BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT

BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT
SECTION 16 The Launch Alan L. Whitebread

TEST MARKET LAUNCH Test all aspects of the product
Functionality Clarity of instructions … Discover problems / improvements Test acceptance rate and forecast assumptions

Coca-Cola offers guarantee on POWERade
TEST MARKET LAUNCH Coca-Cola Offers Money-Back Guarantee on New Product Launch Sep 15, :04 AM PROMO Xtra Coca-Cola is offering the ultimate marketing tool to launch its new sports drink: the money-back guarantee. Coca-Cola offers guarantee on POWERade POWERade OPTION, a low-calorie, low-carbohydrate sports drink is now on store shelves nationwide featuring a "Great Taste" money-back guarantee that gives consumers who don't like the taste a full refund. The company decided to make the offer based on overwhelming positive feedback on the produce and strong sales, said Mary Herrera, director of marketing for sports & energy drinks, Coca-Cola North America, in a statement. "Combine this initial feedback with the results from the taste test against Propel, and it was an easy decision to initiate the 'Great Taste' money-back guarantee," she said. Propel is made by The Gatorade Co., a division of PepsiCo. Sampling is getting underway at special events in key markets across the country. POWERade OPTION comes in strawberry, black cherry and lemon flavors and is sold in 32-ounce bottles, 20-ounce single bottles and six-packs. Print ads, in-store merchandising and promotions as well as public relations and online sponsorship programs support.

THE LAUNCH The largest expenditure of management time, money, and corporate resources used at any time in the NPD process.

THE LAUNCH: GOALS Seamless to the customer Integration of
Timing, coordination Integration of Operations ramp Sales training Customer service[s] Maximizing IMC Impact The communication plan TOTAL toothpaste example

THE LAUNCH: ROLL-OUT STRATEGY
Multiple simultaneous markets or segments A series of launches across markets or segments [or countries if international]

THE LAUNCH: BACKGROUND
High risk compared to a product [line] extension or improvement Many potential pitfalls What can go wrong? Very high expenditures

THE LAUNCH: POTENTIAL PITFALLS
The forecast Supply chain issues Logistical coordination Out-of-stocks Manufacturing / vendor flexibility IMC:

LEAN LAUNCH METHOD Flexible supply chain Quickly respond to demand
Reduce lead times to improve response Postponement Time: Forward inventory placements Form: assembly, packaging, labeling-especially for multiple products Computers [WIP] Neutral base for house paints International [labels and languages]

IMC AND THE LAUNCH Consumer promotion Direct marketing
Internet activities Print advertising Public relations Radio advertising Reseller education Reseller support materials [collateral, POS, …] Sales force promotion Sales force training Trade promotion Trade shows TV advertising …

MONITORING THE LAUNCH POS sales information EDI or its equivalent
Regional roll-outs

UNDERSTANDING SUCCESS AND FAILURE
A General Electric study found the three largest new product failure factors are market changes that could not be predicted substitute new products by the competition; and, poor timing caused by excessive time in the commercialization process.

PRODUCT CATEGORY CYCLE Increasing competition
NEW PRODUCT STRATEGIES PRODUCT CATEGORY CYCLE Introduction Growth Maturity Decline SALES Increasing competition TIME

INNOVATIVE NEW PRODUCT STRATEGY
Technology-driven Completely new products Probably a new brand Broad initial product assortment is desired May have new channel members or a new channel Skimming price strategy Capitalize on first-mover advantage

INNOVATIVE NEW PRODUCT STRATEGY
Continually reinforce that yours is the original. Coke “the real thing” Kentucky Fried Chicken …

OFFENSIVE ADDITION STRATEGY
Innovative, improved products Create barriers for competitors Expand product assortment

DEFENSIVE ADDITION STRATEGY: You are not the market leader
Less innovative, market-driven product line additions Late growth and early maturity stages of the PLC Maximize presence in existing market [segments] Possible brand extensions Market penetration strategies Heavy sales promotion at all levels

WHY DO NEW PRODUCTS SUCCEED?
Defined NPD process Written documentation Excellent research and development Outstanding implementation Well defined product concept prior to development Technological/marketing fit Unique, superior product Feedback loops for rapid response to varying conditions

WHY DO NEW PRODUCTS FAIL?
Overestimation of market size No major points of difference Insufficient quality Insufficient access to market segment[s] / poor fit with the firm Poor execution of product mix Insufficient funding or ROI Competitive actions / reactions

SECTION 17 Building Successful Brands: The Marketing Plan II Alan L. Whitebread

NEW PRODUCT GROUP INTRODUCTION STAGE OF THE PLC
Sales Low but accelerating; growth based on market acceptance rates Costs High initial marginal cost per unit then declining Profits A function of the cost system; could be negative to low Marketing objectives Create awareness and stimulate initial purchases Product A basic product set-possibly different sizes, colors, flavors, … Price Usually skimming; do not use cost-plus Distribution High cost; especially if you are adding new members or a new channel IMC Strong across all channel members to build awareness and stimulate initial purchases

GROWTH STAGE OF THE PLC Sales Costs Profits Marketing objectives
Increase at an increasing rate then at a decreasing rate Costs Costs continue to fall; begin to approach a minimum cost of production per unit Profits Marginal and total profits are increasing Marketing objectives Build and solidify market share; strengthen the position in the marketplace Product Rapidly expand product offering to include sizes, styles, accessories, warranty, … Price Likely switch to very competitive based on the desired position Distribution Increase the number of outlets, shelf space, etc. without corrupting the channel[s] IMC Continue to increase awareness, build interest, and repeat purchase / use

MATURITY STAGE CHALLENGES
EXPAND THE MARKET SEGMENT[S] Increase consumption frequency and amount MODIFY THE PRODUCT Expand variety especially quality, features, styles, colors, …Continually improve the product to push it back toward the growth stage

MATURITY STAGE CHALLENGES
MODIFY THE MARKETING MIX Continually change the marketing mix to maximize sales Find additional applications

MATURITY STAGE OF THE PLC
Sales Reach a maximum Costs Lowest marginal cost of production Profits Good but declining marginal profitability; excellent cash cow Marketing objectives Defend/increase market share while seeking to maintain profitability Product Some additional product line expansion possible – especially early in the maturity stage Price Maximum competition and very competitive pricing; AUP is likely to decrease over time Distribution Expand distribution as much as possible without corrupting channels IMC Stress differentiation and value; possible heavy promotion

DECLINE STAGE OF THE PLC
Sales Declining then declining at an increasing rate Costs Low, but can start increasing either in production or inventory storage Profits Declining Marketing objectives Minimize expenditures; seek to improve position Product Pare product line; eventually divest or discontinue and redeploy assets to a better opportunity Price Falling Distribution Shrinking; eliminate poor performing entities IMC Minimize to retain only loyal customers

NEW PRODUCTS AND BRANDS
Three choices for a new product Create an entirely new brand name Somehow place it with an existing brand name [brand extension] Combine an existing brand with a new name [brand extension or sub-brand] Parent brand is the existing one in 2 and 3 above. If the parent brand has multiple extensions it is a family brand.

MASTER BRANDS Brand bridging Sub-branding
Adds a new element below the brand hierarchy Super-branding Adds a new element above the brand hierarchy Brand building Also called cross branding or brand bundling Citibank AAdvantage Visa Card Brand bridging Use a master brand to introduce a new brand Neutrogena … T-Gel therapeutic shampoo

ANSOFF’S PRODUCT / MARKET EXPANSION GRID
Existing products New products 1. Market penetration / saturation 2. Product development Existing markets 3. Market development Product diversification New markets

Existing products New products 1. Market penetration / saturation Existing markets MAXIMIZE New markets

Existing products New products 2. Product development Existing markets EXPAND market share New markets

Existing products New products DEVELOP line extension[s] Existing markets 3. Market development New markets

Existing products New products VERY HIGH RISK category extension Existing markets Product diversification New markets

TAUBER’S GENERAL BRAND EXTENSION CATEGORIES
Same product, change of form Jell-O Pudding Pops Contain brand’s distinctive taste, ingredient, or component Haagen-Dazs cream liqueur Companion products Coleman camping equipment Duracell Durabeam flashlights Products relevant to the franchise of the brand

Capitalize on firm’s expertise Canon cameras lead to Photocopiers and ???

6. Reflect the brand’s distinctive benefit, attribute, or feature 7. Capitalize on the image or prestige of the brand Calvin Klein clothes / accessories Porsche sunglasses

ADVANTAGES OF BRAND EXTENSIONS
Improve and expand the brand image Channels are more willing to accept brand extensions Lower product introduction costs

DISADVANTAGES OF BRAND EXTENSIONS
Extension success comes with too much cannibalization of the parent brand May shift perception away from other family members

PRODUCT LINE CHALLENGES

THE PRODUCT LIFE CYCLE OVERVIEW [Countries or products in boxes]
Delete products H G I E J E K D SALES C B A Introduction Growth Maturity Decline TIME

ITEMS TO EVALUATE Category extensions
Colgate toothbrushes Mars ice cream bars Related categories for Vaseline Intensive Care Clorox laundry detergent LifeSavers Chewing Gum

GUIDELINES FOR LINE EXTENSIONS
Outstanding market segmentation and sub-segments Thoroughly understand consumer needs and desires Line extensions provide price breadth and channel flexibility

GUIDELINES FOR LINE EXTENSIONS
Build trade [reseller] pressure through the breadth of the offering “one-stop shop” concept

SECTION 18 Building Successful Brands: Years 2 and beyond Alan L. Whitebread

PORTFOLIO PLANNING & MANAGEMENT
Strategic Planning Technology Scanning Portfolio Planning Opportunity Scanning Portfolio Assessment Capability development Resource management Portfolio review

Strategic Planning Core competencies SWOT analysis Planning models Organizational structure Key success factors Competitive analysis & competitive advantage Gap analysis

Technology advancement New technologies Use a Technology Roadmap to increase capabilities -Develop internally -Acquire -Both Technology Scanning

TECHNOLOGY ROADMAP Technology area Last year This year +1 year
+2 years Vision Weight/size 16-bit chip Micro controller Integrated unit Single chip Soft radio Ease of use 4 line screen 10 line screen VGA Touch screen Voice interface Longevity Audio quality Video quality

Market research Competitive research Close to the market Close to the customer -General needs -Joint development Opportunity Scanning

Portfolio planning and analysis Product Generation Map

PRODUCT GENERATION MAP: HP
DeskJet 560C DeskJet 300 Cost reduction Portable with small footprint DeskJet 550C DeskJet 500C One color and one black cartridge Swap color and black cartridges DeskJet Plus DeskJet 1. Cost reduction 2. Quality improvement TIME

Gap analysis Life-cycle analysis Brand / line extensions Metrics Portfolio Assessment Capability development & NPD Resource management Portfolio review

MARKET METRICS Its all about measurement Continuous customer feedback
Many topics Current products Emerging needs Future products Trends In-class exercise: What trends do you expect in the communications field in the next 10 years?

Most developed nations – stream of new product introductions
THE PRODUCT LIFE CYCLE OVERVIEW [Countries or products in boxes] Most developed nations – stream of new product introductions H G -I E -J E -K D SALES C B A Decline Introduction Growth Maturity TIME

ADVANCED BRAND MANAGEMENT TOPICS
Measuring brand equity Building a strong brand and increasing brand equity Full range of brand elements Strong and consistent IMC program Continual innovation and NPD Pharmaceutical example [Merck 12/2005]

ADVANCED BRAND MANAGEMENT TOPICS
Challenging larger brands / fighting a challenge Scale generally slows development and/or implementation Focus efforts and concentrate resources

SECTION 19A B2B Brands and Issues Alan L. Whitebread

CHARACTERISTICS OF BUSINESS MARKETS
CONSUMER MARKETS Market Structure Geographically concentrated Many types of markets [segments] Fewer very-high volume buyers Fluctuating, derived demand Geographically dispersed Mass markets Small volumes Primary demand Products Standard / complex / custom Service etc. are critical Business applications Engineering / Quality / Testing involvement Standard Service etc. of some note Personal use No formal evaluation Buyer Behavior Professionally trained Multiple levels involved Performance hurdles Individuals purchasing Some family influence Social / psychological drives Buyer-Seller Relationships Technical expertise Close interpersonal relationships Long-term focus May be very dependent on each other Amateur Impersonal Immediate / Short-term

CHARACTERISTICS OF BUSINESS MARKETS
CONSUMER MARKETS Supply Chains / Channels of distribution Predominant Often shorter [more direct] Not seen by consumer Usually indirect Promotion Often technical Personal selling Often involves resellers Simple Advertising Price Professional negotiating / purchasing Volume sensitive Complex formalized process Competitive bid / Many strategies Individuals limited purchasing skill Little, if any, leverage Simple process N/A Demand Derived Inelastic in the short-run Volatile and discontinuous Direct Elastic Limited volatility

B2B COMPETITION: Sources of Information
Industry reports Government reports Industry consultants/experts Brokerage reports / various filings SEC, UCC, state and local, … Data bases Supplier/customer network

B2B COMPETITION: Analytical Techniques
Benchmarking 5 forces [Porter] Patent analysis Trend analysis Cost analysis Risk analysis Regression analysis Scenario building

B2B COMPETITION: Review uncertainties/risks Analyze threats
Anticipate competitive moves Understand strategic/tactical alternatives Scenario implementation

B2B SEGMENTATION BASES:
Buying organization characteristics Size, location, usage rate, … Product/Service/Application set NAICS [or old SIC] category, end market served, value of use [compared to competitors or substitutes] Purchasing Characteristics Type of buying, stage of the purchase decision

B2B SEGMENTATION BASES:
Key buying criteria Total system cost, compatible systems, flexibility, supplier capabilities, … Importance of purchase Strategic, high to low, … Customer Organization Characteristics Innovator or follower Technology level Sophistication

B2B SEGMENTATION BASES Product line Geographic region
Customer industry Customer size [company, purchases] Customer buying behavior Customer technology Process and supply chain requirements

B2B SEGMENTATION CRITERIA
Measurable The degree to which you can measure buyer characteristics Accessible The ability to focus on target market segments Substantial The degree to which target market segments are large enough and potentially profitable enough to pursue

B2B SEGMENTATION -The extent to which marketing and business strengths compare to current and expected competitive and technology states -The extent to which target market segments respond to elements of the marketing mix

B2B SEGMENTATION: Implementing your segmentation
Sales force [organization, training, …] Requirements [technical, customer service, …] If services are needed, how will assistance options be provided on a real-time continuous basis? If it will be international, is the flexibility built into the design to allow adaptations to be made easily?

B2B SEGMENTATION: Understanding product market dimensions
Customer function [meaningful functions [most value], …] Technology [alternative ways to provide the customer function, …] Customer segment Groups served [sales reps, customer service reps, product managers, … Value-added system Related products and services [potential alliances and/or threats]

B2B SEGMENTATION Sources of Competition
Direct competition Substitute products/services/materials Severed relationships [alliances, joint ventures, etc. that dissolved]

B2B SEGMENTATION Attractiveness of segments
Size, growth rate, potential market share Ability to reach effectively distribution & communication channels Competitive intensity Value Strengths match market needs Differentiability and positioning Strategic fit with the organization

B2B MAKE OR BUY DECISIONS
If any of the following are answered yes, make the product. Is it part of a core competence? Does it involve a core technology? Must or do we want to protect it? If any of the above were answered no, then consider making or buying the product. Is it sufficiently important for us to make it? Are the any unacceptable risks to buying the product?

IMC: Collateral Copies of ads Sales literature Catalogs
Product brochures Data sheets Capabilities brochures Technical bulletins/specifications Application sheets

IMC—THE PROMOTIONAL MIX
AND THE PRODUCT LIFE CYCLE: Purina Dog Chow Example LO3 18-75

B2B IMC Advertising evaluation
Target market coverage Key buying motives Effectiveness of messages Media effectiveness Overall results

THE ROLE OF DIRECT MARKETING
LARGER ACCOUNTS MARKETS OR INDUSTRIES NATIONAL ACCOUNT, OEM, DIRECT & FIELD SALES FORCES SMALLER ACCOUNTS RESELLER ACCOUNTS OTHER ACCOUNTS HOW DO WE COST-EFFECTIVELY REACH TARGET MARKETS OF SMALL ACCOUNTS?

B2B SALES MANAGEMENT Traditional Accounts vs. Key Accounts
TRADITIONAL SELLING KEY ACCOUNT SELLING Small to medium Large, frequently across multiple SBUs Regular products and services [core] Core plus customized products, applications, and services Product/service sales Not just products and services but the long-term strategic fit and associated benefits to both organizations Sales person is the key link to the Buyer Multiple relationships across many levels managed by the Key Account Manager Sales person with limited skill set Experienced pro that is as comfortable on the factory floor as they are in the boardroom. Highly skilled.

B2B SALES MANAGEMENT Role of a B2B Sales Professional
Build the relationship and trust throughout the Buyer’s organization. Lead the communications process between Buyer and Seller. Manage the exchange of information. Provide problem-solving solutions. Effectively negotiate. Manage the relationship.

B2B SALES MANAGEMENT Key Account Customer Analysis
Technologies and processes Businesses and product lines Markets and customer types Their competitors Channels of distribution Channels of communication Preferred relationships Culture

B2B SALES MANAGEMENT Potential – Forecast - Actual
The total potential sales to the market [segment] Forecast Sales estimate of sales to each market [segment] by customer, product, and territory Actual Net sales and net units

SECTION 19B B2B Brands and Issues: OEM / Private Label Strategies and the Importance of Services Alan L. Whitebread

THE B2B MARKETPLACE Business marketers often have large customers wielding tremendous Customers want solutions and long-term relationships, not just features. Share common goals, objectives, and team solutions. Competitive advantage requires a firm to offer the customer a solution set –

THE B2B MARKETPLACE The internet has driven the cost of acquiring supplier and product specification information to almost zero. Buyers must evaluate the value of services before they are provided. The service provider’s track record, reputation, image, and other inferences are used to make the buying decision.

THE B2B MARKETPLACE A service enhancement in an offering keeps on providing value. Its contribution to a long-term relationship and customer lifetime value should exceed the out-of-pocket expense of providing it. Procurement needs partners who can ensure reliable supply, high efficiency, and

EVALUATING BUSINESS SERVICES
The technical competence The competence The quality of the service delivery [friendliness, thoroughness, response time, time to completion, …] Successful outcome

ADDING VALUE TO P/L AND OEM CUSTOMER RELATIONSHIPS
SHORT-TERM VALUE LONG-TERM VALUE Current product cost reduction Improved business systems interfaces Business systems services

UNDERSTANDING BRANDS Your main brand Other brands OEM Private Label

BRAND TERMINOLOGY OEM Private Label -Manufacturer Retail
[Store brand or ] B2B [Private Label or Distributor Brand] -Manufacturer’s distribution channels -Retailer Generally only packaging specifications are detailed. “Bib box” / mass merchandisers may add specifications for specific features.

WHY HAVE A PRIVATE LABEL?
Provide consumers a cost-effective alternative to the big name brand Adds to owner brand power A strong alternative to weak brands take their shelf space reason to discontinue slow movers

WHY HAVE A PRIVATE LABEL?
Minimal conflicts with manufacturer’s brand since it is often made by the big brand company Provide access to product markets Improve market segmentation to include more of the less brand conscious buyers

PRIVATE LABELELLERS ISSUES
Private label strategy Creativity [product line extensions] Breadth and depth

COMPETING AGAINST PRIVATE LABEL BRANDS?
No imitations allowed IP Fakes Close imitations Packaging Vigorously defend your positioning Reinforce creativity, innovation, originality Use promotions Stress investment in R&D, NPD

SHOULD WE MAKE BRANDS FOR OTHER FIRMS/
Additional volume spreads fixed costs Benefit from economies of scale Purchasing power Especially if only the package is different Profitable Little sales or IMC expense [%] Your competitors will likely provide the products if you do not act.

SECTION 21 International Brands and Issues Alan L. Whitebread

International Brands and Programs
Global programs and market flexibility Differences in wants, needs, desires, uses, and cultural issues

INTERNATIONAL BRAND SENSITIVITY
Cultural environment Relationships Language

INTERNATIONAL EXPANSION STRATEGIES
NARROW FOCUS concentrated markets / countries COUNTRY FOCUS country-by-country COUNTRY DIVERSIFICATION GLOBAL DIVERSIFICATION

POTENTIAL BARRIERS TO MARKET ENTRY
Insufficient scale Cost disadvantages unrelated to scale Capital requirements Government policies and procedures

FOREIGN MARKET ENTRY ALTERNATIVES
DIRECT EXPORTING FRANCHISING INDIRECT INVESTMENT CONTRACTUAL LICENSING COPYRIGHT A. WHITEBREAD,

ENTERING FOREIGN MARKETS
INDIRECT EXPORTING RISKS LIABILITY, CONTROL VERY ERRATIC DEMAND FIT WITH OPERATIONS REWARDS VERY LITTLE SALES EFFORT INCREMENTAL VOLUME AND PROFIT Manufacturer Agents / Distributors [Not in destination country - Usually in home country] COPYRIGHT A. WHITEBREAD,

DIRECT EXPORTING RISK CONTROL OF INDEPENDENT RESELLERS REWARD DIRECT CONTACT WITH LOCAL MARKET Manufacturer Sales Subsidiary Resellers [Usually not in home country] Individual Accounts OEM’s COPYRIGHT A. WHITEBREAD,

LICENSING & FRANCHISING RISK CONTROL OF RESELLERS REWARDS MINIMIZE ENTRY RISK PROFIT STREAM Manufacturer Licensees or Franchisees Resellers Individual Accounts COPYRIGHT A. WHITEBREAD,

ENTERING FOREIGN MARKETS [ACQUISITION, GREENFIELD, BROWNFIELD]
DIRECT INVESTMENT [ACQUISITION, GREENFIELD, BROWNFIELD] RISKS START-UP OPPORTUNITY COST; INVESTMENT; WC COUNTRY STABILITY; CURRENCY EXCHANGE REWARDS DIRECT MARKET CONTACT PROFIT STREAM Manufacturer Subsidiary (Manufacturing) Resellers Individual Accounts OEMs COPYRIGHT A. WHITEBREAD,

CONTRACTUAL [JOINT VENTURE, STRATEGIC ALLIANCE, CONTRACT MANUFACTURING] RISKS AUDIT & CONTROL START-UP INVESTMENT; WC REWARDS MINIMIZE ENTRY RISK PROFIT STREAM Resellers Contract Manufacturing Manufacturer Individual Accounts COPYRIGHT A. WHITEBREAD,

LIKELY ENTRY ALTERNATIVES
SITUATION OPTION[S] A small firm wants to export only. Indirect or direct exporting A specialized machinery manufacturer wants to increase their presence in key country markets. A firm is having difficulty supplying enough goods to a regional market. A firm wants to aggressively increase its sales in a region

ENTITY OPTIONS Sole Proprietorship Corporation Partnership
C or S in the U.S. Partnership General Limited Liability Partnership [LLP] Limited Liability Company [LLC]

TYPES OF VERTICAL MARKETING SYSTEMS [VMS]
Greater CORPORATE Common Ownership at Different Channel Levels CONTRACTURAL Contractual Agreements Among Channel Members Degree of Direct Control ADMINISTERED Leadership is Assumed by One or a Few Dominant Members; Contracts are not common Lesser

TYPES OF CHANNELS International Vertical Marketing Systems [VMS]
Corporate Subsidiary or JV Contractual Resellers Licensees [Franchisees] Administered No agreement International Vertical Marketing Systems [VMS] International channels of distribution may use any possible combination of the above systems. There is frequently significant region-to-region variation and sometimes major country-to-country differences. Each business must build the best combination for their needs.

DISTRIBUTION STRATEGY: INTENSITY
INTENSIVE SELECTIVE EXCLUSIVE

CONSUMER CHANNEL MAP [Simple distribution]
Manufacturer Manufacturer’s Internet Site Mass Merchandiser’s Internet Site Wholesaler Retail Store Direct distribution Indirect distribution CONSUMERS

STRUCTURING CHANNELS WITH TERMS & CONDITIONS OF SALE
ACCOUNT TYPE PAYMENT TERMS DELIVERY TERMS SPECIAL TERMS PROMOTION AND INCENTIVES Regional Distributor Choose from: Net _ days Prompt pay discount … FOB [Ex works] Time Special charges Shipping fees Drop ship Inventory adjustment Minimum order size Co-op advertising Sales promotions Distributor Dealer B2B Consumer

MEXICO BEARING INDUSTRY - 2000
$1.00 $1.25 $1.56 $1.95

Differences in Product development Competitive environment Legal environment Government regulations

International Product Standards How should we enter a foreign market?

Global programs and market flexibility Differences in wants, needs, desires, uses, and cultural issues Sometimes limited marketing tools

CONSUMER PROMOTIONS Germany Italy Multi-purchase offers M Y
Extra product Free product Mail-in offers N Purchase-with-purchase Contests Sweepstakes Money-off coupons Next-purchase coupons Cash rebates In-store demos Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

THE INTERNATIONAL PRODUCT LIFE CYCLE: AN OVERVIEW
Most developed nations – stream of new product introductions Medium developed nations – trailing introduction Least developed nations – simple product version H G -I E -J E -K D SALES C B A Decline Introduction Growth Maturity TIME

IMPLEMENTING THE MARKETING MIX
Country #5 Every country will likely have a unique marketing mix. Sometimes a regional marketing approach will work. There may still be some changes in the marketing mix – especially with the IMC. Country #4 Country #3 Country #2 Country #1 Marketing Mix

TYPES OF SALES FORCES DIRECT MARKETING FIELD TELESALES DIRECT SALES
DIRECT MAIL CATALOG INTERNET FIELD DIRECT SALES NATIONAL ACCOUNTS OEM GOVERNMENT HOUSE SUBSIDIARIES MANUF. REP’S FRANCHISES LICENSEES JOINT VENTURES AFFILIATES Copyright A. Whitebread,

BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT

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