10-1

MARKETING MANAGEMENT

Shaping the Offerings and

Managing the Lifecycle

Chapter Questions

• What are the characteristics of products, and how can they be classified?

• How can a company build and manage its product mix and product lines?

• How can companies use packaging, labelling, warranties, and guarantees as marketing tools?

•© Copyright 2008 Pearson Education Canada10-2

Chapter Questions

• What are the main stages in developing and managing new products?

• What factors affect the rate of diffusion and consumer adoption of new products?

• What marketing strategies are appropriate at each stage of the product life cycle?

•© Copyright 2008 Pearson Education Canada10-3

Durability and Tangibility

• Nondurable

goods

• Services

• Durable

goods

•© Copyright 2008 Pearson Education Canada10-4

12-5

Line Stretching

Down-Market StretchDown-Market Stretch

Up-Market StretchUp-Market Stretch

Two-Way StretchTwo-Way Stretch

12-6

Line Filling

12-7

Proctor & Gamble

12-8

Packaging: The 5th P?

All the activities of designing and producing

the container for a product.

12-9

Design Differentiation

12-10

Design Differentiation

12-11

Packaging is influenced by…

Self-serviceSelf-service

Consumer affluenceConsumer affluence

Company/brand imageCompany/brand image

Innovation opportunityInnovation opportunity

12-12

Innovative Packaging

12-13

Innovative Packaging?

12-14

Innovative Packaging?

12-15

Functions of Labels

Identifies

Grades

Describes

Promotes

12-16

Identifies?

12-17

Identifies?

12-18

Grades?

12-19

Warranties and Guarantees

12-20

Example

2004 Hyundai Accent GT Hatchback© Robert C. Bowden

Two things might tilt a frugal buyer toward the 2004 Hyundai Accent GT and away from

similarly priced competitors: the longest warranty on any subcompact car, and

standard side air bags. No competitor offers these and both are invaluable to buyers….Bottom line: If you only have $10,000 to

spend on a new car, the 2004 Hyundai Accent deserves serious consideration. If

you can find better transportation value with four wheels and a roof, buy it.

10-21

Theories about Life Cycles

• Products have a limited life.

• Product sales pass through distinct stages.

• Profits rise and fall at different stages.

• Products require different marketing,

financial, manufacturing, purchasing, and

human resource strategies in each stage.

10-22

Market Evolution Stages

Emergence Growth

Maturity Decline

10-23

Product Life Cycle

10-24

Product in Decline

Adopter Categorization

•© Copyright 2008 Pearson Education Canada10-25