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Introduction to Marketing
Creating Customer Values
From Products to Brands and
Beyond
Bangor Transfer Abroad Programme
Introduction to Marketing
Structure
• Creating Values
• Product Life Cycle
• New Product Development
• Branding
• Product Management
Bangor Transfer Abroad Programme
Introduction to Marketing
The Marketing Cycle
Services
Brands
商業
交易
消費者
Physical
Products
Bangor Transfer Abroad Programme
Introduction to Marketing
Product Life Cycle
• A way to trace the stages of a
product's acceptance from its
introduction to its demise.
• Refers to the life of the product
category
The time a product category spends
in a stage of the product life cycle
may vary from a few weeks to
decades.
• A tool to help marketers understand
- where their product is now
- what may happen
-- which strategies are normally
appropriate
Bangor Transfer Abroad Programme
Life Cycle
Management
Introduction to Marketing
Bangor Transfer Abroad Programme
Introduction to Marketing
Introduction Stage
Sales grow slowly
Profit is minimal or negative
Create awareness
Stimulate trial
High production costs
Limited product models
Frequent product modification
Penetration pricing
Skimming pricing
Little competition
High failure rate,
High marketing costs
Promotion strategy focuses on primary demand for the product
category
-
developing product
awareness
-
Informing about product
benefits.
Intensive personal selling to retailers and wholesalers is required
Bangor Transfer Abroad Programme
Introduction to Marketing
Growth Stage
Characteristics
Sales grow at an increasing rate.
Many competitors enter the
market.
Large companies may acquire
small pioneering firms.
Profits are healthy
Promotion emphasis
-
- heavy brand advertising
Differences between
brands.
Gaining wider distribution is a key goal
Toward the end of this stage
- prices normally fall
- profits reach their peak.
Development costs have been
recovered
Sales volume has created
economies of scale.
Bangor Transfer Abroad Programme
Introduction to Marketing
Maturity Stage
Sales continue to increase but at a
decreasing rate
The marketplace is approaching
saturation
Annual models of many products
An emphasis on product style
rather than function
Product lines are widened or
extended
marginal competitors begin
dropping out of the market.
Heavy promotions to both the
Prices and profits begin to fall.
dealers and consumers are required.
Bangor Transfer Abroad Programme
Introduction to Marketing
Decline Stage
Signaled by a long-run
drop in sales.
Falling demand forces
many competitors out of
the market
- The rate of decline is
governed by how rapidly
consumer tastes change
or
- how rapidly substitute
products are adopted.
A few small specialty
firms may still
manufacture the product.
Bangor Transfer Abroad Programme
Introduction to Marketing
New Product Development
新產品發展
Bangor Transfer Abroad Programme
Innovation – Adoption
Introduction to Marketing
Bangor Transfer Abroad Programme
Introduction to Marketing
Common reasons for resisting a product in the
introduction stage are
usage barriers
product is incompatible with
existing habits
value barriers
product provides no incentive
to change
risk barriers
physical, economic, or social
psychological barriers
cultural differences or image
Bangor Transfer Abroad Programme
Introduction to Marketing
Product Mix
Assortment
of
Product items
in each line
Number of Product Lines
FEW
MANY
Narrow variety
Wide variety
Shallow assort.
Shallow assort.
Narrow variety
Wide variety
Deep assort.
Deep assort.
Bangor Transfer Abroad Programme
Narrow Variety/
Shallow assortment
Introduction to Marketing

Most limited selection

Unconventional outlets e.g. vending machines /
door-to-door

Needs wide availability (extensive)
Bangor Transfer Abroad Programme
Introduction to Marketing
Narrow Variety /
Deep assortment

Specialise in few lines - wide selection
within line

Clear Brand Image
Bangor Transfer Abroad Programme
Wide Variety /
Shallow assortment
Introduction to Marketing

“a little of everything”

Convenience products
Bangor Transfer Abroad Programme
Wide Variety /
Deep assortment

Introduction to Marketing
Large number of product lines with deep
assortment in each
E.G. Large Department Stores
Bangor Transfer Abroad Programme
Product
Management
Introduction to Marketing
Bangor Transfer Abroad Programme
Introduction to Marketing
Role of a Product Manager

Product manager is responsible for marketing
products through the successive stages of their life
cycles.

Product (or brand) manager manages the
marketing efforts for a close-knit family of products
or brands.

Three ways to manage:
- modify the product
- modify the market
- reposition the product.
Bangor Transfer Abroad Programme