Chapter 10: Managing successful products, services, and brands. In this chapter, you learned to: 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.
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO1 Explain the product life-cycle concept LO2 Identify the ways that marketing executives manage a product’s life cycle LO3 Recognize the importance of branding and alternative branding strategies 102 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO4 Describe the role of packaging, labeling, and warranties in the marketing of a product LO5 Recognize how the Ps framework is expanded in the marketing of services 103 GATORADE: BRINGING SCIENCE TO SWEAT 104 FIGURE 10-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 105 FIGURE 10-1A Stages of the product life cycle and its total industry sales and total industry profit 106 FIGURE 10-1B How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 107 LO1 CHARTING THE PRODUCT LIFE CYCLE INTRODUCTION STAGE Product Life Cycle Stimulate Trial Primary Demand Selective Demand Skimming Strategy Penetration Pricing 108 FIGURE 10-2 Product life cycle for the stand-alone fax machine for business use: 1970-2014 109 LO1 CHARTING THE PRODUCT LIFE CYCLE GROWTH STAGE Rapid Sales Growth More Competitors Repeat Purchasers New Features Broad Distribution 1010 FIGURE 10-5 The customer-based brand equity pyramid 1027 LO3 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY Creating Brand Equity • Develop Positive Brand Awareness • Establish a Brand’s Meaning • Elicit the Proper Response • Create Intense Brand Loyalty 1028 LO3 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY Valuing Brand Equity • Provides a Financial Advantage • Brand Licensing 1029 LO3 BRANDING AND BRAND MANAGEMENT PICKING A GOOD BRAND NAME 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 1030 FIGURE 10-6 Alternative branding strategies 1031 LO3 BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES Multiproduct Branding (Family or Corporate Branding) • Product Line Extensions • Subbranding • Brand Extension • Co-Branding 1032 LO3 BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES Multibranding • Fighting Brands Private Branding (Private Labeling or Reseller Branding) Mixed Branding 1033 LO3 Kimberly-Clark’s Huggies What branding strategy is used? 1034 PACKAGING AND LABELING PRODUCTS LO4 CREATING CUSTOMER VALUE AND COMPETITIVE ADVANTAGE Packaging Label • Communication Benefits • Functional Benefits • Perceptual Benefits 1035 LO4 MARKETING MATTERS Creating Customer Value Through Packaging— Pez Heads Dispense More Than Candy 1036 PACKAGING AND LABELING PRODUCTS LO4 PACKAGING AND LABELING CHALLENGES AND RESPONSES Connecting with Customers Environmental Concerns Health, Safety, and Security Issues • Shelf Life Cost Reduction 1037 PRODUCT WARRANTY LO4 Warranty • Express Warranties • Limited Coverage Warranties • Full Warranties • Implied Warranties 1038 LO5 MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES Seven Ps of Services Marketing Product (Service) • Branding Price • Off-Peak Pricing 1039 LO5 MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES Place (Distribution) Promotion • Publicity • Public Service Announcements (PSAs) 1040 LO5 MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES People • Customer Experience Management (CEM) Physical Environment Process • Capacity Management 1041 ... strategies 10 2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO4 Describe the role of packaging, labeling, and warranties in the marketing of a product LO5 Recognize how the. .. in the marketing of services 10 3 GATORADE: BRINGING SCIENCE TO SWEAT 10 4 FIGURE 10- 1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 10 5... AFTER READING CHAPTER 10, YOU SHOULD BE ABLE TO: LO1 Explain the product life-cycle concept LO2 Identify the ways that marketing executives manage a product’s life cycle LO3 Recognize the importance