BSM 200 Lecture Notes - Lecture 5: Private Label, Brand Management, Brand Loyalty
22 Feb 2017
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Document Summary
The stages in which a product passes from its development to its death: introduction. A new product is introduced to the market. Often a new category; known by class of product rather than by name. Few consumers are aware of product existence. Purpose of promotion is to build awareness and create trial among consumers and interest among distributors. Purpose of product is to increase market share. Examples: blackberry playbook vs. ipad, kobo vs. kindle: maturity. Most of advertising is directed towards extending maturity stage. Products compete based on features and benefits. Focus on maximizing profits while retaining and increasing market share. Sales promotion is directed towards reminder and persuasive advertising. Focus on extending maturity: frequency of use, modifying product features, repositioning product. Product is dropped or maintained with no advertising. Innovators: represent a small portion of the population, adventurous and risk-taking, do their own research.
