11

Managing Products and

Brands

2006 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.

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

 2006 McGraw-Hill Ryerson Ltd. All rights reserved.

MANAGING PRODUCTS
AND BRANDS
CLEARLY CANADIAN: Product Management in a
Competitive Environment
Sold over 2.1 billion bottles of Clearly Canadian
Innovation is a key success factor

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PRODUCT LIFE CYCLE

Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Deletion
Harvesting

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Ford Hybrid Ad
Introductory stage
product

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Canon Digital
Camera Ad
Growth stage
product

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Product Life Cycle

A concept that provides a

way to trace the stages of a
products acceptance, from
its introduction (birth)
to its decline (death).

Nortel
2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Product Life Cycle

Introductory Growth
Stage
Stage

Maturity
Stage

Decline
Stage
Product

Dollars

Category
Sales

Product
Category
Profits

Time
2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PRODUCT LIFE CYCLE

FIGURE 11-1
How stages of the
PLC relate to a
firms marketing
objectives and
marketing mix
actions (Page 281)

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 11-3 Alternative product life cycles

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

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

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 11-4 Video game console and software life cycles

by product class and product form

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PRODUCT LIFE CYCLE

Some Dimensions of the Product Life Cycle (cont.)

The Life Cycle and Consumers

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 11-5 Five categories and profiles of product

adopters

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

MANAGING THE
PRODUCT LIFE CYCLE
Role of a Product Manager
Modifying the Product
Product modification

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

MANAGING THE
PRODUCT LIFE CYCLE
Modifying the Market
Market modification
Finding New Users
Increasing Use
Creating New-Use Situation

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

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

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Marketing Strategies for

PLC
INTRODUCTION

Product
Strategy

GROWTH

MATURITY

Limited models
Frequent
changes

More models
Frequent
changes.

Distribution
Strategy

Limited
Wholesale/
retail distributors

Expanded
dealers. Longterm relations

Extensive.
Margins drop.
Shelf space

Promotion
Strategy

Awareness.
Stimulate
demand.Sampling

Aggressive ads.
Stimulate
demand

Advertise.
Promote
heavily

Higher/recoup
development
costs

Fall as result of
competition &
efficient production.

Pricing
Strategy

Large number
of models.

Prices fall
(usually).

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

DECLINE

Eliminate
unprofitable
models
Phase out
unprofitable
outlets

Phase out
promotion

Prices
stabilize at
low level.

BRANDING AND
BRAND MANAGEMENT
Branding
Brand name
Trade name
Trademark

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Brand
A name, term, symbol, design,
or combination thereof that
identifies a sellers products and
differentiates them from
competitors products.

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Branding can include

Product
Packaging
Place
Advertising
Promotion
Tag Line
Price
Symbol

Zoom-Zoom-Zoom

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Branding
Brand
Brand
Name
Name
Brand
Brand
Mark
Mark
Brand
Equity

That part of a brand that can be

spoken, including letters, words,
and numbers.
The elements of a brand that
cannot be spoken.
The value of company and brand
names.

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Benefits of Branding
Product
Identificatio
n

Repeat
Sales

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

New
Product
Sales

An Effective Brand Name

Is easy to pronounce
Is easy to recognize and remember
Is short, distinctive, and unique
Describes the product, use, and benefits
Has a positive connotation
Reinforces the product image
Is legally protected

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Branding Strategies
Brand
Manufacturers
Brand
Individual Family
Brand
Brand

No Brand

Private Brand

Combi- Individual Family

nation
Brand
Brand

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Combination

Advantages of
Manufacturers Brands

Develop customer loyalty

Attract new customers
Enhance prestige
Offer rapid delivery, can carry less inventory
Ensure dealer loyalty

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Advantages of
Private Brands

Earn higher profits

Ties customer to wholesaler or retailer

Less pressure to mark down prices

Manufacturer may drop a brand or become a
direct competitor to dealers
No control over distribution of
manufacturers brands

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Cobranding
Complement
Complement
Ingredient
Ingredient
ary
ary
Branding
Branding

Branding
Branding

Cooperative
Cooperative
Branding
Branding

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Trademarks
The exclusive right to use a brand or part of a brand
Parts of a brand or other product identification may
qualify for trademark protection

Rights to a trademark last as long as the mark is used

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Packaging
Contain and Protect
Promote
Facilitate Storage, Use,
and Convenience

Functions
of
Packaging

Facilitate Recycling
Courtesy of the Nelson RF Collection
2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Global Issues in
Packaging
Labelling
Global
Considerations
for Packaging

Aesthetics
Climate
Climate
Consideration
Consideration
ss

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Product Warranties
Warranty
Warranty

A confirmation of the quality or

performance of a good or
service.

Express
Express
Warranty
Warranty

A written guarantee.

Implied
Warranty

An unwritten guarantee that the

good or service is fit for the
purpose for which it was sold.
(UCC)
2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Universal Product Codes

A series of thick and thin vertical
lines (bar codes), readable by
computerized optical scanners,
that represent numbers used
to track products.

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Labeling
Persuasive

Focuses on
promotional
theme
Information is
secondary

Informational

Helps make
proper selections
Lowers cognitive
dissonance
Includes use/care

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

BRANDING AND
BRAND MANAGEMENT
Brand Personality and Brand Equity

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

got2b ad
Brand personality
trait?

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Liz Claiborne Ad
Brand personality trait?

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 11-6 Customer-based brand equity pyramid

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

BRANDING AND
BRAND MANAGEMENT
Brand Personality and Brand Equity (cont.)
Creating Brand Equity
Valuing Brand Equity
Brand Licensing

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

General Motors Ad
Licensing
Arrangement for
Hummer Footwear

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

BRANDING AND
BRAND MANAGEMENT
Picking a Good Brand Name
Branding Strategies
Multiproduct branding
Multibranding
Private Branding
Cohort Brand Management
Mixed Branding

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 11-7 Alternative branding strategies

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PACKAGING AND LABELLING

Creating Customer Value Through Packaging and

Labelling

Communication Benefits
Functional Benefits
Perceptual Benefits

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PACKAGING AND LABELLING

Can you name this soft drink?

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PACKAGING AND LABELLING

Which chip stacks up better?

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Black and Decker Ad

Multibranding strategy
for do it yourself
market

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Black and Decker Ad

Using the Dewalt
name for its
professional tool line.

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PACKAGING AND LABELLING

Global Trends in Packaging

Environmental Sensitivity
Health and Safety Concerns

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

PRODUCT WARRANTY

Express warranties
Limited-coverage
Full coverage
Implied warranties

2006 McGraw-Hill Ryerson Ltd. All rights reserved.