Bangor Transfer Abroad Programme Introduction to Marketing From Products to Brands and Beyond Creating Customer Values

Bangor Transfer Abroad ProgrammeBangor Transfer Abroad Programme

Introduction to MarketingIntroduction to Marketing

From Products to Brands and From Products to Brands and BeyondBeyond

Creating Customer Values



Structure

• Creating Values• Product Life Cycle• New Product Development• Branding• Product Management



The Marketing CycleThe Marketing Cycle

交易商業消費者

Physical Physical ProductsProducts

BrandsBrandsServicesServices



• A way to trace the stages of a product's acceptance from its introduction to its demise.

• Refers to the life of the product category The time a product category spends in a stage of the product life cycle may vary from a few weeks to decades.

• A tool to help marketers understand

- where their product is now- what may happen -- which strategies are normally appropriate

Product Life CycleProduct Life Cycle


Introduction to MarketingIntroduction to MarketingLife CycleLife CycleManagementManagement



Introduction StageIntroduction StageSales grow slowlySales grow slowly Profit is minimal or negativeProfit is minimal or negative

Create awareness Create awareness Stimulate trialStimulate trial

High production costsHigh production costs Limited product modelsLimited product models

Frequent product Frequent product modificationmodification Penetration pricing Penetration pricing

Skimming pricing Skimming pricing Little competitionLittle competition

High failure rate, High failure rate, High marketing costsHigh marketing costs

Promotion strategy focuses on primary demand for the Promotion strategy focuses on primary demand for the product categoryproduct category- developing product developing product awareness awareness

- Informing about product Informing about product benefits.benefits.

Intensive personal selling to retailers and wholesalers is Intensive personal selling to retailers and wholesalers is requiredrequired



Growth StageGrowth StageCharacteristicsCharacteristics

Sales grow at an increasing Sales grow at an increasing rate. rate.

Many competitors enter the Many competitors enter the market. market.

Large companies may Large companies may acquire small pioneering acquire small pioneering firms. firms.

Profits are healthyProfits are healthy

Promotion emphasisPromotion emphasis

- heavy brand advertising - heavy brand advertising - Differences between Differences between brands.brands.

Gaining wider distribution is a key goal Gaining wider distribution is a key goal

Toward the end of this stageToward the end of this stage

- prices normally fall - prices normally fall - profits reach their peak. - profits reach their peak.

Development costs have Development costs have been recovered been recovered

Sales volume has created Sales volume has created economies of scale.economies of scale.



Maturity StageMaturity StageSales continue to increase but Sales continue to increase but at a decreasing rate at a decreasing rate

The marketplace is The marketplace is approaching saturation approaching saturation

Annual models of many Annual models of many products products

An emphasis on product style An emphasis on product style rather than function rather than function

Product lines are widened or Product lines are widened or extended extended

marginal competitors begin marginal competitors begin dropping out of the market. dropping out of the market.

Heavy promotions to both the Heavy promotions to both the dealers and consumers are dealers and consumers are required. required.

Prices and profits begin to fall. Prices and profits begin to fall.



Decline StageDecline Stage

Signaled by a long-Signaled by a long-run drop in sales. run drop in sales.

Falling demand forces Falling demand forces many competitors out many competitors out of the market of the market

- The rate of decline is - The rate of decline is governed by how governed by how rapidly consumer rapidly consumer tastes change ortastes change or- how rapidly - how rapidly substitute products substitute products are adopted.are adopted.

A few small specialty A few small specialty firms may still firms may still manufacture the manufacture the product. product.



New Product DevelopmentNew Product Development新產品發展


Introduction to MarketingIntroduction to MarketingInnovation – AdoptionInnovation – Adoption



Common reasons for resisting a product in the Common reasons for resisting a product in the introduction stage areintroduction stage are

usage barriersusage barriers product is incompatible with product is incompatible with existing habitsexisting habits

value barriersvalue barriers product provides no incentive product provides no incentive to changeto change

risk barriersrisk barriers physical, economic, or socialphysical, economic, or social

psychological barriepsychological barriersrs cultural differences or imagecultural differences or image



Product MixProduct Mix Number of Product Lines FEW MANYAssortment of Narrow variety Wide variety Product items Shallow assort. Shallow assort.

in each line Narrow variety Wide variety

Deep assort. Deep assort.


Introduction to MarketingIntroduction to MarketingNarrow Variety/Narrow Variety/Shallow assortmentShallow assortment

Most limited selectionMost limited selection

Unconventional outlets e.g. vending machines / Unconventional outlets e.g. vending machines / door-to-doordoor-to-door

Needs wide availability (extensive)Needs wide availability (extensive)



Specialise in few lines - wide selectionSpecialise in few lines - wide selection

within linewithin line

Clear Brand ImageClear Brand Image

Narrow Variety /Narrow Variety /Deep assortmentDeep assortment


Introduction to MarketingIntroduction to MarketingWide Variety /Wide Variety /Shallow assortmentShallow assortment

““a little of everything”a little of everything”

Convenience productsConvenience products


Introduction to MarketingIntroduction to MarketingWide Variety / Wide Variety / Deep assortmentDeep assortment

Large number of product lines with deep Large number of product lines with deep assortment in eachassortment in each

E.G. Large Department StoresE.G. Large Department Stores


Introduction to MarketingIntroduction to MarketingProduct Product ManagementManagement



Role of a Product ManagerRole of a Product Manager

Product manager is responsible for marketing Product manager is responsible for marketing products through the successive stages of their life products through the successive stages of their life cycles. cycles.

Product (or brand) manager manages the Product (or brand) manager manages the marketing efforts for a close-knit family of products marketing efforts for a close-knit family of products or brands. or brands. Three ways to manage: Three ways to manage:

- - modify the productmodify the product - modify the market- modify the market

- reposition the product. - reposition the product.

Documents

Bangor Transfer Abroad Programme Introduction to Marketing From Products to Brands and Beyond Creating Customer Values