Product Life Cycle

The product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.

The product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.

Brand Name

A brand name is any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or services.

A brand name is any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or services.

Brand Personality

A brand personality is a set ofhuman characteristics associatedwith a brand name.

A brand personality is a set ofhuman characteristics associatedwith a brand name.

Brand Equity

Brand equity is the added value a given brand name gives to a product beyond the functional benefits provided.

Brand equity is the added value a given brand name gives to a product beyond the functional benefits provided.

Multiproduct Branding

Multiproduct branding is a branding strategy in which a company uses one name for all its products in a product class.

Multiproduct branding is a branding strategy in which a company uses one name for all its products in a product class.

Multibranding

Multibranding is a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment.

Multibranding is a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment.

Packaging

Packaging is a component of a product that refers to any container in which it is offered for sale and on which label information is conveyed.

Packaging is a component of a product that refers to any container in which it is offered for sale and on which label information is conveyed.

Capacity Management

Capacity management involves integrating the service component of the marketing mix with efforts to influence consumer demand.

Capacity management involves integrating the service component of the marketing mix with efforts to influence consumer demand.

Off-Peak Pricing

Off-peak pricing consists of charging different prices during different times of the day or days of the weekto reflect variations in demandfor the service.

Off-peak pricing consists of charging different prices during different times of the day or days of the weekto reflect variations in demandfor the service.

THE PRODUCT LIFE CYCLE

• Product Life Cycle

Primary Demand

• Introduction Stage

Selective Demand

Skimming Pricing Strategy

Penetration Pricing Strategy

How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

Product life cycle for thestand alone fax machine for business use: 1970–2008

THE PRODUCT LIFE CYCLE

Repeat Purchasers

• Growth Stage

Deletion

Harvesting

• Maturity Stage

• Decline Stage

Honda Insight Hybrid Automobile andCasio EXILM Digital Camera

What stage of the product life cycle?

THE PRODUCT LIFE CYCLE

Length of the Product Life Cycle

• Some Dimensions of the Product Life Cycle

Shape of the Product Life Cycle

• Generalized Life Cycle

• High-Learning Product

• Fashion Product

• Low-Learning Product

• Fad

FIGURE 11-3 Alternative product life cycles

THE PRODUCT LIFE CYCLE

• Some Dimensions of the Product Life Cycle

Diffusion of Innovation

• Innovators

• Early Adopters

• Late Majority

• Early Majority

• Laggards

The Life Cycle and Consumers

Five categories and profiles of product adopters

Concept Check

1. Advertising plays a major role in the __________ stage of the product life cycle, and sales promotion_ plays a major role in maturity.

introductory

Concept Check

2. How do high-learning andlow-learning products differ?

A: A high-learning product requires significant customer education and thereis an extended introductory period.A low-learning product requires little customer education because the benefits of purchase are readily understood, resulting in immediate sales.

MANAGING THEPRODUCT LIFE CYCLE

Product Modification

Market Modification

• Modifying the Product

• Modifying the Market

• Finding New Users

• Increasing Use

• Creating New Use Situations

Milk Processor Education ProgramWhat modification strategy?

MANAGING THEPRODUCT LIFE CYCLE

• Repositioning the Product

Product Repositioning

• Trading Up

• Trading Down

• Downsizing

Reacting to a Competitor’s Position

Catching a Rising Trend

Changing the Value Offered

Concept Check

1. What does “creating new use situations” mean in managing a product’s life cycle?

A: Finding new uses or applications for an existing product.

Concept Check

2. Explain the difference between trading up and trading down in repositioning.

A: Trading up involves adding value to the product (or line) through additional features or higher-quality materials. Trading down involves reducing the number of features, quality, or price, or downsizing—reducing the content of packages without changing package size and maintaining or increasing the package price.

BRANDING ANDBRAND MANAGEMENT

• Branding

• Brand Name

Logotype or Logo

BRANDING ANDBRAND MANAGEMENT

• Brand Personality and Brand Equity

Brand Personality

• Brand Licensing

Brand Equity

Creating Brand Equity

Valuing Brand Equity

got2b Hair Products andMambo Fragrances

What are their brand personalities?

Customer-based brand equity pyramid

Hummer Footwear by RoperHow does brand licensing create brand equity?

BRANDING ANDBRAND MANAGEMENT

• Picking a Good Brand Name

Suggest the Product Benefits

Be Memorable, Distinctive, and Positive

Fit the Company or Product Image

Have No Legal or Regulatory Restrictions

Be Simple and Emotional

International: Be Nonmeaningful

BRANDING ANDBRAND MANAGEMENT

• Branding Strategies

Multiproduct Branding (Family/Corporate)

• Line Extension

• Subbranding

• Brand Extension

Alternative branding strategies

BRANDING ANDBRAND MANAGEMENT

• Branding Strategies

Multibranding

Private Branding (Private Labeling/Reseller)

• Fighting Brands

Mixed Branding

Black & Decker and DeWalt Tools What is each firm’s branding strategy and why?

• Packaging

• Label

CREATING CUSTOMER VALUE THROUGH PACKAGING

AND LABELING

• Communication Benefits

• Functional Benefits

• Perceptual Benefits

L’eggs Sheer EnergyWhat packaging benefits?

Lay’s Stax and PringlesWhat packaging benefits?

Celestial Seasonings TeaWhat packaging benefits?

Exclusivity

Branding

• Product (Service)

MANAGING THE MARKETINGOF SERVICES

Capacity Management

McDonald’s Why is a logo an important aspect of branding?

• Pricing

MANAGING THE MARKETINGOF SERVICES

Off-Peak Pricing

• Place (Distribution)

• Promotion

United States Postal ServiceWhy do service organizations advertise?

Concept Check

1. What is the difference between a line extension and a brand extension?

A: A line extension is the practice of using a current brand name to enter a new market segment in its product class. A brand extension is the practice of using a current brand name to enter a completely different product class.

Concept Check

A: A package’s color, shape, and graphics can connote status, economy, and product quality.

2. Explain the role of packaging in terms of perception.

Concept Check

3. How do service businesses use off-peak pricing?

A: Service businesses charge different prices during different times of the day or days of the week to reflect variations in demand for the service.

FIGURE 11-A DVD player product life cycle

ASSESSINGSERVICE QUALITY

SUPPLEMENTALLECTURE NOTE 11-2

FIGURE 11-B Dimensions of service quality

Customer contact audit for a car rental (green shaded boxes indicate customer activity)

MANAGING THEPRODUCT LIFE CYCLE

ACT II Butter Lover’s Microwave Popcorn

ACT II Microwave Popcorn (The Classics)

ACT II Microwave Popcorn (Special Features)

ACT II Microwave Popcorn (Other)

USING BRAINSTORMING AND TECHNIQUES FOR BREATHE

RIGHT® STRIPS

Breathe Right Strip

CNS Breathe Right

Breathe Right Strip Instructions