Session 3b - Products 2 [Compatibility Mode]

7/25/2019 Session 3b - Products 2 [Compatibility Mode]

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PRODUCTMANAGEMENTPRODUCTMANAGEMENT

SESSIONTHREE(b)

SESSIONTHREE(b)M

ARKETINGMANAGEMENT


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Session Objectives

Understand the product lifecycle concept, its influence on

marketing strategies and its limitations.

Appreciate the importance of product positioning and how

it both affects and is affected by marketing strategies.

Define the role and responsibilities of the product or brand

manager.

Understand the scope and implications of the variousdecisions that management can take with regard to

product ranges, including deletion.


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Product Management Defined

The job of the product manager is to manage the

Product through its lifetime, from launch, throughany modifications, to its eventual demise.


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Tasks of the Product Manager

Produce annual product plan

Specify actions, resources and strategies

Justify investments of resources


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Product Life Cycle Defined

The Product Lifecycle is a concept suggesting that

a product goes through various stages in the courseof its life: introduction, growth, maturity and decline


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Introductionstage

Growthstage

Maturitystage

Declinestage

Industrysales

Industryprofits

0Revenu

e

Time

The Product Life Cycle


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Product Life Cycle variations


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Product Life Cycle variations


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Brand Variables Affecting PLA

Positioning Personality

Brand nameIdentity


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Diffusion of Innovation Defined

The Diffusion of Innovation is a concept suggesting

that customers first enter a market at different times,

depending on their attitude to innovation and new

products, and their willingness to take risks.

Customers can thus be classified as innovators,

early adopters, early majority, late majority and laggards.


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34% 34% 16%13.5%2.5%

Innovators Earlyadopters

Earlymajority

Latemajority

Laggards

Percentage

adopting

Time

Diffusion of Innovation


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Factors Affecting Rate of Adoption

Relative

advantage

Compatibility

Complexity

Divisibility

Communicability

Perceived

risk


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Competitor Timing Entry

Pioneers

Early differentiators

Early nichers

Early imitators

Late entrants


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Question Marks

Dogs

R e l a t i v e M a r k e t S h a r e

Marke

t

Growt

h

Rate

Stars

Cash Cow

The Boston Consulting Group Growth-Share Matrix (BCG)


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Build sales and/or market share

Invest to maintain/increase

leadership position Repel competitive challenges

Stars

Build selectively

Focus on defendable niche

where dominance can beachieved

Harvest or divest the rest

Question Marks

Hold sales and/or market

share Defend position

Use excess cash to supportstars, selected problemchildren and new product

development

Cash Cows

Harvest or

Divest or Focus on defendable niche

Dogs

The Boston Consulting Group Growth-Share Matrix (BCG)


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MarketPenetration or

Expansion

Market

Development

Product

Development

Enter New

Markets

M a r k e t s

Existing New / Related

Existing

New/

Related

Products

AnsoffM

atrix:ProductGrow

thStrategies


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Entry into new markets

Market development

Product development

Market expansion

Increase sales volume

Market penetration

Buy competitors

Discourage competitive entry

Win competitors customers

Strategic Options for Increasing

Sales: Market Penetration

Market

Penetration or

Expansion

Market

Development

Product

Development

Enter New

Markets


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Market development

Product development

Market expansion

Market penetration

Increase usage rate

Convert non-users

Strategic Options for Increasing

Sales: Market ExpansionMarket

Penetration or

Expansion

Market

Development

Product

Development

Enter New

Markets


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Market development

Market expansion

Product development

Market penetration



Strategic Options for Increasing Sales: Product Development

Market

Penetration or

Expansion

Market

Development

Product

Development

Enter New

Markets

Innovation

Product line extension

Product replacement


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Product development

Market expansion

Market development

Market penetration


Strategic Options for Increasing Sales: Market Development

Enter new segments

Promote new uses

Market

Penetration or

Expansion

Market

Development

Product

Development

Enter New

Markets


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Market development

Product development

Market expansion



Market development

Market penetration

New products

Strategic Options for Increasing Sales: Entry into New Markets

Market

Penetration or

Expansion

Market

Development

Product

Development

Enter New

Markets


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Session 3b: Key TermsSession 3b: Key Terms

_____ is a concept that suggests customers first enter a

market at different times, depending on their attitude toinnovation and new products, and their willingness totake risks.

A brand which is marketed with a standardised offeringacross different European countries is called a _____.


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_____ means adding further product items into a

product line to extend coverage of the market.

_____ means adding further product items into aproduct line to fill gaps within the range.



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The _____ suggests that a product goes through variousstages in the course of its life including introduction,growth, maturity and decline.

What title is used to describe the individual responsiblefor the day-to-day management and welfare of aproduct or family of products at all stages of their

product lifecycle?



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The _____ is the set of different products that an

organisation produces, ideally balanced so that some

products are mature, some are still in their growth stage

while others are waiting to be introduced.



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_____ refers to the development of a product and

marketing strategy that places the brand as close as

possible in the minds of target customers to their ideal in

terms of important features and attributes and clearly

differentiates it from the competition.


Session 3b - Products 2 [Compatibility Mode]

Documents

Transcript of Session 3b - Products 2 [Compatibility Mode]