Chapter 8- Manage the product

introduction stage

-1st stage of PLC -slow growth of a new product. -customers first purchases the good or service. -this stage can last quite long -no profit because companies are recovering losses. - marketers focus on informing ppl o promised benefits

steps to manage a product

1. develop product objectives 2. design product strategies 3. make tactical product decisions-> branding, packaging

types of relationships a person might have with a brand

1.self concept attachment: establishes user identity 2.nostalgic attachment: past self 3i.nterdependence: apart of users daily routine 4.love: warmth and passion

growth stage

2nd stage of PLC -consumers accept the product and sales rapidly increase. -goal for marketers is to increase brand loyalty and gain market share. -profits increase and peak

maturity stage

3rd stage of PLC longest stage. -sales peak and profit margins narrow. -competition is huge and market share starts to decrease - marketers remind consumers about their product (did you brush your teeth today)

brand extensions

A new product sold with the same brand name as a strong existing brand ex. clorox wet wipes

ISO 9000

A set of international standards on quality management and quality assurance, critical to international business.

product line

a firms total product offering desinged to satisify a single need or desire of target customer ex. p&g line: tide is for tough stains, dawn is for soft clothes

total quality management

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement. basically: everyone working at a company serves the customers, even employees who dont interact with consumers

brand manager

a manager who has direct responsibility for one brand or one product line; called a product manager in some firms

brand

a name term symbol of a product that identifies one firms products and sets apart from the competition.

ISO 14000

a series of international standards for managing, monitoring, and minimizing an organization's harmful effects on the environment

upward line stretch

adding new items to the product line- higher priced entrants that claim better quality or have more features. ex: when car manufacturers have multiple models that range in quality adding higher quality items

two way stretch

adds products at both the upper and lower ends. ex hotels with more exclusive rooms and average rooms

private label brands

aka store brands. brands that a certain retailer or distributor owns and sells. ex. canadian tire sells store brand moto master lawn mowers. ex. safeway and presidents choices items

family brands

aka umbrella brand. A firm's own corporate name used to brand its product lines and products. ex. microsoft is the umbrella for individually branded products like windows 10, office and xbox

cobranding

an agreement between 2 brands to work together to makret a new product. ex. dairy queen and their oreo mcflurry mcdonalds in wal mart starbucks in book stores

downward line stretch

augments a line when it adds items at the lower end. here, the firm muust make sure to not blur the images of the higher priced items. ex: rolex wouldnt want to risk its image with a cheaper watch to compete with timex or swatch adding items to lower end

national brands

brands that product manfacturers own.

product line length

determined by the number of separate items within the same category ex. for P&G, all items for fabric and home care tide, downy, febreeze, ivory, cheer, mr clean, swiffer

attributes of product quality

durable reliable precise versatile

objectives for individual products

ex. mini cooper and bmw staying separate goals might be to focus on branding new life and brand personality

product life cycle

explains how products go through 4 stages from birth to death: introduction growth maturity decline

limited product line

fewer product variations, they can improve the firms image if consumers perceive it as a specialist with clear specific position in the market. ex: rolls royce- expensive hand crafted cars built specifically for each customer

decline stage

final stage in PLC -sales decrease and customer needs change. -reason may be forced by new technology. - there may be many competitors but none have a distinct advantage. -major decision on whether to keep the product on shelves or not.

branding strategies

individual brand family brand national and store brand generic brands licensing cobranding

full product line

large number of variations in a product line that targets many customer segments to boost sales potential

brand storytelling

marketers seek to engage consumers with compelling stories about brands

six sigma

process where firms work to limit product defects to 3.4 per million or fewer Performance improvement model to create nearly defect free processes. Stat term to show 99.9997% defect-free yield for a process

generic brands

products are not branded and sold at the lwest price possible. ex. superstore selling "green beans"

brand meaning

the beliefs and associations that a consumer has about the brand. ex: gender- old spice and masculinity social class: mercades and the old, elite place: tim hortons and canada brand identification: nike and the swoosh logo

cannibalization

the loss of sales of an existing brand when a new item in a product line or product family is introduced.

product mix width

the number of different product lines the firm produces P&G Example: fabric and home care, beauty care, healthy care, snacks and beverages. all of these are in different categories

product quality

the overall ability of the product to satisfy the customers expectations. quality is tied to how customers THINK a product will perform, not necessarily the technological level of performance

product management

the systematic and usually team-based approach to coordinating all aspects of a product's marketing initiative including all elements of the marketing mix

product mix

the total self of all products a firm offers for sale. ex: P&G offers shaving products, toothbrushes, batteries etc

brand equity

the value of a brand to an organization. means that a brand enjoys customer loyalty because people believe its superior to the competition ex: 95% of people use steinway pianos

brand name

this is the most used and recognized form of branding. should fit 4 ways. 1. fit the target 2 fit the product benefits 3. fit the customer culture 4. fit legal requirements

individual brands

to use a separate unique brand for each product item. do a good job of communicating clearly what the consumer can expect from the company. ex. P&G brands each of its household items separately

licensing

when 1 firm sells another firm the rights to use a brand name for a specific purpose in a specific period of time

cons of too many brands

when this happens consumers cant differentiate brands because of poor positioning. ex GM and all their brands?