MGM 301 Lecture Notes - Lecture 6: Brand Licensing, Brand Management, Campbell Soup Company
22 Jan 2016
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Document Summary
Product life circle- describes the stages a new product goes through in the marketplace. Introduction- when product is first introduced, sales grow slowly and profit is minimal: primary demand- the desire for the product class rather than for a. Growth- characterized by rapid increases in sales: selective demand- the preference for a specific brand, repeat purchasers- people who tried the product, were satisfied and specific brand bought again. Maturity-slowing of total industry sales or product class revenue. Decline- sales and profits begin to drop. Product deletion- dropping the product from the product line. Harvesting- when a company retains the product but reduces marketing costs. Length of product life cycle- the availability of mass communication vehicles informs consumers faster and shortens life cycles. Product class- entire product category or industry. Product form- pertains to variations within the class. Usage barriers- the product is not compatible with existing habits. Value barriers- the product provides no incentive to change.
