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