Lecture Marketing: The core (5/e): Chapter 10 – Kerin, Hartley, Rudelius

                           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.

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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 4 Ps framework is
expanded in the marketing of services.

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GATORADE: BRINGING
SCIENCE TO SWEAT

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FIGURE 10-1 How stages of the product life
cycle relate to a firm’s marketing objectives
and marketing mix actions

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FIGURE 10-1A Stages of the product life
cycle and its total industry sales and total
industry profit

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FIGURE 10-1B How stages of the product
life cycle relate to a firm’s marketing
objectives and marketing mix actions

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LO1

CHARTING THE PRODUCT LIFE CYCLE
INTRODUCTION STAGE



Product Life Cycle



Stimulate Trial



Primary Demand



Selective Demand



Skimming Strategy



Penetration Pricing
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FIGURE 10-2 Product life cycle for the
stand-alone fax machine for business use:
1970-2014

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LO1

CHARTING THE PRODUCT LIFE CYCLE
GROWTH STAGE



Rapid Sales Growth



More Competitors



Repeat Purchasers



New Features



Broad Distribution
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LO1

CHARTING THE PRODUCT LIFE CYCLE
MATURITY STAGE



Industry/Product
Sales Slow



Profit Declines



Product Differentiation



Fewer Competitors
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LO1

CHARTING THE PRODUCT LIFE CYCLE
DECLINE STAGE



Industry/Product
Sales Drop



Environmental Changes



Deletion



Harvesting
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LO1

MARKETING MATTERS
Will E-Mail Spell Extinction for Fax Machines?

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LO1

CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS



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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FIGURE 10-3 Alternative product life cycle
curves based on product types

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LO1



CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS

The Life Cycle and Consumers
• Diffusion of Innovation
 Innovators

 Late Majority

 Early Adopters

 Laggards

 Early Majority
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FIGURE 10-4 Five categories and profiles of
product adopters (diffusion of innovation)

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LO1



CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS

The Life Cycle and Consumers
• Barriers to Adoption
 Usage
 Value
 Risk
 Psychological
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LO2



MANAGING THE PRODUCT LIFE CYCLE
ROLE OF A PRODUCT MANAGER

Product/Brand Manager Responsibilities
• Product Life Cycle
• New Product Development
• Marketing Program Implementation
• Data Analysis
 CDI

 BDI
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LO2

USING MARKETING DASHBOARDS
Knowing Your CDI and BDI

Category Development Index (CDI) and Brand Development Index (BDI)

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LO2



MANAGING THE PRODUCT LIFE CYCLE
MODIFYING THE PRODUCT OR MARKET

Product Modification

• Product
Bundling



• New
Characteristics

Market Modification
• Finding New
Customers

• Increasing a
Product’s Use
• Creating a New
Use Situation

Dockers
Ad

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LO2

MANAGING THE PRODUCT LIFE CYCLE
REPOSITIONING THE PRODUCT



Product Repositioning



Reacting to a Competitor’s Position



Reaching a New Market



Catching a Rising Trend
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LO2



MANAGING THE PRODUCT LIFE CYCLE
REPOSITIONING THE PRODUCT

Changing the Value Offered
• Trading Up
• Trading Down
• Downsizing

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LO2

MAKING RESPONSIBLE DECISIONS
Consumer Economics of Downsizing—
Get Less, Pay More

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LO3

BRANDING AND BRAND MANAGEMENT



Branding



Brand Name
• Logotype (Logo)



Trade Name



Trademark

® ™
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