SlideShare a Scribd company logo
1 of 37
Download to read offline
BMGT 411: Chapter 10
Marketing Through the Life Cycle
Ford Fiesta Blogger Test
Drive
Page 143
Chapter Questions
• What are the characteristics of products and how do marketers classify
products? 

• How can companies differentiate products?

• How can a company build and manage its product mix and product lines?

• How can companies use packaging, labeling, warranties, and guarantees as
marketing tools?

• What strategies are appropriate for new product development and through
the product life cycle?
What is a Product?
• A product is anything that can be offered to a market to satisfy a want or
need, including physical goods, services, experiences, events, persons,
places, properties, organizations, information, and ideas.

• Examples: Starbuck’s 3rd Place. The place between someone’s work and
home. Starbuck’s coffee is a product, but the Starbuck’s experience is a
product as well, and include comfortable cafe’s, free wifi, and service that
is beyond typical fast food and beverage.
Figure 10.1 Five Product
Levels
Page 144
Five Product Level Example: Kohl’s
• Core Benefit: Clothes

• Basic Product: Clothing and home goods in a variety of styles and sizes

• Augmented Product: Clothing and home goods, with weekly and seasonal
specials, customers will get excited about savings

• Potential Product: Any future updates Kohl’s would do in the future to
exceed customer expectations (More online offerings, same day shipping,
etc)
Product Classification
Schemes
Page 145
Durability
Tangibility
Use
Product
Classifications
Nondurable goods: tangible
goods consumed in one or a few
uses. Large availability, smaller
markups, induce trial and build
preference
Product
Classifications
Durable goods: tangible goods
like appliances that survive many
uses, higher margins, more
service required, and also require
more seller guarantees
Product
Classifications
Services: intangible, inseparable,
variable products that require
more quality control, credibility,
and adaptability
Consumer Goods Classifications
• Convenience Goods: Purchased frequently,, and with minimal effort (often self service)

• Ex: Soft Drinks

• Shopping Goods: Consumers compare on the basis of suitability, price, and style

• Ex. Appliance

• Speciality Good: Unique characteristics or brand identification for which enough buyers make a
special purchasing effort

• Ex. Cars

• Unsought Goods: Needs, that the customer does not normally think about buying

• Ex. Smoke detectors, first aid kits
Industrial Goods Classification
• Materials and parts: Go into the final finished product

• Ex. Wheat delivered to make cereal
• Capital items: Equipment to make final product

• Ex. Oven to roast cereal
• Supplies/business services: Short term items that help making the final
product, like office supplies and consulting fees
Product Differentiation
• Product form

• Features

• Customization

• Performance

• Conformance

• Durability

• Reliability

• Repairability

• Style
Product
Differentiation
Form: Products size, shape, or
physical structure
Product
Differentiation
Features: Supplement the
products basic function, often
deployed to users in regular
cycles, to increase upgrades and
excitement in the product
Product
Differentiation
Customization: A company
meets each customers
requirements on a mass basis, by
individually designing products,
services, or programs.
Product
Differentiation
Style: The look and feel of a
product to a buyer. Often a key
item in creating demand for a
product. Style often depends on
target market being sought.
Service Differentiation
• Ordering ease

• Delivery

• Installation

• Customer training

• Customer consulting

• Maintenance and repair

• Returns
Zappos.com
• Differentiation is based on
service:

• Ease of ordering

• Customer service

• Ease of returns
Product-Mix Pricing
• Product-line pricing: Varying prices in a line of products: Ex. Soda

• Optional-feature pricing: Price of product plus options: Ex. Cars

• Captive-product pricing: Introduction products and the price of ancillary or
captive products: Ex. Razors, Low intro price, and high price of blades

• Two-part pricing: Fixed fee plus variable pricing: Ex. Cell Phone + Data Plans

• By-product pricing: Price of by products in the production of the main
product: Ex. Meats

• Product-bundling pricing: Price for a bundle of products or service: Ex.
Comcast Triple Play
Ingredient Branding
Creating brand equity for the
materials or components inside
of a finished product, to increase
demand and create higher
margins based on perceived
quality
• Packaging, sometimes called the 5th P, is all the activities of designing and
producing the container for a product

• Sometimes, packaging is just as important as the product itself

• Packaging is the customers first experience with the product

• It must identify the brand, convey descriptions and persuasive information,
facilitate product transportation, and aid in product consumption

• Can you think of any iconic brand packaging?
Altoids Packaging
Mio Packaging
Tropicana Packaging
New Product
Development Process
Ways to Find Great New Ideas
• Run informal sessions with customers

• Allow time off for technical people to putter on pet projects

• Make customer brainstorming a part of plant tours

• Survey your customers

• Undertake “fly on the wall” research to customers

• Social Media Crowd sourcing: Gathering popular ideas directly from
customers
Concept Testing
Concept Testing: Who will use this product? What benefit will it provide?
When will they use it?

• Need level

• Perceived value

• Purchase intention

• User targets, purchase occasions, purchasing frequency
Prototype Testing
• Alpha testing: Testing within the firm

• Beta testing: Testing with a group of customers

• Market testing: Testing in a few markets to gauge customer acceptance, sales
forecasts, identify any logistic issues
True Runner (Dick’s
Sporting Goods)	
Concept: Shady Side
True Runner (Dick’s
Sporting Goods)	
Cranberry Township, PA
What is Adoption?
Adoption is an individual’s
decision to become a regular
user of a product.
Stages in Adoption
Process
Awareness
Interest
Evaluation
Trial
Adoption
Figure 10.4 Adopter Categorization on the
Basis of Relative time of Adoption Technology is speeding up the
life cycles
Figure 10.4 Adopter Categorization on the
Basis of Relative time of Adoption Technology is speeding up the
life cycles
Product Life Cycle Marketing
• Introduction and Innovator Stage: High marketing costs and low profit, due to
getting awareness out to customers and driving trial

• Growth: Improve quality, reduce cost, add features to maximize profitability.
Can become a market leader in this stage, increasing profitability in the
maturity stage

• Maturity: Longest section of life cycle. This is where targeted marketing takes
over from broad based marketing to increase users at a reduced marketing
cost.

• Decline: Choice to let the brand die, or innovate to create a new product or
service based on new needs, technology, etc. Declining products should not
be invested in unless it is to be relaunched
AthleteTrax
• What is the product of
AltheteTrax?

• Is it a good? Or an
experience?

• What stage of the life cycle
is it in?

• Who should it target at this
stage to grow?

More Related Content

What's hot

Presentation on product mix
Presentation on product mixPresentation on product mix
Presentation on product mixAnhadKamal
 
Setting Product Strategy / Marketing Management By kotler Keller
Setting Product Strategy / Marketing Management By kotler KellerSetting Product Strategy / Marketing Management By kotler Keller
Setting Product Strategy / Marketing Management By kotler KellerChoudhry Asad
 
Product- Concept, Product Line & Mix
Product- Concept, Product Line & MixProduct- Concept, Product Line & Mix
Product- Concept, Product Line & MixDr Pooja
 
product strategies
product strategiesproduct strategies
product strategiesshamshad60
 
Levels of product Offering.
Levels of product Offering.Levels of product Offering.
Levels of product Offering.Rizwan Khan
 
Merchandise management
Merchandise management Merchandise management
Merchandise management DrSelvamohanaK
 
Levels of producut ( Marketing )
Levels of producut ( Marketing )Levels of producut ( Marketing )
Levels of producut ( Marketing )sero210
 
M9 l2 Factors That Contribute to the Selection of Products and Services
M9 l2 Factors That Contribute to the Selection of Products and ServicesM9 l2 Factors That Contribute to the Selection of Products and Services
M9 l2 Factors That Contribute to the Selection of Products and ServicesNCVPS
 
Chapter 12 – Setting Product Strategy
Chapter 12 – Setting Product StrategyChapter 12 – Setting Product Strategy
Chapter 12 – Setting Product StrategyMacky Villagarcia
 
B-PLAN FOR A TRAVEL ACCESSORIES STORE
B-PLAN  FOR A TRAVEL ACCESSORIES STOREB-PLAN  FOR A TRAVEL ACCESSORIES STORE
B-PLAN FOR A TRAVEL ACCESSORIES STOREDivyabala Thirumaran
 
Products and service decisions marketing
Products and service decisions marketingProducts and service decisions marketing
Products and service decisions marketingNone
 
Extended marketing mix
Extended marketing mixExtended marketing mix
Extended marketing mixBiju Bodheswar
 

What's hot (20)

Product mix ppt
Product mix pptProduct mix ppt
Product mix ppt
 
Presentation on product mix
Presentation on product mixPresentation on product mix
Presentation on product mix
 
Marketing
MarketingMarketing
Marketing
 
Product
ProductProduct
Product
 
1[1][1].product
1[1][1].product1[1][1].product
1[1][1].product
 
The marketing mix
The marketing mixThe marketing mix
The marketing mix
 
Setting Product Strategy / Marketing Management By kotler Keller
Setting Product Strategy / Marketing Management By kotler KellerSetting Product Strategy / Marketing Management By kotler Keller
Setting Product Strategy / Marketing Management By kotler Keller
 
Product- Concept, Product Line & Mix
Product- Concept, Product Line & MixProduct- Concept, Product Line & Mix
Product- Concept, Product Line & Mix
 
product strategies
product strategiesproduct strategies
product strategies
 
Levels of product Offering.
Levels of product Offering.Levels of product Offering.
Levels of product Offering.
 
Merchandise management
Merchandise management Merchandise management
Merchandise management
 
Levels of producut ( Marketing )
Levels of producut ( Marketing )Levels of producut ( Marketing )
Levels of producut ( Marketing )
 
Product management
Product managementProduct management
Product management
 
M9 l2 Factors That Contribute to the Selection of Products and Services
M9 l2 Factors That Contribute to the Selection of Products and ServicesM9 l2 Factors That Contribute to the Selection of Products and Services
M9 l2 Factors That Contribute to the Selection of Products and Services
 
Setting product strategy
Setting product strategySetting product strategy
Setting product strategy
 
Product
ProductProduct
Product
 
Chapter 12 – Setting Product Strategy
Chapter 12 – Setting Product StrategyChapter 12 – Setting Product Strategy
Chapter 12 – Setting Product Strategy
 
B-PLAN FOR A TRAVEL ACCESSORIES STORE
B-PLAN  FOR A TRAVEL ACCESSORIES STOREB-PLAN  FOR A TRAVEL ACCESSORIES STORE
B-PLAN FOR A TRAVEL ACCESSORIES STORE
 
Products and service decisions marketing
Products and service decisions marketingProducts and service decisions marketing
Products and service decisions marketing
 
Extended marketing mix
Extended marketing mixExtended marketing mix
Extended marketing mix
 

Viewers also liked

Bmgt 311 chapter_15
Bmgt 311 chapter_15Bmgt 311 chapter_15
Bmgt 311 chapter_15Chris Lovett
 
Bmgt 311 lovett fall_2013_fnl_wed
Bmgt 311 lovett fall_2013_fnl_wedBmgt 311 lovett fall_2013_fnl_wed
Bmgt 311 lovett fall_2013_fnl_wedChris Lovett
 
Bmgt 311 chapter_5
Bmgt 311 chapter_5Bmgt 311 chapter_5
Bmgt 311 chapter_5Chris Lovett
 
Bmgt 411 lovett fall_2014
Bmgt 411 lovett fall_2014Bmgt 411 lovett fall_2014
Bmgt 411 lovett fall_2014Chris Lovett
 
Bmgt 411 chapter_2
Bmgt 411 chapter_2Bmgt 411 chapter_2
Bmgt 411 chapter_2Chris Lovett
 
Bmgt 311 chapter_15
Bmgt 311 chapter_15Bmgt 311 chapter_15
Bmgt 311 chapter_15Chris Lovett
 
Bmgt 311 lovett fall_2013_fnl_SA
Bmgt 311 lovett fall_2013_fnl_SABmgt 311 lovett fall_2013_fnl_SA
Bmgt 311 lovett fall_2013_fnl_SAChris Lovett
 
Bmgt 311 chapter_10
Bmgt 311 chapter_10Bmgt 311 chapter_10
Bmgt 311 chapter_10Chris Lovett
 
Bmgt 311 chapter_7
Bmgt 311 chapter_7Bmgt 311 chapter_7
Bmgt 311 chapter_7Chris Lovett
 
Bmgt 411 chapter_9
Bmgt 411 chapter_9Bmgt 411 chapter_9
Bmgt 411 chapter_9Chris Lovett
 
Bmgt 311 chapter_3
Bmgt 311 chapter_3Bmgt 311 chapter_3
Bmgt 311 chapter_3Chris Lovett
 
Marketing research plan project project bmgt 311
Marketing research plan project project bmgt 311Marketing research plan project project bmgt 311
Marketing research plan project project bmgt 311Chris Lovett
 
Customer experience ama_lovett
Customer experience ama_lovettCustomer experience ama_lovett
Customer experience ama_lovettChris Lovett
 
Bmgt 411 chapter_16
Bmgt 411 chapter_16Bmgt 411 chapter_16
Bmgt 411 chapter_16Chris Lovett
 
Marketing research plan project project bmgt 311_at
Marketing research plan project project bmgt 311_atMarketing research plan project project bmgt 311_at
Marketing research plan project project bmgt 311_atChris Lovett
 
Bmgt 311 chapter_9
Bmgt 311 chapter_9Bmgt 311 chapter_9
Bmgt 311 chapter_9Chris Lovett
 
Bmgt 311 chapter_12
Bmgt 311 chapter_12Bmgt 311 chapter_12
Bmgt 311 chapter_12Chris Lovett
 
Bmgt 411 chapter_8
Bmgt 411 chapter_8Bmgt 411 chapter_8
Bmgt 411 chapter_8Chris Lovett
 

Viewers also liked (19)

Bmgt 311 chapter_15
Bmgt 311 chapter_15Bmgt 311 chapter_15
Bmgt 311 chapter_15
 
Bmgt 311 lovett fall_2013_fnl_wed
Bmgt 311 lovett fall_2013_fnl_wedBmgt 311 lovett fall_2013_fnl_wed
Bmgt 311 lovett fall_2013_fnl_wed
 
Bmgt 311 chapter_5
Bmgt 311 chapter_5Bmgt 311 chapter_5
Bmgt 311 chapter_5
 
Bmgt 411 lovett fall_2014
Bmgt 411 lovett fall_2014Bmgt 411 lovett fall_2014
Bmgt 411 lovett fall_2014
 
Bmgt 411 chapter_2
Bmgt 411 chapter_2Bmgt 411 chapter_2
Bmgt 411 chapter_2
 
Bmgt 311 chapter_15
Bmgt 311 chapter_15Bmgt 311 chapter_15
Bmgt 311 chapter_15
 
Bmgt 311 lovett fall_2013_fnl_SA
Bmgt 311 lovett fall_2013_fnl_SABmgt 311 lovett fall_2013_fnl_SA
Bmgt 311 lovett fall_2013_fnl_SA
 
Bmgt 311 chapter_10
Bmgt 311 chapter_10Bmgt 311 chapter_10
Bmgt 311 chapter_10
 
Bmgt 311 chapter_7
Bmgt 311 chapter_7Bmgt 311 chapter_7
Bmgt 311 chapter_7
 
Bmgt 411 chapter_9
Bmgt 411 chapter_9Bmgt 411 chapter_9
Bmgt 411 chapter_9
 
Bmgt 411 week_9
Bmgt 411 week_9Bmgt 411 week_9
Bmgt 411 week_9
 
Bmgt 311 chapter_3
Bmgt 311 chapter_3Bmgt 311 chapter_3
Bmgt 311 chapter_3
 
Marketing research plan project project bmgt 311
Marketing research plan project project bmgt 311Marketing research plan project project bmgt 311
Marketing research plan project project bmgt 311
 
Customer experience ama_lovett
Customer experience ama_lovettCustomer experience ama_lovett
Customer experience ama_lovett
 
Bmgt 411 chapter_16
Bmgt 411 chapter_16Bmgt 411 chapter_16
Bmgt 411 chapter_16
 
Marketing research plan project project bmgt 311_at
Marketing research plan project project bmgt 311_atMarketing research plan project project bmgt 311_at
Marketing research plan project project bmgt 311_at
 
Bmgt 311 chapter_9
Bmgt 311 chapter_9Bmgt 311 chapter_9
Bmgt 311 chapter_9
 
Bmgt 311 chapter_12
Bmgt 311 chapter_12Bmgt 311 chapter_12
Bmgt 311 chapter_12
 
Bmgt 411 chapter_8
Bmgt 411 chapter_8Bmgt 411 chapter_8
Bmgt 411 chapter_8
 

Similar to Bmgt 411 chapter_10

Bsbmkg502 b – session i ib
Bsbmkg502 b – session i ibBsbmkg502 b – session i ib
Bsbmkg502 b – session i ibSkript
 
Product, services and branding strategies
Product, services and branding strategiesProduct, services and branding strategies
Product, services and branding strategiesLizelle Turla
 
Marketing Management Series 08
Marketing Management Series 08Marketing Management Series 08
Marketing Management Series 08Jared Offei
 
Creating a product strategy
Creating a product strategyCreating a product strategy
Creating a product strategyManohar Gupta
 
Chapter7 Marketing Management
Chapter7 Marketing ManagementChapter7 Marketing Management
Chapter7 Marketing ManagementPeleZain
 
pm assignment for college students for scoring
pm assignment for college students for scoringpm assignment for college students for scoring
pm assignment for college students for scoringJaypatel645080
 
7 marketing mix
7 marketing mix7 marketing mix
7 marketing mixhangmoon13
 
Setting Product Strategy
Setting Product StrategySetting Product Strategy
Setting Product StrategyNishant Agrawal
 
Product and brand management
Product and brand managementProduct and brand management
Product and brand managementpmwakde
 
Unit 5 products_and_branding
Unit 5 products_and_brandingUnit 5 products_and_branding
Unit 5 products_and_brandingAshish Awasthi
 
Developing and ManagingProductsUnrestricted• Sus.docx
Developing and ManagingProductsUnrestricted• Sus.docxDeveloping and ManagingProductsUnrestricted• Sus.docx
Developing and ManagingProductsUnrestricted• Sus.docxhcheryl1
 
Unit - 1 - PRODUCT.pdf
Unit - 1 - PRODUCT.pdfUnit - 1 - PRODUCT.pdf
Unit - 1 - PRODUCT.pdfMukindaChavhan
 
Module 2 (1).pptx
Module 2 (1).pptxModule 2 (1).pptx
Module 2 (1).pptxTRIUMPHUAE
 

Similar to Bmgt 411 chapter_10 (20)

Bsbmkg502 b – session i ib
Bsbmkg502 b – session i ibBsbmkg502 b – session i ib
Bsbmkg502 b – session i ib
 
Product, services and branding strategies
Product, services and branding strategiesProduct, services and branding strategies
Product, services and branding strategies
 
Products.pptx
Products.pptxProducts.pptx
Products.pptx
 
Marketing Management Series 08
Marketing Management Series 08Marketing Management Series 08
Marketing Management Series 08
 
Creating a product strategy
Creating a product strategyCreating a product strategy
Creating a product strategy
 
Chapter7 Marketing Management
Chapter7 Marketing ManagementChapter7 Marketing Management
Chapter7 Marketing Management
 
pm assignment for college students for scoring
pm assignment for college students for scoringpm assignment for college students for scoring
pm assignment for college students for scoring
 
Marketing mix
Marketing mixMarketing mix
Marketing mix
 
7 marketing mix
7 marketing mix7 marketing mix
7 marketing mix
 
Marketing mix
Marketing mixMarketing mix
Marketing mix
 
Setting Product Strategy
Setting Product StrategySetting Product Strategy
Setting Product Strategy
 
Product and brand management
Product and brand managementProduct and brand management
Product and brand management
 
Product Strategy
Product StrategyProduct Strategy
Product Strategy
 
Unit 5 products_and_branding
Unit 5 products_and_brandingUnit 5 products_and_branding
Unit 5 products_and_branding
 
Concepts of pdts intrdn
Concepts of pdts intrdnConcepts of pdts intrdn
Concepts of pdts intrdn
 
Developing and ManagingProductsUnrestricted• Sus.docx
Developing and ManagingProductsUnrestricted• Sus.docxDeveloping and ManagingProductsUnrestricted• Sus.docx
Developing and ManagingProductsUnrestricted• Sus.docx
 
2. marketing mix
2. marketing mix2. marketing mix
2. marketing mix
 
Unit - 1 - PRODUCT.pdf
Unit - 1 - PRODUCT.pdfUnit - 1 - PRODUCT.pdf
Unit - 1 - PRODUCT.pdf
 
Module 2 (1).pptx
Module 2 (1).pptxModule 2 (1).pptx
Module 2 (1).pptx
 
Marketing mix p’s of marketing
Marketing mix p’s of marketingMarketing mix p’s of marketing
Marketing mix p’s of marketing
 

More from Chris Lovett

Bmgt 411 chapter_15
Bmgt 411 chapter_15Bmgt 411 chapter_15
Bmgt 411 chapter_15Chris Lovett
 
Bmgt 411 chapter_14
Bmgt 411 chapter_14Bmgt 411 chapter_14
Bmgt 411 chapter_14Chris Lovett
 
Bmgt 411 chapter_17
Bmgt 411 chapter_17Bmgt 411 chapter_17
Bmgt 411 chapter_17Chris Lovett
 
Bmgt 311 chapter_16
Bmgt 311 chapter_16Bmgt 311 chapter_16
Bmgt 311 chapter_16Chris Lovett
 
Bmgt 311 chapter_14
Bmgt 311 chapter_14Bmgt 311 chapter_14
Bmgt 311 chapter_14Chris Lovett
 
Bmgt 311 chapter_13
Bmgt 311 chapter_13Bmgt 311 chapter_13
Bmgt 311 chapter_13Chris Lovett
 
Bmgt 311 chapter_11
Bmgt 311 chapter_11Bmgt 311 chapter_11
Bmgt 311 chapter_11Chris Lovett
 
Bmgt 311 chapter_10
Bmgt 311 chapter_10Bmgt 311 chapter_10
Bmgt 311 chapter_10Chris Lovett
 
Bmgt 411 chapter_13
Bmgt 411 chapter_13Bmgt 411 chapter_13
Bmgt 411 chapter_13Chris Lovett
 
Bmgt 311 lovett fall_2014_sat
Bmgt 311 lovett fall_2014_satBmgt 311 lovett fall_2014_sat
Bmgt 311 lovett fall_2014_satChris Lovett
 
Bmgt 311 lovett fall_2014_wed
Bmgt 311 lovett fall_2014_wedBmgt 311 lovett fall_2014_wed
Bmgt 311 lovett fall_2014_wedChris Lovett
 
Bmgt 311 chapter_9
Bmgt 311 chapter_9Bmgt 311 chapter_9
Bmgt 311 chapter_9Chris Lovett
 
Bmgt 411 chapter_12
Bmgt 411 chapter_12Bmgt 411 chapter_12
Bmgt 411 chapter_12Chris Lovett
 
Bmgt 411 chapter_11
Bmgt 411 chapter_11Bmgt 411 chapter_11
Bmgt 411 chapter_11Chris Lovett
 
Strategic marketing plan project individual project bmgt 411
Strategic marketing plan project individual project bmgt 411Strategic marketing plan project individual project bmgt 411
Strategic marketing plan project individual project bmgt 411Chris Lovett
 
Bmgt 411 chapter_7
Bmgt 411 chapter_7Bmgt 411 chapter_7
Bmgt 411 chapter_7Chris Lovett
 
Bmgt 411 chapter_6
Bmgt 411 chapter_6Bmgt 411 chapter_6
Bmgt 411 chapter_6Chris Lovett
 
Bmgt 411 chapter_5
Bmgt 411 chapter_5Bmgt 411 chapter_5
Bmgt 411 chapter_5Chris Lovett
 
Bmgt 411 chapter_4
Bmgt 411 chapter_4Bmgt 411 chapter_4
Bmgt 411 chapter_4Chris Lovett
 
Bmgt 411 chapter_3
Bmgt 411 chapter_3Bmgt 411 chapter_3
Bmgt 411 chapter_3Chris Lovett
 

More from Chris Lovett (20)

Bmgt 411 chapter_15
Bmgt 411 chapter_15Bmgt 411 chapter_15
Bmgt 411 chapter_15
 
Bmgt 411 chapter_14
Bmgt 411 chapter_14Bmgt 411 chapter_14
Bmgt 411 chapter_14
 
Bmgt 411 chapter_17
Bmgt 411 chapter_17Bmgt 411 chapter_17
Bmgt 411 chapter_17
 
Bmgt 311 chapter_16
Bmgt 311 chapter_16Bmgt 311 chapter_16
Bmgt 311 chapter_16
 
Bmgt 311 chapter_14
Bmgt 311 chapter_14Bmgt 311 chapter_14
Bmgt 311 chapter_14
 
Bmgt 311 chapter_13
Bmgt 311 chapter_13Bmgt 311 chapter_13
Bmgt 311 chapter_13
 
Bmgt 311 chapter_11
Bmgt 311 chapter_11Bmgt 311 chapter_11
Bmgt 311 chapter_11
 
Bmgt 311 chapter_10
Bmgt 311 chapter_10Bmgt 311 chapter_10
Bmgt 311 chapter_10
 
Bmgt 411 chapter_13
Bmgt 411 chapter_13Bmgt 411 chapter_13
Bmgt 411 chapter_13
 
Bmgt 311 lovett fall_2014_sat
Bmgt 311 lovett fall_2014_satBmgt 311 lovett fall_2014_sat
Bmgt 311 lovett fall_2014_sat
 
Bmgt 311 lovett fall_2014_wed
Bmgt 311 lovett fall_2014_wedBmgt 311 lovett fall_2014_wed
Bmgt 311 lovett fall_2014_wed
 
Bmgt 311 chapter_9
Bmgt 311 chapter_9Bmgt 311 chapter_9
Bmgt 311 chapter_9
 
Bmgt 411 chapter_12
Bmgt 411 chapter_12Bmgt 411 chapter_12
Bmgt 411 chapter_12
 
Bmgt 411 chapter_11
Bmgt 411 chapter_11Bmgt 411 chapter_11
Bmgt 411 chapter_11
 
Strategic marketing plan project individual project bmgt 411
Strategic marketing plan project individual project bmgt 411Strategic marketing plan project individual project bmgt 411
Strategic marketing plan project individual project bmgt 411
 
Bmgt 411 chapter_7
Bmgt 411 chapter_7Bmgt 411 chapter_7
Bmgt 411 chapter_7
 
Bmgt 411 chapter_6
Bmgt 411 chapter_6Bmgt 411 chapter_6
Bmgt 411 chapter_6
 
Bmgt 411 chapter_5
Bmgt 411 chapter_5Bmgt 411 chapter_5
Bmgt 411 chapter_5
 
Bmgt 411 chapter_4
Bmgt 411 chapter_4Bmgt 411 chapter_4
Bmgt 411 chapter_4
 
Bmgt 411 chapter_3
Bmgt 411 chapter_3Bmgt 411 chapter_3
Bmgt 411 chapter_3
 

Recently uploaded

M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxDr. Santhosh Kumar. N
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17Celine George
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptxSandy Millin
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxraviapr7
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational PhilosophyShuvankar Madhu
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfTechSoup
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 

Recently uploaded (20)

Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptx
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptx
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational Philosophy
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 

Bmgt 411 chapter_10

  • 1. BMGT 411: Chapter 10 Marketing Through the Life Cycle
  • 2. Ford Fiesta Blogger Test Drive Page 143
  • 3. Chapter Questions • What are the characteristics of products and how do marketers classify products? • How can companies differentiate products? • How can a company build and manage its product mix and product lines? • How can companies use packaging, labeling, warranties, and guarantees as marketing tools? • What strategies are appropriate for new product development and through the product life cycle?
  • 4. What is a Product? • A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. • Examples: Starbuck’s 3rd Place. The place between someone’s work and home. Starbuck’s coffee is a product, but the Starbuck’s experience is a product as well, and include comfortable cafe’s, free wifi, and service that is beyond typical fast food and beverage.
  • 5. Figure 10.1 Five Product Levels Page 144
  • 6. Five Product Level Example: Kohl’s • Core Benefit: Clothes • Basic Product: Clothing and home goods in a variety of styles and sizes • Augmented Product: Clothing and home goods, with weekly and seasonal specials, customers will get excited about savings • Potential Product: Any future updates Kohl’s would do in the future to exceed customer expectations (More online offerings, same day shipping, etc)
  • 8. Product Classifications Nondurable goods: tangible goods consumed in one or a few uses. Large availability, smaller markups, induce trial and build preference
  • 9. Product Classifications Durable goods: tangible goods like appliances that survive many uses, higher margins, more service required, and also require more seller guarantees
  • 10. Product Classifications Services: intangible, inseparable, variable products that require more quality control, credibility, and adaptability
  • 11. Consumer Goods Classifications • Convenience Goods: Purchased frequently,, and with minimal effort (often self service) • Ex: Soft Drinks • Shopping Goods: Consumers compare on the basis of suitability, price, and style • Ex. Appliance • Speciality Good: Unique characteristics or brand identification for which enough buyers make a special purchasing effort • Ex. Cars • Unsought Goods: Needs, that the customer does not normally think about buying • Ex. Smoke detectors, first aid kits
  • 12. Industrial Goods Classification • Materials and parts: Go into the final finished product • Ex. Wheat delivered to make cereal • Capital items: Equipment to make final product • Ex. Oven to roast cereal • Supplies/business services: Short term items that help making the final product, like office supplies and consulting fees
  • 13. Product Differentiation • Product form • Features • Customization • Performance • Conformance • Durability • Reliability • Repairability • Style
  • 14. Product Differentiation Form: Products size, shape, or physical structure
  • 15. Product Differentiation Features: Supplement the products basic function, often deployed to users in regular cycles, to increase upgrades and excitement in the product
  • 16. Product Differentiation Customization: A company meets each customers requirements on a mass basis, by individually designing products, services, or programs.
  • 17. Product Differentiation Style: The look and feel of a product to a buyer. Often a key item in creating demand for a product. Style often depends on target market being sought.
  • 18. Service Differentiation • Ordering ease • Delivery • Installation • Customer training • Customer consulting • Maintenance and repair • Returns
  • 19. Zappos.com • Differentiation is based on service: • Ease of ordering • Customer service • Ease of returns
  • 20. Product-Mix Pricing • Product-line pricing: Varying prices in a line of products: Ex. Soda • Optional-feature pricing: Price of product plus options: Ex. Cars • Captive-product pricing: Introduction products and the price of ancillary or captive products: Ex. Razors, Low intro price, and high price of blades • Two-part pricing: Fixed fee plus variable pricing: Ex. Cell Phone + Data Plans • By-product pricing: Price of by products in the production of the main product: Ex. Meats • Product-bundling pricing: Price for a bundle of products or service: Ex. Comcast Triple Play
  • 21. Ingredient Branding Creating brand equity for the materials or components inside of a finished product, to increase demand and create higher margins based on perceived quality
  • 22. • Packaging, sometimes called the 5th P, is all the activities of designing and producing the container for a product • Sometimes, packaging is just as important as the product itself • Packaging is the customers first experience with the product • It must identify the brand, convey descriptions and persuasive information, facilitate product transportation, and aid in product consumption • Can you think of any iconic brand packaging?
  • 27. Ways to Find Great New Ideas • Run informal sessions with customers • Allow time off for technical people to putter on pet projects • Make customer brainstorming a part of plant tours • Survey your customers • Undertake “fly on the wall” research to customers • Social Media Crowd sourcing: Gathering popular ideas directly from customers
  • 28. Concept Testing Concept Testing: Who will use this product? What benefit will it provide? When will they use it? • Need level • Perceived value • Purchase intention • User targets, purchase occasions, purchasing frequency
  • 29. Prototype Testing • Alpha testing: Testing within the firm • Beta testing: Testing with a group of customers • Market testing: Testing in a few markets to gauge customer acceptance, sales forecasts, identify any logistic issues
  • 30. True Runner (Dick’s Sporting Goods) Concept: Shady Side
  • 31. True Runner (Dick’s Sporting Goods) Cranberry Township, PA
  • 32. What is Adoption? Adoption is an individual’s decision to become a regular user of a product.
  • 34. Figure 10.4 Adopter Categorization on the Basis of Relative time of Adoption Technology is speeding up the life cycles
  • 35. Figure 10.4 Adopter Categorization on the Basis of Relative time of Adoption Technology is speeding up the life cycles
  • 36. Product Life Cycle Marketing • Introduction and Innovator Stage: High marketing costs and low profit, due to getting awareness out to customers and driving trial • Growth: Improve quality, reduce cost, add features to maximize profitability. Can become a market leader in this stage, increasing profitability in the maturity stage • Maturity: Longest section of life cycle. This is where targeted marketing takes over from broad based marketing to increase users at a reduced marketing cost. • Decline: Choice to let the brand die, or innovate to create a new product or service based on new needs, technology, etc. Declining products should not be invested in unless it is to be relaunched
  • 37. AthleteTrax • What is the product of AltheteTrax? • Is it a good? Or an experience? • What stage of the life cycle is it in? • Who should it target at this stage to grow?