Product Management April 5 & 10, 2007. Product Management I. The Product Life Cycle A.Introduction B.Growth C.Maturity D.Decline.

Product Management

April 5 & 10, 2007

Product Management

I. The Product Life Cycle A. Introduction B. Growth C. Maturity D. Decline

Product Management

I. Goals at each stage of the Product Life Cycle:

A. Introduction: Inform B. Growth: Persuade C. Maturity: Remind D. Decline

Product Management

II. The Marketing Mix Variables A. Product B. Promotion C. Price D. Place

Promotion

Promotion

I. Elements of the Promotion Mix A. Advertising B. Sales Promotion C. Personal Selling D. Public Relations

II. When/Why to Use the Elements of the Promotion Mix

Element A: Advertising Advertising Objectives

Inform, Persuade, Remind Measures of Media Effectiveness

Reach Frequency CPM

Element B: Sales Promotion Sales Promotions

Push vs. Pull Tactics: Push: Trade Oriented

Allowances and Discounts Cooperative Advertising Training of Distributors Salesforces

Pull: Consumer Oriented Coupons Deals (in-store price reductions) Samples Contests/Sweepstakes Loyalty Programs Rebates Product Placement

Element C: Personal Selling

Objectives for Personal Selling Introduction Growth Maturity Decline

Element D: Public Relations

Objectives for Public Relations Introduction Growth Maturity Decline

Price

Pricing 3 C’s of Pricing

Cost Competition Customer (demand)

Quantity Demanded

Price

The Standard Downward Sloping Demand Curve

Pricing Pricing Strategies

Skimming Penetration Prestige Pricing Optional Feature Pricing Complementary Product Pricing “Captive” Product Pricing

Slide 14-41

FIGURE 14-9 FIGURE 14-9 Five most common deceptive pricing practices

Place

Place Distribution Channels

Direct vs. Indirect Channels

Slide 2

Apple Computer Products

Mac mini

iPod

iMac G5

Slide 3

Apple Computer Marketing Channel Structure: Online Apple Store - Direct Channel

CustomersConsumer

Producer

Slide 4

Apple Computer Marketing Channel Structure: Apple Retail Store - Direct Channel

CustomersConsumer

Producer

Slide 5

Apple Computer Marketing Channel Structure:CompUSA - Direct Channel/Strategic Channel Alliance

CustomersConsumer

Retailer

Producer

Apple Employees Staff CompUSAStore-Within-

A-Store

CompUSA

Slide 6

Apple Computer Marketing Channel Structure: Ingram Micro/Best Buy - Indirect Channel

CustomersConsumer

Wholesaler

Retailer

Producer

Best Buy

Ingram

Micro

Slide 7

Apple Computer Marketing Channel Structure: MacMall Online/Catalog Sales - Indirect Channel

CustomersConsumer

Retailer

Producer

MacMall

Slide 15-15

Common marketing channels for consumer goods and services

Place Distribution Channels

Direct vs. Indirect Channels Why Use Intermediaries?

Slide 15-10

How intermediaries minimize transactions

Place Distribution Channels

Direct vs. Indirect Channels Why Use Intermediaries? Types of Intermediaries

Merchandise Wholesalers Agents and Brokers

Vertical Marketing Systems Forward Integration Backward Integration Franchising

From Exam 1 to Exam 2

Where we’ve come since then…

Concepts become more concrete and specific via Design Branding Prototyping

We can test any or all of the above aspects using concept tests (similar to those discussed before) to get better information to use in forecasting the product’s success

Where we left off… Concepts were still rough…

Concept Screening Concept Testing

Where we’ve come since then…

Or, we can use one of the market testing techniques below to get even more realistic data to use in our forecasts:

Pseudo Sales or Simulated Market Tests Controlled or Full Sale Market Tests

During these tests, we can better identify the target market and refine the marketing mix variables so that the full launch goes more smoothly.

Where we’ve come since then…

If we have all of those elements right: PRODUCT Promotion Price Place,

Then hopefully, we need to worry about managing the new product through the first three stages of the PLC!