The Growth Stage Of A Product

The Growth Stage Of A Product

The questions focus on understanding various aspects of marketing communications, strategies, tools, and social media influence during a product's growth stage and beyond. They cover topics such as the role of word-of-mouth marketing, the importance of media reach, social media's benefits, sales promotion techniques, and the dynamics of personal selling and digital marketing channels.

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The growth stage of a product's lifecycle is a critical period where demand accelerates, and companies employ various marketing strategies to sustain and expand their market share. During this phase, word-of-mouth and interactive marketing become vital as they generate organic growth and foster consumer advocacy. It is widely recognized that demand in the growth stage gains its own momentum through consumer advocacy, online reviews, and social interactions, making these tools essential for maintaining sales velocity (Kotler et al., 2017).

Effective marketing communication depends heavily on both the content and the delivery of messages. Merely crafting compelling messages is insufficient if the messages are not appropriately expressed; the medium and context of delivery significantly influence consumer perceptions (Belch & Belch, 2018). As such, conducting a communications audit—a comprehensive evaluation of all customer interactions with the company—is considered a fundamental starting point in planning effective marketing communications (Percy, 2018). It provides insights into how consumers perceive the brand and identifies gaps in communication strategies.

A core aim of marketing communications is to help consumers evaluate a brand’s perceived ability to meet their needs. For example, an advertisement for a luxury car typically emphasizes brand prestige, performance, and status—elements associated with sensory gratification and emotional appeal—rather than problem removal or normal depletion (Hybels & Baker, 2019). Such ads often aim to evoke feelings of aspiration and exclusivity.

At the reordering stage of buyer readiness, direct marketing tools, such as personalized email campaigns or targeted offers, are particularly influential. These tools foster one-to-one engagement, helping to reinforce brand loyalty and prompting repeat purchases (Wells, Brophy, & Perrien, 2016). Complementarily, sales promotions—such as discounts or loyalty programs—also play a significant role at this stage, especially in consolidating customer commitment.

The term "publicity campaigns" refers to company-sponsored activities designed to generate daily or special interactions with consumers. These activities include events, experiential marketing, and community engagement efforts aimed at building goodwill and encouraging ongoing consumer interaction with the brand (Grunig, Grunig, & Dozier, 2019). Such initiatives are essential for maintaining ongoing dialogue and fostering a positive brand image.

Personal influence continues to hold significant sway, particularly for products that are inexpensive, low-risk, or purchased frequently. Peer recommendations and social proof are especially powerful in such contexts because consumers perceive these products as low involvement and are more persuaded by personal endorsements rather than formal advertising (Arndt, 1967).

In the context of sales promotion tools, consumer franchise-building offers—such as frequency awards or loyalty programs—are designed to encourage repeat purchase behavior, rather than solely attracting new customers. Conversely, trade promotions like display allowances or trade discounts primarily target retailers and are instrumental in motivating shelf placement and in-store visibility (Blattberg & Neslin, 1990).

The distinction between sales promotions aimed at consumers versus those aimed at trade partners is crucial. Consumer promotions include contests, refunds, and coupons, whereas trade promotions encompass allowances and displays that incentivize retailers and wholesalers (Kruger, 2018). For example, trade allowances like display allowances provide retailers with discounts or subsidies to promote a product in stores.

Purchase frequency measures how often an average customer buys a product within a specified period. Understanding this metric allows firms to tailor marketing efforts and forecast revenue streams accurately (Lilien, Rangaswamy, & DeHority, 2013). High purchase frequency often indicates strong brand loyalty or habitual buying patterns.

Brands with dominant market presence tend to offer fewer sales promotion deals to prevent devaluing the brand image, especially when such deals primarily subsidize current users rather than attract new ones (Aaker, 1996).

Media reach, or the number of consumers exposed to a message, is most critical when launching new or extension products that require broad awareness. High reach ensures that the product gains visibility among large segments of the target market rapidly, which is vital for building initial demand (Kumar & Mirchandani, 2012).

Social media's benefits include establishing a brand’s online voice, cost-effective reinforcement of other marketing efforts, fostering community engagement, and encouraging ongoing innovation. However, social media's short-term focus can sometimes undermine long-range brand-building if not managed appropriately (Mangold & Faulds, 2009).

To foster positive brand buzz, marketers should identify and engage underserved or inactive consumers, leverage influencers and community leaders, and provide shareable, compelling content. These strategies amplify word-of-mouth and generate authentic conversations around the brand (Keller, 2013).

A company's social listening operations, like Gatorade's Mission Control Center, exemplify real-time monitoring of brand sentiment across social networks, enabling immediate response to consumer feedback, emerging trends, or crises (Liu & Karahanna, 2017).

In face-to-face, oral communications, brand salience—that is, how easily consumers recall or recognize a brand—greatly increases the likelihood of discussion. A memorable, relevant brand tends to be more top-of-mind and more likely to be spoken about in social interactions (Hsee & Hastie, 2006).

Earned media, which includes organic online mentions, shares, reviews, and conversations, plays a vital role in modern marketing. Social media and digital platforms amplify this type of media, as consumers increasingly trust peer recommendations over traditional advertising (Freberg et al., 2011).

Viral marketing is a form of online word-of-mouth that encourages consumers to share company-developed content, often exponentially increasing a message’s reach. Such campaigns rely on powerful emotional or entertainment value to stimulate sharing (Berger, 2013).

In B-to-B markets, top companies like Thermo Scientific, Henry Schein, and WESCO International generate significant revenues through outbound telemarketing, catalog sales, and other direct engagement strategies. These channels facilitate personalized interactions and complex buying decisions characteristic of B-to-B transactions (Parvatiyar & Sheth, 2001).

Sales positions with fixed compensation, such as customer service representatives or order takers, focus on consistent income regardless of sales volume. Conversely, roles with variable pay—such as commission-based salespeople—motivate overachievement and reward performance (Ingram et al., 2015).

Sales performance can be gauged via metrics such as the number of calls made, revenue generated, or cost per sale. "Entertainment cost per sales call" is an extraneous metric that does not directly measure sales effectiveness and is thus an uncommon indicator of performance (Churchill & Peter, 2015).

When inquiring about a client’s invoicing system, such questions are classified as situation questions, which help diagnose current operational processes and identify potential areas for improvement. Effective questioning like this supports deeper understanding and customized solutions (Jobber & Lancaster, 2015).

Salespeople benefiting from no ceiling on commissions—such as high performers or stars—are motivated by overachievement incentives and multiple prize opportunities. These structures encourage exceeding quotas and fostering top-tier performance (Churchill et al., 2014).

Finally, salespeople in retail drug stores or medical supply outlets who handle over-the-counter transactions are known as order takers. They process customer requests and facilitate straightforward sales, typically without engaging in extensive consultation (Kotler et al., 2017).

Overall, understanding the strategies and tools associated with different stages of the product lifecycle, especially in the growth phase, enables marketers to design targeted and effective communication plans, ultimately driving sustained demand and brand loyalty.

References

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