Advertising's Effect on the Product Evolutionary Cycle

Abstract
Criticism of the product life cycle (PLC) concept centers on problems with theory, empirical validation, and practical use. The product evolutionary cycle (PEC), an alternative concept based on the field of biology, has been suggested to provide a more complete picture of the effects of marketing mix and competition on product sales. The authors assess the PEC framework empirically in the U. S. cigarette industry. Advertising-sales causation is tested on three levels of segment competition: (1) individual brand, (2) intracategory, and (3) intercategory. The findings indicate that more distantly related "organisms" compete as well as those closely related in terms of background. Specifically, the authors demonstrate a gradual but marked decrease in the effect of advertising on sales as products with more distant lineage coexist and compete. The PEC is demonstrated to be an information-laden framework to use in making marketing mix decisions.