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Not authorized for sale or distribution in any manner.

This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:

L
O Explain the product life-cycle concept.
1

L Identify the ways that marketing

O executives manage a product’s life
2 cycle.

L Recognize the importance of branding

O and alternative branding strategies.
3

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 LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:

L
O Describe the role of packaging, and
4 labeling in the marketing of a product.

L Recognize how the 4 Ps framework is

O expanded in the marketing of services.
5

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 GATORADE: BRINGING
BRINGING SCIENCE TO SWEAT

Gatorade

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FIGURE 10-1 How stages of the product life
cycle relate to a firm’s marketing objectives
and marketing mix actions

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FIGURE 10-1A Stages of the product life
cycle and its total industry sales and total
industry profit

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FIGURE 10-1B How stages of the product
life cycle relate to a firm’s marketing
objectives and marketing mix actions

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L
O
CHARTING THE PRODUCT LIFE CYCLE
1 INTRODUCTION STAGE

Product Life Cycle

Stimulate Trial

Primary Demand

Selective Demand

Skimming Strategy

Penetration Pricing
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FIGURE 10-2 Product life cycle for the
stand-alone fax machine for business use:
1970-2014

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L
O
CHARTING THE PRODUCT LIFE CYCLE
1 GROWTH STAGE

Rapid Sales Growth

More Competitors

Repeat Purchasers

New Features

Broad Distribution
Kindle

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L
O
CHARTING THE PRODUCT LIFE CYCLE
1 MATURITY STAGE

Industry/Product
Sales Slow

Profit Declines

Product Differentiation Pepsi Max

Video

Fewer Competitors
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L
O
CHARTING THE PRODUCT LIFE CYCLE
1 DECLINE STAGE

Industry/Product
Sales Drop

Environmental Changes

Deletion

Harvesting
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L
O MARKETING MATTERS
1
Will E-Mail Spell Extinction for Fax Machines?

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L
CHARTING THE PRODUCT LIFE CYCLE
O
1
THREE ASPECTS

Length of the Product Life Cycle

Shape of the Product Life Cycle

• Generalized Life Cycle

• High-Learning • Fashion
Product Product
• Low-Learnin
• Fad
g
Product
product
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FIGURE 10-3 Alternative product life cycle
curves based on product types

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L
O
CHARTING THE PRODUCT LIFE CYCLE
1 THREE ASPECTS

The Life Cycle and Consumers

• Diffusion of Innovation

▪ Innovators ▪ Late Majority

▪ Early Adopters ▪ Laggards

▪ Early Majority

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FIGURE 10-4 Five categories and profiles of
product adopters (diffusion of innovation)

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L CHARTING THE PRODUCT LIFE CYCLE
O
1 FOUR ASPECTS

The Life Cycle and Consumers

• Barriers to Adoption

▪ Usage

▪ Value

▪ Risk

▪ Psychological

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L
O
MANAGING THE PRODUCT LIFE CYCLE
2 ROLE OF A PRODUCT MANAGER

Product/Brand Manager Responsibilities

• Product Life Cycle

• New Product Development

• Marketing Program
Implementation
• Data Analysis
▪ CD ▪ BD
I I
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L
O
USING MARKETING DASHBOARDS
2
Knowing Your CDI and BDI
Category Development Index (CDI) and Brand Development Index (BDI)

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L
O
MANAGING THE PRODUCT LIFE CYCLE
2 MODIFYING THE PRODUCT OR MARKET

Product Modification
• Product • New
Bundling Characteristics

Market Modification
• Finding New • Increasing a
Customers Product’s Use
Dockers
Ad
• Creating a New
Use Situation
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L
O
MANAGING THE PRODUCT LIFE CYCLE
2 REPOSITIONING THE PRODUCT

Product Repositioning
Reacting to a Competitor’s Position

Reaching a New Market

Catching a Rising Trend

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L
O
MANAGING THE PRODUCT LIFE CYCLE
2 REPOSITIONING THE PRODUCT

Changing the Value Offered

• Trading Up

• Trading
Down

• Downsizing

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L
MAKING RESPONSIBLE DECISIONS
O
2
Consumer Economics of Downsizing—
Get Less, Pay More

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L
O
3
BRANDING AND BRAND MANAGEMENT

Branding

Brand Name

• Logotype (Logo)

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L
O
BRANDING AND BRAND MANAGEMENT
3 BRAND PERSONALITY AND BRAND EQUITY

Brand Personality

Brand Equity

• Provides a Competitive Advantage

Dr. Pepper Ad
• Consumers Willing to Pay a Premium

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FIGURE 10-5 The customer-based brand
equity pyramid

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L
O
BRANDING AND BRAND MANAGEMENT
3 BRAND PERSONALITY AND BRAND EQUITY

Creating Brand Equity

• Develop Positive Brand
Awareness
• Establish a Brand’s Meaning

• Elicit the Proper Response

• Create Intense Brand Loyalty

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L
O
BRANDING AND BRAND MANAGEMENT
3 BRAND PERSONALITY AND BRAND EQUITY

Valuing Brand Equity

• Provides a Financial Advantage

• Brand
Licensing

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L
O
BRANDING AND BRAND MANAGEMENT
3 PICKING A GOOD BRAND NAME

Should Suggest Product Benefits

Should Be Memorable and Positive

Should Fit the Company or Product Image

Should Have No Legal or Regulatory

Restrictions

Should Be Simple and Emotional

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FIGURE 10-6 Alternative branding strategies

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L
O
BRANDING AND BRAND MANAGEMENT
3 BRANDING STRATEGIES

Multiproduct Branding
(Family or Corporate Branding)

• Product Line Extensions

• Subbranding

• Brand Extension

• Co-Branding
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L
O
BRANDING AND BRAND MANAGEMENT
3 BRANDING STRATEGIES

Multibranding

• Fighting Brands

Private Branding (Private Labeling

or Reseller Branding)

Mixed Branding

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L
O
Kimberly-Clark’s Huggies
3 What branding strategy is used?

Huggies Video

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L PACKAGING AND LABELING PRODUCTS
O
4
CREATING CUSTOMER VALUE AND
COMPETITIVE ADVANTAGE

Packaging Label

• Communication Benefits

• Functional Benefits

• Perceptual Benefits

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L
MARKETING MATTERS
O
4
Creating Customer Value Through Packaging—
Pez Heads Dispense More Than Candy

Pez Web site

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L PACKAGING AND LABELING PRODUCTS
O
4
PACKAGING AND LABELING
CHALLENGES AND RESPONSES

Connecting with Customers

Environmental Concerns

Health, Safety, and Security Issues

• Shelf Life

Cost Reduction
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L
O
MANAGING THE MARKETING OF SERVICES
5 THE SEVEN Ps OF SERVICES

Seven Ps of Services Marketing

Product (Service)

• Branding

Price
• Off-Peak Pricing
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L
O
MANAGING THE MARKETING OF SERVICES
5 THE SEVEN Ps OF SERVICES

Place (Distribution)

Promotion

• Publicity

• Public Service Announcements (PSAs)

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L
O
MANAGING THE MARKETING OF SERVICES
5 THE SEVEN Ps OF SERVICES

People

• Customer Experience Management (CEM)

Physical Environment

Process

• Capacity Management
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 VIDEO CASE 10
P&G’S SECRET DEODORANT: FINDING
INSPIRATION IN PERSPIRATION

Secret Video
Case

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 VIDEO CASE 10
Secret Deodorant

1. What is “purpose-driven
marketing” from a product and
brand management perspective
at Procter & Gamble?

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 VIDEO CASE 10
Secret Deodorant

2. How does “purpose-driven”

marketing for Secret deodorant
relate to the hierarchy of needs
concept detailed in Chapter 4?

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 VIDEO CASE 10
Secret Deodorant

3. What dimensions of
consumer-based brand equity
pyramid has the Secret brand
team focused on with its “Let Her
Jump” and “Mean Stinks”
ignitions?

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
IN-CLASS ACTIVITY 10-1

USING BRAINSTORMING AND N/3

TECHNIQUES FOR BREATHE
RIGHT NASAL STRIPS

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 ICA 10-1
Breathe Right® Nasal Strips

Example:
Using Brainstorming Techniques
For Breathe Right® Nasal Strips

Websi
te TV Ad

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 Product Life Cycle

A product life cycle describes the

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

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 Branding

Branding is a marketing decision

in which an organization uses a
name, phrase, design, or symbols,
or combination of these to identify
its products and distinguish them
from those of competitors.

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 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.

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 Brand Personality

Brand personality is a set of

human characteristics associated
with a brand name.

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 Brand Equity

Brand equity is the added value

a brand name gives to a product
beyond the functional benefits
provided.

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 Multiproduct Branding

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

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 Multibranding

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

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 Seven Ps of Services Marketing

The seven Ps of services marketing

is an expanded marketing mix for
services that includes the four Ps
(product, price, promotion, and place
or distribution) as well as people,
physical environment, and process.

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 Off-Peak Pricing

Off-peak pricing involves

charging different prices during
different times of the day or during
different days of the week to
reflect variations in demand for
the service.

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 Capacity Management

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

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