1. Managing the Product

2. Steps in Managing Products

3. Criteria for Effective Objectives
Measurable
Clear
Unambiguous
Time-framed –
Consistent with long-term profitability of organization

4. Product Strategies
A product line is a firm’s total product offering designed to satisfy a single need for target customers (e.g., P&G’s line of dish detergents: Dawn, Ivory, Joy)
A product mix is a firm’s entire range of products (e.g., Gillette offers shaving products, deodorants, writing instruments, toothbrushes…)

5. Quality as a Product Objective
Product quality is the overall ability of a product to satisfy customer expectations
Dimensions of product quality
durability
reliability
precision
ease of use
product safety
aesthetic pleasure

6. Key Aspects of Quality Level Consistency
determined by comparison with other brands in same product category
Consistency
customers experience the same level of quality in product time after time

7. Product Life Cycle

8. Product life cycle for the stand- alone fax machine for business use: 1970-2001

9. Alternative product life cycles

10. Video game console and software life cycles by product class and product form

11. Marketing Mix During Product Life Cycle
The PLC explains how features change over the life of a product
Marketing strategies must change and evolve as a product moves through the PLC

12. How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

13. Introduction Full-scale launch of new product into marketplace
Sales are low
Little competition
Limited distribution
High marketing and product costs
Promotion focused on product awareness and to stimulate primary demand – “pull strategy”
Intensive personal selling to retailers and wholesalers – “push strategy”

14. Growth Sales grow at an increasing rate Many competitors enter market
Large companies may acquire small pioneering firms
Promotion emphasizes brand advertising and comparative ads – “pull strategy”
Wider distribution – “push strategy”
Toward end of growth stage, prices fall
Sales volume creates economies of scale

15. Maturity Sales continue to increase but at a decreasing rate
Marketplace is approaching saturation
Typified by annual models of products with an emphasis on style rather than function
Product lines are widened or extended
Marginal competitors drop out
Heavy promotions - sales promotions “push”
Prices and profits fall
Production moves to lower cost locations

16. Decline Signaled by a long-run drop in sales
Rate of decline is governed by how rapidly consumer tastes change or how rapidly substitute products are adopted.
Falling demand forces many out of market
Few specialty firms left

17. Five categories and profiles of product adopters

18. Branding Decisions
A brand is a name, term, symbol, or any other unique element of a product that identifies one firm’s product(s) and sets it apart from competition
Brands should
be memorable
have a positive connotation
convey a certain image

19. Good Brand Names Easy to say Easy to spell Easy to read
Easy to remember
KISS
Fit the target market
Fit the product’s benefits
Fit the customer’s culture
Fit legal requirements

20. Trademarks Legal term for a brand name, brand mark or trade character
® is used when registered with the USPTO; ™ is used when a name or mark has not been legally registered but the user is claiming ownership
Trademarks established by the Lanham Act of 1946 and updated by the Trademark Revision Act of 1989
Only protects in U.S. - if a firm wants multinational recognition, it must register in each country

21. Brand Equity Brand’s value to its organization
Brand equity provides customer loyalty, perceived quality, brand name awareness, competitive advantage
Brand equity can be used to establish brand extensions
Alka Seltzer, Alka Seltzer Morning Relief

22. Branding Strategies Individual brands versus family brands
National and store brands (private label)
Generic brands
Licensing
Co-branding

23. Packaging and Labeling Decisions
Packaging functions
Effective packaging designs
Labeling regulations

24. Managing the Product Role of a Product Manager Modifying the product
Modifying the market
Finding New Users – exporting is one way
Increasing Use
Creating New Use Situation

25. Four market-product strategies:

26. Managing the PLC Repositioning the Product
Reacting to a Competitor’s Position – “me too”
Reaching a New Market
Catching a Rising Trend
Changing the Value Offered
Trading up
Trading Down
Downsizing