Managing Successful Products and Brands • Product Lifecycle: o Introduction Stage – sales grow slowly, profit is minimal, one product (inform, educate) o Growth Stage – Rapid increase in sales, more competition/products (pts of difference) o Maturity Stage – full product line, defend market share/profit (reminder oriented) o Decline Stage – only best sellers, stay profitable, minimal promotion • Product adopters of lifecycle o Innovators – venturesome; higher educated; use multiple information sources (2.5%) o Early Adopters – leaders in social setting; slightly above average education (13.5%) o Early Majority – deliberate; many informal social contacts (34%) o Late Majority – skeptical; below average social status (34%) o Laggards – fear of debt; neighbors/friends are information sources (16%) • Product Modification – altering a product’s characteristic (quality, performance, appearance) to increase its value to customers and increase sales • Market Modification – a company tries to find new customers, increase a product’s use among existing customers, or create new use situations • Branding – a basic marketing decision where an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors • Brand Equity – the added value a brand name gives to a product beyond the functional benefits provided • Brand Equity Pyramid: o (Top) Consumer-Brand Connection o (2 nd ) Consumer Judgments, Consumer Feelings o (3 rd ) Brand Performance, Brand Imagery o (Bottom) Brand Awareness • Brand Name – any word, device, or combination used to distinguish a seller’s goods/services o The name should suggest the product benefits (Easy Off, Glass Plus, Cling-Free) o The name should be memorable, distinctive, and positive (Ford Mustang ) o The name should fit the company or product image (Sharp, Duracell) o The name should have no legal/regulatory restrictions (US Food and Drug Administration can’t use the word heart in food brand names) o The name should be simple and emotional (Axe deodorant, Bic pens; Joy and Obsession Perfumes) • Branding strategies: o Multiproduct Branding – a company uses one name for all its products in a product class (Microsoft)
o Multibranding – giving each product a distinct name (Disney uses Miramax and Touchstone Pictures) o Private Branding – sells products under the brand name of a wholesaler/retailer (Richelieu Foods makes pizza and other foods for other companies like Sam’s and BJ’s) o Mixed Branding – a firm markets products under its own name and that of a reseller because the part attracted to the reseller is different from its own market (Elizabeth Arden sells skin care products at Wal-Mart) • Challenges and concerns with packaging o Connecting with Customers: packages/labels must be continually updated o Environmental Concerns: due to widespread concern of solid waste growth and shortage of landfills, amount/composition/disposal of packing material has a lot of attention o
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- Spring '08
- Marketing, producer, products/brands