• Improve Quality • Add Channels • New Segments Maturity • Market Modification • Product Modification • Marketing Mix Modification Decline • Maintain • Harvest • Drop 59
Sales and Profit Life Cycles 60
Common Product Life-Cycle Patterns 61
Strategies over the Life Cycle • Introduction – Invest Resources – Skim by pricing high • Growth – Hold and build a market of loyal customers and distribution – Drop prices – Look for new opportunities • Maturity – Maintain – Defend – Innovate • Decline – Milk – Rejuvenate 62
Renewing the PLC 63
Relationship between Portfolio Matrix & PLC 64
The Product Portfolio • Product Line – A group of closely related product items • Product Mix or Portfolio – The total group of products offered by the firm • Strategic Decisions – Variety – number of product lines offered – Assortment – depth of each product line 65
P&G’s Portfolio of House and Home Products 66
Benefits of Offering a Large Product Portfolio Large Product Portfolio Economies of Scale Package Uniformity Standardization Sales and Distribution Efficiency Equivalent Quality Beliefs 67
Product Line Strategy • Covers all primary targeted market segments • Each product offering should be sufficiently focused – Clarity of each product line’s objectives – Customers ability to distinguish • Time-phased scheduling / sequencing • all products cannot be released simultaneously • priorization • Similar products / product lines are coordinated • To avoid rework and confusion in marketing and among customers 68
Internet and Product Management Pre-Internet (simple, predictable) • Hire MBAs to write a business plan • Raise money • Build (servers, storage, etc.) • Costs ~ $$$ • Only large companies could innovate Post-Internet • Costs ~ 0 • Build (using cloud infrastructure) • Deploy • Develop business plan • Innovation pushed to “dorm rooms” 69 ( Ito 2014 )
Introduction Brand Equity Concept Building Effective Brands Brand Management 70
What is a Brand? • A “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” - American Marketing Association (AMA) • These different components of a brand that identify and differentiate it are brand elements . 71
What is a Brand? • Many practicing managers refer to a brand as more than that — as something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace. • We can make a distinction between the AMA definition of a “brand” with a small b and the industry’s concept of a “Brand” with a capital b . 72
Brands vs. Products • A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
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- Spring '17