Quiz #3: Topic #9 - Managing the Product
Variations
1. cycle-recycle pattern 2. scalloped pattern
Stages & Strategies
1. preintroduction 2. introduction 3. growth 4. maturity 5. decline
Trickle-down
started on the runway (designer fashion shows) ex: capri pants, polo shirts, rugby shirts
Product Mix Strategies
strategies used to manage the product mix *expansion, contraction, alteration, positioning, trading up
Qualities Important for Successful Branding
successful means the brand will increase sale *must be promoted, output must consistent, product must be differentiated
Brand mark
symbol ex: Nike swoosh
Elements of Product Mix
terminology used to describe the products marketed by a business *product mix, product line, breadth, depth, trading up & trading down
product must be differentiated
the brand must stand for something
brand insistence
the consumer will buy only one brand
Depth (deep/shallow)
the number of products in a product line, deep means lots of products per line, shallow means fewer products per line
Trading Down
add a lower end product to the product mix
Expansion
add product lines to the product mix ex: when Target first added groceries
Trading Up
add a higher end (more expensive version) product to the mix
Brand
anything that lets the consumer know who the marketer of the product is
emulation
appeal is to reflect celebrities, fashion has gotten copied, available at boutiques and department stores RTW: ready to wear
distinctiveness
appeal of the fashion is its uniqueness, wearers of the fashion are trying o standout
Accepted Stages
brand recognition/brand awareness, brand preference, brand insistence
brand preference
brand the consumer would buy
Branding
brand, brand name, brand mark, trademark, copyright
Planned Styles Obsolescence
change the look or the style of the product, so the old style looks outdated ex: fashion
decline
clearance
growth
competition has entered the market, strategy - build secondary demand (secondary demand is demand for the brand)
output must be consistent
consumer expects the brand to be the same to be loyal
Positioning
define the products in terms of the competition (target marketing is defining the product in terms of the customer like a phone plan for families) positioning would be saying we have the least expensive phone plans
Planned Functional Obsolescence
deliberately make the product go obsolete so the business can sell the consumer another one
Planned Obsolescence
deliberately make the product go obsolete so the business can sell the consumer another one
Alteration
drop or add individual products
Contraction
drop product lines from the product mix ex: when Sara Lee dropped underwear
Product Mix
every product that the business markets
mass fashion
fashion is now in chains, widely knocked off much less expensive are available, RTW
preference test
find out if people like the brand name
The Model
graph of sales versus time, the origin is commercialization
Product Line
group of similar products and the product lines are part of the product mix
Adoption Patterns (for fashion)
how a fashion can become popular in a market 1. trickle-up 2. trickle-down 3. trickle-across
memory test
how easy is the brand name to remember
The Product Life Cycle
key tool for managing the product mix, model of how sales for a product change over time *the model, stages & strategies, variations
Trademark
legal protection for a brand, means no other business may use it without permission
Copyright
legal protection for a creative work, used in marketing to protect ads, slogans, package design, jingles
introduction
little or no competition, strategy - build primary demand (primary demand is demand for the product)
national
manufacturer or marketer owns the brand (trademark), like Pepsi, Nike, Martin's chips
brand recognition/awareness
means the consumer has heard of the brand
Recyclable Packaging
most packaging is recyclable
Types of Brands
national, private, generic
must be promoted
need to build brand awareness
Family Packaging
place different products in a similar package ex: Campbell's soup or Mrs. Paul's seafood, used to get consumers who like one product to identify and try the others, also bills recognition in the store
Multiple Packaging
place multiple units of the product in the same package ex: like a pack of soft drink, used to sell more of the product
Fashions
popular for a few seasons or years ex: yoga pants
Styles
popular for at least a decade ex: hoodies
Staples
popular for multiple generations ex: denim jeans
Fads
popular for only one season
Trickle-across
popular with all socio-economic classes at the same time ex: yoga pants
Trickle-up
popular with lower socio-economic classes first, street wear ex: hoodies and boyfriend jeans
preintroduction
product not yet for sale, strategy - test feasibility, product development
Returnable Packaging
refillable, used to be very common, but now less common because transportation is too expensive
cycle-recyle pattern
remarked by either cutting the price or a promotional push
scalloped pattern
remarker by finding a new use for the product
private
retailer owns the trademark, like Weis brand
Reuse Packaging
reused by the consumer ex: Welch's jams and jellies come in a drinking glass
maturity
sales have leveled off at a high level and the market has stabilized with weaker competitors leaving the market, products in this stage are cash cows because with a lot of money, strategy - maintenance marketing (defend market share)
decline
sales start to fall must determine if the product has a future, two strategies - if it has future then remarker, if it does not have a future then divest or harvest (harvest: continue to make the product but don't invest in it)
Breadth (wide/narrow)
the number of product lines in the product mix, wide means lots of product lines in the product mix, narrow means few product lines in the product mix
Fashion Lifecycle Stages
the same model as the product life cycle with different stage names 1. distinctiveness 2. emulation 3. mass fashion 4. decline
Brand name selection
to try to find out what type of product the brand reminds the consumer of *association test, learning test, memory test, preference test
learning test
try to find out how easy the brand name is to pronounce, important for word of mouth
association test
try to find out what type of product the brand reminds the consumer of
generic
unbranded, no trademark
Planned Material Obsolescence
use cheaper less durable inputs so the product would wear out more quickly ex: tires with thinner tread
Brand name
word ex: Nike