1. Copyright © 2007 Pearson Education Canada 9-1 Brand Management V.P. Marketing Marketing Manager Brand Mgr. 2 Brand Mgr. 2 Brand Mgr. 3 Brand Mgr. 3 Brand Mgr. 1 Brand Mgr. 1

2. Copyright © 2007 Pearson Education Canada 9-2 Category Management V.P. Marketing Category Mgr. Soft Drinks Category Mgr. Soft Drinks Category Mgr. Alternative Drinks Category Mgr. Alternative Drinks Brand Mgr. Coca-Cola Brand Mgr. Coca-Cola Brand Mgr. Diet Coke Brand Mgr. Diet Coke Brand Mgr. Fruitopia Brand Mgr. Fruitopia Brand Mgr. Dasani Brand Mgr. Dasani

3. Copyright © 2007 Pearson Education Canada 9-3 Target Market Management V.P. Marketing Industrial Division Industrial Division Consumer Division Consumer Division Institutional Division Institutional Division Professional Division Professional Division

4. Copyright © 2007 Pearson Education Canada 9-4 Regional Management V.P. Marketing Ontario Prairies B.C. Quebec Atlantic

5. Copyright © 2007 Pearson Education Canada 9-5 Global Management Kellogg Inc. Kellogg North America Kellogg North America Kellogg Europe Kellogg Europe Kellogg Australia Kellogg Australia Kellogg Latin America Kellogg Latin America Decisions made elsewhere affect Canada.

6. Copyright © 2007 Pearson Education Canada 9-6 Product Management Decisions Product Modifications Product Mix (Stretching) Packaging Maintenance or Withdrawal All aspects of the marketing mix are managed to maximize profit. Product management decisions embrace:

7. Copyright © 2007 Pearson Education Canada 9-7 Product Life Cycle Intro. Growth Maturity Decline Sales & Profits Time

8. Copyright © 2007 Pearson Education Canada 9-8 Extending the Product Life Cycle The mature stage is usually the longest stage. How do you retain interest in a product that is aging? Look for New Markets Improve the Product Add New Lines Change Other Marketing Mix Elements Customer maintenance (loyalty) is a priority.

9. Copyright © 2007 Pearson Education Canada 9-9 Extending: Look for New Markets There are several options for attracting new markets: Attract Competitor brand users Enter new segments Convert non-users

10. Copyright © 2007 Pearson Education Canada 9-10 Extending: Altering the Product Periodic improvements intended to refresh or rejuvenate a product are common in the mature stage. Quality improvements Feature improvements Style improvements

11. Copyright © 2007 Pearson Education Canada 9-11 Length of Product Life Cycle Life cycles can vary in length and shape: Instant Bust Fad Fashion High expectations for success but rejected quickly Short cycle: 1 or 2 seasons Recurring cycle : in, out, in

12. Copyright © 2007 Pearson Education Canada 9-12 Adoption and Diffusion Adoption Diffusion Stages a consumer passes through on the ay to purchasing a brand regularly. Gradual acceptance of a product from introduction to market saturation.

13. Copyright © 2007 Pearson Education Canada 9-13 Categories of Adopters Innovators Early Adopters Early Majority Late Majority Laggards Some people adopt a product quickly; others take much more time.

14. Copyright © 2007 Pearson Education Canada 9-14 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Consumer learns of product Receptive to messages and information Review of benefits Initial purchase Purchase based on satisfaction

15. Copyright © 2007 Pearson Education Canada 9-15 New Product Development Idea Generation Idea Generation Screening Concept Development And Testing Concept Development And Testing Business Analysis Business Analysis Product Development Product Development Test Marketing Test Marketing Commercialization