1. McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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.
LO1
Identify 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 11, YOU SHOULD BE ABLE TO:
Describe the role of packaging and labeling in the marketing of a product.
Recognize how the four Ps framework is expanded in the marketing of services.
LO5
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4. GATORADE: QUENCHING THE ACTIVE THIRST WITHIN YOU
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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 11-1A Stages of the product life cycle and its total industry sales and total industry profit
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7. FIGURE 11-1B 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
Primary Demand
Selective Demand
Skimming Strategy
Penetration Pricing
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9. FIGURE 11-2 Product life cycle for the stand-alone fax machine for business use: 1970-2012
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10. CHARTING THE PRODUCT LIFE CYCLE GROWTH STAGE
LO1
Rapid Sales Growth
Repeat Purchasers
New Features
Broad Distribution
More Competitors
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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
Environmental Changes
Industry/Product Sales Drop
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 THREE ASPECTS OF THE PLC
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 11-3 Alternative product life cycle curves based on product types
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16. CHARTING THE PRODUCT LIFE CYCLE THREE ASPECTS OF THE PLC
LO1
The Product Level: Class and Form
Product Class
Product Form
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17. CHARTING THE PRODUCT LIFE CYCLE THREE ASPECTS OF THE PLC
LO1
The Life Cycle and Consumers
Diffusion of Innovation
Innovators
Late Majority
Early Adopters
Laggards
Early Majority
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18. FIGURE 11-4 Five categories and profiles of product adopters (diffusion of innovation)
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19. CHARTING THE PRODUCT LIFE CYCLE THREE ASPECTS OF THE PLC
LO1
The Life Cycle and Consumers
Barriers to Adoption
Usage
Value
Risk
Psychological
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20. 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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21. USING MARKETING DASHBOARDS Knowing Your CDI and BDI
LO2
Category Development Index (CDI) and Brand Development Index (BDI)
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22. MANAGING THE PRODUCT LIFE CYCLE MODIFYING THE PRODUCT OR MARKET
LO2
Product Modification
Altering Characteristics
Market Modification
Finding New Customers
Increasing a Product’s Use
Creating a New Use Situation
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23. 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
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 Higher Price
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27. Oro and Degree Fragrances What are their brand personalities?
LO3
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28. FIGURE 11-5 The customer-based brand equity pyramid
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29. 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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30. BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY
LO3
Valuing Brand Equity
Provides a Financial Advantage
Brand Licensing
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31. BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME
LO3
Should Suggest the 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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32. FIGURE 11-6 Alternative branding strategies
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33. BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO3
Multiproduct Branding (Family or Corporate Branding)
Product Line Extensions
Subbranding
Brand Extension
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34. BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES
LO3
Multibranding
Fighting Brands
Private Branding (Private Labeling or Reseller Branding)
Mixed Branding
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35. Kimberly-Clark’s Huggies What branding strategy is used?
LO3
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36. What branding strategy is used?
Marriott
What branding strategy is used?
LO3
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37. Black & Decker and DeWalt Tools What branding strategy does each use?
LO3
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38. PACKAGING AND LABELING PRODUCTS CREATING CUSTOMER VALUE AND COMPETITIVE ADVANTAGE
LO4
Packaging
Label
Communication Benefits
Functional Benefits
Perceptual Benefits
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39. MARKETING MATTERS Creating Customer Value Through Packaging— Pez Heads Dispense More Than Candy
LO4
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40. What are the packaging benefits for each?
“?” and Heinz Ketchup
What are the packaging benefits for each?
LO4
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41. Lay’s STAX, Pringles and Celestial Seasonings
What are the packaging benefits for each?
LO4
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42. 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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43. MANAGING THE MARKETING OF SERVICES THE EIGHT Ps OF SERVICES
LO5
Eight Ps of Services Marketing
Product (Service)
Branding
Productivity
Capacity Management
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44. MANAGING THE MARKETING OF SERVICES THE EIGHT Ps OF SERVICES
LO5
Price
Off-Peak Pricing
Place (Distribution)
Promotion
Publicity
Public Service Announcements (PSAs)
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45. MANAGING THE MARKETING OF SERVICES THE EIGHT Ps OF SERVICES
LO5
People
Customer Experience Management (CEM)
Physical Environment
Process
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46. PHILADELPHIA PHILLIES, INC.: SPORTS MARKETING 101
VIDEO CASE 11
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47. PHILADELPHIA PHILLIES
VIDEO CASE 11
PHILADELPHIA PHILLIES
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48. PHILADELPHIA PHILLIES
VIDEO CASE 11
PHILADELPHIA PHILLIES
1. (a) What is the “product” that the Phillies market? (b) What “products” are the Phillies careful not to market?
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49. PHILADELPHIA PHILLIES
VIDEO CASE 11
PHILADELPHIA PHILLIES
2. How does the “quality” dimension in marketing the Philadelphia Phillies as an entertainment service differ from that in marketing a consumer product such as a breakfast cereal?
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50. PHILADELPHIA PHILLIES
VIDEO CASE 11
PHILADELPHIA PHILLIES
3. In terms of social network marketing strategy (a) what are the likely characteristics of the Phillies fans and (b) what should the Phillies’ Facebook fan page contain?
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51. PHILADELPHIA PHILLIES
VIDEO CASE 11
PHILADELPHIA PHILLIES
4. Considering all five elements of the promotional mix (advertising, personal selling, public relations, sales promotion, and direct marketing), what specific promotional activities should the Phillies use? Which should be used off-season? During the regular season?
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52. PHILADELPHIA PHILLIES
VIDEO CASE 11
PHILADELPHIA PHILLIES
5. What kind of special promotion gift days (with premiums) and event days (no premiums) can the Phillies use to increase attendance by targeting these fan segments: (a) 14 and under, (b) 15 and over, (c) other special fan segments, and (d) all fans?
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53. 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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54. Branding
Branding is a marketing decision by an organization to use 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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55. 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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56. Brand Personality
Brand personality is a set of human characteristics associated with a brand name.
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57. Brand Equity
Brand equity is the added value a brand name gives to a product beyond the functional benefits provided.
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58. 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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59. 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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60. Eight Ps of Services Marketing
The eight Ps of services marketing expands the four Ps framework to include productivity, people, physical environment, and process.
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61. Capacity Management
Capacity management integrates the service component of the marketing mix with efforts to influence consumer demand.
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62. Off-Peak Pricing
Off-peak pricing involves charging different prices during different times of the day or days of the week to reflect variations in demand for the service.
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63. Customer Experience Management (CEM)
Customer experience management (CEM) is the process of managing the entire customer experience within the firm.
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