mkt 340 ch10 ppt

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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, and labeling in the marketing of a product.

10-3



GATORADE: BRINGING

BRINGING SCIENCE TO SWEAT

10-4

Gatorade

http://kerin.tv/cr6e/v10-1




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 CYCLEINTRODUCTION 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

Kindle

http://core.kerin.tv/ppt10-2




CHARTING THE PRODUCT LIFE CYCLE MATURITY STAGE

LO1

Product Differentiation

Fewer Competitors

Industry/ProductSales Slow

Profit Declines

10-11

Pepsi Max

Video





CHARTING THE PRODUCT LIFE CYCLE DECLINE STAGE

LO1

Environmental Changes

Industry/ProductSales Drop

Deletion

Harvesting

10-12



MARKETING MATTERSWill E-Mail Spell Extinction for Fax Machines?

LO1

10-13



CHARTING THE PRODUCT LIFE CYCLE THREE ASPECTSLO1

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 THREE 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 CYCLEROLE 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 DASHBOARDSKnowing Your CDI and BDI

Category Development Index (CDI) and Brand Development Index (BDI)

LO2

10-20

UMD10CDIBDI.xls

UMD10CDIBDI.xls



MANAGING THE PRODUCT LIFE CYCLEMODIFYING 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

DockersAd

10-21





MANAGING THE PRODUCT LIFE CYCLEREPOSITIONING 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 CYCLEREPOSITIONING THE PRODUCT

LO2

Changing the Value Offered

10-23



MAKING RESPONSIBLE DECISIONSConsumer Economics of Downsizing—

Get Less, Pay More

LO2

10-24



Branding

Brand Name

• Logotype (Logo)

BRANDING AND BRAND MANAGEMENTLO3

10-25



Brand Personality

Brand Equity

BRANDING AND BRAND MANAGEMENTBRAND PERSONALITY AND BRAND EQUITY

LO3

• Provides a Competitive Advantage

• Consumers Willing to Pay a Premium

10-26

Dr. Pepper Ad





FIGURE 10-5 The customer-based brand equity pyramid

10-27




LO3

Creating Brand Equity

• Develop Positive Brand Awareness

• Establish a Brand’s Meaning

• Elicit the Proper Response

• Create Intense Brand Loyalty

10-28




LO3

Valuing Brand Equity

• Provides a Financial Advantage

• Brand Licensing

10-29



BRANDING AND BRAND MANAGEMENTPICKING 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 MANAGEMENTBRANDING STRATEGIES

LO3

Multiproduct Branding(Family or Corporate Branding)

• Product Line Extensions

• Subbranding

• Brand Extension

• Co-Branding

10-32



BRANDING AND BRAND MANAGEMENTBRANDING STRATEGIES

LO3

Multibranding

• Fighting Brands

Private Branding (Private Labeling or Reseller Branding)

Mixed Branding

10-33



Kimberly-Clark’s HuggiesWhat branding strategy is used?

LO3

10-34

Huggies Video





PACKAGING AND LABELING PRODUCTSCREATING CUSTOMER VALUE AND

COMPETITIVE ADVANTAGE

LO4

Packaging Label

• Communication Benefits

• Functional Benefits

• Perceptual Benefits

10-35



MARKETING MATTERSCreating Customer Value Through Packaging—

Pez Heads Dispense More Than Candy

LO4

10-36

Pez Web site





PACKAGING AND LABELING PRODUCTSPACKAGING AND LABELING

CHALLENGES AND RESPONSES

LO4

Environmental Concerns

Health, Safety, and Security Issues

Cost Reduction

Connecting with Customers

• Shelf Life

10-37



MANAGING THE MARKETING OF SERVICESTHE SEVEN Ps OF SERVICES

LO5

Seven Ps of Services Marketing

Product (Service)

• Branding

Price

• Off-Peak Pricing

10-38




LO5

Place (Distribution)

Promotion

• Publicity

• Public Service Announcements (PSAs)

10-39



• Customer Experience Management (CEM)

Physical Environment

Process


LO5

• Capacity Management

People

10-40



P&G’S SECRET DEODORANT: FINDING INSPIRATION IN PERSPIRATION

VIDEO CASE 10

Secret Video

Case





VIDEO CASE 10

Secret Deodorant

1. What is “purpose-driven marketing” from a product and brand management perspective at Procter & Gamble?



VIDEO CASE 10

Secret Deodorant

2. How does “purpose-driven”marketing for Secret deodorant relate to the hierarchy of needs concept detailed in Chapter 4?



3. What dimensions of consumer-based brand equity pyramid has the Secret brand team focused on with its “Let Her Jump” and “Mean Stinks” ignitions?

VIDEO CASE 10

Secret Deodorant



USING BRAINSTORMING AND N/3 TECHNIQUES FOR BREATHE

RIGHT NASAL STRIPS

IN-CLASS ACTIVITY 10-1



ICA 10-1

Breathe Right® Nasal Strips

WebsiteTV Ad

Example:

Using Brainstorming Techniques

For Breathe Right® Nasal Strips

http://12e.kerin.tv/ppt11-9






Product Life Cycle

A product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity,and decline.

10-49



Branding

Branding is a marketing decision in which an organization uses a name, phrase, design, or symbols, or combination of these to identifyits products and distinguish them from those of competitors.

10-50



Brand Name

A brand name is any word, device (design, shape, sound,or color), or combination of these used to distinguish a seller’s goods or services.

10-51



Brand Personality

Brand personality is a set of human characteristics associated with a brand name.

10-52



Brand Equity

Brand equity is the added valuea brand name gives to a product beyond the functional benefits provided.

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Multiproduct Branding

Multiproduct branding is a branding strategy in which a company uses one name for allits products in a product class.

10-54



Multibranding

Multibranding is a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment.

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Seven Ps of Services Marketing

The seven Ps of services marketing is an expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process.

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Off-Peak Pricing

Off-peak pricing involves charging different prices during different times of the day or during different days of the week to reflect variations in demand forthe service.

10-57



Capacity Management

Capacity managementintegrates the service component of the marketing mix with effortsto influence consumer demand.

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