Term 2 Week 5
Section outline
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Product Life Cycle
Products do not last forever. Like people, they go through different stages in their life. The life cycle of a product is broken into four stages—introduction, growth, maturity, and decline although some marketers also include a "saturation" stage between maturity & decline.
It is often used by marketing experts as a planning tool in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging. This tool has a some limitations as not all products follow a smooth and predictable growth path.
Task 1: Stages of the PLC
What stage of the PLC would the following products be in?
- PS4
- Iphone 6
- Samsung Galaxy Z Fold
- Watties baked beans
Task 2: Informative v Persuasive Advertising & PLC
Watch the two advertisements above and then answer the following questions:
- What information is given about the Iphone 12 in the first advertisement?
- Explain why the Iphone advertisement contains more information than the Nike ad.
- What stage of the PLC is the Iphone 12 in? Explain why this type of advertising would be appropriate given the stage of the PLC that it is currently in.
- What information is given about a NIKE product in the second advertisement?
- What is the message of the Nike ad? What perceptions (ideas or thoughts) does the ad try to portray about people who use Nike products?
- Why is this type of advertising suitable for this stage of the PLC for Nike products.