Product Planning Sustaining Product Sales
description
Transcript of Product Planning Sustaining Product Sales
Product PlanningSustaining Product Sales
Chapter 30.2
Objectives
• Identify the four stages of the product life cycle
• Describe product positioning techniques
The Product Life Cycle• Represents the stages that a product goes
through during its life
• The four stages are:– Introduction– Growth – Maturity– Decline
Product Life Cycle• Name the stages:
Introduction Stage• Major goal: – Draw the customer’s attention to the new product
by increasing product awareness and promotions• Costs are high during this stage• Usually the least profitable stage
PowerMat - How It Works
Growth Stage• Prosperous stage• Much of the target market knows about and
buys the product• Advertising is focused on customer
satisfaction• To maintain sales growth, new models or
product modifications may be introduced to stay ahead of competition
Maturity Stage• Sales level off or slow down• Most of the target market own the product• Marketing dollars are spent on fighting off
competition– As advertising expenses climb, the company may
have to decide if it can continue to improve the product to gain sales.
Decline Stage• Sales fall• Profits may reach the point where they are
smaller than costs• Management will need to decide how long it
will continue to support the product.
Decline Stage• Drop the product
• Sell or license the product to risk-taking companies
• Recommit to the product line• Discontinue the product• Regionalize the product to areas where the
product sells well• Modernize or alter the product
OR
Why are companies reluctant to delete products?
– Companies spend large amounts of money to develop and promote consumer and industrial products, so they are reluctant to delete products.
PLC Activity• Product Life Cycle– Groups of Two– On the sheet provided find products that fit into
each category. Provide a picture of the product too!
INTRODUCTION GROWTH MATURITY Decline
POWERMAT iPhone DVD players Check Books
Apple Magic Mouse Smart Car MP3 Players VCR players
Heine’s Ketchup Potato Chips
Hybrid SUV 100 Calorie Packs Typewriters
The Fizz Dark Chocolate M&Ms
Personal Computers
Nilla Wafers
Product Positioning• Positioning a product to project a
certain image – Set the product apart from the
competition– Strategies• Position by price and quality• Position by features and benefits• Position in relation to competition• Position in relation to other products in a line
What determines how a company positions its product?
• To position their products, businesses identify customer needs and determine how their products compare to the competition
Positioning by Price and Quality
• By offering the lines below, companies are able to give each of their products a unique position in the marketplace.
–Economy lines–Mid-priced lines–Luxury Lines
• High price = quality• Low price = value
FORD MOTOR COMPANY:Focus is positioned as a economical compact carMustang is positioned as a high performance car
Positioning by Features and Benefits
• Products are associated with a feature or benefit
– Overtime LLC• Personal care products for boys 9-12• Line includes shampoo, deodorant, body wash, hair gel• News Release
Positioning in Relation to the Competition
• Some businesses position their products to compete directly with the products of other companies.– Not always a good idea to compete head to head
with the industry leader
• Southwest Airlines
Positioning in Relation to Other Products in a Line
• Individual products may be positioned in relation to other products in the same line
Blackberry
Category Management• Process that involves managing product
categories as individual business units– A category may include a group of product lines
with the same target market and distribution channels.
– A category manager is responsible for all the brands of one product category such as• Foods• Beverages• Health and Beauty
Category Management• Planogram– Computer-developed diagram that shows retailers
how and where products within a category should be displayed in a shelf or at individual stores
After Thanksgiving Break…
• Chapter 30 Quiz• Chapter 30 Test• Chapter 31 – Branding, Packaging, & Labeling– Important chapter– Read, notes, & extension activities– Use your time wisely!!
Extension Activity
• Consider your “personal brand”– This is another INDEPENDENT activity!– Grab a DECA Dimensions Magazine and read the
following articles while answering the corresponding questions from a handout:• Article 1: “Is This For Me?” pg. 10• Article 2: “The Seven Habits of Highly Successful
Networkers” pg. 19 - 21• Article 3: “The Six C’s of Leadership” pg. 22 - 24