1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Managing Products & Brands 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 11, you should be able to : LO3 LO2 LO1 LO4 Explain the product life cycle concept. Identify the ways that marketing executives manage a product’s life cycle. Recognize the importance of branding and alternative branding strategies. Describe the role of packaging, labeling, and warranties in the marketing of a product.

3. Brands’ Still going strong, after 170 years Opening Story – Brands 1-3

4. 1-4 The Product Life Cycle LO1 FIGURE 11-1 FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

5. 1-5 The Product Life Cycle LO1 FIGURE 11-1 FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

6. 1-6 The Product Life Cycle LO1 The Product Life Cycle Introduction  Product Life Cycle Product Life Cycle  Primary Demand  Selective Demand  Skimming Strategy  Penetration Pricing

7. 1-7 The Product Life Cycle LO1 FIGURE 11-2 FIGURE 11-2 Product life cycle for the stand-alone fax machine for business use: 1970-2014. Note the four stages

8. 1-8 The Product Life Cycle LO1 The Product Life Cycle Growth  Rapid Sales Increases  Repeat Purchasers  New Features  Broader Distribution

9. 1-9 The Product Life Cycle LO1 Honda Civic Hybrid & Amazon Kindle Which stage of the Product Life Cycle?

10. 1-10 The Product Life Cycle LO1 The Product Life Cycle Maturity  Product Differentiation  Fewer Competitors  Industry/Product Sales Slow

11. 1-11 The Product Life Cycle LO1 The Product Life Cycle Decline  Deletion  Industry/Product Sales Drop  Harvesting  Environmental Changes

12. 1-12 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  Length of the Product Life Cycle  Shape of the Product Life Cycle Generalized Life Cycle High-Learning Product Fashion Product Fad Product Low-Learning product

13. 1-13 The Product Life Cycle LO1 FIGURE 11-3 FIGURE 11-3 Alternative product life cycle curves based on product type

14. 1-14 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  The Product Level: Class and Form Product Class Product Form

15. 1-15 The Product Life Cycle LO1 FIGURE 11-4 FIGURE 11-4 Prerecorded Music Life Cycle by Product Form. Note the life cycle of the cassette ape

16. 1-16 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  The Life Cycle and Consumers Diffusion of Innovation  Innovators  Early Adopters  Early Majority  Late Majority  Laggards

17. 1-17 The Product Life Cycle LO1 FIGURE 11-5 FIGURE 11-5 Five categories and profiles of product adopters

18. 1-18 The Product Life Cycle LO1 The Product Life Cycle Dimensions of the Life Cycle  The Life Cycle and Consumers Barriers to Adoption  Usage  Value  Risk  Psychological

19. 1-19 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Role of a Product Manager  Product/Brand Manager Responsibilities Product Life Cycle Marketing Program Implementation New Product Development Data Analysis  CDI  BDI

20. 1-20 Managing a Product Life Cycle LO2 Marketing Dashboards Knowing your CDI and BDI Category Development Index (CDI) and Brand Development Index (BDI)

21. 1-21 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Modifying the Product or Market 1. Product Modification Product Bundling New Characteristics 2. Market Modification Finding New Customers Increasing a Product’s Use Creating a New Use Situation

22. 1-22 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Repositioning the Product 3. Product Repositioning Reaching a New Market Reacting to a Competitor’s Position

23. 1-23 Managing a Product Life Cycle LO2 Managing The Product Life Cycle Modifying the Product or Market Catching a Rising Trend Changing the Value Offered Trading Up Trading Down Downsizing

24. 1-24 Branding Strategies & Alternatives LO3 Branding Brand Management  Branding Branding  Brand Name Brand Name Logotype (Logo) Product Counterfeiting  Trade Name Trade Name  Trademark Trademark ® ™

25. 1-25 Branding Strategies & Alternatives LO3 Branding Brand Personality & Brand Equity  Brand Personality Brand Personality  Brand Equity Brand Equity Provides a Competitive Advantage Consumers Willing to Pay a Premium

26. 1-26 Branding Strategies & Alternatives LO3 got2b Hair Products & Mambo Fragrances What are their brand personalities?

27. 1-27 Branding Strategies & Alternatives LO3 FIGURE 11-6 FIGURE 11-6 Customer-based brand equity pyramid

28. 1-28 Branding Strategies & Alternatives LO3 Branding Brand Personality & Brand Equity  Creating Brand Equity Develop Positive Brand Awareness Establish a Brand’s Meaning Elicit the Proper Response Create Intense Brand Loyalty

29. 1-29 Branding Strategies & Alternatives LO3 Branding Brand Personality & Brand Equity  Valuing Brand Equity Provides a Financial Advantage Brand Licensing

30. 1-30 Branding Strategies & Alternatives LO3 Luxottica premium eyewear by Ralph Lauren How does brand Licensing create Brand Equity?

31. 1-31 Branding Strategies & Alternatives LO3 Branding Picking a Good Brand Name  Should Suggest Product Benefits  Should Fit the Company or Product Image  Should Be Memorable  Should Have No Legal or Regulatory Restrictions  Should Be Simple and Emotional

32. 1-32 Branding Strategies & Alternatives LO3 FIGURE 11-7 FIGURE 11-7 Alternative branding strategies

33. 1-33 Branding Strategies & Alternatives LO3 Branding Brand Strategies  Multiproduct Branding/Umbrella Branding (Family or Corporate Branding) Multiproduct Branding/Umbrella Branding (Family or Corporate Branding)  Subbranding  Brand Extension  Co-branding  Line Extension

34. 1-34 Branding Strategies & Alternatives LO3 Branding Brand Strategies  Multibranding Multibranding  Private Branding (Private Labeling or Reseller Branding) Private Branding (Private Labeling or Reseller Branding)  Mixed Branding Mixed Branding  Fighting Brands

35. 1-35 Branding Strategies & Alternatives LO3 Black & Decker vs DeWALT tools What branding strategies does each firm use?

36. 1-36 Packaging, Labelling and Warranties LO4 Packaging & Labeling Products Creating customer value & competitive advantage  Packaging Packaging  Label Label  Communication Benefits  Functional Benefits  Perceptual Benefits

37. 1-37 Packaging, Labelling and Warranties LO4 PEZ Head-Dispensers Creating customer value: Fun!

38. 1-38 Packaging, Labelling and Warranties LO4 Lays STAX vs Pringles Competitive advantage: Which chip stacks up better?

39. 1-39 Packaging, Labelling and Warranties LO4 Packaging & Labeling Products Global Trends in Packaging  Environmental Sensitivity  Health, Safety, and Security Issues Shelf Life

40. 1-40 Packaging, Labelling and Warranties LO4 Product Warranty Various Types  Warranty Warranty Express Warranties Limited Coverage Warranties Full Warranties Implied Warranties