Role of advertising in PLC – BMS Notes
Proper methods for the product life cycle are thus essential. If the corporation wants to detect items in the decline stage early, it has to focus more on its ageing products. The company must then decide whether to keep, harvest, or discontinue the diminishing product.
During the decline period, cutting costs and “milking” the brand should be the primary goals. Generally speaking, the decline stage involves price reduction, selective distribution via the phase-out of unproductive locations, and a reduction in advertising and sales promotion to the extent necessary to keep the most devoted clients.
Repositioning or revitalising the product or brand might be a possibility if management chooses to keep it. These alternatives are meant to help the product return to the PLC’s growth stage. Should management want to harvest the commodity, expenses must be minimised and just the final sales must be gathered. But doing so will only boost the business’s earnings temporarily. Removing the product from the lineup might include liquidating it at salvage value or selling it to another company.
Every feature of the four product life cycle phases that were covered is listed below. Product life cycle plans are established for each, taking into account factors like pricing, distribution, product, advertising, and sales promotion. Selecting the appropriate product life cycle strategy is essential to the long-term success of the business.