Product Planning: use product objectives to decide on a product strategy
Product management: The systematic and usually team-based approach to coordinating all
aspects of a product’s marketing initiative including all elements of the marketing mix.
Objectives and strategies for multiple products
Product line: A firm’s total product offering designed to satisfy a single need to desire of
Product line length: Determined by the number of separate items within the same category.
Cannibalization: The loss of sales of an existing brand when a new item in a product line or
product family is introduced.
Product Mix Strategies
Product mix: The total set of all products a firm offers for sale.
Product mix width: The number of different product lines the firm produces.
Quality as a product objective: the science of TQM
Product quality: The overall ability of the product to satisfy customers’ expectations.
Total quality management (TQM): A management philosophy that focuses on satisfying
customers through empowering employees to be an active part of continuous quality
ISO 9000: Criteria developed by the International Organization for Standardization to
regulate product quality in Europe.
ISO 14000: Standards of the International Organization for Standardization concerned with
“environmental management” aimed at minimizing harmful effects on the environment.
Six Sigma: A process whereby firms work to limit product defects to 3.4 per million or fewer.
Marketing throughout the product life cycle
Product life cycle (PLC): A concept that explains how products go through four distinct
stages from birth to death: introduction, growth, maturity, and decline.
The introduction stage
Introduction stage: The first stage of the product life cycle in which slow growth follows the
introduction of a new product in the marketplace.
The growth stage
Growth stage: The second stage in the product life cycle, during which consumers accept
the product and sales rapidly increase.
The maturity stage
Maturity stage: The third and longest stage in the product life cycle, during which sales peak
and profit margins narrow.
The decline stage
Decline stage: The final stage in the product life cycle, during which sales decrease as
customer needs change.
Create product identity: branding decisions
Brand: A name, a term, a symbol, or any other unique element of a product that identifies
one firm’s product(s) and sets it apart from the competition.
Trademark: The legal term for a brand name, brand mark, or trade character; trademarks
legally registered by a government obtain protection for exclusive use in that country.
Why brands matter
Brand Equity: The value of a brand to an organi