1. Copyright © 2015 McGraw-Hill Education. All rights reserved
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. Explain the product life-cycle concept.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 11, YOU SHOULD BE ABLE TO:
Explain the product life-cycle concept.
LO 11-1
LO 11-2
Identify the ways that marketing executives manage a product’s life cycle.
LO 11-3
Recognize the importance of branding and alternative branding strategies.
Describe the role of packaging, labeling, and warranties in the marketing of a product.
LO 11-4
11-2

3. GATORADE: BRINGING SCIENCE TO SWEAT TO WIN FROM WITHIN
Creating the Gatorade Brand
Building the Gatorade Brand
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4. FIGURE How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
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5. FIGURE 11-1A Stages of the product life cycle and its total industry sales and total industry profit
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6. FIGURE 11-1B How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
11-6

7. CHARTING THE PRODUCT LIFE CYCLE
INTRODUCTION STAGE
LO 11-1
Product Life Cycle
Trial
Primary Demand
Selective Demand
Skimming Pricing
Penetration Pricing
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8. FIGURE 11-2 Product life cycle for the stand-alone fax machine for business use: 1970-2014
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9. CHARTING THE PRODUCT LIFE CYCLE
GROWTH STAGE
LO 11-1
Rapid Sales Growth
More Competitors
Repeat Purchasers
New Features
Broad Distribution
11-9

10. CHARTING THE PRODUCT LIFE CYCLE
MATURITY STAGE
LO 11-1
Industry/Product Sales Slow
Profit Declines
Product Differentiation
Fewer Competitors
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11. CHARTING THE PRODUCT LIFE CYCLE
DECLINE STAGE
LO 11-1
Industry/Product Sales Drop
Environmental Changes
Deletion
Harvesting
11-11

12. Chevy Spark and Amazon Kindle Which stage of the product life cycle?
LO 11-1
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13. Soft Drinks and Fax Machines Which stage of the product life cycle?
LO 11-1
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14. MARKETING MATTERS Will E-mail Spell Extinction for Fax Machines?
LO 11-1
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15. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS OF THE PRODUCT LIFE CYCLE
LO 11-1
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
11-15

16. FIGURE 11-3 Alternative product life cycle curves based on product types
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17. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS OF THE PRODUCT LIFE CYCLE
LO 11-1
The Product Level: Class and Form
Product Class
Product Form
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18. FIGURE 11-4 Prerecorded music product life cycles by product form
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19. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS OF THE PRODUCT LIFE CYCLE
LO 11-1
The Life Cycle and Consumers
Diffusion of Innovation
Innovators
Late Majority
Early Adopters
Laggards
Early Majority
11-19

20. FIGURE 11-5 Five categories and profiles of product adopters (diffusion of innovation)
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21. CHARTING THE PRODUCT LIFE CYCLE FOUR ASPECTS OF THE PRODUCT LIFE CYCLE
LO 11-1
The Life Cycle and Consumers
Barriers to Adoption
Usage
Risk
Value
Psychological
11-21

22. MANAGING THE PRODUCT LIFE CYCLE ROLE OF THE PRODUCT/BRAND MANAGER
LO 11-2
Responsible for the Following:
Product Life Cycle
New Product Development
Marketing Program Implementation
Data Analysis
CDI
BDI
11-22

23. USING MARKETING DASHBOARDS Knowing Your CDI and BDI
LO 11-2
Category Development Index (CDI) and Brand Development Index (BDI)
11-23

24. MANAGING THE PRODUCT LIFE CYCLE MODIFYING THE PRODUCT OR MARKET
LO 11-2
Product Modification
Product Bundling
New Characteristics
Market Modification
Finding New Customers
Increasing a Product’s Use
Creating a New Use Situation
Dockers Ad
11-24

25. MANAGING THE PRODUCT LIFE CYCLE REPOSITIONING THE PRODUCT
LO 11-2
Product Repositioning
Reacting to a Competitor’s Position
Reaching a New Market
Catching a Rising Trend
Changing the Value Offered
Trading Up
Trading Down
Downsizing
11-25

26. Price for both is the same!
MAKING RESPONSIBLE DECISIONS Consumer Economics of Downsizing—Got Less, Pay More
LO 11-2
Price for both is the same!
11-26

27. BRANDING AND BRAND MANAGEMENT
LO 11-3
Branding
Brand Name
Logotype (Logo)
Trade Name
Trademark ™ SM
Product Counterfeiting
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28. BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO 11-3
Brand Personality
Brand Equity
Provides a Competitive Advantage
Consumers Willing to Pay a Higher Price
11-28

29. FIGURE 11-6 The customer-based brand equity pyramid
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30. BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO 11-3
Creating Brand Equity
Develop Positive Brand Awareness
Establish a Brand’s Meaning
Elicit the Proper Consumer Response
Create Intense Brand Loyalty
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31. BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO 11-3
Valuing Brand Equity
Provides a Financial Advantage
Brand Licensing
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32. BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME
LO 11-3
Should Suggest Product Benefits
Should Be Memorable and Positive
Should Fit the Company or Product Image
Should Have No Legal/Regulatory Restrictions
Should Be Simple and Emotional
Should Have Positive Phonetics/Semantics
11-32

33. MARKETING INSITE Have an Idea for a Brand Name? Check First!
LO 11-3
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34. FIGURE 11-7 Alternative branding strategies
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35. BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO 11-3
Multiproduct Branding (Family or Corporate Branding)
Product Line Extensions
Subbranding
Brand Extensions
Co-Branding
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36. BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO 11-3
Multibranding
Fighting Brands
Private Branding (Private Labeling or Reseller Branding)
Mixed Branding
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37. Kimberly-Clark’s Huggies Which branding strategy is used?
LO 11-3
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38. Black & Decker and Dewalt Tools Which branding strategy does each use?
LO 11-3
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39. PACKAGING AND LABELING PRODUCTS CUSTOMER VALUE AND COMPETITIVE ADVANTAGE
LO 11-4
Packaging
Label
Communication Benefits
Functional Benefits
Perceptual Benefits
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40. MARKETING MATTERS Pez Heads Dispense More Than Candy
LO 11-4
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41. PACKAGING AND LABELING PRODUCTS CHALLENGES AND RESPONSES
LO 11-4
Connecting with Customers
Environmental Concerns
Health, Safety, and Security Issues
Shelf Life
Cost Reduction
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42. Warranty PRODUCT WARRANTY Express Warranties
LO 11-4
Warranty
Express Warranties
Limited Coverage Warranties
Full Warranties
Implied Warranties
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43. P&G’S SECRET DEODORANT: FINDING INSPIRATION IN PERSPIRATION
VIDEO CASE 11
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