Reference: Marketing in Asia Chapter 11: Managing Products and Brands

1. Marketing
Management
Chapter 11
Presented by
Prince Cielo

2. Learning Objectives
• Explain the product life cycle concept
• Identify 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.

3. What is Product
Life Cycle?

4. Product Life Cycle
 the stages of a new product goes through in the marketplace.
Stages of Product Life Cycle
Figure 10-1A

6. • Introduction Stage1
 when a product is first introduced to its intended target market.
 sales grow slowly, and profit is minimal.
• Trial
 the initial purchase of a product by a consumer.
• Primary Demand
 the desire for the product class rather than for a specific brand.
• Selective Demand
 the preference for a specific brand.
 Skimming Strategy
 Penetration Pricing

7. • Growth Stage2
 when the sales of the product is increasing at their fastest rate.
• Repeat Purchases
 people who tried the product, satisfied and bought again.
Reasons:
• New people trying or using the product
• Growing proportion of repeat purchasers

8. • Maturity Stage3
 at this stage, theirs a slowing of total industry sales or product class revenue.
Reasons:
• New competition in market or saturation
• Customers have tried the product but not satisfied and
abandon on buying the product.
 Or there is a strong growth in sales.

9. • Decline Stage4
 it is the final stage when the sales drop.
Reasons:
• Environmental Changes
• Emerging of New Technology
Two Strategies
• Deletion
 product deletion, or dropping the product from the company’s
product line.
• Harvesting
 when a company retains the product but reduce marketing costs.

10. Dimensions of the Product
Life Cycle

11. Some Dimensions of the Product Life Cycle

12. Length of the Product Life Cycle
 there is no exact time that a product takes to move through its life cycle.
 consumer products have shorter life cycles than business products.
Reasons:
• Lack of mass communication
• Technological Change
 Ex. New product innovation replaces existing products.

13. Shape of the Product Life Cycle
 the product life-cycle sales curve.
 there are several different life-cycle curves, each type
suggesting different marketing strategies.
4 Different shapes of life-cycle sales curves for 4 Different types of products:
• High- Learning Products
• Low- Learning Products
• Fashion Products
• Fad Products

14. Shape of the Product Life Cycle
• High- Learning Products
– is one for which significant education of the customer is required
and there is an extended introductory period.
• Low- Learning Products
– sales begin immediately because little learning is required by the
customer, and the benefits of purchase are readily understood.
– can be easily imitated by competitors.
• Fashion Products
– is a style of the times.
– fashion products are introduced, decline, and then seem to
return.
• Fad Products
– this products are typically novelties and have a short life cycle.
– a fad experiences rapid sales on introduction and then an
equally rapid decline.

15. The Product Level: Class and Form
• Product Class
– refers to the entire product category or industry,
such as a prerecorded music.
• Product Form
– pertains to variations within the product class.

16. – The life cycle of a product depends on sales to consumers.
• Diffusion of Innovation
– a product diffuses or spreads, through the population.
Five Categories of Product Adopters
√ Innovators
√ Early Adopters
√ Early Majority
√ Late Majority
√ Laggards
The Life Cycle and Consumers

17. Reasons for resisting a product in introduction stage:
• Usage Barriers
– the product is not compatible with existing habits.
• Value Barriers
– the product provides no incentive to change.
• Risk Barriers
– physical, economic, or social.
• Psychological Barriers
– cultural differences or image.
The Life Cycle and Consumers

18. Managing the Product
Life Cycle

19. • Product Manager
– sometimes called brand manager.
– manages the marketing efforts for a close-knit family of products
or brands.
– responsible for managing existing products through the stages of
the life cycle.
Role of the Product Manager
Two measurements used by product
manager in monitoring sales, market
share, and profit trends.
• Category Development Index (CDI)
• Brand Development Index (BDI)
Three ways to manage a product through
its life cycle.
• Modifying the Product
• Modifying the Market
• Repositioning the product

20. Modifying the Product
Product Modification
 involves altering product’s characteristics, such as its quality,
performance, or appearance, to try to increase the product’s
sales.

21. Modifying the Market
 Finding New Customers
 Increasing a Product’s Use
 Creating a New Use Situation

22.  Product Repositioning
 is changing the place a product occupies in a consumer’s mind relative to competitive
products.
– Reacting to a Competitor’s Position
– Reaching a New Market Position
– Catching a Rising Tend
– Changing the Value Offered
 Trading Up
 involves adding value to the product through additional features or higher quality
materials.
 Trading Down
 involves reducing the number of features, quality, or price.
 Downsizing
 reducing the content of packages without changing package size and maintaining or increasing
the package price.
Repositioning the Product

23. Branding and Brand
Management

24. • Branding
– a basic decision in marketing products in which an organization uses a name,
phrase, design, symbols, or combination of these to identify its products and
distinguished them from those of competitors.
• Brand Name
– is any word , device (design, sound, shape, or color), or combination of these used
to distinguish a seller’s goods or services.
• Trade Name
– is a commercial, legal name under which a company does business.
• Trademark
– identifies that a firm has legally registered its brand name or trade name so the
firm has its exclusive use, thereby preventing others from using it.
 Product Counterfeiting
 involves low-cost copies of popular brands not manufactured by the original producer, has been a
growing problem.
Branding and Brand Management

25. • Brand Personality
– a set of human characteristics associated with a brand name.
• Brand Equity
– the added value a given brand name gives to a product beyond the
functional benefits provided.
 2 distinct advantages
 First, brand equity provides a competitive advantage.
 Second, consumers are often willing to pay a higher price for a product with brand
equity.
Brand Personality and Brand Equity

26. Creating Brand Equity
• First, develop positive brand awareness and an association of the
brand in consumers’ minds with a product class or need to give the
brand an identity.
• Second, a marketer must establish a brand’s meaning in the minds of
consumers.
• Third, is to elicit the proper consumer responses to a brand’s identity
and meaning.
• Fourth, is to create a consumer-brand resonance evident in an
intense, active loyalty relationship between consumers and the brand.
It is carefully crafted and nurtured by marketing programs that forge strong,
favorable, and unique consumer associations and experiences with a brand.
4 Steps in Sequential Building Process

27.  Successful, established brand names with Intangible Assets
 Coca-Cola
 Microsoft
 Nokia
 Toyota
 Samsung
• Brand Licensing
– is a contractual agreement whereby one company (licensor) allows its
brand/s or trademark/s to be used with products or services offered by
another company (licensee) for a royalty or fee.
Valuing Brand Equity

28. This are the five criteria mentioned most often when selecting a good brand
name:
Picking a Good Brand Name
1
•The name should suggest
the product benefits.
2
•The name should be
memorable, distinctive,
and positive.
3
• The name should fit the
company or product
image.
4
• The name should have
no legal or regulatory
restrictions.
5
• The name should be
simple and should be
emotional

29. Branding Strategies
• Umbrella or Multiproduct Branding Strategy
• Individual Branding and Multibranding Strategy
• Private Branding Strategy
• Mixed Branding Strategy

30. • Umbrella or Multiproduct Branding
Strategy
• Umbrella Branding
– a company uses one name for all its producers in a product class
• Corporate Branding
– when a company’s trade name is used.
 Line Extensions
– the practice of using a current brand name to enter a new market segment in
its product class.
 Subbranding
– which combines a corporate or family brand with a new brand.
 Brand Extension
– the practice of using a current brand name to enter a completely different
product class.
 Co-Branding- pairing of two brand names of two manufacturers on a single product.

31. • Multibranding
– which involves giving each product a distant name.
– is a useful strategy when each brand is intended for a different
market segment.
 Fighting Brands
– a new product brands as defensive moves to counteract
competition.
– their purpose is to confront competitor brands.
• Individual Branding and Multibranding Strategy

32. • Private Branding
– private labeling or reseller branding
– when it manufactures products but sells them to a wholesaler or retailer
with the intention that they will sell these products under the
wholesaler’s or retailer’s brand name.
• Private Branding Strategy

33. • Mixed Branding
– where a firm markets products under its own name/s and that of a
reseller because the segment attracted to the reseller is different
from its own market.
• Mixed Branding Strategy

34. Packaging and Labeling

35. Packaging and Labeling
• Packaging
– refers to any container in which it is offered for sale and on which label
information is conveyed.
• Label
– is an integral part of the package and typically identifies the product or
brand, who made it, where and when it was made, how it is used, and
package contents and ingredients.

36. Creating Customer Value and Competitive Advantage
Through Packaging and Labeling
3 components of packaging and labeling
Communication Benefits
Functional Benefits
Perceptual Benefits

37. Packaging and Labeling Challenges and Responses
Four Challenges
Connecting with Customers
Environmental Concerns
Health, Safety and Security Issues
Cost Reduction
• Shelf Life

38. Warranty
– is a statement indicating the liability of the manufacturer for product
deficiencies.
 Express Warranties
 are written statements of liabilities.
 Limited-coverage Warranties
 specifically states the bounds of coverage and, more important,
areas of noncoverage.
 Implied Warranties
 which assign responsibility for product deficiencies to the
manufacturer.
Product Warranty

39. End of Presentation