Principles and Practice of Marketing

David Jobber

Chapter 8
Managing Products
 Creating a brand

Brand
Brand name Brand
potential and Service potential
images

Core
Delivery product Guarantees

Quality and
design Packaging

Brand potential
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2
 Building successful brands

Quality Positioning

Well-blended Repositioning
communications Brand
building

Long-term
Being first perspective
Internal
marketing

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 3

 Global branding decisions
Brand form
● Quality

● Formulation

● Design

● Variants

Global branding

Brand Brand
communications additions
● Name ● Delivery

● Execution ● Service

● Packaging ● Guarantees

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 4

 Stages in the
development of a questionnaire

Planning stage

Design stage

Pilot stage

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 5

 Stages in the
development of a questionnaire

Planning stage • Definition of the research problem

• Exploratory research

Design stage • Information required

• Definition of population
• Target groups
• Survey method
Pilot stage

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 6

 Stages in the
development of a questionnaire

Planning stage
• Ordering of topics
• Type of question
• Wording and instructions
Design stage • Layout
• Scaling
• Probes and prompts
• Coding
Pilot stage

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 7

 Stages in the
development of a questionnaire

Planning stage

Design stage

• Pilot testing
Pilot stage
• Redesign

• Final questionnaire
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 8
 The product life cycle
Introduction Growth Maturity Decline
Sales and profit

Sales

Profit

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 9

 Key tasks in positioning

1. Market segmentation

2. Target market
Positioning
3. Differentiated advantage

Where and how we compete

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 10

 Strategic objectives and the
Boston Box

Stars Problem children

● Build sales and/or market
share
● Invest to maintain/increase
leadership position
● Repel competitive challenges
● Build selectively
● Focus on defendable niche
where dominance can be
achieved
● Harvest or divest the rest

Cash cows
Dogs
● Hold sales and/or market
share ● Harvest or
● Defend position ● Divest or
● Use excess cash to support ● Focus on defendable niche
stars, selected problem
children and new product
development

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 11

 Strategic objectives and the
Boston Box
Stars
● Build sales and/or market
share Problem children
● Invest to maintain/increase ● Build selectively
leadership position ● Focus on defendable niche
where dominance can be
● Repel competitive achieved
● Harvest or divest the rest
challenges
Cash cows
Dogs
● Hold sales and/or market
share ● Harvest or
● Defend position ● Divest or
● Use excess cash to support ● Focus on defendable niche
stars, selected problem
children and new product
development

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 12

 Strategic objectives and the
Boston Box
Problem children
● Build selectively
Stars
● Build sales and/or market
● Focus on defendable niche
share where dominance can be
● Invest to maintain/increase
leadership position
achieved
● Repel competitive challenges ● Harvest or divest the rest

Cash cows
Dogs
● Hold sales and/or market
share ● Harvest or
● Defend position ● Divest or
● Use excess cash to support ● Focus on defendable niche
stars, selected problem
children and new product
development

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 13

 Strategic objectives and the
Boston Box

Stars Problem children

● Build sales and/or market
share
● Invest to maintain/increase
leadership position
● Repel competitive challenges
● Build selectively
● Focus on defendable niche
where dominance can be
achieved
● Harvest or divest the rest

Cash cows Dogs

● Hold sales and/or market ● Harvest or
share ● Divest or
● Defend position ● Focus on defendable niche
● Use excess cash to support
stars, selected problem
children and new product
development
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 14
 Strategic objectives and the
Boston Box

Stars Problem children

● Build sales and/or market
share
● Invest to maintain/increase
leadership position
● Repel competitive challenges
● Build selectively
● Focus on defendable niche
where dominance can be
achieved
● Harvest or divest the rest

Cash cows
● Hold sales and/or market
share Dogs
● Defend position
● Use excess cash to support
● Harvest or
stars, selected problem
children and new product
● Divest or
development ● Focus on defendable niche

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 15

 The case of an
unbalanced portfolio

High
Market growth rate

Low

High Low
Market share
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 16
 The General Electric Market Attractiveness–
Competitive Position Model

1
High

Market Medium
attractiveness

2 4
Low
5
High Medium Low
Competitive strength
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 17
 Implications of portfolio planning

Different products

Different roles

Different reward systems

Different types of managers

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 18

 Product growth strategies:
the Ansoff Matrix

Market
Product
Existing penetration or
development
expansion
Markets

New Market
Diversification
development

Existing New
Products

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 19

 Strategic options for
increasing sales volume
Increase sales volume

Market penetration

Market expansion

Product development

Market development

Entry into new markets

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 20

 Strategic options for
increasing sales volume
Increase sales volume

Market penetration Win competitors’ customers

Market expansion Buy competitors

Product development Discourage competitive entry

Market development

Entry into new markets

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 21

 Strategic options for
increasing sales volume
Increase sales volume

Market penetration

Market expansion Convert non-users

Product development Increase usage rate

Market development

Entry into new markets

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 22

 Strategic options for
increasing sales volume
Increase sales volume

Market penetration

Market expansion Product line extension

Product development Product replacement

Market development Innovation

Entry into new markets

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 23

 Strategic options for
increasing sales volume
Increase sales volume

Market penetration

Market expansion

Product development Promote new uses

Market development Enter new segments

Entry into new markets

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 24

 Strategic options for
increasing sales volume
Increase sales volume

Market penetration

Market expansion

Product development

Market development

Entry into new markets New products

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 25