McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

FIGURE 11-1 FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 11-2

THE PRODUCT LIFE CYCLE INTRODUCTION STAGE LO1  Product Life Cycle Product Life Cycle  Primary Demand  Selective Demand  Skimming Strategy  Penetration Pricing 11-3

THE PRODUCT LIFE CYCLE GROWTH STAGE LO1  Rapid Sales Increases  Repeat Purchasers  New Features  Broader Distribution 11-4

THE PRODUCT LIFE CYCLE MATURITY STAGE LO1  Product Differentiation  Fewer Competitors  Industry/Product Sales Slow 11-5

THE PRODUCT LIFE CYCLE DECLINE STAGE LO1  Deletion  Industry/Product Sales Drop  Harvesting 11-6

FIGURE 11-3 FIGURE 11-3 Alternative product life cycle curves based on product type 11-7

THE PRODUCT LIFE CYCLE DIMENSIONS LO1  The Product Level: Class and Form Product Class Product Form 11-8

FIGURE 11-4 FIGURE 11-4 Prerecorded music product life cycles by product form 11-9

THE PRODUCT LIFE CYCLE DIMENSIONS LO1  The Life Cycle and Consumers Diffusion of Innovation  Innovators  Early Adopters  Early Majority  Late Majority  Laggards 11-10

FIGURE 11-5 FIGURE 11-5 Five categories and profiles of product adopters (diffusion of innovation) 11-11

THE PRODUCT LIFE CYCLE DIMENSIONS LO1  The Life Cycle and Consumers Barriers to Adoption  Usage  Value  Risk  Psychological 11-12

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  CDI  BDI 11-13

MANAGING THE PRODUCT LIFE CYCLE MODIFYING THE PRODUCT OR MARKET LO2  Product Modification Product Modification Product Bundling New Characteristics  Market Modification Market Modification Finding New Customers Increasing a Product’s Use Creating a New Use Situation 11-14

Harley-Davidson, Nokia N93, and Milk Processors Education Program What modification strategy does each use? LO

MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT LO2  Product Repositioning  Reaching a New Market  Reacting to a Competitor’s Position 11-16

 Catching a Rising Trend  Changing the Value Offered Trading Up Trading Down MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT LO

 Branding Branding  Brand Name Brand Name Logotype (Logo) Product Counterfeiting BRANDING AND BRAND MANAGEMENT LO3  Trade Name Trade Name  Trademark Trademark ® ™ 11-18

 Brand Personality Brand Personality  Brand Equity Brand Equity BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY LO3 Provides a Competitive Advantage Consumers Willing to Pay a Premium 11-19

FIGURE 11-6 FIGURE 11-6 The customer-based brand equity pyramid 11-20

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 11-21

BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY LO3  Valuing Brand Equity Provides a Financial Advantage Brand Licensing 11-22

Hummer Footwear by Roper How does brand licensing create brand equity? LO

BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME LO3  Should Suggest Product Benefits  Should Fit the Company or Product Image  Should Be Memorable  Should Have No Legal or Regulatory Restrictions  Should Be Simple and Emotional 11-24

FIGURE 11-7 FIGURE 11-7 Alternative branding strategies 11-25

BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES LO3  Multiproduct Branding (Family or Corporate Branding) Multiproduct Branding (Family or Corporate Branding)  Subbranding  Brand Extension  Co-branding  Line Extension 11-26

Kimberly-Clark’s Huggies What branding strategy is used? LO

BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES LO3  Multibranding Multibranding  Private Branding (Private Labeling or Reseller Branding) Private Branding (Private Labeling or Reseller Branding)  Mixed Branding Mixed Branding  Fighting Brands 11-28

PACKAGING AND LABELING PRODUCTS CREATING CUSTOMER VALUE AND COMPETITIVE ADVANTAGE LO4  Packaging Packaging  Label Label  Communication Benefits  Functional Benefits  Perceptual Benefits 11-29

PACKAGING AND LABELING PRODUCTS CONTEMPORARY PACKAGING AND LABELING CHALLENGES LO4  Environmental Concerns  Health, Safety, and Security Issues  Cost Reduction  Connecting with Customers Shelf Life 11-30

BRANDING AND BRAND MANAGEMENT LO4  Warranty Warranty Express Warranties Limited Coverage Warranties Full Warranties Implied Warranties 11-31

FIGURE 11-A FIGURE 11-A Extent of coverage and formality of warranties 11-32