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

Transcription

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

2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO1 Explain the product life-cycle concept. LO2 Identify the ways that marketing executives manage a product s life cycle. LO3 Recognize the importance of branding and alternative branding strategies. 10-2

3 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO4 Describe the role of packaging, labeling, and warranties in the marketing of a product. LO5 Recognize how the 4 Ps framework is expanded in the marketing of services. 10-3

4 GATORADE: BRINGING SCIENCE TO SWEAT 10-4

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

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

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

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

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

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

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

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

13 LO1 MARKETING MATTERS Will Spell Extinction for Fax Machines? 10-13

14 LO1 CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS Length of the Product Life Cycle Shape of the Product Life Cycle Generalized Life Cycle High-Learning Product Low-Learning product Fashion Product Fad Product 10-14

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

16 LO1 CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS The Life Cycle and Consumers Diffusion of Innovation Innovators Early Adopters Late Majority Laggards Early Majority 10-16

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

18 LO1 CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS The Life Cycle and Consumers Barriers to Adoption Usage Value Risk Psychological 10-18

19 LO2 MANAGING THE PRODUCT LIFE CYCLE ROLE OF A PRODUCT MANAGER Product/Brand Manager Responsibilities Product Life Cycle New Product Development Marketing Program Implementation Data Analysis CDI BDI 10-19

20 LO2 USING MARKETING DASHBOARDS Knowing Your CDI and BDI Category Development Index (CDI) and Brand Development Index (BDI) 10-20

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

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

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

24 LO2 MAKING RESPONSIBLE DECISIONS Consumer Economics of Downsizing Get Less, Pay More 10-24

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

26 LO3 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY Brand Personality Brand Equity Provides a Competitive Advantage Consumers Willing to Pay a Premium 10-26

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

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

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

30 LO3 BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME Should Suggest Product Benefits Should Be Memorable and Positive Should Fit the Company or Product Image Should Have No Legal or Regulatory Restrictions Should Be Simple and Emotional 10-30

31 FIGURE 10-6 Alternative branding strategies 10-31

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

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

34 LO3 Kimberly-Clark s Huggies What branding strategy is used? 10-34

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

36 LO4 MARKETING MATTERS Creating Customer Value Through Packaging Pez Heads Dispense More Than Candy 10-36

37 LO4 PACKAGING AND LABELING PRODUCTS PACKAGING AND LABELING CHALLENGES AND RESPONSES Connecting with Customers Environmental Concerns Health, Safety, and Security Issues Shelf Life Cost Reduction 10-37

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

39 LO5 MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES Seven Ps of Services Marketing Product (Service) Branding Price Off-Peak Pricing 10-39

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

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