The Importance of Product Life Cycle in Media Planning

by Fred Victor

A company’s product life cycle (PLC) has a significant impact on decisions making when it comes to media planning as managers will make different marketing decisions at each stage in a product's life, for instance, from the beginning with the need to generate awareness for a new product, then ending with the ability to maintain that awareness.

Incorporating PLC in media planning is an essential task that must be continually undertaken. The competitive business environment is undeniable, like shifting market conditions, including the ever-changing customer needs and wants, almost always ensure that what worked in the past will not work in the future, hence requiring media planning revisions in how a product is marketed.

New Product Entry Points

When a new product is introduced, the challenge will be the effort to generate awareness for that product. At this very early stage of market introduction, the use of traditional print and broadcast media is a proven way to create awareness and ultimately demand.

Establishing the Preference

As soon as a product has public awareness, marketers begin creating product preferences among target customers. Establishing that preference over other available offerings requires telling the product's story through selected media channels. For instance, mass media can be considered including social media as it allows more information to be shared virally.

Competing in a Crowd

Often, this occurs during a product's mid-life stage where marketers begin to rely on word-of-mouth (WOM) generated through satisfied customers as well as the third-party endorsements such as celebrity endorsements.

Maintaining the Awareness

Once a product is established e.g. Secret Recipe, AirAsia etc., the advertiser's challenge is to maintain that public awareness. At this stage, mass media platform becomes important in maintaining a general level of awareness for a product where it also raises awareness among new market entrants.

Starting Over

A product or service will eventually reach a point of diminishing returns; media use declines when this happens, provided the marketers are able to introduce a brand extension or a completely new product. Of course, the life cycle starts all over again.

In other words, at every stage in a product's or service’s life cycle, marketers will critically consider the choices related to generating public awareness, customer preference, demand, and ultimately the purchase decisions. 

PLC Management on The American Idol Season 10

By Fred Victor

The premiere American Idol (hereinafter called AI) auditions have finally returned on the 19^th day of January 2011, the first episode was aired with New York / New Jersey.

After 9 years of running, the American Idol Season 10 is a classical example of maintaining a product in a declining stage (in my personal opinion) within the Product Life Cycle (PLC) process – possibly rejuvenating it by adding “new features” and finding “new users” and “viewers”.

Instead of using unfashionable ways like price theory. Some tactical strategies have been deployed by the FOX and AI show producers. Let’s take a shot:-

The show’s producers lowered the minimum age requirement from 16 to 15 years old (market development strategy of Ansoff Matrix); the FOX and show producers intended to further develop “new” market so to access broader market consumption (e.g. new participants and viewership).

Stunning new judges hired (celebrity endorsement of A&P Strategy) – Jennifer Lopez and Steven Tyler feat. Jimmy Lovine (Chairman of Interscope Geffen A&M Records who acts as in-house mentor) to replace Simon Cowell, Kara DioGuardi and Ellen Degeneres. The show producers have tempted to further qualify the use of celebrities in their marketing campaigns, thus enhancing the AI’s awareness, appeal, and relevance to AI’s brand image – ultimately, influence hits on consumer buying behaviour.   

Moreover, the AI promos for idol were aired earlier on TV – round the clock since 7^th January 2011 (repetition theory of communication and/or consumer buying behaviour).

The first AI promo video reveals Kelly Clarkson, Lee DeWyze, Ruben Studdard etc. that “where they came from” before this AI season 10. The AI 10^th season’s slogan – “Who’s next?” appears (hero effect of consumer behaviour).

In another AI promo video, you’ll see footage from the audition rounds featuring Carrie Underwood, Taylor Hicks and Fantasia Barrino. To witness the powerful promo video which attacks both potential participants’ and viewers’ emotions and dreams, click here http://www.youtube.com/geconsultgroup#p/a/f/0/vZP0TTzWCmg.

So what do you think about the changes of American Idol Season 10 is making? As a Marketer’s point of view, are you getting excited for the new season?

Like Randy always says: “Yo dog (dawg) / dude, that was hot!”

What do you think? ;-)

End Note

This article is about the marketing term (of PLC management) to describe the life of a particular product in a particular market. PLC management in marketing term refers to the management through a sequence of stages from introduction to growth, maturity and decline. The American Idol Season 10 is a classical example – maintaining the product, possibly rejuvenating it by adding new features and finding new users.

The PLC management in engineering term refers to managing product design and production details.

Celebrity endorsements have proven successful in China recently where, due to increasing consumerism. In fact, it is considered a status symbol to purchase an endorsed product.