mcgraw-hill/irwin copyright © 2013 by the...
TRANSCRIPT
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Explain the product life-cycle concept. LO1
Identify the ways that marketing executives manage a product’s life cycle.
Recognize the importance of branding and alternative branding strategies. LO3
LO2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
10-2
LO4
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
Recognize how the 4 Ps framework is expanded in the marketing of services. LO5
Describe the role of packaging, labeling, and warranties in the marketing of a product.
10-3
FIGURE 10-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
10-5
FIGURE 10-1A Stages of the product life cycle and its total industry sales and total industry profit
10-6
FIGURE 10-1B How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
10-7
CHARTING THE PRODUCT LIFE CYCLE INTRODUCTION STAGE
LO1
Product Life Cycle
Primary Demand
Selective Demand
Skimming Strategy
Penetration Pricing
Stimulate Trial
10-8
FIGURE 10-2 Product life cycle for the stand-alone fax machine for business use: 1970-2014
10-9
CHARTING THE PRODUCT LIFE CYCLE GROWTH STAGE
LO1
Rapid Sales Growth
Repeat Purchasers
New Features
Broad Distribution
More Competitors
10-10
CHARTING THE PRODUCT LIFE CYCLE MATURITY STAGE
LO1
Product Differentiation
Fewer Competitors
Industry/Product Sales Slow
Profit Declines
10-11
CHARTING THE PRODUCT LIFE CYCLE DECLINE STAGE
LO1
Environmental Changes
Industry/Product Sales Drop
Deletion
Harvesting
10-12
MARKETING MATTERS Will E-Mail Spell Extinction for Fax Machines?
LO1
10-13
CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS
LO1
Length of the Product Life Cycle
Shape of the Product Life Cycle
• Generalized Life Cycle
• High-Learning
Product
• Fashion
Product
• Fad
Product
• Low-Learning
product 10-14
FIGURE 10-3 Alternative product life cycle curves based on product types
10-15
The Life Cycle and Consumers
• Diffusion of Innovation
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS
LO1
10-16
FIGURE 10-4 Five categories and profiles of product adopters (diffusion of innovation)
10-17
The Life Cycle and Consumers
• Barriers to Adoption
Usage
Value
Risk
Psychological
CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS
LO1
10-18
MANAGING THE PRODUCT LIFE CYCLE ROLE OF A PRODUCT MANAGER
LO2
Product/Brand Manager Responsibilities
• Product Life Cycle
• Marketing Program Implementation
• New Product Development
• Data Analysis
CDI BDI
10-19
USING MARKETING DASHBOARDS Knowing Your CDI and BDI
Category Development Index (CDI) and Brand Development Index (BDI)
LO2
10-20
MANAGING THE PRODUCT LIFE CYCLE MODIFYING THE PRODUCT OR MARKET
LO2
Product Modification
• Product
Bundling
• New
Characteristics
Market Modification
• Finding New
Customers
• Increasing a
Product’s Use
• Creating a New
Use Situation
Dockers Ad
10-21
MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT
LO2
Product Repositioning
Reaching a New Market
Reacting to a Competitor’s Position
Catching a Rising Trend
10-22
• Trading Up
• Trading Down
• Downsizing
MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT
LO2
Changing the Value Offered
10-23
MAKING RESPONSIBLE DECISIONS Consumer Economics of Downsizing—
Get Less, Pay More
LO2
10-24
Branding
Brand Name
• Logotype (Logo)
BRANDING AND BRAND MANAGEMENT LO3
Trade Name
Trademark ® ™
10-25
Brand Personality
Brand Equity
BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO3
• Provides a Competitive Advantage
• Consumers Willing to Pay a Premium
10-26
FIGURE 10-5 The customer-based brand equity pyramid
10-27
BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO3
Creating Brand Equity
• Develop Positive Brand Awareness
• Establish a Brand’s Meaning
• Elicit the Proper Response
• Create Intense Brand Loyalty
10-28
BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO3
Valuing Brand Equity
• Provides a Financial Advantage
• Brand Licensing
10-29
BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME
LO3
Should Suggest Product Benefits
Should Fit the Company or Product Image
Should Be Memorable and Positive
Should Have No Legal or Regulatory Restrictions
Should Be Simple and Emotional
10-30
FIGURE 10-6 Alternative branding strategies
10-31
BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO3
Multiproduct Branding (Family or Corporate Branding)
• Product Line Extensions
• Subbranding
• Brand Extension
• Co-Branding
10-32
BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO3
Multibranding
• Fighting Brands
Private Branding (Private Labeling or Reseller Branding)
Mixed Branding
10-33
Kimberly-Clark’s Huggies What branding strategy is used?
LO3
10-34
PACKAGING AND LABELING PRODUCTS CREATING CUSTOMER VALUE AND
COMPETITIVE ADVANTAGE
LO4
Packaging Label
• Communication Benefits
• Functional Benefits
• Perceptual Benefits
10-35
MARKETING MATTERS Creating Customer Value Through Packaging—
Pez Heads Dispense More Than Candy
LO4
10-36
PACKAGING AND LABELING PRODUCTS PACKAGING AND LABELING
CHALLENGES AND RESPONSES
LO4
Environmental Concerns
Health, Safety, and Security Issues
Cost Reduction
Connecting with Customers
• Shelf Life
10-37
PRODUCT WARRANTY LO4
Warranty
• Express Warranties
• Limited Coverage Warranties
• Full Warranties
• Implied Warranties
10-38
MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES
LO5
Seven Ps of Services Marketing
Product (Service)
• Branding
Price
• Off-Peak Pricing 10-39
MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES
LO5
Place (Distribution)
Promotion
• Publicity
• Public Service Announcements (PSAs)
10-40
• Customer Experience Management (CEM)
Physical Environment
Process
MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES
LO5
• Capacity Management
People
10-41