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Principles and Practice of MarketingDavid Jobber
Chapter 8Managing Products
2D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Creating a brand
Quality anddesign Packaging
Core product
Brand potential
Brand potential
Brand potential
Delivery
Brand name andimages
Service
Guarantees
3D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Building successful brands
Quality
Well-blendedcommunications
Being first
Internalmarketing
Repositioning
Positioning
Long-termperspective
Brandbuilding
4D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Global branding decisions
Delivery Service Guarantees
Brandadditions
Brandcommunications Name Execution Packaging
Brand form Quality Formulation Design Variants
Global branding
5D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Stages in the development of a questionnaire
Planning stage
Design stage
Pilot stage
6D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Stages in the development of a questionnaire
Planning stage
Design stage
Pilot stage
• Definition of the research problem• Exploratory research
• Information required• Definition of population• Target groups• Survey method
7D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Stages in the development of a questionnaire
Planning stage
Design stage
Pilot stage
• Ordering of topics• Type of question• Wording and instructions• Layout• Scaling• Probes and prompts• Coding
8D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Stages in the development of a questionnaire
Planning stage
Design stage
Pilot stage• Pilot testing• Redesign
• Final questionnaire
9D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
The product life cycleS
ales
and
pro
fit
Sales
Profit
Introduction Growth Maturity Decline
10D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Key tasks in positioning
1. Market segmentation
2. Target market
3. Differentiated advantage
Positioning
Where and how we compete
11D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Strategic objectives and theBoston Box
Build sales and/or market share
Invest to maintain/increase leadership position
Repel competitive challenges
Stars Build selectively Focus on defendable niche
where dominance can be achieved
Harvest or divest the rest
Problem children
Hold sales and/or market share
Defend position Use excess cash to support
stars, selected problem children and new product development
Cash cows
Harvest or Divest or Focus on defendable niche
Dogs
12D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Strategic objectives and theBoston Box
Build sales and/or market share
Invest to maintain/increase leadership position
Repel competitive challenges
Stars
Build selectively Focus on defendable niche
where dominance can be achieved
Harvest or divest the rest
Problem children
Harvest or Divest or Focus on defendable niche
Dogs Hold sales and/or market
share Defend position Use excess cash to support
stars, selected problem children and new product development
Cash cows
13D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Strategic objectives and theBoston Box
Build selectively Focus on defendable niche
where dominance can be achieved
Harvest or divest the rest
Problem children
Harvest or Divest or Focus on defendable niche
Dogs
Build sales and/or market share
Invest to maintain/increase leadership position
Repel competitive challenges
Stars
Hold sales and/or market share
Defend position Use excess cash to support
stars, selected problem children and new product development
Cash cows
14D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Strategic objectives and theBoston Box
Hold sales and/or market share
Defend position Use excess cash to support
stars, selected problem children and new product development
Cash cows
Build selectively Focus on defendable niche
where dominance can be achieved
Harvest or divest the rest
Problem children
Harvest or Divest or Focus on defendable niche
Dogs
Build sales and/or market share
Invest to maintain/increase leadership position
Repel competitive challenges
Stars
15D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Strategic objectives and theBoston Box
Build sales and/or market share
Invest to maintain/increase leadership position
Repel competitive challenges
Stars Build selectively Focus on defendable niche
where dominance can be achieved
Harvest or divest the rest
Problem children
Harvest or Divest or Focus on defendable niche
Dogs Hold sales and/or market share
Defend position Use excess cash to support
stars, selected problem children and new product development
Cash cows
16D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
The case of anunbalanced portfolio
High
Low
LowHigh
Mar
ket
gro
wth
rat
e
Market share
17D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
The General Electric Market Attractiveness–Competitive Position Model
High
Low
LowHighCompetitive strength
Medium
Medium
1
2
5
4
3
Market attractiveness
18D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Implications of portfolio planning
Different products
Different roles
Different reward systems
Different types of managers
19D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Product growth strategies:the Ansoff Matrix
Marketpenetration or
expansion
Productdevelopment
DiversificationMarketdevelopment
Existing
New
Existing NewProducts
Mar
kets
20D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Increase sales volume
Entry into new markets
Market development
Product development
Market expansion
Market penetration
Strategic options forincreasing sales volume
21D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Entry into new markets
Market development
Product development
Market expansion
Increase sales volume
Market penetration
Buy competitors
Discourage competitive entry
Win competitors’ customers
Strategic options forincreasing sales volume
22D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Increase sales volume
Entry into new markets
Market development
Product development
Market expansion
Market penetration
Increase usage rate
Convert non-users
Strategic options forincreasing sales volume
23D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Entry into new markets
Market development
Market expansion
Increase sales volume
Product development
Market penetration
Product line extension
Innovation
Product replacement
Strategic options forincreasing sales volume
24D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Entry into new markets
Product development
Market expansion
Increase sales volume
Market development
Market penetration
Promote new uses
Enter new segments
Strategic options forincreasing sales volume
25D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Market development
Product development
Market expansion
Strategic options forincreasing sales volume
Increase sales volume
Entry into new markets
Market development
Market penetration
New products
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