Interaction between the product life cycle and advertising.
Interaction between the product life cycle and advertising.
As is known, advertising strategy and tactics, the nature of individual events and the amount of investment in advertising activities directly depend on what stage of the life cycle the advertised product is at.
At each stage of the product life cycle, a special approach to advertising is required.
Advertising in the specialized press, depending on the life cycle of goods in the segment of technical security equipment of the security market in 2008, was distributed as follows: advertising for the launch of a product/brand accounts for about half of the total amount of advertising, advertising with growth is 29%, reminiscent and supporting advertising in printed press no more than 23%.
The numbers once again confirm that the security market is fast-growing and unsaturated.
Terminology.
In this study, advertising when introducing a product to the market means informative (introductory) advertising that introduces the consumer to the product. Advertising during growth is of a persuasive (affirming, guiding) nature; it is an advertisement for the quality and prestige of a product. Intense psychological impact on the consumer. The main task of advertising at the onset of maturity (saturation) is to support the level of sales and the established image, stimulating, reminiscent of advertising.
Distribution of advertising by segments depending on the product life cycle. Let's consider advertising in the press depending on the market segment. Diagram 1 “Segmentation of advertising by product categories” illustrates that about 70% of advertising is advertising for video surveillance products and systems. Advertising of other product categories — access control systems, security and fire alarms and integrated security systems is approximately 10% for each category.
Diagram 1. Segmentation of advertising by product categories
Advertising when introducing a product to the market (diagram 3): the video surveillance segment is 72%, in the segment of access control and management systems (ACS) — 7%, in the fire and security alarm (FS) segment — 14 %, in the segment of integrated security systems (ISC) — 7%.
The shares of advertising with growth (Diagram 4) in the segments were distributed as follows: the video surveillance segment accounts for 73% of advertising, the access control segment – 3%, OPS – 10%, IKB – 15%.
The shares of reminder advertising (Diagram 5) in the security market segments were distributed as follows: the video surveillance segment accounts for 66 % of advertising, the ACS and OPS segments account for 13% and 15%, respectively, the IKB segment accounts for only 6%.
Image or product? The data from the diagrams allows us to conclude that the video surveillance segment is the most dynamic, advertising of its products and systems prevails over other segments at all stages of the life cycle. Based on the data, one can draw an erroneous conclusion: the video surveillance segment is key, largest and most profitable. But this is only partly true. The video surveillance segment is the most technologically advanced and dynamic, with the number of new products increasing faster than in other market segments. The access control segment is the most established segment in which reminder advertising prevails over others. The most even indicators at all stages of the life cycle in the OPS segment. Diagram 6 “Distribution of advertising in the press” allows us to conclude that, despite the fact that the security market is a high-tech market, image advertising, although slightly (53%), prevails over product advertising (47%).
One of the main tasks of B2B communications in industrial markets is to provide buyers with specific, technical information about products. These were the advertising modules in the specialized press several years ago. As Figure 9 shows, the situation is changing dramatically. Participants in the security technology market are not only looking to sell today, but are also focused on tomorrow and are busy building brands that help customers navigate the flow of information and provide them with additional benefits and benefits.
Diagram 2 “Ratio of types of advertising depending on the product life cycle” illustrates what type of advertising is preferred by participants in the technical security equipment market when promoting products depending on the product life cycle. When launched in 2008, print media contained 56% product advertising and 44% image advertising. In cases of growth and maturity, the ratio of image and product advertising was approximately equal. Let's consider the distribution of advertising depending on the product life cycle for each product category. The diagram illustrates that when a product is launched on the market, the share of image advertising in the video surveillance segment is 72%, ACS and IKB account for 11%, and in the security alarm segment – 6%. When a product is launched on the market, the share of product advertising in the video surveillance segment is 75%, in the fire alarm segment – 17%, in the access control and information security segments – 4%.
The situation is very similar with the distribution of advertising among market segments during growth. The share of image advertising in the video surveillance segment is 71%, the ICB segment accounts for 25%, the shares of ACS and OPS are insignificant — 3% and 1%, respectively. The share of product advertising in the video surveillance segment is 74%, the OPS segment accounts for 20%, the shares of ACS and ICB are insignificant: 1% and 5%, respectively.
The diagram “Distribution of advertising by market segments at maturity” shows the shares of image and product advertising in four product categories. The shares of image advertising are distributed as follows: video surveillance segment – 59%, ACS and OPS segments – 14% and 16%, respectively, ICB segment – 10%. The shares of product advertising are distributed as follows: video surveillance segment – 76%, ACS and OPS segments – 12% and 9%, respectively, ICB segment – no more than 3%.
Summary. Advertising strategy and tactics, the nature of individual events and the amount of investment in advertising activities directly depend on what stage of the life cycle the advertised product is at. At each stage of the product life cycle, a special approach to advertising is required. Almost 50% of advertising in the specialized press is advertising for the launch of a product on the market; in terms of content, 70% of the volume is advertising for components or video surveillance systems. At the same time, image advertising slightly prevails over product advertising.