Product Life Cycle
the stages a new product goes through in the marketplace, introduction, growth, maturity, decline
Introduction Stage
Sales grow slowly, profit is minimal. Market objective for the company is to create consumer awareness and stimulate trial.
Trial
the initial purchase of a product by a consumer
Primary Demand
the desire for the product class rather than for a specific brand. since there are few competitors with the same product
Selective Demand
the preference for a specific brand
skimming
help the company recover costs of development as well as capitalize on the price insensitivity of early buyers
Penetration Pricing
When a company initially prices low to prevent competitors from entry
Growth Stage
Rapid Increases in sales. this is the stage where competitors appear
Repeat Purchasers
people who bought the product, liked it, came back for some more lovin
Maturity Stage
Characterized by slowing of total industry sales or product class revenue. Marginal competitors begin to leave market. try to hold market share and maybe find some new buyers
Decline Stage
When sales drop
Two strategies to handle a declining product
deletion or harvesting
Deletion
Dropping the product from the companies product line
Harvesting
Retains Product but reduces marketing costs
High Learning product
one for which significant customer education is required and there is extended introduction period
Low Learning Product
Sales begin immediately because no learning is needed
Fashion Item
Style of the times. like apparel.
Fad
Rapid sales, rapid decline
Product Class
refers to the entire product category or industry, such as prerecorded music
Product Form
variations within a product class, likes cd's and mp3's
Diffusion of innovation
The process going through Innovators to early adopters to early buyers to late majority to laggards
Brand Manager
Use category development index and brand development index to do something
Product Modification
altering a products characteristic, such as quality, performance, or appearance, to increase the products value to customers and to increase sales
Product Bundling
the sale of two or more seperate products in one package
Market Modification
a company tries to find new customers, increase a products use among existing customers, or create new use situations
Product Repositioning
changes the place a product occupies in a consumers mind relative to competitive products
Trading Up
adding value to a product through additional features or higher quality materials
Trading Down
Reducing the number of features, quality or price
branding
where an org uses a name, phase, design, sumbols or combo of these to identify its products and distinguish themselves
brand name
any word, device, or combo of these used to distinguish a sellers good or service
Trade Name
commercial, legal name under which a company does busniess
trademark
identifies that a firm has legally registered its brand name or trade name so the firm has exclusive use, thereby preventing others from using it
product counterfeiting
low cost copies of popular brands not made by original producer
Brand Personality
a set of human characteristics associated with a brand name
Brand Equity
the added value a brand name gives to a product beyond its functional benefits
4 Steps to brand equity
Develop positive brand awareness---establish a brands meaning in the mind of consumers---elicit the proper consumer responses to brand identity and meaning---create a consumer brand connection evident in an intense, active loyalty relationship between con
Brand Licensing
contractual agreement where one company allows its brand names or trademarks to be used with products of services offered by another company for a royalty fee
5 Criteria in selecting a brand name
Name should suggest product benefits----name should be memorable, distinctive and positive---Name should fit company product image---Name should hae no legal restrictions---name should be simple and emotional
Multiproduct branding
company uses one name for all of its products. sometimes called family or corporate branding
line extensions
the practice of using a current brand name to enter a new market segment in its product class
Subbranding
combines a corporate or family brand with a new brand
brand extension
the practive of using a current brand name to enter a completely different product class
co branding
pairing two brand names of two manufacturers on one product
Multibranding
giving each product a distinct name
Fighting brands
to confront competitor brands. mattel flava dolls
Private Branding
when a company manufactors products but sels them under the brand name of a wholesaler or retailer
Mixed Branding
where a firm market products under its own name and that of a reseller becasue the segment attracted to the reseller is different from its own market
packaging
any container in which it is offered for sale and whre label information is displayed
label
intergral part f packaging, identifies brand andwho made it, where and when it was made blah blah
Package and label designers face four challenges
Continuing need to connect with customers---environmental concerns---health safety and security issues---cost reduction
Shelf Life
Prevent spoilage
warranty
a statement indicating the liability of the manufacturer for product deficiencies
express warranties
written statements of liabilities
limited coverage warranty
specifically states the bounds of coverage and areas of non coverage
full warranty
no limits of non coverage
implied warranties
assing responsibility of product deficiency to manufacturer