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Managing Products & Brands 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 11, you should be able to : LO3 LO2 LO1 LO4 Explain the product life cycle concept. Identify the ways that marketing executives manage a product’s life cycle. Recognize the importance of branding and alternative branding strategies. Describe the role of packaging, labeling, and warranties in the marketing of a product.

Brands’ Still going strong, after 170 years Opening Story – Brands 1-3

1-4 The Product Life Cycle LO1 FIGURE 11-1 FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

1-5 The Product Life Cycle LO1 FIGURE 11-1 FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

1-6 The Product Life Cycle LO1 The Product Life Cycle Introduction  Product Life Cycle Product Life Cycle  Primary Demand  Selective Demand  Skimming Strategy  Penetration Pricing

1-7 The Product Life Cycle LO1 FIGURE 11-2 FIGURE 11-2 Product life cycle for the stand-alone fax machine for business use: Note the four stages

1-8 The Product Life Cycle LO1 The Product Life Cycle Growth  Rapid Sales Increases  Repeat Purchasers  New Features  Broader Distribution

1-9 The Product Life Cycle LO1 Honda Civic Hybrid & Amazon Kindle Which stage of the Product Life Cycle?

1-10 The Product Life Cycle LO1 The Product Life Cycle Maturity  Product Differentiation  Fewer Competitors  Industry/Product Sales Slow

1-11 The Product Life Cycle LO1 The Product Life Cycle Decline  Deletion  Industry/Product Sales Drop  Harvesting  Environmental Changes

1-12 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  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

1-13 The Product Life Cycle LO1 FIGURE 11-3 FIGURE 11-3 Alternative product life cycle curves based on product type

1-14 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  The Product Level: Class and Form Product Class Product Form

1-15 The Product Life Cycle LO1 FIGURE 11-4 FIGURE 11-4 Prerecorded Music Life Cycle by Product Form. Note the life cycle of the cassette ape

1-16 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  The Life Cycle and Consumers Diffusion of Innovation  Innovators  Early Adopters  Early Majority  Late Majority  Laggards

1-17 The Product Life Cycle LO1 FIGURE 11-5 FIGURE 11-5 Five categories and profiles of product adopters

1-18 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  The Life Cycle and Consumers Barriers to Adoption  Usage  Value  Risk  Psychological

1-19 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Role of a Product Manager  Product/Brand Manager Responsibilities Product Life Cycle Marketing Program Implementation New Product Development Data Analysis  CDI  BDI

1-20 Managing a Product Life Cycle LO2 Marketing Dashboards Knowing your CDI and BDI Category Development Index (CDI) and Brand Development Index (BDI)

1-21 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Modifying the Product or Market 1. Product Modification Product Bundling New Characteristics 2. Market Modification Finding New Customers Increasing a Product’s Use Creating a New Use Situation

1-22 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Repositioning the Product 3. Product Repositioning Reaching a New Market Reacting to a Competitor’s Position

1-23 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Modifying the Product or Market Catching a Rising Trend Changing the Value Offered Trading Up Trading Down Downsizing

1-24 Branding Strategies & Alternatives LO3 Branding Brand Management  Branding Branding  Brand Name Brand Name Logotype (Logo) Product Counterfeiting  Trade Name Trade Name  Trademark Trademark ® ™

1-25 Branding Strategies & Alternatives LO3 Branding Brand Personality & Brand Equity  Brand Personality Brand Personality  Brand Equity Brand Equity Provides a Competitive Advantage Consumers Willing to Pay a Premium

1-26 Branding Strategies & Alternatives LO3 got2b Hair Products & Mambo Fragrances What are their brand personalities?

1-27 Branding Strategies & Alternatives LO3 FIGURE 11-6 FIGURE 11-6 Customer-based brand equity pyramid

1-28 Branding Strategies & Alternatives LO3 Branding Brand Personality & Brand Equity  Creating Brand Equity Develop Positive Brand Awareness Establish a Brand’s Meaning Elicit the Proper Response Create Intense Brand Loyalty

1-29 Branding Strategies & Alternatives LO3 Branding Brand Personality & Brand Equity  Valuing Brand Equity Provides a Financial Advantage Brand Licensing

1-30 Branding Strategies & Alternatives LO3 Luxottica premium eyewear by Ralph Lauren How does brand Licensing create Brand Equity?

1-31 Branding Strategies & Alternatives LO3 Branding Picking a Good Brand Name  Should Suggest Product Benefits  Should Fit the Company or Product Image  Should Be Memorable  Should Have No Legal or Regulatory Restrictions  Should Be Simple and Emotional

1-32 Branding Strategies & Alternatives LO3 FIGURE 11-7 FIGURE 11-7 Alternative branding strategies

1-33 Branding Strategies & Alternatives LO3 Branding Brand Strategies  Multiproduct Branding/Umbrella Branding (Family or Corporate Branding) Multiproduct Branding/Umbrella Branding (Family or Corporate Branding)  Subbranding  Brand Extension  Co-branding  Line Extension

1-34 Branding Strategies & Alternatives LO3 Branding Brand Strategies  Multibranding Multibranding  Private Branding (Private Labeling or Reseller Branding) Private Branding (Private Labeling or Reseller Branding)  Mixed Branding Mixed Branding  Fighting Brands

1-35 Branding Strategies & Alternatives LO3 Black & Decker vs DeWALT tools What branding strategies does each firm use?

1-36 Packaging, Labelling and Warranties LO4 Packaging & Labeling Products Creating customer value & competitive advantage  Packaging Packaging  Label Label  Communication Benefits  Functional Benefits  Perceptual Benefits

1-37 Packaging, Labelling and Warranties LO4 PEZ Head-Dispensers Creating customer value: Fun!

1-38 Packaging, Labelling and Warranties LO4 Lays STAX vs Pringles Competitive advantage: Which chip stacks up better?

1-39 Packaging, Labelling and Warranties LO4 Packaging & Labeling Products Global Trends in Packaging  Environmental Sensitivity  Health, Safety, and Security Issues Shelf Life

1-40 Packaging, Labelling and Warranties LO4 Product Warranty Various Types  Warranty Warranty Express Warranties Limited Coverage Warranties Full Warranties Implied Warranties