Upload
dora-hunt
View
214
Download
0
Tags:
Embed Size (px)
Citation preview
Product PlanningSustaining Product Sales
Chapter 30.2
What is a product life cycle?A representation of the stages that a product
goes through during its lifeThere are 4 stages of the life cycle
Introduction GrowthMaturityDecline
The Product Life CycleDollars
Time
Profit
Sales
Introduction
Growth
Maturity
Decline
Obsolete
Managing the IntroductionCompany is focused on
Promotion and ProductionGetting the customers attentionBuilding sales and customer awareness
Costs in this stage are high, therefore this is the least profitable stage of the cycle
Managing the GrowthThere is an increase in sales and profitsMost of the target market knows about and
buys the productCompany now focuses on
Customer satisfactionCompeting with rival companies
Managing the MaturitySales level off and slow downMore competition exists Most of target market owns the productCompany starts to think of ways to improve
the product
Managing the DeclineSales fall and there is profit lossWays to keep the product alive
Sell or license the productRecommit to the product line – try to increase
advertising and promotionDiscount the productRegionalize the product – sell only in areas
with strong customer loyaltyModernize or alter the product
Product PositioningThe efforts a business makes to identify,
place, and sell its products in the marketplaceThe goal is to set the product apart from the
competition A number of strategies can be used to
position products in the marketplacePositioning by price and qualityPositioning by features and benefitsPositioning in relation to the competitionPositioning in relation to other products in the
line
Positioning by Price and QualityA company may offer an economy line, a mid-
priced line, and a luxury lineStresses high price as a symbol of quality or
low price as an indication of value
Economy Line
Mid-priced Line Luxury Line
Positioning by Features and BenefitsProducts are often associated with a feature,
attribute, or consumer benefit
Positioning in Relation to CompetitionSome businesses position their products to
compete directly with the products of other companies
VS
VS
Positioning in Relation to Other Products in a Line
Individual products may be positioned in relation to other products in the same line
Original Palm Pilot
Zire
Tungston
Trio
Additional FeaturesMP3 playerView PhotosPlay Video Clips
Additional FeaturesE-mailSurf the Web
Additional FeaturesCell Phone Service
RepositioningWhen a product reaches the
decline stage of the product life cycle it must be changed – or repositioned
Repositioning – changing the identity or image of a product to redirect or expand the target market
Examples: Pledge
Pledge Commercial
Category ManagementA process that involves managing product
categories as individual business unitsA category may include a group of product
lines with the same target market and distribution channels
Goal – to put manufacturers and retailers in closer touch with customer needs
PlanogramsA computer developed diagram that shows
retailers how and where products should be displayed on the shelf…maximizing the products potential
AssignmentGet the Orange TextbooksComplete the questions from Chapter 30.2Questions 1-3 on page 647Questions 7, 8, 9, 10, 11 on page
649