Copyright © 2007 Pearson Education Canada 9-1 Brand Management V.P. Marketing Marketing Manager Brand Mgr. 2 Brand Mgr. 2 Brand Mgr. 3 Brand Mgr. 3 Brand Mgr. 1 Brand Mgr. 1

Copyright © 2007 Pearson Education Canada 9-2 Category Management V.P. Marketing Category Mgr. Soft Drinks Category Mgr. Soft Drinks Category Mgr. Alternative Drinks Category Mgr. Alternative Drinks Brand Mgr. Coca-Cola Brand Mgr. Coca-Cola Brand Mgr. Diet Coke Brand Mgr. Diet Coke Brand Mgr. Fruitopia Brand Mgr. Fruitopia Brand Mgr. Dasani Brand Mgr. Dasani

Copyright © 2007 Pearson Education Canada 9-3 Target Market Management V.P. Marketing Industrial Division Industrial Division Consumer Division Consumer Division Institutional Division Institutional Division Professional Division Professional Division

Copyright © 2007 Pearson Education Canada 9-4 Regional Management V.P. Marketing Ontario Prairies B.C. Quebec Atlantic

Copyright © 2007 Pearson Education Canada 9-5 Global Management Kellogg Inc. Kellogg North America Kellogg North America Kellogg Europe Kellogg Europe Kellogg Australia Kellogg Australia Kellogg Latin America Kellogg Latin America Decisions made elsewhere affect Canada.

Copyright © 2007 Pearson Education Canada 9-6 Product Management Decisions Product Modifications Product Mix (Stretching) Packaging Maintenance or Withdrawal All aspects of the marketing mix are managed to maximize profit. Product management decisions embrace:

Copyright © 2007 Pearson Education Canada 9-7 Product Life Cycle Intro. Growth Maturity Decline Sales & Profits Time

Copyright © 2007 Pearson Education Canada 9-8 Extending the Product Life Cycle The mature stage is usually the longest stage. How do you retain interest in a product that is aging? Look for New Markets Improve the Product Add New Lines Change Other Marketing Mix Elements Customer maintenance (loyalty) is a priority.

Copyright © 2007 Pearson Education Canada 9-9 Extending: Look for New Markets There are several options for attracting new markets: Attract Competitor brand users Enter new segments Convert non-users

Copyright © 2007 Pearson Education Canada 9-10 Extending: Altering the Product Periodic improvements intended to refresh or rejuvenate a product are common in the mature stage. Quality improvements Feature improvements Style improvements

Copyright © 2007 Pearson Education Canada 9-11 Length of Product Life Cycle Life cycles can vary in length and shape: Instant Bust Fad Fashion High expectations for success but rejected quickly Short cycle: 1 or 2 seasons Recurring cycle : in, out, in

Copyright © 2007 Pearson Education Canada 9-12 Adoption and Diffusion Adoption Diffusion Stages a consumer passes through on the ay to purchasing a brand regularly. Gradual acceptance of a product from introduction to market saturation.

Copyright © 2007 Pearson Education Canada 9-13 Categories of Adopters Innovators Early Adopters Early Majority Late Majority Laggards Some people adopt a product quickly; others take much more time.

Copyright © 2007 Pearson Education Canada 9-14 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Consumer learns of product Receptive to messages and information Review of benefits Initial purchase Purchase based on satisfaction

Copyright © 2007 Pearson Education Canada 9-15 New Product Development Idea Generation Idea Generation Screening Concept Development And Testing Concept Development And Testing Business Analysis Business Analysis Product Development Product Development Test Marketing Test Marketing Commercialization