Session 3b - Products 2 [Compatibility Mode]
Transcript of Session 3b - Products 2 [Compatibility Mode]
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PRODUCTMANAGEMENTPRODUCTMANAGEMENT
SESSIONTHREE(b)
SESSIONTHREE(b)M
ARKETINGMANAGEMENT
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Session Objectives
Understand the product lifecycle concept, its influence on
marketing strategies and its limitations.
Appreciate the importance of product positioning and how
it both affects and is affected by marketing strategies.
Define the role and responsibilities of the product or brand
manager.
Understand the scope and implications of the variousdecisions that management can take with regard to
product ranges, including deletion.
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Product Management Defined
The job of the product manager is to manage the
Product through its lifetime, from launch, throughany modifications, to its eventual demise.
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Tasks of the Product Manager
Produce annual product plan
Specify actions, resources and strategies
Justify investments of resources
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Product Life Cycle Defined
The Product Lifecycle is a concept suggesting that
a product goes through various stages in the courseof its life: introduction, growth, maturity and decline
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Introductionstage
Growthstage
Maturitystage
Declinestage
Industrysales
Industryprofits
0Revenu
e
Time
The Product Life Cycle
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Product Life Cycle variations
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Product Life Cycle variations
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Brand Variables Affecting PLA
Positioning Personality
Brand nameIdentity
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Diffusion of Innovation Defined
The Diffusion of Innovation is a concept suggesting
that customers first enter a market at different times,
depending on their attitude to innovation and new
products, and their willingness to take risks.
Customers can thus be classified as innovators,
early adopters, early majority, late majority and laggards.
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34% 34% 16%13.5%2.5%
Innovators Earlyadopters
Earlymajority
Latemajority
Laggards
Percentage
adopting
Time
Diffusion of Innovation
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Factors Affecting Rate of Adoption
Relative
advantage
Compatibility
Complexity
Divisibility
Communicability
Perceived
risk
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Competitor Timing Entry
Pioneers
Early differentiators
Early nichers
Early imitators
Late entrants
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Question Marks
Dogs
R e l a t i v e M a r k e t S h a r e
Marke
t
Growt
h
Rate
Stars
Cash Cow
The Boston Consulting Group Growth-Share Matrix (BCG)
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Build sales and/or market share
Invest to maintain/increase
leadership position Repel competitive challenges
Stars
Build selectively
Focus on defendable niche
where dominance can beachieved
Harvest or divest the rest
Question Marks
Hold sales and/or market
share Defend position
Use excess cash to supportstars, selected problemchildren and new product
development
Cash Cows
Harvest or
Divest or Focus on defendable niche
Dogs
The Boston Consulting Group Growth-Share Matrix (BCG)
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MarketPenetration or
Expansion
Market
Development
Product
Development
Enter New
Markets
M a r k e t s
Existing New / Related
Existing
New/
Related
Products
AnsoffM
atrix:ProductGrow
thStrategies
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Entry into new markets
Market development
Product development
Market expansion
Increase sales volume
Market penetration
Buy competitors
Discourage competitive entry
Win competitors customers
Strategic Options for Increasing
Sales: Market Penetration
Market
Penetration or
Expansion
Market
Development
Product
Development
Enter New
Markets
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Increase sales volume
Entry into new markets
Market development
Product development
Market expansion
Market penetration
Increase usage rate
Convert non-users
Strategic Options for Increasing
Sales: Market ExpansionMarket
Penetration or
Expansion
Market
Development
Product
Development
Enter New
Markets
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Market development
Market expansion
Product development
Market penetration
Entry into new markets
Increase sales volume
Strategic Options for Increasing Sales: Product Development
Market
Penetration or
Expansion
Market
Development
Product
Development
Enter New
Markets
Innovation
Product line extension
Product replacement
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Entry into new markets
Product development
Market expansion
Market development
Market penetration
Increase sales volume
Strategic Options for Increasing Sales: Market Development
Enter new segments
Promote new uses
Market
Penetration or
Expansion
Market
Development
Product
Development
Enter New
Markets
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Market development
Product development
Market expansion
Increase sales volume
Entry into new markets
Market development
Market penetration
New products
Strategic Options for Increasing Sales: Entry into New Markets
Market
Penetration or
Expansion
Market
Development
Product
Development
Enter New
Markets
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Session 3b: Key TermsSession 3b: Key Terms
_____ is a concept that suggests customers first enter a
market at different times, depending on their attitude toinnovation and new products, and their willingness totake risks.
A brand which is marketed with a standardised offeringacross different European countries is called a _____.
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_____ means adding further product items into a
product line to extend coverage of the market.
_____ means adding further product items into aproduct line to fill gaps within the range.
Session 3b: Key TermsSession 3b: Key Terms
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The _____ suggests that a product goes through variousstages in the course of its life including introduction,growth, maturity and decline.
What title is used to describe the individual responsiblefor the day-to-day management and welfare of aproduct or family of products at all stages of their
product lifecycle?
Session 3b: Key TermsSession 3b: Key Terms
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The _____ is the set of different products that an
organisation produces, ideally balanced so that some
products are mature, some are still in their growth stage
while others are waiting to be introduced.
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_____ refers to the development of a product and
marketing strategy that places the brand as close as
possible in the minds of target customers to their ideal in
terms of important features and attributes and clearly
differentiates it from the competition.
Session 3b: Key TermsSession 3b: Key Terms