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BRAND MANAGEMENT AND PRODUCT DECISIONS
What are the stages in the product life cycle?
What happens to profits across the life cycle?
Negative profit-growing profit-high profit-moderate profit
Should a marketer set the same market share objectives or other objectives across
the life cycle?
Introduction: Marketers attempt to build share quickly to gain first-mover advantages.
Advertising should focus on
selling the idea
Growth: Satisfaction and loyalty are important. Show
position is critical for long-term success. Invest on streamlining and improve
the manufacturing process.
Decline: Most companies with a declining product want to maintain the lucrative replacement
market but are willing to give up market share in exchange for earnings. Turn to
If actual products seldom precisely follow the theoretical product life cycle curve,
what use is the product life cycle concept?
Researchers need to develop other mathematical and statistical models that examine market size,
the number of initial buyers, and the time between first and repeat purchase. These can be very
useful, particularly for products that behave similarly to those modeled.
How does positioning relate to the product life cycle?
Introduction: specialty-Growth & Maturity: comparison-Decline: commodity
How do companies extend life cycles?
Selling to new segments, stimulate more frequent use, encourage more use per occasion, promote
more varied use
What is the adoption/diffusion curve?
: the 5 steps an individual consumer goes through in making a product choice:
knowledge, persuasion, decision, implementation, and confirmation.
: the spread of innovations from one group of consumers to another over time.
Innovators, early adopters, early majority, late majority, laggards
Why is it often preferred over the product life cycle to build marketing strategies?
Sales are influenced dramatically by the interaction of buyers, through word of mouth, as well as
by promotions and messages from marketers.
Product acceptance is passed from one group of consumers to the next.
Which group of customers (according to diffusion theory) are extremely important
to target, what are their characteristics and why should they be targeted?
Early adopters: they have high incomes and educational level, they are key to good word-of-
mouth publicity and wider acceptance, they are well respected in their community, compared
with the innovators, they are ten times powerful on influencing people.
Product planning is often designed to manage existing and new products for
existing and new market segments.
What are the 4 product strategies that result?
Core product focus (penetration), product development, market development, diversification
What are 4 major marketing decisions executives must make in order to do a good
job of new product development?
: Will they be a market leader, close follower, or also ran?
Line depth and breadth
: Broader or deeper lines?
New product timing according to competitive market conditions
: How rapid must stream
Amount to be invested in new products
: how much will be invested in R&D over time?
Is it better to have sequential or simultaneous new product development processes,
Simultaneous product development: marketing coordinates multi-functional team, faster
commercialization, better products, lower costs, obtains return on commercialization more
What characteristics should an innovation possess in order to be adopted quickly?
Compatibility: fit easily to consumers’ thought
Product Complexity: the degree of understanding and using
Trialability: the ease for customers to test
Observability: watching someone use a new product
According to the New Product Development Process, at what stage should a
prototype of the product be developed?
Do strong companies test a “product” or the “strategy which includes the new
Strategy that includes the new product
INTEGRATED MARKETING COMMUNICATIONS
What is difference between a push or pull communications strategy?
Pull strategy attempts to influence consumers directly, to build demand so consumers will “pull”
the product through the channel of distribution.
Push strategy attempts to influence distribution channel members, to promote to end users.
Why do many companies use some push and some pull?
The combination approach markets directly to both the channel and end user, speeding adoption
and the overall flow through the channel. It also helps address conflict that may arise between
marketers and retailers. Retailers want to stock the most profitable products, which may not be
marketers’ biggest brands. Using a pull strategy to create strong demand at the consumer level
makes channel members more willing to handle the product.
What are the goals of integrated marketing communications?
to establish a
with consumers; to encourage
between a firm and its customers
Objectives: provide information, create demand for product, communicate value and uniqueness,
close the sale, and build relationships and loyalty
Why is it important to know the objectives of a communication in order to fully
examine its effectiveness?
Advertising: to create awareness and product knowledge; to gain attention and can lead to liking
and brand preference.
Sales Promotion; Personal Selling; Sponsorship: to be more useful when desire is created; to
move buyers to action by reinforcing their conviction to try the brand.
The effectiveness of personal selling increases dramatically in the late stages of he buying
process, especially for high-priced items in consumer markets.
The Hierarchy of Effects model describes stages of product adoption from
attention through action or purchase.
Why do most integrated marketing
communications strategies utilize several media at all stages?
Inform and educate consumers—new products
Persuade consumers—during growth and early maturity
Remind and reinforce to consumers—in mature or decline
What does synergy mean?
Working together and 1+1>2
The advertising plan is generally based on target audience analysis, creative
designing and measurement.
What is the first step in evaluating an advertisement
or aspect of IMC?
Most marketers start by identifying criteria or measures.
Factors: market share; sales level; profitability; members of loyal customers; amount of brand
recognition; brand image; knowledge of the product...
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- Submitted On 14 Jul, 2018 04:02:05