The Product Life Cycle The Product Life Cycle & AIDA& AIDA

How Marketers Measure ProgressHow Marketers Measure Progress

Warm Up ActivityWarm Up Activity

Think of Products that fit the following Think of Products that fit the following Criteria:Criteria:3 Products that are new (came out in the 3 Products that are new (came out in the last 6 months)last 6 months)3 Products that have recently become 3 Products that have recently become really popular, so sales are going upreally popular, so sales are going up3 Products that aren’t doing so well – their 3 Products that aren’t doing so well – their sales seem to have been dropping, and sales seem to have been dropping, and are not very popular anymoreare not very popular anymore

Warm Up ActivityWarm Up Activity

3 Products that have been around for a 3 Products that have been around for a long time, and you have been buying them long time, and you have been buying them for years. You still see ads for these for years. You still see ads for these products, and it seems like they have been products, and it seems like they have been on the market ‘forever’on the market ‘forever’

3 Products that you used to buy, or once 3 Products that you used to buy, or once owned, but have discontinued (think of old owned, but have discontinued (think of old gifts)gifts)

The Product Life CycleThe Product Life Cycle

DECISION POINT

Introduction StageIntroduction Stage

A A Product LaunchProduct Launch is when a new product is when a new product is introduced to the marketis introduced to the market

The scope of a new product launch can The scope of a new product launch can vary from local to internationalvary from local to international

It is very costly to launch a new product or It is very costly to launch a new product or service, so a company must spend a great service, so a company must spend a great deal on research and development before deal on research and development before bringing it to marketbringing it to market

Growth StageGrowth Stage

Advertising is most crucial in this stageAdvertising is most crucial in this stage

In this stage the product will either become In this stage the product will either become popular or failpopular or fail

If the product can enter the market quickly If the product can enter the market quickly then it can grow very rapidly without any then it can grow very rapidly without any competitioncompetition

Maturity StageMaturity Stage

In this stage sales will either increase In this stage sales will either increase slowly or begin to level offslowly or begin to level off

At this stage the manufacturer has At this stage the manufacturer has recouped all of the research and recouped all of the research and development costsdevelopment costs

At this point the company may choose to At this point the company may choose to expand the brand or develop it furtherexpand the brand or develop it further

Decline StageDecline Stage

The product enters this stage when the The product enters this stage when the manufacturer is no longer able to find new manufacturer is no longer able to find new customerscustomersAt this point the company must analyze At this point the company must analyze the market to determine what is causing the market to determine what is causing the declinethe declineVarious methods might be used to Various methods might be used to increase sales again such as prices increase sales again such as prices changes, product redesign, new ad changes, product redesign, new ad campaigns, etc.campaigns, etc.

Decision PointDecision Point

At this point the company must make key At this point the company must make key decisions regarding the future of the decisions regarding the future of the productproduct

They may choose to end the brand They may choose to end the brand altogether, or try to reformulate, altogether, or try to reformulate, repackage, and reintroduce the productrepackage, and reintroduce the product

It can also involved new promotions and It can also involved new promotions and new pricing strategiesnew pricing strategies

Non Traditional PLC’sNon Traditional PLC’s

FadsFads These are products that are extremely These are products that are extremely

popular for a brief period of timepopular for a brief period of time

NicheNiche A small market with a short growth stage and A small market with a short growth stage and

a very long maturity stagea very long maturity stage

SeasonalSeasonal Products and services that are popular in Products and services that are popular in

specific seasonsspecific seasons

FadsFads

Can you name any Fads?Can you name any Fads?Tickle Me ElmoTickle Me ElmoNapolean DynamiteNapolean Dynamite““Emo”Emo”Texas Hold’Em PokerTexas Hold’Em PokerPokemon CardsPokemon CardsLow Rise JeansLow Rise JeansVuarnet France t-shirtsVuarnet France t-shirtsWhy do you think fads take hold?Why do you think fads take hold?

Where Are They On The PLC?Where Are They On The PLC?

CD PlayerCD Player

I-PodI-Pod

Ford MustangFord Mustang

VHS PlayerVHS Player

Blue Ray PlayerBlue Ray Player

NBANBA

McDonald’sMcDonald’s

Harry Potter BooksHarry Potter Books

CrocsCrocs

NikeNike

LululemonLululemon

PokemonPokemon

WalmartWalmart

DVDsDVDs

Bluray DiscsBluray Discs

Abercrombie & FitchAbercrombie & Fitch

AdvertisingAdvertising

Advertisers want consumers to remember the Advertisers want consumers to remember the brand name of the product or service they are brand name of the product or service they are sellingselling

There are Four standard rules for advertising:There are Four standard rules for advertising: Attract AttentionAttract Attention Gain InterestGain Interest Build DesireBuild Desire Get ActionGet Action

AIDAAIDA

AttentionAttentionA good headline should be used in A good headline should be used in

a print ad that is no more than 7 a print ad that is no more than 7 wordswords

Broadcast ads attract attention in Broadcast ads attract attention in various ways: sound, unusual various ways: sound, unusual visuals, an attractive person, or a visuals, an attractive person, or a famous celebrityfamous celebrity

AIDAAIDA

InterestInterestPrint ads should be simple and Print ads should be simple and

easy to read, hard to read easy to read, hard to read typefaces should be avoidedtypefaces should be avoided

Broadcast ads should get to Broadcast ads should get to the message right awaythe message right away

It must make the audience It must make the audience want to read or watch the adwant to read or watch the ad

AIDAAIDA

DesireDesireThe sales message should be The sales message should be

connected to your visual connected to your visual messagemessage

The product should solve a The product should solve a problem and put the product into problem and put the product into a situation in which the customer a situation in which the customer identifiesidentifies

AIDAAIDA

ActionActionSummarize the reason to Summarize the reason to

buybuyInclude your slogan, logo, Include your slogan, logo,

and brand nameand brand nameContact information should Contact information should

be at the bottom of the be at the bottom of the pagepage

Independent WorkIndependent Work

Read – 203-208Read – 203-208

Questions 2b,3a,3b on page 208Questions 2b,3a,3b on page 208