Lecture 11 -- Product and Brand Management

Product Life Cycle

The stages a product goes through from introduction to decline, including introduction, growth, maturity, and decline.

Introduction Stage

The first stage in the product life cycle where efforts are focused on stimulating trial and building primary demand(for category) & then selective demand (for brand).

Growth Stage

The stage in the product life cycle characterized by rapid sales growth and increasing competition. Potential Strategies: Achieve broadest possible distribution & Add new features to differentiate from competition

Maturity Stage

The stage in the product life cycle where industry sales slow, defending market share a key objective, differentiation a key strategy.

Decline Stage

The final stage in the product life cycle where sales drop, leading to potential strategies like harvesting or deletion.

Modifying the Product

•Quality improvement (e.g., better taste, longer shelf life, etc.)

•New characteristics (e.g., add DuraCeramic coating to grill)

Modifying the Market

•Finding new customers (e.g., Facebook for baby boomers)

•Increasing a product’s use (e.g., drinking orange juice at all times of the day – not just breakfast)

•Creating a new use situation (e.g., Hershey Bar in a S'more)

Branding

The use of a name, logo, or a combination of both to identify a product and distinguish it from competitors, creating a unique promise of value. Brand names and logos need to be trademarked

Brand Equity & Personality

•Important to create Brand Personality

•Goal is to build Brand Equity

• The added value a brand name gives to a product beyond its functional benefits.

Consumer-Based Brand Equity Pyramid

A model that outlines the levels of consumer-brand connection, awareness, performance, imagery, and judgments.

Creating Brand Equity

•Build authenticity

• Develop trust with consumers

• Has become increasingly important (see article)

Packaging