Role of advertising in PLC
Consequently, effective product life cycle methods are essential. In order to spot items that are in the early stages of decline, the corporation has to pay closer attention to its ageing products. The company must next decide whether to keep selling the deteriorating product, harvest it, or discontinue it.
Reduce spending and “milk” the brand as the primary goals during the decline period. Reduce advertising and sales promotion to the level required to keep just the most devoted consumers are some general techniques for the decline stage, along with lowering prices, selecting a selective distribution by closing down unprofitable stores, and choosing a selective distribution.
Repositioning or reinvigorating the product or brand may be a possibility if management chooses to keep it. These choices are designed to get the product back into the PLC’s growth stage. Only the final sales must be harvested if management wishes to harvest the commodity. Costs must also be lowered. The company’s earnings will only rise temporarily as a result of this, however. Selling the product to another company or just liquidating it at salvage value are two options for removing it from the product line.
All of the characteristics of the four product life cycle phases are addressed in the list that follows. Product life cycle strategies are established for each with reference to the product, pricing, distribution, advertising, and sales promotion. The long-term success of the organisation depends on selecting the appropriate product life cycle strategy.