Advertising Life Cycle of a Product
Automobiles are the cyclic product and cyclic product have their life span. They start their life,
grow, mature, and decline or sometime obsolete from market and new product is launched
in market, hence repeat this cycle. In each stage of product life, it shows some behaviours so
sales and promotion are done accordingly.
Introduction
In this stage, Automobile Company mainly focuses on heavy promotion and advertisement to
their targeted audience before launching Products in market to creating awareness and
enhance public interest. Company shows low sales, high cost per customers, financial losses,
and fewer competitors.
Growth
In this stage, Automobile company must release its product life cycle stage and do not spend
on advertising to create awareness. At this stage people already know about the product so
advertising to create awareness is useless effort and loss of money. At this point public is
interested in what else benefits company is offering so company use advertising as reminders
to buy the product by offering coupons or special sales to existing customers to further
increase it sale. in growth stage sale increase, advertising cost per customer decreases, profits
rises, number of customer increases and face more competitors.
Maturity
At this stage, company’s sales at peek, cost per customer lowest, high profit and stable
number of customers. Automobile Company also focuses on adopting different methods for
advertisements. For example, you may offer coupons to save money on the purchase of the
product. Send the coupons using different mediums, such as email, in-store displays on the
business website and sending coupons in the mail.
Decline
In decline stage, company’s sale, profits, number of customer and competitors starts to fall.
At this stage, in order to maintain of increase its sales, Automobile company measure
advertising response results which helps to determine where orders are placed by online
adds, promotional codes, or can ask where the buyer heard of the product. if the
advertisement is successful, then they initiate the advertisement in future efforts. They also
consider giving out free samples to customer for advertising purpose.
Automobile industries highly focuses on research and development, marketing, price, and
promotions etc. After completion of each life span of product company tries to bring
something new in market in order to be in market or to compete with their competitor.
Methods of Sales Promotion
The basic purpose of the promotional mix is first of all to create brand awareness but the
most essential is to produce organizational goals and profits. A promotional mix is defined as
being successful if you manage to deliver a clear, compelling message based on the fact that
you chose the most appropriate promotion method.
1) Personal selling promotional mix
It is a part of the promotional mix which automobile industries involves a one-to-one
communication between potential buyers and customers. It is considered to be the most
successful as a seller-buyer relationship can be created and developed.
2) Advertising
Automobile industries also focus on brand building through advertising. It is always a big part
of the promotional mix because of the far and wide reach of advertising and the message that
company send to their existing and potential customers. Good advertising can build a solid
brand for the company.
3) Direct marketing
While automobile industries advertising targets a mass-audience, direct marketing targets
prospects and customers through Social media marketing, Email marketing, Internet.
Company’s employ direct marketing in order to engage in one-way communication with its
customers, about product announcements, special promotions, order confirmations as well
as customer inquiries.
4) Sales & Marketing promotions
Sales promotions are one of the most common types of promotion used by automobile
companies. Their main purpose is to stimulate purchasing and sales. While it has the potential
of increasing sales, it is also beneficial for informing prospects about new products on the
market or just to recapture old or lost customers. Such examples include: coupons, product
samples, etc.
5) Public relations
Lastly, public relations enable an organization to influence a target audience and through this,
create a favourable and positive image for the company. The company tries to connect with
the audience by sharing information with them about the company and about the product. If
anything goes wrong on the information front, the public relations department has to step
forward and rebuild the public image.
Buyer Decision Process for New Products
It is interesting how consumers learn about products for the first time and decide whether to
adopt them. The adoption process for a new product is the mental process through which an
individual passes from first learning about an innovation to final adoption” and adoption as
the decision by an individual to become a regular user of the product. A new product is a
good, service, or idea perceived by some potential customers as new.
Consumers go through 5 stages in the process of adopting a new product.
1.
2.
3.
4.
5.
Product Awareness.
Product Interest.
Product Evaluation.
Product Trial.
Product Adoption.
1. Product Awareness
The consumer becomes aware of the new product but lacks information about it. Initially, the
consumer must become aware of the new product. Awareness leads to interest, and the
customer seeks information about the new product. Whether an innovation is continuous or
not, people are either little aware or aware of it initially. Innovator, therefore, has to inform
the adopters about the innovation. In the awareness stage, individuals become aware that
the product exists, but they have little information about it and are not concerned about
getting more. Adopters may be informed through advertising, publicity, or any other effort of
the marketer.
2. Product Interest
The consumer seeks information about the new product. Once the information has been
gathered, the consumer enters the evaluation stage and considers buying the new product.
By this time, the innovation is introduced. It is now the time for the decision-makers to
determine whether the innovation relates to their needs. They enter the interest stage when
they are motivated to get information about its features, uses, advantages, disadvantages,
price, or location. Interest may or may not sparked, depending on whether the decisionmakers perceive the innovation as a relevant, feasible alternative to existing items.
3. Product Evaluation
Next, in the trial stage, the consumer tries the product on a small scale to improve its value
estimate. The consumer considers whether trying the new product makes sense. Adopters of
the innovations have to establish some evaluation measures to compare the new product
with existing ones. During the evaluation stage, individuals consider whether the product will
satisfy certain critical criteria for meeting their specific needs. The potential adopters consider
the innovation’s benefits and determine whether to try it.
4. Product Trial
The consumer tries the new product on a small scale to improve their estimate of its value. If
the consumer is satisfied with the product, they enter the adoption stage, deciding to use the
new product thoroughly and regularly. At this stage, the potential adopters examine, test, or
try the innovative product to determine its usefulness. In this stage, they use or experience
the product for the first time, possibly by purchasing a small quantity, taking advantage of a
free sample or demonstration, or borrowing the product from someone. During this stage,
potential adopters determine the product’s usefulness under the specific conditions they
need. The trial stage for innovations is complex. Successful introduction depends greatly on
the new product’s characteristics, benefits, and perceived risks. Effective communication is
the key to achieving trial by consumers.
5. Product Adoption
The consumer decides to make full and regular use of the new product. The new product is a
good, service, or idea perceived by some potential customers as new. Individuals move into
the adoption stage when choosing that specific product when they need a product of that
general type. Here the buyers purchase the new product and can be expected to use it to
solve problems.
So, this final stage of the process is indicated most directly by sales, but the innovation’s
visibility is also a success measure. However, please do not assume that they will eventually
adopt the new product because a person enters the adoption process. Rejection may occur
after any stage, including the adoption stage.
Reference
https://smallbusiness.chron.com/methods-sales-promotion-1056.html
https://www.marketing91.com/promotional-mix/
https://www.iedunote.com/types-of-buying-decision-behavior