Marketing

Product
Opening Prayer
 1. The product life cycle
2. The relationship between the product life
cycle and the marketing mix
3. Extension strategies
4. The relationship between the product life
cycle, investment, profit, and cash flow
Objectives 5. Boston Consulting Group (BCG) matrix on an
organization’s products
6. The following aspects of branding:
Awareness, development, loyalty, and value
7. The importance of branding
8. The importance of packaging
Product in the Marketing Mix

Products
• Any good or service that serves to satisfy the needs and wants of customers
• Two kinds:
• Tangible
• Intangible
• Can be classified as:
• Consumer products
• Producer products
Product Life Cycle
 PLC Stage Investment Level Profit Cash Flow
R&D Very high None Highly negative
Launch Very high Little, if any Negative
Growth High Yes, rising Positive

Maturity Less High, but little or Positive

no growth

Decline Little, if any Yes, but falling Positive, but

falling

Product Life Cycle

Extension Strategies and the Product Life
Cycle

• Price reductions
• Redesigning
• Repackaging
• New markets
• Brand extension
• Product differentiation
Extension
Strategies
and the
Product Life
Cycle
Boston Consulting Group (BCG) Matrix

• Marketing planning tool that helps managers to plan for a balanced

product portfolio
• Product portfolio can contain the various strategic business units (SBUs)
of an organization
Boston
Consulting
Group (BCG)
Matrix
 • Form of differentiating an organization’s products from those of its
competitors
• Brand refers to a name that is identifiable with a product of a particular
Branding business
Branding

• Brand is more important than the product itself, because they differ in several
ways:
• Intangibility
• Uniqueness
• Timeless
• Several advantages of successful branding:
• Price advantages
• Recognition and loyalty
• Distribution advantages
Aspects of Branding – Brand Awareness

• Measures the extent to which potential customers or general public

recognize a particular brand
• Key part of promoting a product or business
• Plays a major part in the buying decisions of consumers
• Prerequisite to brand development
• Important during the launch stage of a product’s life cycle
Aspects of Branding – Brand Development

• Marketing process of improving and

enlarging the brand name in order to
boost sales revenue and market share
• Helps extend a product’s life cycle
• Famous brands are often mistaken for
the name of the product itself
Aspects of Branding – Loyalty

• Occurs when customers buy the same brand of

a product time and time again
• Important to the business for several reasons:
• Helps businesses to maintain or improve
their market share
• Allows businesses with brand loyalty to
charge premium prices for their products
• Acts as a barrier to entry in highly
competitive markets
• Helps prolong the product and brand’s life
cycles
Aspects of Branding – Value

• Refers to the premium that customers are willing to pay for a brand name
over and above the value of the product itself
• Consumers believe that a well-known brand has better value for money
than products products that are less well-known
• Advantages for businesses that try to boost their brand value:
• Higher market share
• Premium prices
• Higher barriers to entry
Packaging

• Refers to the ways in which a product is presented to the consumer

• People’s moods are affected by things such as color, texture, and appearances
• Functions:
• Profound impact on customer perceptions of a product or brand
• Acts as a form of product differentiation
• Protects a product against damage during transportation and distribution of a product
• Labelling can be used to provide information
• Makes the distribution of products easier
• Can be used to encourage impulse buying
• Promotes the brand or the business
Packaging
Packaging
Group Work

Is it ethical business practice to significantly raise the price of fresh flowers

on Mother’s Day and Valentine’s Day?
Tasks

• Reading Assignment: 4.5 Price Pages 443 – 449

• Recorded Formative Assessment: BCG Matrix (Deadline: Dec. 11, 2020)
Closing Prayer