10-1 MARKETING MANAGEMENT Shaping the Offerings and Managing the Lifecycle
Chapter Questions What are the characteristics of products, and how can they be classified? How can a company build and manage its product mix and product lines? How can companies use packaging, labelling, warranties, and guarantees as marketing tools? © Copyright 2008 Pearson Education Canada 10-2
Chapter Questions What are the main stages in developing and managing new products? What factors affect the rate of diffusion and consumer adoption of new products? What marketing strategies are appropriate at each stage of the product life cycle? © Copyright 2008 Pearson Education Canada 10-3
Durability and Tangibility Nondurable goods Services Durable goods © Copyright 2008 Pearson Education Canada 10-4
12-5 Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch
12-6 Line Filling
12-7 Proctor & Gamble
12-8 Packaging: The 5 th P? All the activities of designing and producing the container for a product.
12-9 Design Differentiation
12-10 Design Differentiation
12-11 Packaging is influenced by… Self-service Consumer affluence Company/brand image Innovation opportunity
12-12 Innovative Packaging
12-13 Innovative Packaging?
12-14 Innovative Packaging?
12-15 Functions of Labels Identifies Grades Describes Promotes
12-16 Identifies?
12-17 Identifies?
12-18 Grades?
12-19 Warranties and Guarantees
12-20 Example 2004 Hyundai Accent GT Hatchback © Robert C. Bowden Two things might tilt a frugal buyer toward the 2004 Hyundai Accent GT and away from similarly priced competitors: the longest warranty on any subcompact car, and standard side air bags. No competitor offers these and both are invaluable to buyers…. Bottom line: If you only have $10,000 to spend on a new car, the 2004 Hyundai Accent deserves serious consideration. If you can find better transportation value with four wheels and a roof, buy it.
Developing New Products 1.Entrepreneurial (sales) model A.“Build it and they will come” B.Then SELL it. 2.Market research and development A.Find an idea or a problem, and solve it B.Marketing research C.Idea and concept testing D.Test marketing 10-21
10-22 Theories about Life Cycles Products have a limited life. Product sales pass through distinct stages. Profits rise and fall at different stages. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage.
10-23 Market Evolution Stages EmergenceGrowth MaturityDecline
10-24 Product Life Cycle
10-25 Product in Decline
Video Case Polaroid i-zone camera Where does it fit in the product life-cycle? 10-26
Adopter Categorization © Copyright 2008 Pearson Education Canada 10-27