1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Explain the product life-cycle concept.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
Explain the product life-cycle concept.
LO1
Identify the ways that marketing executives manage a product’s life cycle.
LO2
LO3
Recognize the importance of branding and alternative branding strategies.
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3. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO:
Describe the role of packaging, labeling, and warranties in the marketing of a product.
LO4
LO5
Recognize how the 4 Ps framework is expanded in the marketing of services.
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4. GATORADE: BRINGING SCIENCE TO SWEAT
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5. FIGURE How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
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6. FIGURE 10-1A Stages of the product life cycle and its total industry sales and total industry profit
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7. FIGURE 10-1B How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
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8. CHARTING THE PRODUCT LIFE CYCLE INTRODUCTION STAGE
LO1
Product Life Cycle
Stimulate Trial
Primary Demand
Selective Demand
Skimming Strategy
Penetration Pricing
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9. FIGURE 10-2 Product life cycle for the stand-alone fax machine for business use: 1970-2014
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10. CHARTING THE PRODUCT LIFE CYCLE GROWTH STAGE
LO1
Rapid Sales Growth
More Competitors
Repeat Purchasers
New Features
Broad Distribution
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11. CHARTING THE PRODUCT LIFE CYCLE MATURITY STAGE
LO1
Industry/Product Sales Slow
Profit Declines
Product Differentiation
Fewer Competitors
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12. CHARTING THE PRODUCT LIFE CYCLE DECLINE STAGE
LO1
Industry/Product Sales Drop
Environmental Changes
Deletion
Harvesting
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13. MARKETING MATTERS Will E-Mail Spell Extinction for Fax Machines?
LO1
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14. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS
LO1
Length of the Product Life Cycle
Shape of the Product Life Cycle
Generalized Life Cycle
High-Learning Product
Fashion Product
Low-Learning product
Fad Product
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15. FIGURE 10-3 Alternative product life cycle curves based on product types
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16. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS
LO1
The Life Cycle and Consumers
Diffusion of Innovation
Innovators
Late Majority
Early Adopters
Laggards
Early Majority
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17. FIGURE 10-4 Five categories and profiles of product adopters (diffusion of innovation)
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18. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS
LO1
The Life Cycle and Consumers
Barriers to Adoption
Usage
Value
Risk
Psychological
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19. MANAGING THE PRODUCT LIFE CYCLE ROLE OF A PRODUCT MANAGER
LO2
Product/Brand Manager Responsibilities
Product Life Cycle
New Product Development
Marketing Program Implementation
Data Analysis
CDI
BDI
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20. USING MARKETING DASHBOARDS Knowing Your CDI and BDI
LO2
Category Development Index (CDI) and Brand Development Index (BDI)
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21. MANAGING THE PRODUCT LIFE CYCLE MODIFYING THE PRODUCT OR MARKET
LO2
Product Modification
Product Bundling
New Characteristics
Market Modification
Finding New Customers
Increasing a Product’s Use
Dockers Ad
Creating a New Use Situation
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22. MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT
LO2
Product Repositioning
Reacting to a Competitor’s Position
Reaching a New Market
Catching a Rising Trend
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23. MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT
LO2
Changing the Value Offered
Trading Up
Trading Down
Downsizing
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24. MAKING RESPONSIBLE DECISIONS Consumer Economics of Downsizing— Get Less, Pay More
LO2
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25. BRANDING AND BRAND MANAGEMENT
LO3
Branding
Brand Name
Logotype (Logo)
Trade Name
Trademark ™
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26. BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO3
Brand Personality
Brand Equity
Provides a Competitive Advantage
Consumers Willing to Pay a Premium
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27. FIGURE 10-5 The customer-based brand equity pyramid
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28. 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
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29. BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO3
Valuing Brand Equity
Provides a Financial Advantage
Brand Licensing
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30. BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME
LO3
Should Suggest Product Benefits
Should Be Memorable and Positive
Should Fit the Company or Product Image
Should Have No Legal or Regulatory Restrictions
Should Be Simple and Emotional
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31. FIGURE 10-6 Alternative branding strategies
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32. BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO3
Multiproduct Branding (Family or Corporate Branding)
Product Line Extensions
Subbranding
Brand Extension
Co-Branding
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33. BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO3
Multibranding
Fighting Brands
Private Branding (Private Labeling or Reseller Branding)
Mixed Branding
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34. Kimberly-Clark’s Huggies What branding strategy is used?
LO3
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35. PACKAGING AND LABELING PRODUCTS CREATING CUSTOMER VALUE AND COMPETITIVE ADVANTAGE
LO4
Packaging
Label
Communication Benefits
Functional Benefits
Perceptual Benefits
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36. MARKETING MATTERS Creating Customer Value Through Packaging— Pez Heads Dispense More Than Candy
LO4
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37. Connecting with Customers
PACKAGING AND LABELING PRODUCTS PACKAGING AND LABELING CHALLENGES AND RESPONSES
LO4
Connecting with Customers
Environmental Concerns
Health, Safety, and Security Issues
Shelf Life
Cost Reduction
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38. Warranty PRODUCT WARRANTY Express Warranties
LO4
Warranty
Express Warranties
Limited Coverage Warranties
Full Warranties
Implied Warranties
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39. MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES
LO5
Seven Ps of Services Marketing
Product (Service)
Branding
Price
Off-Peak Pricing
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40. MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES
LO5
Place (Distribution)
Promotion
Publicity
Public Service Announcements (PSAs)
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41. MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES
LO5
People
Customer Experience Management (CEM)
Physical Environment
Process
Capacity Management
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42. MARY KAY, INC.: BUILDING A BRAND IN INDIA
VIDEO CASE 10
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43. VIDEO CASE 10
MARY KAY
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44. VIDEO CASE 10
MARY KAY
1. What information should be included in a written positioning statement for Mary Kay?
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45. VIDEO CASE 10
MARY KAY
2. How would you draft a formal, written positioning statement for Mary Kay using the information detailed in question 1?
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46. 3. Is Mary Kay a global brand? Why or why not?
VIDEO CASE 10
MARY KAY
3. Is Mary Kay a global brand? Why or why not?
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47. VIDEO CASE 10
MARY KAY
4. How has Mary Kay, India, focused on the different steps in the customer-based brand equity pyramid described in Figure 11-6?
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48. Product Life Cycle
A product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
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49. Branding
Branding is a marketing decision in which an organization uses a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors.
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50. Brand Name
A brand name is any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or services.
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51. Brand Personality
Brand personality is a set of human characteristics associated with a brand name.
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52. Brand Equity
Brand equity is the added value a brand name gives to a product beyond the functional benefits provided.
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53. Multiproduct Branding
Multiproduct branding is a branding strategy in which a company uses one name for all its products in a product class.
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54. Multibranding
Multibranding is a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment.
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55. Seven Ps of Services Marketing
The seven Ps of services marketing is an expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process.
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56. Off-Peak Pricing
Off-peak pricing involves charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service.
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57. Capacity Management
Capacity management integrates the service component of the marketing mix with efforts to influence consumer demand.
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