MG 506 (Fall 1999): Class 6 (10/19/99) Tuesday, October 19, 1999 n Announcements –Exam: Sony: CNS –UMI/Proquest n Product Management n Web Sites n Case: Bayer (AG)

MG 506 (Fall 1999): Class 6 (10/19/99) Exam n Sony Case –Due: 9:00 AM Friday, 10/29/99 –Open book/open notes –Independent work –Four hours –Focus: n Answer the questions n Organize your work

MG 506 (Fall 1999): Class 6 (10/19/99) ****PLEASE !!!!!!**** n No viruses n Put YOUR NAME on the file name and in the document

MG 506 (Fall 1999): Class 6 (10/19/99) Product n Anything that can be offered for consumption to a market. –Distinguish between benefits and features n Product Line: A group of closely related products n Product Mix: The set of product lines available to buyers

MG 506 (Fall 1999): Class 6 (10/19/99) Brand n A name, sign, or symbol that identifies a good to a buyer n Conveys information about: –Attributes –Benefits –Values –User

MG 506 (Fall 1999): Class 6 (10/19/99) Benefits of Branding n For customer –Consistent quality –Makes responsibility public –Facilitates comparisons n For firm –Helps develop base of repeat users –Aids in segmentation –Helps maintain product uniqueness

MG 506 (Fall 1999): Class 6 (10/19/99) Conditions favorable for Branding n Strong demand at adequate price n Dependability n Good value n Economies of scale

MG 506 (Fall 1999): Class 6 (10/19/99) Brand Strategy ==> Positioning n Positioning: Act of designing the product’s offer and image so that it occupies a distinct and valued place in the customer’s mind –What need is being met? –What job is being performed? –What experiences are being delivered? –What does the consumer believe about the brand? n Attributes n Benefits

MG 506 (Fall 1999): Class 6 (10/19/99) Developing a Positioning Strategy n Important n Distinctive n Superior n Communicable n Inimitable n Affordable n Profitable

MG 506 (Fall 1999): Class 6 (10/19/99) Brand Equity n Value of the brand n Measures –Brand awareness –Brand acceptability –Brand loyalty –Brand preference –Price premium commanded –Units moved

MG 506 (Fall 1999): Class 6 (10/19/99) Benefits of Brand Equity n Loyalty n Price premium n Trade leverage n Easier to launch extensions n Defense against price competition

MG 506 (Fall 1999): Class 6 (10/19/99) Branding Myths n Branding is only appropriate for consumer products n Branding is only valuable for products that are “emotional” n Branding will become irrelevant w/e-commerce n Branding is only the job of marketers n Brands can overcome product deficiencies

MG 506 (Fall 1999): Class 6 (10/19/99) Product Life Cycle (PLC) n Assumptions –Products have a limited life –Products will pass through stages w/ different challenges –Profits will rise and fall at different stages –Stages have strategic implications

MG 506 (Fall 1999): Class 6 (10/19/99) PLC Stages Introduction GrowthMaturityDecline Time Sales and Profits Industry Sales Industry Profits Network Computers Cellular Phones Food Processors Cassette Tapes

MG 506 (Fall 1999): Class 6 (10/19/99) Product Management n The translation of customer needs into features and benefits n Role of the product manager: –Develop plans –Oversee implementation –Monitor –Take corrective action –Maintains alliance between market opportunities and the company

MG 506 (Fall 1999): Class 6 (10/19/99) Product Manager: Boundary Spanner n Develop long range competitive strategies for the product n Prepare marketing and sales forecast n Work w/ advertising and market research agencies n Stimulate support for the product n Gather market intelligence n Initiate product improvements