Marketing 2030 Chapter 8.docx

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22 Apr 2012
Using Product Objectives to Decide on a Product Strategy
Current Markets
New Markets
Marketing Penetration: Getting
consumers to buy more of the product
Market Development: Entering into a
new market
Product Development: Developing a new
Diversification: Entering a new market
with a new product line
Objectives and Strategies for Individual Products:
o For new projects, a successful introduction is important
o For mature products, product objective would focus on breathing new life into a product long
taken for granted while holding onto the traditional brand personality
Objectives and Strategies for Multiple Products:
o Product Line Strategies: A firm's total product offering designed to satisfy a single need or desire
of target customers
Cannibalization: The loss of sales of an existing product when a new item in a product line
or product family is introduced
o Product Mix Strategies: Planner looks at the width of the product line and the number of product
lines produced by the firm
Product Mix: The total set of all products a firm offers for sales
Marketing Throughout the Product Life Cycle
o Product life cycle: Concept that explains how products go through four distinct stages from birth
to death:
The Introduction Stage: Slow growth follows the introduction of a new product in the
market place
The Growth Stage: Product is accepted and the sales rapidly increase
Maturity Stage: Longest stage in which sales peak and profit margin narrows
Decline Stage: Sales decrease as customer needs change
Creating Product Identity: Branding Decisions:
o What's in a name or symbol?
o Brand: A name, term, symbol, etc. Of a product which identifies one firm's product and sts them
apart from competition
Choosing a Brand Name, Mark, or Character:
Easy to say, spell, read, and remember
The legal term for a brand name, brand mark, or trade character
o The Importance of Branding:
Brand Equity: The value of a brand to an organization
Brand Extension: A new product sold with the same brand name as a strong existing brand
o Branding Strategies:
Individual brands versus Family brands:
Family Brand: A brand that a group of individual products or individual brands share
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