Marketing

7th Canadian Edition

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Managing Products and Brands

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

Learning Objectives
After reading this chapter, you should be able to:

1.Explain the product life cycle. 2.Identify ways that marketing executives manage a products life cycle. 3.Recognize the importance of branding and alternative branding strategies. 4.Describe the role of packaging, labelling, and warranties in the marketing of a product.

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PRODUCT LIFE CYCLE

Introduction Stage Growth Stage Maturity Stage Decline Stage
Deletion Harvesting

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PRODUCT LIFE CYCLE

FIGURE 11-1 How stages of the product life cycle relate to a firms marketing objectives and marketing mix actions

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PRODUCT LIFE CYCLE

Some Dimensions of the Product Life Cycle
Length of the Product Life Cycle Shape of the Product Life Cycle The Product Level:
Product Class Product Form

The Life Cycle and Consumers

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FIGURE 11-2 Alternative product life cycles

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FIGURE 11-3 Five categories and profiles of product adopters

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MANAGING THE PRODUCT LIFE CYCLE

Role of a Product Manager Modifying the Product
Product modification

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MANAGING THE PRODUCT LIFE CYCLE

Modifying the Market
Market modification Finding New Users Increasing Use Creating New-Use Situation

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MANAGING THE PRODUCT LIFE CYCLE

Repositioning the Product
Reacting to a Competitors Position Reaching a New Market Catching a Rising Trend Changing the Value Offered
Trading up Trading down Downsizing

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11

BRANDING AND BRAND MANAGEMENT

Branding
Brand name Trade name Trademark

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BRANDING AND BRAND MANAGEMENT

Brand Personality and Brand Equity
Creating Brand Equity Valuing Brand Equity
Brand Licensing

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FIGURE 11-4 Customer-based brand equity pyramid

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BRANDING AND BRAND MANAGEMENT

Picking a Good Brand Name Branding Strategies
Multiproduct branding Multibranding Private Branding Cohort Brand Management Mixed Branding

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FIGURE 11-5 Alternative branding strategies

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PACKAGING AND LABELLING

Creating Customer Value Through Packaging and
Labelling Communication Benefits Functional Benefits Perceptual Benefits

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PACKAGING AND LABELLING

Global Trends in Packaging
Environmental Sensitivity Health and Safety Concerns

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PRODUCT WARRANTY
Express warranties Limited-coverage warranty Full warranty Implied warranties

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VIDEO CASE 11-1

Brand Manitoba

Why is place branding important? Why is it so difficult to accomplish?

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VIDEO CASE 11-2

Brand Manitoba

What are the key elements required for successful place branding?

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VIDEO CASE 11-3

Brand Manitoba

Given the controversy over the effectiveness of the Spirited Energy brand concept, provide a new branding concept that might be more effective for the Province of Manitoba. Outline the goals of your branding strategy, the targets, and the branding strategy initiatives you would use.

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Product Life Cycle

The four stages that a new product goes through in
the market place: introduction, growth, maturity, and decline.

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Product Class
The entire product category or industry.

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Product Form
Variations of a product within the product class.

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Product Modification
Altering a products characteristic, such as its quality,
performance, or appearance, to try to increase and extend the products sales.

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Market Modification
Strategy in which a company tries to find new

customers, increase a products use among existing customers, or create new use situations.

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Trading Up
Adding value to a product (or line) through additional
features or higher-quality materials.

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Trading Down
Reducing the number of features, quality, or price.

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Downsizing
Reducing the content of packages without changing
package size and maintaining or increasing the package price.

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Branding
Activity in which an organization uses a name, phrase,
design, or symbols, or combination of these to identify its products and distinguish them from competitors.

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Brand Name
Any word, device (design, shape, sound, or colour), or
combination of these used to distinguish a sellers goods or services.

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Trade Name
A commercial, legal name under which a company
does business.

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Trademark
Identifies that a firm has legally registered its brand

name or trade name so the firm has its exclusive use.

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Brand Personality
A set of human characteristics associated with a brand
name.

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Brand Equity
The added value a given brand name gives to a

product beyond the functional benefits provided.

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Multiproduct Branding
A company uses one name for all products; also called
blanket or family branding.

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Co-Branding
The pairing of two brand names of two manufacturers
on a single product.

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Multibranding
A manufacturers branding strategy giving each
product a distinct name.

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Private Branding
When a company manufactures products but sells
them under the brand name of a wholesaler or retailer (often called private labelling or reseller branding).

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Mixed Branding
A firm markets products under its own name and that
of a reseller because the segment attracted by the reseller is different from its own market.

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Packaging
Any container in which a product is offered for sale
and on which label information is communicated.

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Label
An integral part of the package that typically

identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients.

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Warranty
A statement indicating the liability of the
manufacturer for product deficiencies.

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Cohort Brand Management

The bundling of one companys multiple brands into a
single marketing effort aimed at a common consumer group.

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Brand Licensing
A contractual agreement whereby a company allows
another firm to use its brand name, patent, trade secret, or other property for a royalty or fee.

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Product Repositioning
Changing the place an offering occupies in a

consumers mind relative to competitive products.

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