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Product Management Entry strategies and innovation diffusion Product life cycle management Brand equity management Product line management Managing market leaders Managing market underdogs

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Entry Strategy

1. Diffusion of InnovationA. Relative AdvantageB. CompatibilityC. ComplexityD. TrailabilityE. ObservabilityF. Perceived Risk

2. Reasons for the S-Shape of the Diffusion CurveA. Social Interaction EffectB. Marketing Program EffectC. Competitive Effect

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Entry Strategy

3. Influencing the Diffusion CurveA. Rapid TakeoffB. Rapid AccelerationC. Maximum PenetrationD. Long-Run Franchise

4. Characteristics of InnovatorsA. Higher educ., income, mobility, statusB. Venturesome, open-minded, sensation-seekingC. Seek info. from print media and WOMD. Heavy users of the product category

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The diffusion curve and entry strategies

Social Interaction EffectMarketing Program EffectCompetitive Effect

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The product life cycle curve and strategies

Sales

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Revitalizing Old Worn-Out Products

1. Does the product have a new or extended use?2. Is the product a generic item that can be branded?3. Is the product category “under-advertised”?4. Is there a broader target market?5. Can you turn disadvantages into advantages?6. Can you cut price and build volume and profit?7. Can you market unused byproducts?8. Can you sell it in a more compelling way?9 Is there a social trend to exploit?10. Can you expand distribution channels?

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How Brand Equity Generates Value...

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The Disney name adds value to movies such as The Lion King

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Jockey extends it brand to include underwear for women

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The Young & Rubicam Brand Asset ValuatorThe most ambitious effort to measure brand equity across products, termed the Brand Asset Valuator, is that of Young and Rubicam, a major global advertising agency, who measured brand equity for 450 global brands and more than 8,000 local brands in twenty-four countries. Each brand was examined using a thirty-two item questionnaire that included, in addition to a set of brand personality scales, four sets of measures:

1. Differentiation - Measures how distinctive the brand is in the marketplace.

2. Relevance - Measures whether a brand has personalrelevance for the respondent. Is it meaningful to him/her?

3. Esteem - Measures whether a brand is held in high regardand considered the best in its class. Closely related to perceived quality and the extent to which the brand is growing in popularity.

4. Knowledge - A measure of understanding as to what a brand stands for.

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Brand Dynamics...

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The Young & Rubicam Power Grid

Low High

High Dove chocolatesTeddy GrahamsSnappleSwatchMolson

DisneySesame StreetDoritosSonyOcean Spray

Low QVCTAG HeuerStarbucksTimberland

OldsmobileBayerWessonRamada

Brand Stature(Knowledge and Esteem)

Brand Strength(Differentiationand Relevance)

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Power Grid for Calvin Klein...

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Power Grid for Disney...

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Power Grid for Coke...

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Top 25 Brands...

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Automobile Market Structure

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Deodorant Hierarchies

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Top DogTactics...

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Under DogTactics...