ADMN 2100H Lecture Notes - Lecture 7: Canadian Blood Services, Customer Switching, Life Insurance
20 Jun 2018
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Department
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ADMN2100H: Introduction to Marketing
March 1st, 2018 – Lecture Notes Week 7 – Product and Brand
-Comp a ni e s make products – cons u m e r s make brands
-Produc t s can be copied and replac e d, but bran d s are unique
-Produc t s can beco m e obsol et e but brands are long term
-Produc t s are inst a n tly mea ningful but brands beco m e me a ni n gful over time
Produc t Service
-Tangible good that can be offered to the mark e t
for attentio n, acq uisition, use or cons u m p tion
-Satisfies a nee d or a want
-Provides value to a defined market seg m e n t
-Intangible action, feeling, e motio n
-Satisfies a need or a want
-Provides value to a defined market seg m e n t
New Product Develop me nt
Idea gen e r a tion idea scree ni n g concept develop me nt and testing marke ting strat e g y develop m e nt
product develop m e n t test mark e tin g comm e r cialization
Produc t Life Cycle
Produc t develo p m e n t introduction growth maturity decline
Characteristics Introduction Growth Maturity Decline
Sales Low sales Rapidly rising sales Peak sales Declining sales
Costs High cost per
customer
Average cost per
customer
Low cost per customer Low cost per
customer
Profits Negative Rising profits High profits Declining profits
Customers Innovators Early adaptors Middle majority Laggards
Competitors few Growing number Stable number beginning
to decline
Declining number
Marketing
Objectives
Introduction Growth Maturity Decline
Create product
awareness and trial
Maximize market
share
Maximize profit while
defending market share
Reduce expenditure and
milk the brand
Strategies Introduction Growth Maturity Decline
Product Offer a basic product Offer product
extensions, service,
warranty
Diversity brand and
models
Phase out weak items
Price Use cost plus Price to penetrate
market
Price to match or beat
competetors
Cut price
Distribution Build selective
distribution
Build intensive
distribution
Build more intensive
distribution
Go selective: phase
out unprofitable
outlets
Advertising Build product
awareness among
early adapters and
Build awareness and
interest in the mass
market
Stress brand
differences and
benefits
Reduce to level
needed to retain hard-
core loyalists
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Admn210 0h: introdu c ti on to marketing. March 1st, 201 8 lectur e note s week 7 produc t and brand. Comp a ni e s mak e prod u c t s cons u m e r s mak e bran d s. Produc t s can be copied and repl ac e d , but bran d s ar e uniqu e. Produc t s can beco m e obsol e t e but bran d s ar e long ter m. Produc t s ar e inst a n tl y me a ni n gf ul but bra n d s beco m e me a ni n gf ul over time. Tangible good that can be offer e d to the mark e t for att e n ti o n, acq uisition, us e or cons u m p t i o n.
