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Terms in this set (33)
ingredient brandingwhen a product is featured as a key ingredient or component of another productproduct developmenta marketing strategy of adding new good and services to current lines for existing customersproduct diversificationa marketing strategy of adding new goods and services targeted to a new market segment currently not being servedproduct life cyclea model of how sales of an item or industry move over its lifetime -intro, growth, maturity, decline2 areas to identify new marketsexisting markets and new marketsexisting markets-brand switching -new needs arise due to changing conditions -product differentiationnew markets-discover or create new segments based in changing -creatively adapting products to new markets -geographic expansion (international & domestic)3 ways to develop new products-product development (diversification) -product improvements -product line extensions6 types of brands-family -flanker -brand extensions -private brands (labels) -cobrands -global brandscannibalismwhen a new product's sales take away from sales of the rest of the company's line (new product does not contribute significantly to income or company profit)How to prevent cannibalism?target market must be clearly different from the target marketbrand equitygeneral perception by consumers that a good or service w/ a given name is different or betterbrand parityconsumers believe there are few tangible distinctions between competing brands5 pillars of brand equity1. Differentiation: product carries a unique attribute 2. Relevance: personal appropriateness 3. Esteem: perceived popularity, perceived quality 4. Knowledge: understanding brand is superior 5. Emotion: feelings, perceived valuegoals of brands-brand awareness -brand equity -brand loyaltyPLC | Introduction characteristics-market small -growth rate is slow -often only company is the pioneer -companies experience lossesPLC | Growth characteristics-market grows rapidly -competitors enter the market -profits are highPLC | Maturity characteristics-growth slows and then flattens -competition is most intense -profits decline -firm drop out due to competition -price importance increases -marketing budget increasesPLC | Decline characteristics-market declines -profits decline -substitute product is foundPLC | Introduction marketing strategies-build primary demand for the product -establish a distribution channelPLC | Growth marketing strategies-differentiate the brand -promote competitive advantage or product differentiation -build distribution channelPLC | Maturity marketing strategies-segment market and focus on one or more segments -promote brand and product differentiation -focus on customer service, customer satisfaction, and customer retention -expand product or market opportunitiesPLC | Decline marketing strategies-decide whether to leave market or be a niche player -promote the niche to those who still want the product