PP12-A A Primary Demand Ad for Coffee
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PP12-2 Product Life Cycle for the stand alone FAX machine for business use: 1970-1999
brand equity and the criteria for the good brand name. • Explain the rationale for alternative branding
strategies employed by companies.
• Understand the benefits of packaging and
1973
1975
1977
1979
1981
1985
1983
1987
1989
1991
1993
Source: Figure drawn from Recording Industry Association of America statistics. MARKETING, 6/e
CHAPTER TWELVE
MANAGING PRODUCTS AND BRANDS
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A. High learning product B. Low learning product
Time C. Fashion product
Time D. Fad product
Time
Time
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Stress differentiation
Growing More versions Gain share, deal Stress competitive differences More outlets
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Maintain brand loyalty
Many Full product line Defend share, profit Reminder oriented Maximum outlets
AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
• Explain the product life cycle (PLC) concept and relate a marketing strategy to each stage. • Recognize the differences in PLCs for various products and their implications for marketing decisions. • Understand alternative approaches to managing a product’s PLC.
Mass communication informs consumers faster and shortens PLCs.
3.
Products affected by technological
change tend to have shorter PLCs.
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PP12-DD Some Dimensions of the PLC--Length
1.
2.
Consumer products have shorter PLCs than industrial products.
4.
Fad product
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PP12-3 Alternative Product Life Cycles
Competition Product Price Promotion Place (distribution) MARKETING, 6/e
Gain Awareness
None One Skimming or penetration Inform, educate Limited
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AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO
• Describe elements of brand personality and
Harvesting, deletion
Reduced Best sellers Stay profitable Minimal promotion Fewer outlets
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PP12-B Product life cycle for wine coolers
Millions of Dollars $1500
$1000
$500
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Source: Figure drawn from Wine and Liqour Handbook statistics.
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warranties in the marketing of a product.
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PP12-CC Will the Internet bury the Familiar Fax?
• Technical substitution often causes the decline stage in the PLC. • Will the Internet and E-mail replace FAX machines?
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PP12-BB The Product Life Cycle Concept
• Products, like people, have been viewed as having a life cycle. • The concept of the product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
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PP12-EE Some Dimensions of the PLC--Shape
1.
2. 3.
High learning product
Low learning product Fashion product
• The Gatorade brand commands more than 80% of the $1.5 billion U.S. sports drink market. • Today Gatorade is the official sports drink of Major League Baseball, the National Football League, the National Basketball Association and the National Hockey League. • Gatorade sales have been built via more flavors, multiple package sizes and forms, including glass and plastic bottles and aluminum cans. • Distribution has been expanded to include convenience stores and supermarkets followed by vending machines and fountain service. • Consistent advertising has effectively conveyed the product’s benefits and links with athletic competition.