This document provides an overview of product and brand management. It defines what a product is, discusses different types of products including consumer and business products. It also covers key product management concepts like the core benefit of a product, different levels of a product from the expected to the potential product, and strategies for managing a product portfolio including product line extensions and stretching a product line.
this is ppt presentation on product management . it covers features of product ,product levels ,product classification ,product mix and product life cycle stratagies
Distribution Channel
Management of Distribution Channel
Need of Distribution Channel
Need for Channel Management
Channel Partners and their Functions
Difference between Distributor and Wholesaler
Choice of Distribution System
Distribution Strategy
Factors Affecting Effective Management of Distribution Channels
Channel Conflict
Conflict Resolution
Motivating Channel Members
Selecting Channel Partners
Evaluating Channels
Channel Control
this is ppt presentation on product management . it covers features of product ,product levels ,product classification ,product mix and product life cycle stratagies
Distribution Channel
Management of Distribution Channel
Need of Distribution Channel
Need for Channel Management
Channel Partners and their Functions
Difference between Distributor and Wholesaler
Choice of Distribution System
Distribution Strategy
Factors Affecting Effective Management of Distribution Channels
Channel Conflict
Conflict Resolution
Motivating Channel Members
Selecting Channel Partners
Evaluating Channels
Channel Control
Influence of culture on consumer behavior by jayshah316Jay Shah
The role culture plays in building a sound brand strategy is more important than ever. Think beyond demo and psychographic insights. While those elements still play an important role, savvy brand builders are layering in the measurable impact consumer’s culture has on what brands they support.
A product can be anything that can be offered to the market to satisfy a want or a need.
This article describes the Five Product Levels of Philip Kotler, including examples and a template. After reading you will understand the basics of this powerful product marketing tool. In this article you can also download a free Five Product Levels template.
Brand management is the analysis and planning on how that brand is perceived in the market. Developing a good relationship with the target market is essential for brand management. Tangible elements of brand management include the product itself; look, price, the packaging, etc. The intangible elements are the experience that the consumer has had with the brand, and also the relationship that they have with that brand.Brand management is a function of marketing that uses special techniques in order to increase the perceived value of a product
Industrial marketing (or business-to-business marketing) is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.
Influence of culture on consumer behavior by jayshah316Jay Shah
The role culture plays in building a sound brand strategy is more important than ever. Think beyond demo and psychographic insights. While those elements still play an important role, savvy brand builders are layering in the measurable impact consumer’s culture has on what brands they support.
A product can be anything that can be offered to the market to satisfy a want or a need.
This article describes the Five Product Levels of Philip Kotler, including examples and a template. After reading you will understand the basics of this powerful product marketing tool. In this article you can also download a free Five Product Levels template.
Brand management is the analysis and planning on how that brand is perceived in the market. Developing a good relationship with the target market is essential for brand management. Tangible elements of brand management include the product itself; look, price, the packaging, etc. The intangible elements are the experience that the consumer has had with the brand, and also the relationship that they have with that brand.Brand management is a function of marketing that uses special techniques in order to increase the perceived value of a product
Industrial marketing (or business-to-business marketing) is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.
Maanagement of Marketing UNIT-3 &4 product.pptetebarkhmichale
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because they did not want to share their wealth. The universal law of attraction is simple. We attract whatever we choose to give our attention to. If we focus on bad things, we will attract more bad things. But the minute you stop focusing on bad and focus on good, you change the pattern and now good things start coming your way.
If we knew the law of attraction and applied it in our lives daily, we would have so much power and control that it would be scary. We could have what we wanted, and when we wanted it. We would have total control of our lives. If you think of yourself as a powerful attractor, you will attract more of what you want in your life, simply by thinking about it, then acting on it. But there is one ingredient you cannot leave out or the law of attraction won't work.
When we think of an object in our mind, we then send that image to our hearts and act on it with emotion. A formula makes this easy to follow: TFAR (Thoughts, Feelings, Actions, and Results) When we take necessary action, the universe shows up and gives us the results we wanted.
The law of attraction works by performing three steps. And these steps must be done for the process to work. These steps are:
1. Getting clear. You must know what it is you want or else you won’t get it. The universe won’t know what you are asking for, so how can it deliver?
2. Vibrate to the level of energy corresponding to what you want. If you want something and you think about it, feel it, and act on it, you must keep that level of energy going until you achieve the results you are after.
3. Attract what you want like a magnet. If you focus on what you want but don’t allow it to come into your life, it won’t. You have to be willing to accept it and acknowledge it. Then when you act, it will occur.
Whatever you do during the course of a day, whatever thoughts you think about, you are attracting. If you use it every day, regularly, and practice it this way, you will eventually find that it becomes a habit that you will subconsciously practice.
You may not believe it, but the steps you need to take are easy. But you must do them, believe in them, and believe in yourself, or they will not work. Are you ready to get tuned into the universe and get clear? Can you work in harmony with the laws of the universe and become successful?
If so here are the steps you need to follow:
1. Get clear. You must know exactly what it is you want. If you are in doubt, vague, or too general, you won’t get anywhere. You must know exactly what it is you want first. Only then will you be able to focus and concentrate on that thought?
2. Visualize what you want and vibrate to it. You must form a mental image in your mind so you can see it as if you had it in your possession. For women, you can do the
The following table shows data from a fictional cohort study of in.docxarnoldmeredith47041
The following table shows data from a fictional cohort study of industrial workers followed over 30 years to see if exposure to industrial organic solvent affects cognitive function adversely. Use the information below for the following question.
Organic Solvent Exposure
Number of Participants
Impaired Function
Yes
28654
818
No
71346
649
Total
100000
1467
Calculate and interpret the risk of impaired function in participants exposed to organic solvents and those who were not.
1
COM5111
Product Policy
Week 5 SemB 2019-20
2
Learning Objectives
1. What are the characteristics of products, and how do marketers classify product?
2. How can companies differentiate products?
3. Why is product design important, and what are the different approaches taken?
4. How can a company build and manage its product mix and product lines?
5. How can marketers best manage luxury brands?
6. What environmental issues must marketers consider in their product strategies?
7. How can companies combine products to create strong co-brands or ingredient
brands?
8. How can companies use packaging, labeling, warranties, and guarantees as
marketing tools?
3
Components Of The Market Offering
Marketing planning begins with formulating an offering to meet target customers’ needs or wants
customer will judge the offering
on three basic elements
Slide 15 & 16 Slide 17
4
Product Characteristics
and Classifications
• Product
– Anything that can be offered to a market to satisfy a want or need,
including physical goods, services, experiences, events, persons,
places, properties, organizations, information, and ideas
https://www.youtube.com/watch?v=xYjoBAUOjTk
5
Characteristics of Winning Products
A unique superior product—
a differentiated product that delivers unique benefits and a
compelling value proposition to the customer or user—
is the number one driver of new-product profitability
Source: Robert G. Cooper, Winning at New Products: Creating Value through Innovation (New York: Basic Books, 2011), p. 32.
How about your individual assignment?
6
Unique and superior products tend to have the followings in
common
1. are superior to competitors’ products in terms of meeting users’ needs
2. solve a problem the customer has with a competitive product
3. feature good value for the money and excellent price and performance
characteristics
4. provide excellent product quality, according to customers’ way of defining quality
5. offer features easily perceived as useful by the customer
6. offer benefits that are highly visible to the customer
Source: Robert G. Cooper, Winning at New Products: Creating Value through Innovation (New York: Basic Books, 2011), p. 33.
7
Product Levels: The Customer-Value Hierarchy
• The Five Product Levels
The service or benefit
the customer
is really buying
e.g. rest & sleep
The marketer must
turn the core benefit
into a basic product
e.g. bed, bathroom …
A set of attributes
and c.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
1. G PRODUCT
U
R
AND
U BRAND
R MANAGEMENT
A
J
P
H
A
T
Slides Prepared by
A GURURAJ PHATAK
K’ B.Sc ,MBA
(PhD)
S
2. WHAT IS A PRODUCT?
A product is anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or need.
1. A product may be a tangible good, a service, an idea,
or any combination of these three.
2. Product features include packaging, style, color,
options, and size. Service features include the seller’s
image, the manufacturer’s reputation, and the way
consumers believe others will view the product.
4. Services and ideas are also considered products.
12. POTENTIAL PRODUCT
Namely all of the
augmentations and
transformations that this
product might ultimately
undergo in the future.
13. Product
Classifications
Business A product used to manufacture other goods or
services, to facilitate an organization’s operations,
Product or to resell to other consumers.
Consumer Product bought to satisfy an
Product individual’s personal wants
06/22/12 13
14. Types of Products
PRODUCTS
Consumer Business
Products Products
Convenience Shopping Specialty Unsought
Products Products Products Products
06/22/12 14
15. Types of Business Products
Major Equipment
Accessory Equipment
Raw Materials
Component Parts
Major Processed Materials
Categories
Supplies
of Business
Products Business Services
06/22/12 15
16. • Major equipment: capital goods such as large or
expensive machines, airplanes, buildings. Personal
selling is an important marketing strategy.
• Accessory equipment: Less expensive and shorter-
lived than major equipment, includes fax machines,
personal computers, power tools. Often charged as an
expense. Often standardized and purchased by more
customers. Advertising is an important promotional tool.
• Raw materials: Unprocessed products, such as
minerals, lumber, wheat, corn, fish. Become part of
finished products. Personal selling is the marketing mix
component used, distribution channels usually direct
from producer to business user.
06/22/12 16
17. 4. Component parts: Finished items ready for assembly or that
need very little processing. Examples are tires and electric
motors. Two important markets for component parts: original
equipment manufacturer (OEM) and replacement market.
5. Processed materials are used directly in manufacturing other
products. Sheet metals, chemicals, and lumber. Do not retain
their identity in final products. Price and service are important
factors in choosing a supplier.
6. Supplies are consumable items that do not become part of the
final product. Short lives and inexpensive. Generally fall into
categories of maintenance, repair, or operating supplies (MRO),
and include such items as detergents, pencils, paper, etc.
7. Business services are expense items that do not become
part of the final product. This includes, advertising, legal,
and maintenance services.
06/22/12 17
18. Types of Consumer
Products
Convenience A relatively inexpensive item that
Product merits little shopping effort.
Shopping A product that requires comparison
shopping, because it is usually more
Product expensive and found in fewer stores.
Specialty A particular item that consumers
search extensively for and are
Product reluctant to accept substitutes.
Unsought A product unknown to the potential
buyer or a known product that the
Product buyer does not actively seek.
06/22/12 18
19. Examples For each product categories
•Convenience: candy, soft drinks, deodorant, aspirin,
hardware, dry cleaning.
•Shopping: Homogeneous shopping products such as
washers, televisions. Decisions are based on the lowest-
priced brand with the desired features.
Heterogeneous shopping products are essentially different,
for example furniture, clothing, housing, universities.
Decisions are highly-individual and based on “finding the
best product for me.”
•Specialty: fine watches, expensive automobiles.
•Unsought: new products, insurance, encyclopedias.
06/22/12 19
22. Marketing
Management
Rarely companies offer a single product. More
often they sell group of product items to meet
varying needs. . .
PRODUCT ITEM
A Specific version of a product that can be
designated as a distinct offering among an
organization’s products.
Ex:
23. Marketing
Management
PRODUCT LINE
A group of closely related product items.
Ex: Personal care- HUL
PRODUCT MIX
A group of product lines offered by the
company.
Ex: Personal care & Food- HUL
24. Marketing
Management
Product mix will have a certain width, length, depth.
WIDTH
The number of product lines an organization offers.
LENGTH
Total number of product items in the company’s mix.
DEPTH
Variants offered of each product in the line
by the company
Product Consistency: how closely the product lines
are related in usage
25. Marketing
Management
WIDTH
Product line-1 Product line-2 Product line-3
L Brand-1 Brand-1 Brand-1
E
N Brand-2 Brand-2 Brand-2
G
Brand-3 Brand-3 Brand-3
H
T Brand-4 Brand-4 Brand-4
Brand-5
26. Product Width
P Personal
Fabric Care Skin Care Oral Care Tea Coffee
Care
R
O
D
U
C
T
L
E
N
G
T WIDTH: The number of product lines an organization offers.
H LENGTH: Total number of product items in the company’s mix
DEPTH: Variants offered of each product in the line
by the company
CONSISTENCY: How closely the product lines are related in usage.
27. Marketing
Management
Product Line Extension
Adding additional products
to an existing product line in
order to compete more
broadly in the industry.
34. Marketing
Management
Higher end
Middle &
Lower
35. New Product
Development
&
Product Life-Cycle
Strategies
36. Causes of New Product
Failures
Overestimation of Market Size
Product Design Problems
Product Incorrectly Positioned, Priced or Advertised
Costs of Product Development
Competitive Actions
To create successful new products, the company must:
understand it’s customers, markets and competitors
develop products that deliver superior value to
customers.
37. New Product
Development
Process
Idea Generation and Screening
Concept Development and Testing
Marketing Strategy
Business Analysis
Product Development
Test Marketing
Commercialization
38. New Product Development Process
Step 1. Idea Generation
Systematic Search for New Product
Ideas
Internal sources
Customers
Competitors
Distributors
Suppliers
39. New Product Development Process
Step 2. Idea Screening
Process to spot good ideas and
drop poor ones
Criteria
Market Size
Product Price
Development Time & Costs
Manufacturing Costs
Rate of Return
40. New Product Development Process
Step 3. Concept Development & Testing
1. Develop Product Ideas into
Alternative
Product Concepts
2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One
41. New Product Development Process
Step 4. Marketing Strategy Development
Marketing Strategy Statement Formulation
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share
Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget
Part Three - Long-Term:
Sales & Profit Goals
Marketing Mix Strategy
42. New Product Development Process
Step 5. Business Analysis
Step 6. Product Development
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If No, Eliminate
Product Concept
If Yes, Move to
Product Development
43. New Product Development Process
Step 7. Test Marketing
Test Marketing: is the stage where the entire product and marketing programme is tried
out for the first time in smaller no of chosen well chosen sales environment
- Philip Kotler
Standard
Test Market Controlled
Test Market
Full marketing campaign A few stores that have
in a small number of agreed to carry new
representative cities. Products.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
44. Product Life
Cycle
Sales and
Profits ($)
Sales
Profits
N Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($) CLASSICAL PATTERN OF PLC
45. Introduction Stage of
the PLC
Sales Low sales
Costs High cost per customer
Profits Negative
Create product awareness
Marketing Objectives
and trial
Product Offer a basic product
Distribution Build selective distribution
Advertising Build product awareness among
early adopters and dealers
46. Growth Stage of the PLC
Sales Rapidly rising sales
Costs Average cost per customer
Profits Rising profits
Marketing Objectives Maximize market share
Offer product extensions,
Product
service, warranty
Price Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest in
the mass market
47. Maturity Stage of the PLC
Sales Peak sales
Costs Low cost per customer
Profits High profits
Marketing Objectives Maximize profit while defending
market share
Product Diversify brand and models
Price to match or best
Price competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and
benefits
48. Decline Stage of the PLC
Sales Declining sales
Costs Low cost per customer
Profits Declining profits
Marketing Objectives Reduce expenditure
Product Phase out weak items
Price Stable or low price
Go selective: phase out
Distribution unprofitable outlets
Advertising Reduce to level needed to retain
hard-core loyal customers
49. Distribution Strategies
Selective : use of more than one but fewer
than all, of the intermediaries who are willing
to carry the company’s products.
Ex:
Exclusive: giving a limited number of dealers the
exclusive right to distribute the company’s
products in their Territories
Ex:
51. Marketing Strategies for
PLC
INTRODUCTION
INTRODUCTION GROWTH MATURITY DECLINE
Product Limited models More models Large number Eliminate
Strategy Frequent Frequent of models. unprofitable
changes changes. models
Distribution Limited Expanded Extensive. Phase out
Strategy Wholesale/ dealers. Long- Margins drop. unprofitable
retail distributors term relations outlets
Awareness. Aggressive ads. Advertise. Phase out
Promotion Promote promotion
Strategy heavily
Higher/recoup Fall as result of Prices fall Prices
Pricing development competition & (usually). stabilize at
Strategy costs efficient produc- low level.
tion.
51 06/22/12
52. ALTERNATE PATTERNS OF PLC
Growth Slump Maturity Pattern:
Often characteristics of
small kitchen appliances.
S Some years ago, sales of
A
L
electric knives grew
E rapidly when the product
S was first introduced and
V
then fell in to a petrified
O level. The petrified level is
L sustained by late adopters
U
M
buying the products for the
E first time and early
adopters replacing the
product.
TIME
53. Cycle and Recycle Pattern
This is applicable for
pharmaceutical
S companies, they
A
L
aggressively promotes
E new drug and this
S
produces the first
V cycle.
O
L Later sales start
U declining and the
M
E company gives drug
another promotion
push which produces
a second cycle.
TIME
54. Scalloped Pattern
Here sales passes through
S a succession of life cycle
A based on the discovery of
L new product characteristics
E
S uses or users.
Nylon’s sales for example,
V
O
L Many new uses-
U parachutes, shirts,
M carpeting, boat sales,
E
automobile tyres
That continue to be
TIME
discovered over a time.
55. Style, Fashion and Fad Life Cycle
Style:
A basic and distinctive mode of
expression. It’s a product look and
feels to the buyer.
style
Fashion: currently accepted popular
style in a given field.
Fad: a craze that unpredictable, short
lived and without social, political, and
economical significance.
S Fashion
A
L
E
S
V
O
L
U
M
E
Time
58. Marketing
Management
A mixture of tangible and
intangible attributes,
symbolized in a
trademark, which is
properly managed,
creates influence and
generate
VALUE
59. What is Trademark?
It is a brand name or mark registered under the law for protection
against its copying or imitation, its legal protection against misuse by
competitors.
In India it is registered under Trademark and Mechanize Marks Act,
1958
www.ponds.com
www.axe.com
60. Advantages of Branding
Helps in identifying goods and services.
It stimulates the purchase decision of the
consumer
It helps in creating customer loyalty
It helps to the company to main the leadership
position in the market if they are already a
market leader
61. Disadvantages of Branding
Requires huge investment
An unsuccessful brand bring –ve image to the
company
Customer may not willing to pay extra
because it is branded.
62. Brand Name Selection Marketing
Management
SHOULD SUGGEST SOMETHING
ABOUT THE PRODUCT’S BENEFITS
SHOULD SUGGEST PRODUCT QUALITIES
SUCH AS ACTION OR COLOR
SHOULD BE EASY TO PRONOUNCE,
RECOGNIZE, & REMEMBER
SHOULD NOT CARRY POOR
MEANINGS IN OTHER COUNTRIES
AND LANGAUAGES
63. Marketing
Management
BRAND
WHO SPONSERSHIP
SHOULD
SPONSOR
THE BRAND?
MANUFACTURE’S
BRAND
PRIVATE BRAND
LICENSED BRAND
CO-BRANDING
71. Packaging and Labeling
Packaging: the process of designing and
producing the container or wrapper for a
product.
It gives proper protection to the product
It helps in bulk braking
Entices the consumer to buy the product
72. Packaging Strategies
Adopting the same package for entire
product line
Multiple packs for multiple products
Changing the packages continuously
73. Labeling
It carries the information about the seller.
Types of labels:
Brand label: only brand name is mentioned on
the product
Grade label: identifies the product judged quality
with a letter number or a word
Ex: fertilizers 19-19-0-19
bikes MD2DDDZZZPLV12345
Descriptive Label: gives the information about
the product, use and care
Ex: Godreg Hair Dye Packet, medicines
74. End of your syllabus
Principles of Marketing-1
76. Life is a beautiful journey travel it.
May be whoever leads you!
Enjoy the things what you have.
Always Dream for good “Thought”
who knows your thought can become “Thing” in
future!!!
Jo guzar gaya vo kal hai jo aana hai voh bhi kal hai faisla aapko karna hai aap
kis kal main jeena Chahate ho!!
Love the life!!!!!
77.
78. KEEP SMILING
Because
One Smile Can Change The Way of Life!!!!!
All the best for your Exams & Career.
Your loving
RAJ
Editor's Notes
New Product Development Process This CTR corresponds to Figure 9-1 on p. 275 and relates to the discussion on pp. 275-286. Stages in New Product Development Idea Generation . This stage is the systematic search for new product ideas. Sources for new product ideas include internal sources, customers, competitor's products, distributors & suppliers, and other sources. Screening. This stage focuses on reducing the number of ideas by dropping poor ideas as soon as possible. This helps reduce costs and focus attention more productively. Concept Development and Testing. This stage involves translating ideas into product concepts or detailed versions of the ideas stated in meaningful consumer terms. Concepts are then tested on target consumers. Marketing Strategy. This stage consists of three parts. The first part describes the target market, the second part outlines the product's projected price, distribution, and budget for the first year, the third part describes long-term sales, profit goals, and marketing mix strategy. Business Analysis. This stage reviews the sales, costs, and profit projections for the product to find out if they satisfy overall company objectives. Product Development. This stage involves bringing the product concept into existence as a physical product to ensure that the idea is a workable product. Test Marketing . This is the stage at which the product and marketing program are implemented in one or more realistic market settings. Commercialization. This stage involves actually introducing the new product into the competitive marketplace. In this stage, the company must make decisions involving when to introduce, where, to whom, and how.
Test Marketing This CTR relates to the discussion on pp. 282-284. Test Marketing Standard Test Markets . Under this approach, the company finds a small number of representative test cities, conducts a full marketing campaign in those cities, and then measures and evaluates performance. This provides a “real world” picture of how the product performs. But there are drawbacks. Standard testing is expensive, long, and tips competitors to company strategy. Controlled Test Markets . This approach uses a research firm that has designated store placement space for their clients. Participating stores receive a fee. Some services like Scantrack (Nielsen) and BehaviorScan (IRI) offer computerized monitoring of individual consumer panels whose television viewing is cross-tabulated with store purchases. Controlled testing is quicker and less expensive than standard testing. Concerns revolve around representativeness of the test markets (small size) and tipping off competitors. Simulated Test Markets . This approach creates a simulated shopping environment by the company or research firm. Consumers are exposed to promotions and then given money to shop with. Purchase patterns are observed and consumers are interviewed afterward by researchers. Simulated test marketing is inexpensive and quick. Representativeness and demand characteristics are concerns and this approach might be used as a pretest for a go-no go decision on further testing.
The Product Life-Cycle This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293. Instructor’s Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs. Product Life Cycle Stages Product Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC. Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending. Growth. This stage is characterized by rapid market acceptance of the product and increasing profits. Maturity . In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share. Decline. In this period sales begin to fall off and profits decline dramatically.
Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes. Product Life Cycle Strategies Product Life-Cycle Strategies This CTR relates to the material on pp. 289 and 293.
Product Life-Cycle Strategies This CTR relates to the material on pp. 289-290 and 293. Product Life-Cycle Strategies Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.
Product Life Cycle Strategies Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position. Product Life-Cycle Strategies This CTR relates to the material on pp. 290-292 and 293.
Product Life-Cycle Strategies This CTR relates to the material on pp. 292-293. Product Life Cycle Strategies Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.