. To minimize waste in advertising expenses that may happen without any plan in place
4. To know when to relaunch the product which is declining or to launch a new product
in place of the old one.
5. To create strategies to sustain their product's longevity
6. Change it to meet with market demand or developing technologies.

Visual Description of PLC
Stage 1. Market Development: This is when a new product is first brought
to market, before there is a proved demand for it, and often before it has
been fully proved out technically in all respects. Sales are low and creep
along slowly.
Stage 2. Market Growth: Demand begins to accelerate and the size of the
total market expands rapidly. It might also be called the “Takeoff Stage.”
Stage 3. Market Maturity: Demand levels off and grows, for the most part,
only at the replacement and new family-formation rate.
Stage 4. Market Decline: The product begins to lose consumer appeal
and sales drift downward, such as when buggy whips lost out with the
advent of automobiles and when silk lost out to nylon
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.
When a new product is released, it is often a high-stakes time in the product's life cycle -
although it does not necessarily make or break the product's eventual success.
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
By the growth stage, consumers are already taking to the product and increasingly buying it.
The growth stage happens when consumers start to know the product and it becomes a part of
their habit to buy the product
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. And so thus the
advertising to keep the product well within the minds of the consumers, so as to keep the
interest in the product peaqued.
Stage 3: Maturity
When a product reaches maturity, its 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, maggi etc.
Stage 4: Decline
Although companies will generally attempt to keep the product alive in the maturity stage as
long as possible, decline for every product is inevitable.
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.
Additional Information
While some products may stay in a prolonged maturity state, all products eventually phase out
of the market due to several factors including saturation, increased competition, decreased
demand and dropping sales.
Conducting PLC analysis can help companies determine if their products are servicing the
market they target efficiently, and when they might need to shift focus.
By examining their product in relation to the market on the whole, their competitors, sales and
expenses, companies can better decide how to pivot and develop their product for longevity in
the marketplace.
Examining their product's life cycle, specifically paying attention to where their products are in
the cycle, can help companies determine if they need to develop new products to continue
generating sales - especially if the majority of their products are in the maturity or decline stages
of the product life cycle.

Product Life Cycle

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Product

The Creation of the messages to be advertised to gain the consumer's attention

1. To optimize the reach of the product to the consumers,

2. By devising most apt advertising and marketing strategies accordingly

5. To create strategies to sustain their product's longevity

6. Change it to meet with market demand or developing technologies.

It is signaling a largely saturated market.

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