Chapter 11 - Managing successful products, services, and brands. After reading chapter 11, you should be able 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.
Copyright © 2015 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 11, YOU SHOULD BE ABLE TO: LO 11-1 Explain the product life-cycle concept 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 LO 11-4 Describe the role of packaging, labeling, and warranties in the marketing of a product 112 GATORADE: BRINGING SCIENCE TO SWEAT TO WIN FROM WITHIN Creating the Gatorade Brand Building the Gatorade Brand 113 FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 114 FIGURE 11-1A Stages of the product life cycle and its total industry sales and total industry profit 115 FIGURE 11-1B How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 116 LO 11-1 CHARTING THE PRODUCT LIFE CYCLE INTRODUCTION STAGE Product Life Cycle Trial Primary Demand Selective Demand Skimming Pricing Penetration Pricing 117 FIGURE 11-2 Product life cycle for the standalone fax machine for business use: 1970-2014 118 LO 11-1 CHARTING THE PRODUCT LIFE CYCLE GROWTH STAGE Rapid Sales Growth More Competitors Repeat Purchasers New Features Broad Distribution 119 LO 11-1 CHARTING THE PRODUCT LIFE CYCLE MATURITY STAGE Industry/Product Sales Slow Profit Declines Product Differentiation Fewer Competitors 1110 FIGURE 11-6 The customer-based brand equity pyramid 1129 LO 11-3 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY Creating Brand Equity • Develop Positive Brand Awareness • Establish a Brand’s Meaning • Elicit the Proper Consumer Response • Create Intense Brand Loyalty 1130 LO 11-3 BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY AND BRAND EQUITY Valuing Brand Equity • Provides a Financial Advantage • Brand Licensing 1131 LO 11-3 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/Regulatory Restrictions Should Be Simple and Emotional Should Have Positive Phonetics/Semantics 1132 LO 11-3 MARKETING INSITE Have an Idea for a Brand Name? Check First! 1133 FIGURE 11-7 Alternative branding strategies 1134 LO 11-3 BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES Multiproduct Branding (Family or Corporate Branding) • Product Line Extensions • Subbranding • Brand Extensions • Co-Branding 1135 LO 11-3 BRANDING AND BRAND MANAGEMENT BRANDING STRATEGIES Multibranding • Fighting Brands Private Branding (Private Labeling or Reseller Branding) Mixed Branding 1136 LO 11-3 Kimberly-Clark’s Huggies Which branding strategy is used? 1137 LO 11-3 Black & Decker and Dewalt Tools Which branding strategy does each use? 1138 LO 11-4 PACKAGING AND LABELING PRODUCTS CUSTOMER VALUE AND COMPETITIVE ADVANTAGE Packaging Label • Communication Benefits • Functional Benefits • Perceptual Benefits 1139 LO 11-4 MARKETING MATTERS Pez Heads Dispense More Than Candy 1140 LO 11-4 PACKAGING AND LABELING PRODUCTS CHALLENGES AND RESPONSES Connecting with Customers Environmental Concerns Health, Safety, and Security Issues • Shelf Life Cost Reduction 1141 LO 11-4 PRODUCT WARRANTY Warranty • Express Warranties • Limited Coverage Warranties • Full Warranties • Implied Warranties 1142 VIDEO CASE 11 P&G’S SECRET DEODORANT: FINDING INSPIRATION IN PERSPIRATION 1143 ... Harvesting 11 11 LO 11- 1 Chevy Spark and Amazon Kindle Which stage of the product life cycle? 11 12 LO 11- 1 Soft Drinks and Fax Machines Which stage of the product life cycle? 11 13 LO 11- 1 MARKETING. .. Building the Gatorade Brand 11 3 FIGURE 11- 1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 11 4 FIGURE 11- 1A Stages of the product life... sales and total industry profit 11 5 FIGURE 11- 1B How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions 11 6 LO 11- 1 CHARTING THE PRODUCT LIFE