Q. Explain with a example where all the elements of promotion mix/marketing communication are integrated. Select and make SWOT analysis and highlight the importance of integration.
The Product
Life Cycle (PLC) is a marketing concept that describes the stages a
product goes through from its introduction to the market until its decline and
eventual withdrawal. Understanding the PLC is essential for businesses to
manage their product strategies effectively, as each stage presents unique
challenges and opportunities. The PLC typically consists of five stages: Development,
Introduction, Growth, Maturity,
and Decline. These stages can vary in length and may not
always follow a linear progression, but the concept remains central in guiding
strategic decisions for marketing, pricing, distribution, and promotion
throughout a product's lifespan.
Concept of Product Life Cycle (PLC)
1.
Development
Stage: The development stage
is the period before a product is officially launched into the market. During
this stage, the product is designed, researched, developed, and tested. There
are no sales, but significant investments are made in R&D, prototyping, and
market research to ensure the product's viability. The development stage also
includes identifying the target audience, refining product features, and
designing packaging.
2.
Introduction
Stage: The introduction
stage marks the official launch of the product. At this point, the product is
available in the market, but it may still have low sales due to limited
awareness among consumers. Marketing efforts are concentrated on building
awareness, educating consumers, and creating demand. Prices are often set high
to recover development costs, but they can also be low to attract early
adopters. Distribution channels are usually limited, and competition is minimal
because the product is new. Advertising and promotion are critical during this
stage to introduce the product and persuade customers to try it.
3.
Growth
Stage: During the growth
stage, sales begin to increase rapidly as the product gains acceptance among
consumers. The marketing focus shifts from awareness to differentiation, as
more competitors enter the market, and the product’s unique features become key
selling points. Prices may be adjusted to attract a broader audience, and
distribution expands to meet growing demand. As competition intensifies,
companies may need to innovate or enhance product features to maintain their
market share. Promotional efforts also evolve to emphasize the benefits and
value of the product.
4.
Maturity
Stage: The maturity stage
represents the peak of a product's life cycle in terms of sales and market
penetration. At this point, the product has achieved widespread acceptance, and
the market may be saturated. The competition is fierce, and businesses focus on
maintaining their market share rather than gaining new customers. Prices may
decline due to increased competition, and promotional strategies focus on
reminding consumers of the product's value. Innovation may still occur, but it
tends to be more about incremental improvements rather than groundbreaking
changes. The product’s differentiation becomes less significant as it becomes a
standard in the market.
5.
Decline
Stage: In the decline stage,
sales begin to fall as consumer interest wanes and newer products or
technologies replace the old. This stage can be triggered by changing consumer
preferences, technological advancements, or the introduction of superior
alternatives. Companies may decide to discontinue the product, reduce costs, or
attempt to rejuvenate it with new marketing strategies. Pricing may drop to
clear inventory, and promotional activities diminish. The decline stage
requires businesses to decide whether to withdraw the product entirely or
attempt to manage the decline through repositioning or targeting niche markets.
Example of a Product/Brand Through its PLC:
Apple iPhone
Let us explore the
iPhone, one of the most successful and well-known consumer
products of the modern era, as it has undergone several iterations and changes
across different stages of the PLC. Apple’s iPhone is an excellent example of
how the marketing mix (product, price, place, and promotion) has evolved
through the various stages of the PLC.
1. Development Stage
(Pre-launch of iPhone)
In the development
stage, the iPhone was the result of years of research and innovation
at Apple. The company’s engineers and designers, under the leadership of Steve
Jobs, worked on developing a product that could revolutionize the mobile phone
industry. Apple's primary challenge during this stage was to design a device
that combined a phone, iPod, and internet communicator into one seamless
product.
Marketing Mix Changes during
Development:
- Product: The initial
focus was on design innovation. The iPhone combined a sleek, minimalist
design with a touchscreen interface that eliminated the need for physical
buttons. The device incorporated a variety of features, such as music and
video playback, internet browsing, and apps, in one device. The user
interface was intuitive, with a large capacitive touchscreen, setting it
apart from the phones of that era.
- Price: During
development, there was no price point yet, but Apple was already working on
setting a premium price, as the brand was associated with high-quality,
innovative products.
- Place: Distribution
channels were not yet defined, but Apple began negotiations with key
mobile carriers (such as AT&T in the United States) to ensure that the
iPhone would be available on major networks.
- Promotion: Apple began
generating buzz around the iPhone by keeping the product under wraps until
its official unveiling. Teasers, speculation, and word-of-mouth created
anticipation for the device, laying the groundwork for a successful
launch.
2. Introduction Stage
(2007-2008)
The iPhone was
officially launched in June 2007. The introduction stage was
marked by high anticipation and excitement, as consumers eagerly awaited the
arrival of the first iPhone.
Marketing Mix Changes during Introduction:
- Product: The iPhone
was introduced as a game-changer, blending a phone, music player, and
internet browser into a single device. It was positioned as a luxury item
with advanced features that set it apart from other mobile phones in the
market, which still relied on physical keyboards and stylus input.
- Price: The price of
the iPhone was set at a premium level—$499 for the 4GB model and $599 for
the 8GB model—far higher than most existing mobile phones at the time.
Apple used this high price point to signal the product’s premium quality.
- Place: The initial
distribution of the iPhone was limited to the U.S. and was exclusive to
AT&T, which created a partnership with Apple to provide the iPhone on
its network. This exclusivity helped create a sense of urgency and
exclusivity for customers.
- Promotion: Apple's
marketing strategy focused heavily on creating awareness and educating
consumers about the iPhone's revolutionary features. The company used its
signature clean, minimalist advertising to showcase the device's design
and capabilities. Keynote presentations by Steve Jobs became iconic and
were used as promotional events.
3. Growth Stage (2008-2012)
The iPhone entered
the growth stage shortly after its release, with sales rising
rapidly as more people adopted smartphones. During this stage, the iPhone
gained significant market share, and Apple expanded its product offerings,
releasing new models with improved features.
Marketing Mix Changes during
Growth:
- Product: New versions
of the iPhone, such as the iPhone 3G and iPhone 3GS, were launched with
improved performance, better cameras, faster internet connectivity (3G),
and the introduction of the App Store. The expansion of features helped
differentiate the iPhone from its competitors, as Apple introduced
features that weren’t available in many other phones at the time.
- Price: The price
point remained relatively high, but Apple began introducing multiple
versions of the iPhone (e.g., iPhone 3G and iPhone 3GS) with different
storage capacities to cater to different price sensitivities. This helped
broaden the iPhone’s appeal to a larger audience.
- Place: Distribution
expanded globally, and the iPhone was launched in more countries. Apple
also began selling the iPhone in its own retail stores, making it more
accessible. Partnerships with additional carriers helped increase
distribution and availability.
- Promotion: Promotion
continued to focus on the iPhone’s unique selling points, particularly its
design and functionality. Apple ramped up its advertising, with TV
commercials, print ads, and web campaigns highlighting features like the
App Store and iTunes integration. The company also began to position the
iPhone as not just a phone, but a lifestyle product that connected users
to a broader ecosystem of apps, music, and services.
4. Maturity Stage
(2012-Present)
By the time of the
iPhone 5 and beyond, the iPhone had reached the maturity stage.
Sales were no longer growing at the exponential rate of the earlier years, but
the product remained a dominant force in the smartphone market. However, market
saturation began to occur, especially in developed markets.
Marketing Mix Changes during Maturity:
- Product: Apple
continued to innovate with incremental improvements, such as larger
screens, improved cameras, and faster processors, while introducing new
models (iPhone 4, iPhone 5, iPhone 6, etc.) with better performance,
larger screens, and enhanced design. The focus shifted toward
differentiation based on features like screen size, camera quality, and
software (iOS updates). Apple also introduced the “Plus” models and
launched the iPhone SE as a more affordable version.
- Price: The price
point remained relatively high, but Apple adjusted pricing to create more
options. New models were launched with different pricing tiers, and older
models were reduced in price to make them more attractive to budget-conscious
consumers. Apple also introduced more affordable payment options, such as
financing plans and carrier-based subsidies.
- Place: Distribution
reached its peak, with the iPhone being available in over 100 countries
and through numerous retail partners. Apple’s retail stores became
important points of sale and experience for customers, and the iPhone was
widely available both online and in physical stores.
- Promotion: Apple’s
advertising strategy shifted from groundbreaking innovation to emphasizing
reliability, brand loyalty, and the seamless integration of hardware,
software, and services. Promotional campaigns began to focus more on the
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