Just like human beings every product also has its own life cycle during which it goes through various phases like introduction, growth, maturity before its decline. But it is during the market introduction stage when the marketers need to advertise or promote the product most as the product is released on to the market as there is no competition or demand for the product. During the introduction stage, the sales are low whereas the costs are high hence the manufacturer makes no profits. He markets the product to the maximum in order to create awareness.
What Is The Product Life Cycle:
The life of a product in the commercial world or market regarding the business costs and sales is known as the life cycle of the product. A product goes through many different phases and professional disciplines during its life cycle. It will need a variety of skills, tools, and processes according to its stage of life. A product may have a long or short life cycle but each product will pass through the following stages through its life cycle:
We must understand that every product will have a limited life and will have to face different challenges and opportunities and different marketing, financing, manufacturing, purchasing, and human resource requirements during every stage of its life cycle. It is during the introduction stage when a marketer will need to advertise the product to the fullest.
Product’s Market Introduction And Advertisement:
- Characteristic features of the introduction stage:
- Low sales volumes high costs
- The product Will need initial marketing, advertising, and distribution.
- Little or no competition
- Creating demand through promotion and awareness campaigns
- Little or no profit
In which stage of the product life cycle do marketers advertise heavily?
Marketers advertise heavily during the growth stage of the product life cycle. The growth stage is when the product gains acceptance amongst consumers, more popularity and wider acceptance with the general public. This is the stage when the product becomes accepted or popular in the market, and it starts gaining wider popularity. Product sales, revenues, and profits begin to grow.
As the demand starts to increase, the initial distribution also undergoes an expansion. Repeat orders from original buyers are received. Features of the growth stage are as follows:
- production and distribution are ramped up, therefore economies of scale come into picture and costs are reduced.
- as production increases, the sales volumes also go up significantly
- revenues begin to exceed costs, thus resulting in profits for the company
- through increased promotion and visibility, and word of mouth, public awareness grows
- competition begins to grow, with the establishment of new players in the market
- increased production leads to a decrease in prices
A product will have a low growth rate of sales during its introduction stage as the product is newly launched and consumers will not know much about it to buy it. This is the stage when the company incurs losses rather than profits because of the low sales and high expenses. A company markets the product the most during this stage for necessitating widespread