Explain the product life cycle concept.
Identify management strategies for a product’s life cycle.
Recognize branding importance and alternative strategies.
Describe packaging and labeling roles in marketing.
Expand understanding of the four P’s in service marketing.
Product Life Cycle Concept
Definition: The product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
Each stage has distinct marketing objectives and actions.
Stages of the Product Life Cycle
Introduction Stage
Objectives: Stimulate trial and create primary demand.
Strategies:
Skimming pricing to recoup costs.
Penetration pricing to capture market share.
Growth Stage
Characteristics: Rapid sales growth, increased competition, and peak profits.
Focus on advertising for selective demand, new features, and broad distribution.
Maturity Stage
Symptoms: Sales plateau, fewer new buyers, declining profits.
Strategies: Product differentiation, improving quality, and brand loyalty.
Examples: Soft drinks, breakfast cereals.
Decline Stage
Outcomes: Industry and product sales drop, leading to price reductions.
Strategies include product deletion or harvesting—cutting marketing costs but keeping the product available.
Three Aspects of the Product Life Cycle
Length of the life cycle.
Shape of the curve:
High-learning products require significant education.
Low-learning products have fewer barriers to adoption.
Fashion and fad products have different life cycles.
Difference between product class and form:
Product class: Entire category (e.g. prerecorded music).
Product form: Variations within a class (e.g. cassettes vs. CDs).
Role of Product/Brand Manager
Responsible for managing product life cycle stages.
Involved in new-product development and marketing program implementation.
Utilizes marketing metrics like Category Development Index (CDI) and Brand Development Index (BDI).
Branding and Brand Management
Definition of Branding: Marketing strategy involving a name, phrase, design, or symbols to distinguish products.
Brand Equity: Added value a brand name provides beyond functional benefits.
Brand Purpose: The rationale for the brand's existence and how it benefits society.
Picking a Good Brand Name
Qualities:
Suggest product benefits.
Memorable, distinctive, positive.
Align with company image and avoid legal issues.
Branding Strategies
Multiproduct Branding: One name for all products within a product class.
Multibranding: Distinct names for each product targeting different segments.
Private Branding: Products under a wholesaler’s name.
Mixed Branding: Firm markets products under its own name and a reseller’s name.
Packaging and Labeling
Definition: Packaging is any container that provides information about the product and its contents.
Functions:
Communication: Provides information to consumers.
Functionality: Aids in storage and protection.
Perceptual: Builds brand image in consumer’s mind.
Challenges in Packaging and Labeling
Connection with customers through design and appeal.
Environmental Concerns: Reducing waste and eco-friendly packaging.
Health and Safety Issues: Ensuring product safety during storage.
Cost Reduction: Minimizing production costs while maintaining quality.
Services Marketing: The Seven P’s
Product: Intangible services need strong branding.
Price: Strategies like off-peak pricing to manage demand.
Place: Distribution strategies for services.
Promotion: Effective communication strategies for services.
People: Service delivery relies on human interaction.
Physical Environment: Influences customer perceptions of the service.
Process: Capacity management for service delivery.