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Managing Products and Brands

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Product: Single company produces single product ... Fashion: length varies and cycles around. Fad: steep intro and decline. Product Level ... – PowerPoint PPT presentation

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Title: Managing Products and Brands


1
Managing Products and Brands
  • Chapter 11

2
Overview
  • Product Life Cycle
  • Branding
  • Packaging and Labeling

3
The Product Life Cycle
  • Introduction
  • Growth
  • Maturity
  • Decline

4
Introduction
  • Product Single company produces single product
  • Goals Get first-time buyers to try the new
    product
  • Sales Increase at a steady but slow pace
  • Profits Negative
  • Pricing High (recover costs) or Low (attract
    consumers)
  • Communication Informing consumers

5
Growth
  • Product New competitors enter the market
    creating new variations
  • Goals Encourage brand loyalty
  • Sales Rapid increase
  • Profits Increase and peak
  • Pricing May need to be reduced due to increased
    competition
  • Communication Heavy advertising to counter new
    competition

6
Maturity
  • Product New features added sales are mostly
    replacement products
  • Goals Attract new users
  • Sales Peak, then level off, often decline
  • Profits Profit margins narrow
  • Pricing Price to maintain market share
  • Communication Reminder advertising

7
Decline
  • Product Number of variations reduced
  • Goals Remain profitable decide whether to keep
    or phase product out
  • Sales Continue to decline
  • Profits Decline
  • Pricing May reduce if can remain profitable
  • Communication Decreased to maintain
    profitability

8
Dimensions of Product Life Cycle
  • Length Consumer products have a shorter life
    than business products.
  • Shape
  • High learning significant consumer education
  • Low learning benefits easily understood
  • Fashion length varies and cycles around
  • Fad steep intro and decline
  • Product Level
  • Product Class refers to the entire industry
  • Product Form variations within the class

9
Dimensions of Product Life Cyclecont.
  • Consumers

10
Managing the Life Cycle
  • Modifying the Product
  • Modifying the Market
  • Finding New Users
  • Increasing Use
  • Creating New Use Situations
  • Repositioning the Product
  • Reacting to Competitors Position
  • Reaching a New Market
  • Catching a Rising Trend
  • Changing the Value Offered

11
Branding Decisions
  • Brand a name, a term, a symbol, or any other
    unique element of a product that identifies one
    firms products and sets it apart from the
    competition.
  • Trade name 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.

12
The Importance of Branding
  • Brand Equity a brands value to its
    organization.

13
The Importance of Brandingcont.
  • Relationships
  • Self-concept attachments
  • Nostalgic attachments
  • Interdependence
  • Love
  • Characteristics of Top Brands
  • Excels at delivering benefits
  • Stays relevant
  • Price strategy based on perception of value
  • Properly positioned
  • Consistent
  • Portfolio makes sense
  • Makes full use of marketing mix
  • Manager understands what the brand means to
    consumers
  • Given proper support
  • Monitors source of brand equity

14
Branding Strategies
  • Manufactured Branding
  • Multiproduct branding umbrella for all products
  • Multibranding giving each product a distinct
    brand

15
Branding Strategiescont.
  • Private Branding Store brands Sams Cola at
    Wal-Mart and Archer Farms at Target
  • Mixed Branding a company produces manufactured
    and private brands
  • Generic Branding No Branding

16
Packaging and Labeling
  • Functions
  • Package the covering or container for a
    product.
  • Protects the product
  • Communication
  • Universal Product Code (UPC)
  • Perceptual Benefits

17
Packaging and Labelingcont.
  • Labeling Regulations
  • The Federal Fair Packaging and Label Act of 1966
    controls package communication in U.S.
  • Useful Information
  • Nutritional Content
  • Warnings
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