Lecture Marketing: The core (5/e): Chapter 10 – Kerin, Hartley, Rudelius

Chapter 10: Managing successful products, services, and brands. In this chapter, you learned to: Explain the product life-cycle concept; identify the ways that marketing executives manage a product’s life cycle; recognize the importance of branding and alternative branding strategies; describe the role of packaging, labeling, and warranties in the marketing of a product.

Explain the product life-cycle concept.

LO1

Identify the ways that marketing executives manage a product’s life cycle.

Recognize the importance of branding and alternative branding strategies.

LO3

LO2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:

Recognize how the 4 Ps framework is expanded in the marketing of services.

LO5

Describe the role of packaging, labeling, and warranties in the marketing of a product.

GATORADE: BRINGING

SCIENCE TO SWEAT

FIGURE 10-1 How stages of the product life

cycle relate to a firm’s marketing objectives

and marketing mix actions

FIGURE 10-1A Stages of the product life

cycle and its total industry sales and total

industry profit

FIGURE 10-1B How stages of the product

life cycle relate to a firm’s marketing

objectives and marketing mix actions

CHARTING THE PRODUCT LIFE CYCLE

FIGURE 10-2 Product life cycle for the

stand-alone fax machine for business use:

1970-2014

CHARTING THE PRODUCT LIFE CYCLE

CHARTING THE PRODUCT LIFE CYCLE

CHARTING THE PRODUCT LIFE CYCLE

MARKETING MATTERS

Will E-Mail Spell Extinction for Fax Machines?

LO1

CHARTING THE PRODUCT LIFE CYCLE

FOUR ASPECTS

LO1

 Length of the Product Life Cycle

 Shape of the Product Life Cycle

• Generalized Life Cycle

• High-Learning Product

• Fashion Product

• Fad Product

• Low-Learning

product

FIGURE 10-3 Alternative product life cycle

curves based on product types

 The Life Cycle and Consumers

FIGURE 10-4 Five categories and profiles of

product adopters (diffusion of innovation)

 The Life Cycle and Consumers

MANAGING THE PRODUCT LIFE CYCLE

ROLE OF A PRODUCT MANAGER

LO2

 Product/Brand Manager Responsibilities

• Product Life Cycle

• Marketing Program Implementation

• New Product Development

• Data Analysis

USING MARKETING DASHBOARDS

Knowing Your CDI and BDI

Category Development Index (CDI) and Brand Development Index (BDI)

LO2

MANAGING THE PRODUCT LIFE CYCLE

MODIFYING THE PRODUCT OR MARKET

LO2

 Product Modification

• Product Bundling

• New Characteristics

 Market Modification

• Finding New Customers

• Increasing a Product’s Use

• Creating a New

Dockers Ad

MANAGING THE PRODUCT LIFE CYCLE

REPOSITIONING THE PRODUCT

LO2

 Product Repositioning

 Reaching a New Market

 Reacting to a Competitor’s Position

 Catching a Rising Trend

• Trading Up

• Trading Down

• Downsizing

MANAGING THE PRODUCT LIFE CYCLE

REPOSITIONING THE PRODUCT

LO2

 Changing the Value Offered

MAKING RESPONSIBLE DECISIONS

Consumer Economics of Downsizing—

Get Less, Pay More

LO2

 Brand Personality

BRANDING AND BRAND MANAGEMENT

BRAND PERSONALITY AND BRAND EQUITY

LO3

• Provides a Competitive Advantage

• Consumers Willing to Pay a Premium

FIGURE 10-5 The customer-based brand

equity pyramid

BRANDING AND BRAND MANAGEMENT

BRAND PERSONALITY AND BRAND EQUITY

LO3

 Creating Brand Equity

• Develop Positive Brand Awareness

• Establish a Brand’s Meaning

• Elicit the Proper Response

• Create Intense Brand Loyalty

BRANDING AND BRAND MANAGEMENT

BRAND PERSONALITY AND BRAND EQUITY

LO3

 Valuing Brand Equity

• Provides a Financial Advantage

• Brand Licensing

BRANDING AND BRAND MANAGEMENT

PICKING A GOOD BRAND NAME

LO3

 Should Suggest Product Benefits

 Should Fit the Company or Product Image

 Should Be Memorable and Positive

 Should Have No Legal or Regulatory

Restrictions

 Should Be Simple and Emotional

FIGURE 10-6 Alternative branding strategies

BRANDING AND BRAND MANAGEMENT

BRANDING STRATEGIES

LO3

(Family or Corporate Branding)

• Product Line Extensions

• Subbranding

• Brand Extension

• Co-Branding

BRANDING AND BRAND MANAGEMENT

Kimberly-Clark’s Huggies

What branding strategy is used?

LO3

PACKAGING AND LABELING PRODUCTS

CREATING CUSTOMER VALUE AND

MARKETING MATTERSCreating Customer Value Through Packaging—

Pez Heads Dispense More Than Candy

LO4

PACKAGING AND LABELING PRODUCTS

PACKAGING AND LABELING CHALLENGES AND RESPONSES

LO4

 Environmental Concerns

 Health, Safety, and Security Issues

 Connecting with Customers

• Shelf Life

MANAGING THE MARKETING OF SERVICES

THE SEVEN Ps OF SERVICES LO5

 Product (Service)

• Branding

 Price

MANAGING THE MARKETING OF SERVICES

THE SEVEN Ps OF SERVICES LO5

• Customer Experience Management (CEM)

 Physical Environment

 Process

MANAGING THE MARKETING OF SERVICES

THE SEVEN Ps OF SERVICES LO5

 People