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CHAPTER 7: PRODUCT DECISIONS
1. Product and types of product
Principles of Marketing 2. Product life cycle
3. Product- market metrix
4. Branding
5. Packaging
Assoc. Prof. Dr. Thu Huong Pham
Mobile: 0912522490
Email:
[email protected]1 2
1. Product and types of product 1. Product and types of product
1.2 Level of product
1.1 What is a product
Product is anything that can be offered in a market for attention,
acquisition, use, or consumption that might satisfy a need or want.
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1. Product and types of product 1. Product and types of product
1.3 Product clacifications
1.3 Product clacifications
Consumer products are products and services bought by final consumers for
personal consumption. Industrial product
• are products purchased for further processing or for use in conducting a
Convenience Shopping Specialty products Unsought business
products products unique characteristics or products
usually buys customer compares brand identification Customer does not Material and parts Capital items Supplies and
frequently, carefully normally think of services
immediately buying
Newspapers Furniture Medical services Life insurance Natural products Buildings, factories Repair and maintenance
Candy Cars Designer clothes Funeral services Component part Office equipment items
Farm products Accessory equipment Repair services
Fast food Appliances High-end electronics Blood donations Advisory services
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2. Product life cycle 2. Product life cycle
is the course of a product’s sales
and profits over its lifetime. Introduction stage
Product Ø Profits: negative or low because of low sales, high distribution and
development promotion expenses.
begins when the Ø Promotion spending: high to inform consumers of the new product and
company finds and
get them to try it.
develops a new
product idea Ø Few competitors.
Firm produce basic versions of the product
Introduction Growth Maturity Decline
The stage in which a new The stage in which a The stage in which a The stage in which a
product is first distributed product’s sales start product’s sales growth product’s sales fade away.
and made available for climbing quickly. slows or levels off.
purchase.
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2. Product life cycle 2. Product life cycle
Growth stage
ü Sales start climbing quickly Maturity stage
ü New competitors enter the market
ü Price stability or decline to increase volume Ø Slowdown in sales growth
Ø Overcapacity leads to greater competition
ü Promotion spending at the same or a slightly higher level
Ø Some of the weaker competitors start dropping out
ü Profits increase Maturity stage modifying strategies:
ü New market segments and new distribution channels § Market modifying finding new users and new market segments
ü Trade-off between high market share and high current § Product modifying changing characteristics such as quality, features, style, or
profit packaging to attract new users and inspire more usage
§ Marketing mix modifying improving sales by changing one or more marketing
mix elements
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2. Product life cycle
2. Product life cycle Summary of Product Life-Cycle Characteristics, Objectives, and Strategies
Decline stage
v Sales decline because of technological advances, shifts in consumer tastes, increased
competition…
v Carrying a weak product can be very costly to a firms (profit, management’s time,
reputation…)
v Management must decide whether to:
o Maintain the product: reposition in hopes of moving it back into the growth stage
o Harvest the product: reduce costs hoping that sales hold up. If successful, it will
increase the company’s profits in the short run
o Drop the product from its line: Sell the product to another firm or simply liquidate it
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Various unusual PLC curves
Useful framework for
describing how products and
markets work.
Why
studying
Help in developing good
marketing strategies for its
different stages.
Not all products follow all stages of the PLC.
Some products are introduced and die quickly;
Some stay in the mature stage for a long time.
Some enter the decline stage and are then cycled back into the growth stage through
PLC? Companies must continually
strong promotion or repositioning. innovate product
well-managed brand could live forever.
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3. Product- market metrix 4. Branding
Definition
Ansoff matrix PRODUCT
• Brand is the name, term, sign, or design,
or a combination of these, that identifies
Four generic growth strategies are the maker or seller of a product or
service.
identified:
Market penetration: more of the • Branding can add value to a product.
same to the same customers
Market development: new
customers for existing products
Product development: new MARKET
products for existing customers
Diversification: new products and
new customers
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4.2 BRAND STRUCTURE
Brand name •Brand Name Selection
is the readable part of brand ü Suggests benefits and qualities
Brand mark ü Easy to pronounce, recognize, and remember
is the part of the brand that can ü Distinctive
be recognized but cannot be ü Extendable
read (letters, logo, symbol…) ü Translatable for the global economy
ü Capable of registration and legal protection
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FAMILY BRAND
Registered brand Vinpearl VinEcom Aday roi
a single brand
name is used for VinEco Vinschools Almaz
v Copyright © marketing a group
of related products
Vinpearl golf club Vinmec
v Registered ®
Vinmart, Vinmart+ VinDC
v Trademark ™ Vinhomes VinPro
Vincom VincharmSpa
Vincom office Vinfashion
Vinlinks Vinexpress
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INDIVIDUAL BRAND VIETNAM Viettel
LAOS Unitel National brand
Individual branding assigns a
unique brand name to each CAMBODIA Metphone
product. EAST TIMOR Telmor
MYANMA Mytel
MOZAMBIQUE Movitel
CAMEROON Nexttel
BURUNDI Lumitel
TANZANIA Halotel
HAITI Natcom
PERU Bitel
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Related issues
BRAND VALUE
ØSelling brand:
ØLoss of brand in international markets
ØRename the brand in international
markets
ØBrand loyalty ?
https://interbrand.com/best-global-brands/
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5. Packaging 5.2 Package functions
Protection
Preparation Presentation
5.1 Definition
Packaging involves designing Package
and producing the container or
wrapper for a product. Promotion Preservation
Proportion Portability
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