Sales Promotion at different stages of the Product Life Cycle

Introduction – Promotion is aimed at building brand awareness. Samples or trial incentives may be directed toward early adopters. The introductory promotion also is intended to convince potential resellers to carry the product. Wise to use heavy promotion to induce trials and promote brand franchise.

Growth – Increased promotion to build brand preference. Not much promotion is needed.

Maturity – Higher promotions required since the brand is under attack from competitors or product quality or advertising effectiveness is tapering off. Emphasis on differentiation and building of brand loyalty. Incentives to get competitors’ customers to switch.

Decline – Heavy promotions. Used only to retain a set of loyal customers. Prior to withdrawal of the product, it could be used as a onetime stock clearance from the trade. Expenditures are lower and aimed at reinforcing the brand image for continued products.