Managing Products and Brands Chapter 11

The Product Life Cycle Introduction Stage Introduction Stage Growth Stage Growth Stage Maturity Stage Maturity Stage Decline Stage Decline Stage

Introduction Stage Create awareness and encourage customers to try the product Create awareness and encourage customers to try the product Advertising Advertising Primitive demand Primitive demand Distribution issues Distribution issues Pricing issues Pricing issues

Growth Stage Rapid increases in sales Rapid increases in sales Competition Competition Advertising Advertising Selective demand Selective demand Who is buying? Who is buying? Distribution Distribution

Maturity Stage Slowing sales and decreasing profits Slowing sales and decreasing profits Marketing strategy Marketing strategy Hold market share Hold market share

Decline Stage Sales and profits drop Sales and profits drop Marketing strategy Marketing strategy Deletion Deletion Harvesting Harvesting

Product Cycle Dimensions Length Length Shape Shape Generalized product Generalized product High learning product High learning product Low learning product Low learning product Fashion product Fashion product Fad product Fad product

Product Cycle Dimensions Product class v. Product form Product class v. Product form Diffusion of innovators Diffusion of innovators Innovators Innovators Early adopters Early adopters Early majority Early majority Late majority laggards Late majority laggards

Managing the Product Cycle Who does it? Who does it? What do they do? What do they do? Product modification Product modification Market modification Market modification

Brands Branding Branding Brand name Brand name Trade name Trade name Trademarks Trademarks Brand personality Brand personality Examples: Examples: Brand equity Brand equity

Building Brand Equity Develop positive awareness and associate the brand with the product Develop positive awareness and associate the brand with the product Establish what brand stands for in consumers’ minds Establish what brand stands for in consumers’ minds Elicit proper response Elicit proper response Create brand resonance through brand relationship Create brand resonance through brand relationship

More on Brand Equity The Value of Brand Equity The Value of Brand Equity Intangible assets Intangible assets Licensing Licensing Naming the Brand Naming the Brand What characteristics should it have? What characteristics should it have?

Branding Strategies Manufacturer Branding Manufacturer Branding Multiproduct branding Multiproduct branding Multibranding Multibranding Private Branding Strategy Private Branding Strategy Mixed Branding Strategy Mixed Branding Strategy Generic Branding Strategy Generic Branding Strategy

Manufacturer Branding Multiproduct Branding Multiproduct Branding Advantages Advantages Disadvantages Disadvantages Subbranding Subbranding Brand Extension Brand Extension Co-branding Co-branding

Manufacturer Branding Multibranding Strategy Multibranding Strategy Each product gets its own name Each product gets its own name P&G P&G Advantages Advantages Disadvantages Disadvantages

Private Branding Manufactures product but sells under the brand name of the retailer or wholesaler Manufactures product but sells under the brand name of the retailer or wholesaler Examples: Examples:

Mixed Branding Strategy Mix of manufacturer and private branding Mix of manufacturer and private branding Examples: Examples:

Generic Branding No identification other than contents No identification other than contents Less than 1% of grocery purchases are generic Less than 1% of grocery purchases are generic

Packaging and Labeling Packaging v. Label Packaging v. Label Benefits of Packaging Benefits of Packaging Global trends Global trends

Warranties Express warranty Express warranty Limited-coverage warranty Limited-coverage warranty Full warranty Full warranty Implied warranty Implied warranty