Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Gilbert A. Churchill, Jr. J. Paul Peter Chapter 9 Managing Existing Products Marketing

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Basic Categories of Consumer Products Slide 9-1 Table 9.1 Category Convenience Type of Purchase Decision Shopping Specialty Relatively low PricePromotion Placement or Distribution Moderate Relatively expensive Little information sought Mass media Mass media; some emphasis on personal selling Widely available More information sought Lots of information sought Mass media; more emphasis on personal selling Selectively available Exclusively available

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Basic Categories of Industrial Products Slide 9-2 Table 9.2 Category Installation Type of Purchase Decision Accessory equipment Raw materials Not as important PricePromotion Very important Multiple members of buying center Personal Selling Few members of buying center May be important Advertising Component Parts and materials Several members of buying center May be important Personal selling Frequent; complexity varies Supplies Simple; frequent; may be a single buyer Important Personal selling Advertising Business services Varies

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Goods and Services Slide 9-3 Durable Goods Non-Durable Goods Services Fantastic Sam’s Haircut Airline Taxi Ride Restaurant Meal Kleenex Tissues Scott Towels Pair of Glasses Sealy Mattress Maytag Washer Auto Repair

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 The Product Life Cycle Slide 9-4 Figure 9.1 Dollars Total Market Sales Total Market Profits Time IntroductionGrowthMaturityDecline

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Adopter Categories Slide 9-5 Figure 9.2 Innovators (2.5%) Early Adopters (13.5%) Early Majority (34%) Late Majority (34%) Laggards (16%)

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Brand Name - that part of a brand that can be spoken. (e.g. the word Coke) Brand Mark - that part of a brand that cannot be spoken. (e.g. the flowing script used to write Coca Cola) Trademark - a brand that has legal status by virtue of it’s being registered with the federal government. (e.g. Coca Cola) Trade name - the legal name under which a company operates. (e.g. The Coca Cola Company) Brand extension - the practice of using an existing brand name for a new product. (e.g. Cherry Coke, Diet Coke, Caffeine Free Coke) Service mark - a brand for a service that has legal status by virtue of its being registered with the federal government. Family brand - the use of the same brand name for an entire product line. Branding Terminology Slide 9-6 Brand - a name, term, design, symbol, or another feature that identifies one seller’s good or service as distinct from other sellers. (e.g. Coca Cola)

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Brand Structure Private Brands Generic Brands Salsa Old El Paso Salsa Types of Brands Slide 9-7 Manufacturer’s Brands A & P Masterchoice Salsa

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Selecting a Brand Slide 9-8 A good brand name has several characteristics. 1.It should imply product benefits. 2.It should be positive, distinctive, easy to say and easy to remember. 3.It should be consistent with the image of the product and manufacturer. 4.It should be legally protectable and permissible. 5.It should translate well, if the product is to be offered globally.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Elements of Brand Equity Slide 9-9 Figure 9.5 Provides value to customer by Enhancing Customer’s: Interpretation/Processing of information Confidence in the Purchase Decision Use Satisfaction Provides value to firm by Enhancing: Efficiency and effectiveness of Marketing Programs Brand Loyalty Prices/Margins Brand Extensions Trade Leverage Competitive Advantage Brand Loyalty Name Awareness Perceived Quality Brand Associations Other Proprietary Brand Assets Brand Equity Name Symbol

Product Mixes and Product Lines Slide 9-10 Figure 9.7 Source: Courtesy of P. Gayle Fuguitt, Marketing Research Director, Big “G” Division, General Mills Ready-to-Eat Cereals Convenience Foods Snack FoodsBaking Products Dairy Products Total Wheaties Lucky Charms Cinnamon Toast Crunch Cheerios Kix Trix Hamburger Helper Suddenly Salad Betty Crocker Cake Mixes Creamy Deluxe Frosting Dessert Mixes Pop Secret Popcorn Fruit Rollups Nature Valley Granola Bars Bisquick Gold Medal Flour Yoplait Yogurt Colombo Yogurt Width DEPTHDEPTH