Explain how adveristing research and marketing fits into the product life cycle?
Advertising research and marketing play a crucial role in each stage of the product life cycle. The product life cycle consists of four main stages: introduction, growth, maturity, and decline. Let's explore how advertising research and marketing fit into each of these stages:
1. Introduction: During this stage, the product is just entering the market, and awareness among consumers is low. Advertising research helps identify the target market, understand consumer needs, and develop effective marketing strategies. It involves conducting market research, surveys, focus groups, and analyzing competitors. This research helps marketers determine the right messaging, positioning, and branding for the product. Marketing efforts focus on creating awareness, generating interest, and building initial demand through advertising campaigns, PR activities, and promotional events.
2. Growth: In this stage, the product gains traction in the market, and sales start to rise. Advertising research continues to play a key role by studying consumer preferences, behavior, and market trends. It helps marketers identify potential growth opportunities, target new market segments, refine product features, and develop expansion strategies. Marketing efforts focus on increasing market share, maintaining customer loyalty, and expanding distribution channels. Advertising campaigns aim to differentiate the product from competitors, highlight its unique features, and emphasize the value proposition to attract more customers.
3. Maturity: At this stage, the product reaches its peak level of sales and market penetration. Advertising research becomes critical to understand changing consumer preferences, market dynamics, and competitive landscape. It helps marketers identify gaps, explore product line extensions, and adapt marketing strategies to sustain market share. Marketing efforts aim at retaining existing customers, attracting new users, and creating brand loyalty. Advertising campaigns focus on reinforcing the brand image, reminding customers about the product's benefits, and differentiating it from competitors.
4. Decline: In this final stage, the product experiences a decline in sales due to market saturation, changing consumer preferences, or the introduction of new and superior alternatives. Advertising research is crucial to gain insights into reasons for decline, understand customer perceptions and satisfaction, and explore potential opportunities for product revitalization or exit strategies. Marketing efforts may focus on reducing costs, liquidating inventory, or launching new product versions. Advertising campaigns may aim to reposition the product, target niche markets, or communicate any product improvements or discounts.
In summary, advertising research and marketing strategies evolve throughout the product life cycle to adapt to changing market dynamics, gain consumer insights, and maximize the product's success in each stage.