The Product Life Cycle & AIDA How Marketers Measure Progress

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

Warm Up Activity 3 Products that have been around for a long time, and you have been buying them for years. You still see ads for these products, and it seems like they have been on the market ‘forever’ 3 Products that you used to buy, or once owned, but have discontinued (think of old gifts)

The Product Life Cycle DECISION POINT

Introduction Stage A Product Launch is when a new product is introduced to the market The scope of a new product launch can vary from local to international It is very costly to launch a new product or service, so a company must spend a great deal on research and development before bringing it to market

Growth Stage Advertising is most crucial in this stage In this stage the product will either become popular or fail If the product can enter the market quickly then it can grow very rapidly without any competition

Maturity Stage In this stage sales will either increase slowly or begin to level off At this stage the manufacturer has recouped all of the research and development costs At this point the company may choose to expand the brand or develop it further

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

Decision Point At this point the company must make key decisions regarding the future of the product They may choose to end the brand altogether, or try to reformulate, repackage, and reintroduce the product It can also involved new promotions and new pricing strategies

Non Traditional PLC’s Fads Niche Seasonal These are products that are extremely popular for a brief period of time Niche A small market with a short growth stage and a very long maturity stage Seasonal Products and services that are popular in specific seasons

Fads Can you name any Fads? Tickle Me Elmo Napolean Dynamite “Emo” Texas Hold’Em Poker Pokemon Cards Low Rise Jeans Vuarnet France t-shirts Why do you think fads take hold?

Where Are They On The PLC? CD Player I-Pod Ford Mustang VHS Player Blue Ray Player NBA McDonald’s Harry Potter Books Crocs Nike Lululemon Pokemon Walmart DVDs Bluray Discs Abercrombie & Fitch

Advertising Advertisers want consumers to remember the brand name of the product or service they are selling There are Four standard rules for advertising: Attract Attention Gain Interest Build Desire Get Action

AIDA Attention A good headline should be used in a print ad that is no more than 7 words Broadcast ads attract attention in various ways: sound, unusual visuals, an attractive person, or a famous celebrity

AIDA Interest Print ads should be simple and easy to read, hard to read typefaces should be avoided Broadcast ads should get to the message right away It must make the audience want to read or watch the ad

AIDA Desire The sales message should be connected to your visual message The product should solve a problem and put the product into a situation in which the customer identifies

AIDA Action Summarize the reason to buy Include your slogan, logo, and brand name Contact information should be at the bottom of the page

Independent Work Read – 203-208 Questions 2b,3a,3b on page 208