Product Life Cycle

– Promotions Essay, Research Paper

Final Project Outline

Questions:

I. Page 99 question # 2

# 2. How would you advertise a toothpaste at the four different stages in its life

cycle?

1. Introduction Stage

Risk seems to go hand in hand with the introduction stage because the

chance of product failure is quite high. Profits will be below zero due to

low initial revenues while the toothpaste company covers large expenses

for promotion and distribution. We will need to let potential buyers

aware of the new toothpaste availability. These buyers must know the

toothpaste’s features, uses, and advantages over other brands. I’ll

assume this particular toothpaste company has the resources,

technological knowledge, and marketing know-how to launch the

toothpaste successfully. Having these assets will be a great advantage

for the success of the new toothpaste brand.

2. Growth Stage

The growth stage will be critical to the toothpaste’s survival because the

competitive reactions to the products success during this stage will

affect the toothpaste’s life expectancy. I would expect the toothpaste’s

sales to rise rapidly and profits to reach a peak and then start to slowly

decline. To counter act the sales decline we must try to strengthen its

market share and create a competitive niche by emphasizing the

toothpaste’s benefits. To accomplish these tasks we may need to cut

prices to stay competitive and gain stronger market position.

3. Maturity Stage

Our toothpaste’s sales curve will peak and begin to decline as will

profits. This is the result of intense competition, as similar brands are

now in the market. As a result many weaker competitors will be

squeezed out or lose consumer interest. We must now turn our

attention to develop improvements in our product and find positive

differences in our version of toothpaste. We will continue to make

fresh new promotional and distribution efforts. We will concentrate on

advertising and dealer based promotions. We must also look at another

opportunity that exists. Marketers of mature products sometimes

expand distribution into global markets. We will need to research and

determine if our toothpaste will be accepted and fit the needs of global

consumers.

4. Decline Stage

The stage where our sales will fall rapidly. New technology or social

trends are at times the culprits of this downward spiral. Due to low

profits we may cut promotion efforts, eliminate marginal distributors,

and eventually plan to phase out our toothpaste. I will assume our

toothpaste company has more than one product, a company’s future is

rarely tied to one product. As one product is declining, our toothpaste,

other products of ours are at different stages of the life cycle. Therefore

we will need to deal with prolonging the life of existing products and

introducing new ones. Our main objective as a company is to meet

organizational sales goals. As one product is declining, other products

are in the introduction, growth, or maturity stages for our company.

II. Page 140 question # 3

# 3. “How do we sell this thing?” Rank each of theses approaches, in descending

order of expected effectiveness.

10. Buy a Cheap Labor-saving Device.

9. Buy a Goat Instead of a Sheep.

8. Buy a Goat.

7. Goat. Guaranteed.

6. Don’t Let Someone Else Get Your Goat.

5. Give a Goat a Home.

4. Goat for Sale.

3. Save on a Goat.

2. Buy a Great Goat.

1. Buy an Affectionate Labor-Saving Device.

III. Page 238 Question # 1

#1. What do advertisers mean by strategy? What are the key considerations in an

advertising strategy?

Averting messages aren’t created on a whim or by a quick flash of

inspiration. Advertising is a disciplined art and involves a lot of

strategic thinking. Advertisers create messages to accomplish specific

objectives, a process called strategic planning. Advertisers determine

what you want accomplished, decide on strategies to go about

accomplishing, and implementing tactics which make the plan come to

life. Advertising involves many different strategies. First there must be

a strategic business plan that deals with the broadest decisions made by

the organization. Next advertisers have marketing strategies that will

identify key advantages for the product or firm in the marketplace.

Lastly there are advertising strategy decisions that are made which are

crucial to all advertising situations. Advertisers must set objectives and

identify the target audience. The advertising product must be compared

to competing products features. The product must be position so it is

welcomed in the marketplace by consumers. Finally the advertisers

must create a brand image and personality for the product. These are all

key considerations for the advertising strategy. Targeting an audience

for the product I feel is the most important. These audiences are

equivalent to a target market, but often includes people other than

prospects, such as those who influence the purchase. Once the target

audience is defined this lets the advertising planner zero in on the most

responsive audience.

IV. Page 265 Question #5

# 5. Identify how the creative use of emotion can enhance each operation.

Perception: In the text there is a great example of how the L.A. City

Fire Department got their message across that fireworks are dangerous.

Their billboard shows the image of a child’s hand missing one finger due

to a fireworks related injury. The message here is personal and

conveyed by the consumers that this could happen to someone in their

family or to them personally.

Awareness: Most people want to read information or news that is

relevant to themselves and things they care about. Advertisers create

ads to bring out this emotion in consumers. I remember the billboard ad

a few years back concerning N.A.F.T.A. These billboards didn’t

concern every person or every worker. The NAFTA situation only

involved a percentage of workers. But these ads brought the attention

to everyone who wanted to know more or thought they could help. The

NAFTA ads brought awareness to the subject and educated people on

how they can take action.

Understanding: Being aware of a ad message sometimes is not enough.

The message must also be understood as well. Understanding means

the viewer or consumer gets an active response from what they have

seen or heard. New car commercials are sometime ones that contain a

lot of information. Information on the brand, price, size, how it works,

when and where to use it and so on. With this information we

sometimes create an emotion inside about the particular car. We may

want to go right out and buy it or take a test drive. Or we may simply

consider it for a future purchase. All in all the commercial had created

an feeling of want for their product and as we all know “wanting” is an

emotion.

Persuasion: A persuasive message will shape attitudes and touch

emotions. How someone feels about your product or company may be

just as important as what that person knows about it. One example

come to mind is last years Budwesier commercial. The one where the

current owner or CEO talks about the company’s family tradition and

that the way they make their beer hasn’t changed ever. This is deffentily

a persuasive commercial. They trying to convey that they are number

one in the industry, were there when we needed them and are a

American family business.

V. Page 409 Question # 2

# 2. Hard-sell approach and soft-sell approach.

.

Hard-sell approach

Soft-sell approach:

I felt the original ad was bland and crowded. I really think they needed a real

picture of a Updike tub and if I were to do another ad I would put one in.

VI. Page 440 Question # 6

# 6. Compare the differences in design, art, type and other elements in

newspaper ads of expensive stores and lower-priced stores.

Comparing Lazuras to K-Mart is really night and day. Lazuras has models

wearing their clothes and real pictures and settings. K-Mart has still

pictures of products and uses only a few colors. Lazuras’ ads comes

stapled together like a small magazine while K-Marts is full sheets folded

to make a large paper insert.

I think these differences are seen only to people who feel that one store is

superior to the other. Sure Lazuras obviously spends more money on print

ads then does K-Mart but it really doesn’t mean anything unless your ad

draws customers in to shop. I personally think both companies to a good

job with their advertising I’d just rather shop at Lazuras, at least for

clothes.

Lazuras always is having some kind of sale. When I receive a Lazuras ad I

know they must be having another 36 hour last chance sale of some sort.

A lot of times I don’t even look through the ad because I figure its the

same stuff as last weeks 36 hour blowout sale. K-Mart usually put their

ads in the Sunday paper and advertises item that are commonly purchased

by customers and seasonal products. Their ads are two and three pages

and always has on the front cover toys for kids. I remember these ads from

way back when I was a kid. Both of these two company’s ad campaigns

work and must be working well, because I continue to see them every

weekend.

VII. Page 469 Question # 5

One jingle that I dislike is the Sharpe Ford song. Its a great piece of work,

“were sharp and were the reason Sharpe is Ford, Sharpe is Ford”,

located at 3 o’clock sharp on the 465 dial. That is perfect. Every time I

hear it I get a visual of the 465 dial and where Sharpe Ford is located. One

drawback though is that I can’t get the song out of my head the entire day.

Another is a fairly new commercial for Giftpoint.com. They do a little rif

from a Christmas song and only say Giftpoint.com. This is absolutely

nerve racking and impossible to not sing the entire day I hope they take it

off the air soon. I did however look at their web page. I believe these ads

do reflect on the advertiser, sometimes good and sometimes bad. I simply

get annoyed but I tend to remember them and I think for the advertiser that

is good. In some cases I think the advertiser uses our memory as their

tool. Create a annoying jingle and play it on the radio over and over.

We’ve all heard jingles and said to our selves after the fact that it was the

stupidest jingle we’ve ever heard. Two weeks later were singing it in the

shower or as we walk through the Ivy Tech parking lot. The dumb little

jingles stick in our head and most of the times won’t go away.

VIII. Page 501 Question #5

# 5. What ideas do you have for setting up some type of direct-response system

to decrease “traffic overload”.

I think a good idea for Ivy Tech would be to have its own bookstore

webpage. Student could access the page on campus or at home. They

would be able to select and purchase books online for all their classes. The

purchases could either be sent by mail or have a in house system for

pick-up. Many student purchase books with a credit card. If student had

an option to not wait in the enormously large line chance are they

wouldn’t. Also for the school they would be able to cut back on inventory

and may open up some room in side the bookstore. Overall I believe a

online system would only be the beginning. Ivy Tech could expand this

page to handle many more tasks that would save time and eventually

money.