brand mgmt
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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