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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Explain the product life-cycle concept. LO1 Identify the ways that marketing executives manage a products 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

3 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

4 GATORADE: BRINGING SCIENCE TO SWEAT 10-4

5 FIGURE 10-1 FIGURE 10-1 How stages of the product life cycle relate to a firms marketing objectives and marketing mix actions 10-5

6 FIGURE 10-1A FIGURE 10-1A Stages of the product life cycle and its total industry sales and total industry profit 10-6

7 FIGURE 10-1B FIGURE 10-1B How stages of the product life cycle relate to a firms marketing objectives and marketing mix actions 10-7

8 CHARTING THE PRODUCT LIFE CYCLE INTRODUCTION STAGE LO1 Product Life Cycle Primary Demand Selective Demand Skimming Strategy Penetration Pricing Stimulate Trial 10-8

9 FIGURE 10-2 FIGURE 10-2 Product life cycle for the stand-alone fax machine for business use:

10 CHARTING THE PRODUCT LIFE CYCLE GROWTH STAGE LO1 Rapid Sales Growth Repeat Purchasers New Features Broad Distribution More Competitors 10-10

11 CHARTING THE PRODUCT LIFE CYCLE MATURITY STAGE LO1 Product Differentiation Fewer Competitors Industry/Product Sales Slow Profit Declines 10-11

12 CHARTING THE PRODUCT LIFE CYCLE DECLINE STAGE LO1 Environmental Changes Industry/Product Sales Drop Deletion Harvesting 10-12

13 MARKETING MATTERS Will Spell Extinction for Fax Machines? LO

14 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

15 FIGURE 10-3 FIGURE 10-3 Alternative product life cycle curves based on product types 10-15

16 The Life Cycle and Consumers Diffusion of Innovation Innovators Early Adopters Early Majority Late Majority Laggards CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS LO

17 FIGURE 10-4 FIGURE 10-4 Five categories and profiles of product adopters (diffusion of innovation) 10-17

18 The Life Cycle and Consumers Barriers to Adoption Usage Value Risk Psychological CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS LO

19 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

20 USING MARKETING DASHBOARDS Knowing Your CDI and BDI Category Development Index (CDI) and Brand Development Index (BDI) LO

21 MANAGING THE PRODUCT LIFE CYCLE MODIFYING THE PRODUCT OR MARKET LO2 Product Modification Product Bundling New Characteristics Market Modification Finding New Customers Increasing a Products Use Creating a New Use Situation Dockers Ad 10-21

22 MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT LO2 Product Repositioning Reaching a New Market Reacting to a Competitors Position Catching a Rising Trend 10-22

23 Trading Up Trading Down Downsizing MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT LO2 Changing the Value Offered 10-23

24 MAKING RESPONSIBLE DECISIONS Consumer Economics of Downsizing Get Less, Pay More LO

25 Branding Brand Name Logotype (Logo) BRANDING AND BRAND MANAGEMENT LO3 Trade Name Trademark ® 10-25

26 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

27 FIGURE 10-5 FIGURE 10-5 The customer-based brand equity pyramid 10-27

28 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY LO3 Creating Brand Equity Develop Positive Brand Awareness Establish a Brands Meaning Elicit the Proper Response Create Intense Brand Loyalty 10-28

29 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY LO3 Valuing Brand Equity Provides a Financial Advantage Brand Licensing 10-29

30 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

31 FIGURE 10-6 FIGURE 10-6 Alternative branding strategies 10-31

32 BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES LO3 Multiproduct Branding (Family or Corporate Branding) Multiproduct Branding (Family or Corporate Branding) Product Line Extensions Subbranding Brand Extension Co-Branding 10-32

33 BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES LO3 Multibranding Fighting Brands Private Branding (Private Labeling or Reseller Branding) Mixed Branding 10-33

34 Kimberly-Clarks Huggies What branding strategy is used? LO

35 PACKAGING AND LABELING PRODUCTS CREATING CUSTOMER VALUE AND COMPETITIVE ADVANTAGE LO4 Packaging Label Communication Benefits Functional Benefits Perceptual Benefits 10-35

36 MARKETING MATTERS Creating Customer Value Through Packaging Pez Heads Dispense More Than Candy LO

37 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

38 PRODUCT WARRANTY LO4 Warranty Express Warranties Limited Coverage Warranties Full Warranties Implied Warranties 10-38

39 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

40 MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES LO5 Place (Distribution) Promotion Publicity Public Service Announcements (PSAs) 10-40

41 Customer Experience Management (CEM) Physical Environment Process MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES LO5 Capacity Management People 10-41

42 MARY KAY, INC.: BUILDING A BRAND IN INDIA VIDEO CASE

43 VIDEO CASE 10 MARY KAY 10-43

44 VIDEO CASE 10 MARY KAY 1. What information should be included in a written positioning statement for Mary Kay? 10-44

45 VIDEO CASE 10 MARY KAY 2. How would you draft a formal, written positioning statement for Mary Kay using the information detailed in question 1? 10-45

46 VIDEO CASE 10 MARY KAY 3. Is Mary Kay a global brand? Why or why not? 10-46

47 VIDEO CASE 10 MARY KAY 4. How has Mary Kay, India, focused on the different steps in the customer-based brand equity pyramid described in Figure 11-6? 10-47

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

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

50 Brand Name A brand name is any word, device (design, shape, sound, or color), or combination of these used to distinguish a sellers goods or services

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

52 Brand Equity Brand equity is the added value a brand name gives to a product beyond the functional benefits provided

53 Multiproduct Branding Multiproduct branding is a branding strategy in which a company uses one name for all its products in a product class

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

55 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

56 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 for the service

57 Capacity Management Capacity management integrates the service component of the marketing mix with efforts to influence consumer demand


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