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Mass communication informs consumers faster and shortens PLCs.
3.
Products affected by technological
change tend to have shorter PLCs.
MARKETING, 6/e
BERKOWITZ
Source: Figure drawn from Wine and Liqour Handbook statistics.
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-EE Some Dimensions of the PLC--Shape
1.
2. 3.
High learning product
Low learning product Fashion product
MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-DD Some Dimensions of the PLC--Length
1.
2.
Consumer products have shorter PLCs than industrial products.
• The Gatorade brand commands more than 80% of the $1.5 billion U.S. sports drink market. • Today Gatorade is the official sports drink of Major League Baseball, the National Football League, the National Basketball Association and the National Hockey League. • Gatorade sales have been built via more flavors, multiple package sizes and forms, including glass and plastic bottles and aluminum cans. • Distribution has been expanded to include convenience stores and supermarkets followed by vending machines and fountain service. • Consistent advertising has effectively conveyed the product’s benefits and links with athletic competition.
A. High learning product B. Low learning product
Time C. Fashion product
Time D. Fad product
Time
Time
KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
MARKETING, 6/e
Harvesting, deletion
Reduced Best sellers Stay profitable Minimal promotion Fewer outlets
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
© The McGraw-Hill Companies, Inc., 2000
PP12-CC Will the Internet bury the Familiar Fax?
• Technical substitution often causes the decline stage in the PLC. • Will the Internet and E-mail replace FAX machines?
1973
1975
1977
1979
1981
1985
1983
1987
1989
1991
1993
Source: Figure drawn from Recording Industry Association of America statistics. MARKETING, 6/e
Irwin/McGraw-Hill
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
© The McGraw-Hill Companies, Inc., 2000
AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO
• Describe elements of brand personality and
PP12-C Recording industry product form life cycles
650 600 550 500 450 400 350 300 250 200 150 100 50 0
Millions of units sold
Albums Compact disks
Cassettes
$7.0 6.0 Sales ($billion) 5.0 4.0 3.0 2.0 1.0
1970 1975 1980 1982 1984 1986 1988 1990 1992 1994 1996 1997 1998 1999 MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-BB The Product Life Cycle Concept
• Products, like people, have been viewed as having a life cycle. • The concept of the product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
warranties in the marketing of a product.
MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-AA Gatorade: The Active Thirst-Quencher
4.
Fad product
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Байду номын сангаас
PP12-3 Alternative Product Life Cycles
BERKOWITZ
© The McGraw-Hill Companies, Inc., 2000
PP12-B Product life cycle for wine coolers
Millions of Dollars $1500
$1000
$500
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Stress differentiation
Growing More versions Gain share, deal Stress competitive differences More outlets
KERIN HARTLEY
Maintain brand loyalty
Many Full product line Defend share, profit Reminder oriented Maximum outlets
brand equity and the criteria for the good brand name. • Explain the rationale for alternative branding
strategies employed by companies.
• Understand the benefits of packaging and
AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
• Explain the product life cycle (PLC) concept and relate a marketing strategy to each stage. • Recognize the differences in PLCs for various products and their implications for marketing decisions. • Understand alternative approaches to managing a product’s PLC.
Competition Product Price Promotion Place (distribution) MARKETING, 6/e
Gain Awareness
None One Skimming or penetration Inform, educate Limited
BERKOWITZ
Stage of the product life cycle Sales revenue or profit
Introduction Growth Maturity Decline
Total industry sales revenue
+ 0 – Total industry profit
Marketing objective
PP12-A A Primary Demand Ad for Coffee
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-2 Product Life Cycle for the stand alone FAX machine for business use: 1970-1999
CHAPTER TWELVE
MANAGING PRODUCTS AND BRANDS
Irwin/McGraw-Hill
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
3.
Products affected by technological
change tend to have shorter PLCs.
MARKETING, 6/e
BERKOWITZ
Source: Figure drawn from Wine and Liqour Handbook statistics.
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-EE Some Dimensions of the PLC--Shape
1.
2. 3.
High learning product
Low learning product Fashion product
MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-DD Some Dimensions of the PLC--Length
1.
2.
Consumer products have shorter PLCs than industrial products.
• The Gatorade brand commands more than 80% of the $1.5 billion U.S. sports drink market. • Today Gatorade is the official sports drink of Major League Baseball, the National Football League, the National Basketball Association and the National Hockey League. • Gatorade sales have been built via more flavors, multiple package sizes and forms, including glass and plastic bottles and aluminum cans. • Distribution has been expanded to include convenience stores and supermarkets followed by vending machines and fountain service. • Consistent advertising has effectively conveyed the product’s benefits and links with athletic competition.
A. High learning product B. Low learning product
Time C. Fashion product
Time D. Fad product
Time
Time
KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
MARKETING, 6/e
Harvesting, deletion
Reduced Best sellers Stay profitable Minimal promotion Fewer outlets
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
© The McGraw-Hill Companies, Inc., 2000
PP12-CC Will the Internet bury the Familiar Fax?
• Technical substitution often causes the decline stage in the PLC. • Will the Internet and E-mail replace FAX machines?
1973
1975
1977
1979
1981
1985
1983
1987
1989
1991
1993
Source: Figure drawn from Recording Industry Association of America statistics. MARKETING, 6/e
Irwin/McGraw-Hill
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
© The McGraw-Hill Companies, Inc., 2000
AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO
• Describe elements of brand personality and
PP12-C Recording industry product form life cycles
650 600 550 500 450 400 350 300 250 200 150 100 50 0
Millions of units sold
Albums Compact disks
Cassettes
$7.0 6.0 Sales ($billion) 5.0 4.0 3.0 2.0 1.0
1970 1975 1980 1982 1984 1986 1988 1990 1992 1994 1996 1997 1998 1999 MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-BB The Product Life Cycle Concept
• Products, like people, have been viewed as having a life cycle. • The concept of the product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.
warranties in the marketing of a product.
MARKETING, 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-AA Gatorade: The Active Thirst-Quencher
4.
Fad product
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Байду номын сангаас
PP12-3 Alternative Product Life Cycles
BERKOWITZ
© The McGraw-Hill Companies, Inc., 2000
PP12-B Product life cycle for wine coolers
Millions of Dollars $1500
$1000
$500
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Stress differentiation
Growing More versions Gain share, deal Stress competitive differences More outlets
KERIN HARTLEY
Maintain brand loyalty
Many Full product line Defend share, profit Reminder oriented Maximum outlets
brand equity and the criteria for the good brand name. • Explain the rationale for alternative branding
strategies employed by companies.
• Understand the benefits of packaging and
AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
• Explain the product life cycle (PLC) concept and relate a marketing strategy to each stage. • Recognize the differences in PLCs for various products and their implications for marketing decisions. • Understand alternative approaches to managing a product’s PLC.
Competition Product Price Promotion Place (distribution) MARKETING, 6/e
Gain Awareness
None One Skimming or penetration Inform, educate Limited
BERKOWITZ
Stage of the product life cycle Sales revenue or profit
Introduction Growth Maturity Decline
Total industry sales revenue
+ 0 – Total industry profit
Marketing objective
PP12-A A Primary Demand Ad for Coffee
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
PP12-2 Product Life Cycle for the stand alone FAX machine for business use: 1970-1999
CHAPTER TWELVE
MANAGING PRODUCTS AND BRANDS
Irwin/McGraw-Hill
MARKETING, 6/e
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000