Every product and service has a life cycle. The length of this cycle depends on the product or service in question – and in marketing terms, it pays to extend it as much as possible, to maximise profit.
Here’s some information about the product life cycle, and how video content can enhance the saleability of your products and services.
Stages of the Product Life Cycle
So first thing’s first, let’s start with a quick summary of the main stages of the product life cycle:
The research,development and launch of the product. Your main objective is to build brand awareness, as well as develop a market for your product.
Sales and market share are increasing. You now focus on building brand preference as awareness has been established.
Sales reach their highest levels, but growth is slowing – due to competition or market saturation. You will want to focus on defending your marketing share while maximising profit.
Sales start to fall. Options to boost sales again include: developing the existing product to extend life cycle, reducing costs for loyal customers, or discontinuing the product entirely.
Video is one of the most versatile forms of marketing, which makes it ideally suited to extending the life cycle of your products and services.
Here’s a few ways in which video content can be repurposed to enhance customer experience and generate more sales – for longer.
The Introduction Stage
At this point, your target market is at the very beginning of their purchase journey and has little or no awareness of your product.
- Marketing expenditure will be high, and initial revenue will be low.
- Marketing efforts are high-risk at this stage.
- Your product requires heavy promotion in order to gain interest.
Cost effective: Video production is actually considered the type of content with the highest return on investment as it is easily repurposed. The great news is that it is entirely possible to commission a quality corporate or promotional video on a reasonable budget, and then reuse this content throughout your marketing strategy. That should help cut your marketing expenditure at this stage!
Building awareness: Promo videos are easily shared on social media – and are valued as a source of entertainment and information. They can be made on a reasonable budget which is perfect when other marketing spend is high.
Providing information: Explainer videos inform and educate your target market – detailing key features and benefits – great for providing answers to common customer queries or if you have a complicated product.
Instant impact: 65% of people are visual learners. Video is a highly visual form of marketing that creates immediate impact and is recalled easily.
Flexibility: Promos and corporate videos are great for appealing to both a B2B or B2C market. They are professional yet engaging and informative.
The Growth Stage
Your target market is aware of your product, but competition is emerging. As a result, you need to stand out from the crowd.
- Marketing spend is still substantial.
- There’s pressure to maintain a ‘buzz’ about your product.
- Increased competition means greater need to differentiate yourself.
We recommend: Product demos, Promo videos and corporate videos.
Cost-effective: Reduce marketing spend by using your video content to achieve a range of marketing objectives – raising awareness, boosting sales and developing brand loyalty.
Repurposing: Most video content can be repurposed. Use a product demo to highlight USPs, create a stronger brand image and stand out from the competition. Or continue to exploit your promo videos to create a buzz around you and your product.
Persuasive: Product demos prove that your product is better than the competition – offering powerful visual evidence. Emphasise your product benefits whilst promoting.
Authoritative: A corporate video creates credibility – giving your brand a powerful note of authority. This is the ultimate way to differentiate yourself and increase brand preference.
Increase understanding: Videos increase understanding of your product or service by 74%.
The Maturity Stage
Sales have peaked, but growth is slowing. Now, it’s more important than ever to create impact and reignite interest.
- Lead generation and conversions slow as the market becomes more saturated
- Competition increases, making it harder for your brand to stand out
- Prices and profits will be driven down, unless you focus marketing expenditure on differentiating your brand
Boost conversions: Video has been proven to appeal more naturally to your audience – which boosts leads and conversions. On landing pages, they can increase conversion rates by 86%.
Trustworthy recommendations: In a saturated market, case studies and testimonial videos are ideal for standing out from the competition. Peer reviews are often regarded as reliable as those from friends and family and are incredibly persuasive – perfect for defending your market share.
Enter new markets to maintain profit: Case studies highlight your best work and attract new customers. They provide proof that your product solves their problem.
Brand distinction: Advertising videos strongly promote your brand, and incite curiosity, helping you stand out from the competition. Adding animation to any video helps you to tailor your content to portray your product exactly how you want – so use it to show why you’re different!
The Decline Stage
Sales are beginning to fall, and decisions need to be made regarding the future of your product.
- Demand falls, and so too do profits.
- Your customers expect something fresh.
- Other alternatives present themselves on the market.
Build loyalty: An after-sales training video demonstrates your ongoing value.
Repurposing: Repurpose both testimonial videos and promo videos to develop interest in further products. Animation and motion graphics add fresh visuals to existing video content.
Reignite interest: A sales video re-engages your target audience and encourages purchasing.
Video Content – Marketing ROI
Video is highly effective at extending the life cycle of your products and services. It’s a visual, informative and often entertaining way of connecting directly with your target audience. Its ability to be repurposed means that it offers excellent value for money and helps to lower marketing costs at the beginning of the life cycle so you can enjoy better profit margins and return on investment.
To discover more about creating video content for your business, get in contact with WebVideos, or download our FREE 4 part Guide to Video for Buisness today.