Principles and Practice of Marketing

David Jobber

Chapter 8
Managing Products

Creating a brand
Brand name and images

Brand potential

Service

Brand potential

Delivery

Core product

Guarantees

Quality and design

Packaging

Brand potential
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2

Building successful brands
Quality Positioning

Well-blended communications

Brand building

Repositioning

Being first Internal marketing

Long-term perspective

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Global branding decisions
Brand form q Quality q Formulation q Design q Variants

Global branding Brand additions q Delivery q Service q Guarantees
4

Brand communications q Name q Execution q Packaging
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

Stages in the development of a questionnaire
Planning stage

Design stage

Pilot stage

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Stages in the development of a questionnaire
Planning stage
• Definition of the research problem • Exploratory research

Design stage

Pilot stage

• • • •

Information required Definition of population Target groups Survey method

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Stages in the development of a questionnaire
Planning stage

Design stage

• • • • • • •

Ordering of topics Type of question Wording and instructions Layout Scaling Probes and prompts Coding

Pilot stage

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Stages in the development of a questionnaire
Planning stage

Design stage

Pilot stage

• Pilot testing • Redesign

• Final questionnaire
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 8

The product life cycle
Introduction Growth Maturity Decline

Sales and profit

Sales

Profit
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 9

Key tasks in positioning

1. Market segmentation 2. Target market 3. Differentiated advantage Positioning

Where and how we compete

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Strategic objectives and the Boston Box

Stars
q q

Problem children
q q

q

Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges

q

Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest

Cash cows
q q q

Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development

Dogs
q q q

Harvest or Divest or Focus on defendable niche

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Strategic objectives and the Boston Box
Stars
q q

q

Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges
Cash cows
q q q

Problem children
q q

q

Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest

Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development

Dogs
q q q

Harvest or Divest or Focus on defendable niche

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Strategic objectives and the Boston Box
Problem children
Stars
q q

q q

q

Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges

q

Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest

Cash cows
q q q

Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development

Dogs
q q q

Harvest or Divest or Focus on defendable niche

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Strategic objectives and the Boston Box

Stars
q q

Problem children
q q

q

Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges

q

Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest

Cash cows
q q q

Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development

Dogs
q q q

Harvest or Divest or Focus on defendable niche

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Strategic objectives and the Boston Box

Stars
q q

Problem children
q q

q

Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges

q

Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest

Cash cows
q q q

Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development

Dogs
q q q

Harvest or Divest or Focus on defendable niche

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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The case of an unbalanced portfolio

Market growth rate

High

Low

High Market share
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

Low
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The General Electric Market Attractiveness– Competitive Position Model
1
High

3
Market Medium attractiveness

2
Low

4 5

High

Medium Competitive strength

Low
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D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

Implications of portfolio planning
Different products

Different roles

Different reward systems

Different types of managers

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

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Product growth strategies: the Ansoff Matrix
Market penetration or expansion Product development

Existing Markets

New

Market development

Diversification

Existing Products
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

New

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Strategic options for increasing sales volume
Increase sales volume

Market penetration Market expansion Product development Market development Entry into new markets
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 20

Strategic options for increasing sales volume
Increase sales volume

Market penetration Market expansion Product development Market development Entry into new markets
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

Win competitors’ customers Buy competitors

Discourage competitive entry

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Strategic options for increasing sales volume
Increase sales volume

Market penetration Market expansion Product development Market development Entry into new markets
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 22

Convert non-users Increase usage rate

Strategic options for increasing sales volume
Increase sales volume

Market penetration Market expansion Product development Market development Entry into new markets
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 23

Product line extension Product replacement

Innovation

Strategic options for increasing sales volume
Increase sales volume

Market penetration Market expansion Product development Market development Entry into new markets
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 24

Promote new uses Enter new segments

Strategic options for increasing sales volume
Increase sales volume

Market penetration Market expansion Product development Market development Entry into new markets
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill

New products
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