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(Solved) Copyright 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted...


This may LOOK long but its not. No plagiarism, I will check. 2 pages no need fore more just answer the 3 simple questions below. Easy. Thank you.

For the Session Long Project you will be choosing a company whose product you personally use and applying the concepts from the background materials to analyze this company's marketing strategy.

Make sure to choose a company that has a lot of information available, as you will need to analyze many different aspects of this company's marketing strategy while writing up your Modules 1-4 papers. It is best to choose a large and well known company since these companies will generally have the most information available about it.

Do some research on your chosen company and the specific product from this company that you use, and also review the background materials on product classifications, the product life cycle, and new product development. When you are done with your research and have thoroughly reviewed the background materials, write a two- to three-page paper addressing the following questions:

  1. Briefly describe the company and product you have chosen, and why you chose it. Then explain what type of product it is based on the classifications from Richardson and Gosnay (2011). [This answer should be between one to two paragraphs in length]
  2. What stage of the product life cycle is this product at right now? What strategies could this company use to extend the life of the product? Use the concepts from Richardson and Gosnay (2011) and Paley (2007) in your answer. [This answer should be between one to two paragraphs in length]
  3. What recommendation do you have for a new product from this company that you would personally use if they introduced it? [This answer should be one to two paragraphs in length.]
SLP Assignment Expectations
  • Answer the assignment questions directly.
  • Stay focused on the precise assignment questions, and don't go off on tangents or devote a lot of space to summarizing general background materials.
  • Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the Internet, make sure it is from a credible source.
  • Reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper, including pages 13-14 on in-text citations. Another resource is the "Writing Style Guide," which is found under "My Resources" on the TLC portal.

Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 7
How to manage your
product strategy
Chapter objectives
Product life cycle
Product competition
Product mix
Product design
New products/ services
Product audit
Best practices EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n Chapter
objectives After reading this chapter, you should be able to:
• Use a framework consisting of six major factors to develop
product strategies. • Employ product life cycle guidelines to revitalize sales and
extend the life of your products. • Define the four-phase process for developing a new
product. • Use the product audit to sustain product profitability. • Convert product strategies into action. As you review your products or services, you are presented with a
dual opportunity. First, you tend to become mindful of the changing
needs and wants of customers, the life-line to successful new product
development. Second, you incline towards a more prudent path in
deciding how and when to remove losing and marginal products.
The six major areas of product considerations – product life cycle,
product competition, product mix, product design, new products,
and product audit – provide a systematic framework for reviewing
your products and developing competitive strategies.
The following case shows how one company devised strategies to
revitalize its product line and prevent it from becoming an also-ran
in the industry. Timex
The well-known watchmaker, Timex, is an inspiring example for those
managers who must reconfigure their product lines weakened by
aggressive competition, management mistakes, and changing
market behaviour.
Let’s look at the conditions that hit Timex and then examine their
strategies. Management’s errors were few but potent. In the early
1980s, a Swiss company asked Timex to handle worldwide marketing
of its new line of watches. Management refused and the Swatch went
on to become one of that decade’s immensely successful products.
When competitors, particularly Japanese makers, latched on to Texas
Instrument’s invention of the digital watch that swept the market
during the 1970s and 1980s, Timex elected to stick with conventional,
low-priced analogue watches. 140 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n At the same time, consumer behaviour was changing. Timepieces
became fashion accessories, not just functional objects. Statistics
revealed the average consumer owned five watches, compared with
one-and-a-half 30 years earlier.
Aggressive competitors such as Seiko and Citizen spotted the trend
and rushed in with a wide variety of styles in a growing price range.
Again, Timex remained conservative, even while its market share
nose-dived.
So much for the errors. How did Timex management reposition itself,
build its product line, and salvage a valuable brand name? Timex’s strategies
• Market orientation. Recognizing its errors, management
moved rapidly to obtain first-hand market feedback to drive
new product development. Fashion consultants from New
York and Paris visited Timex’s headquarters regularly to
display new clothing styles and suggest trends that could influence watch styles. • Product expansion. Timex began making watches for Guess
and Versace, under license. The company thereby moved into
upscale markets and with a fresh and expanded product lineup.
A deal with Nautica Apparel introduced the first dress watch
for men, movie characters were licensed from Disney for a
new product line, and Timex licensed its own name for a line
of wall clocks and clock radios. • Product development. Timex’s biggest product coup occurred
with the launch of its Indiglo line. Using a patented technology,
energy comes from the watch batteries to excite electrons that
light up the watch face. (The brightness of its Indiglo watch
helped a man lead a group of people down 34 flights of dark
stairs after the first World Trade centre bombing.) Then,
remembering the Swatch incident, Timex developed a plastic
line called Watercolours to go up against their Swiss rival. Also,
noticing the sports craze, Timex moved rapidly with the highly
successful Ironman to capture a big share of that growth
segment. Then, new product development charged forward into
high-tech items capable of paging or downloading computer
data. • Organizational restructuring. Management learned the
hard way that becoming aware of market changes and
responding quickly with products at the right time and place 141 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n are the ingredients for successful repositioning. Accordingly,
the privately-owned company reorganized along product
lines, creating business units for sport, fashion, and its core
Timex watches, giving each line full autonomy over product
design and development. Action strategy
What can you learn from the Timex case? Timex’s strategies are
instructive as you consider the broader considerations of product
strategy. Use the following guidelines:
1. Keep focused. Position your products in those niches where
there is an above average chance to rank favourably among
the industry leaders. Where possible, avoid the commodity
segments where price becomes the central competitive issue.
Instead, find a technology, product design, distribution
system, or value-added service that differentiates your products from those of your competitors.
2. Establish flexible work teams. The traditional organizational
hierarchy is gone. Cross-functional teams now create the vital
linkage between customers and successful product strategies.
To implement the action, the team must have the authority to
make decisions and team members should be properly
trained in the techniques of developing strategic marketing
plans that include product strategies.
3. Solve customers’ problems. The extent to which you are able
to solve customers’ problems and thereby make your
customers more competitive, the greater chance you have for
survival and long-term growth. In solving customers’ problems, search for new product applications, develop value-added
services, and explore new market segments that were overlooked in the initial stages of product development.
4. Look globally. Trade barriers continue to crumble. Push your
product ideas and technologies wherever they apply in the
world. However, follow the principles indicated above. That
is, make sure you are positioned to offer a speciality or
customized product that will satisfy local needs, and not use
foreign markets as a means to unload a standardized product. 142 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Product life cycle Revitalizing sales
Overview: The various strategies that extend the sales life of products are the pillars for successful growth (Figure 7.1). These life cycle
extenders are the safest and most economical strategies to follow.
First, identify the best extension opportunities. Then gain the cooperation of product developers, manufacturing, finance, distribution,
marketing, and sales. Promote more frequent usage among customers
Find new users for product
Find more uses for product
Find new uses for product’s basic materials Sales Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n Time
Figure 7.1: Strategy application for extending a product’s life cycle Examples
Examples abound of organizations successfully extending the sales
life of their products. The classics include nylon, Jell-O brand gelatin
desserts, and Scotch brand tape. All have had average life cycles
of more than 70 years and are still going strong.
DuPont nylon was used initially for parachutes in World War II. Then
the social necessity for women to wear hosiery promoted the use
of nylon. It was also introduced in a variety of textures and colours
and its use extended to rugs, tyres, clothing, and a variety of applications in the consumer and industrial markets.
Jell-O expanded its assortment of flavours and promoted the
product for use in salads as well as deserts. It also focused on the
weight-watching market. 143 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n 3M introduced Scotch brand tape in a variety of tape dispensers to
encourage more usage. It developed coloured, patterned, waterproof,
and write-on tape. It also developed new uses for the basic material with double-coated tapes that competed with liquid adhesives
for industrial applications.
Thus, the product life cycle offers you a reliable perspective for
observing – and influencing – a ‘living’ product moving through
dynamic stages.
Consequently, the classic product life cycle model remains an effective framework for devising marketing strategies at various stages
of the curve. Strategies throughout the life cycle
Different conditions characterize the stages of the product life cycle,
influenced by outside economic, social, and environmental forces,
as well as by inside policies, priorities, and available resources.
These facts suggest continuous monitoring and making appropriate
changes in your strategic approach, if you are to optimize results.
These changes include adjustments in your marketing mix – that
is, the particular combination of marketing tools that you use at each
stage (see Table 7.1). 144 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n Marketing mix elements
Life cycle stage Product Pricing Distribution Promotion Introduction Offer technically
mature product, keep
mix small ‘Skim the cream’ of
price insensitive
innovators through
high introductory price ‘Fill the pipeline’ to the
consumer; use indirect
distribution through
wholesalers Create primary
demand for product
category, spend
generously on
extensive and intensive
‘flight’ advertising and
the use of the Internet Growth Improve product; keep
mix limited Adjust price as needed
to meet competition Increase product
presence and market
penetration Spend substantially on
expansion of sales
volume Maturity Distinguish your
product from
competition; expand
your product offering to
satisfy different market
segments Capitalize on pricesensitive demand by
further reducing prices Take over wholesaling
function yourself by
establishing
distribution centres
and having your own
sales force call on
retailers Differentiate your
product in the minds of
prospective buyers;
emphasize brand
appeal Saturation Proliferate your mix
further, diversify into
new markets Keep prices stable Intensify your
distribution to increase
availability and
exposure Maintain the status
quo; support your
market position Decline Prune your mix
radically Carefully increase
prices Consolidate your
distribution setup;
establish minimum
orders Reduce advertising
activity to reminder
level Table 7.1: Strategies throughout the product life cycle Successful management of your product’s life cycle requires
careful planning and thorough understanding of its characteristics at the various points of the curve. Only then can you respond
quickly and advantageously to new situations, leaving competitors
in your wake. The following guidelines describe the strategies
outlined in Table 7.1. Introduction
In the introduction stage, it is the task of the pioneer to create primary
demand – namely, demand for the new product category. Initially, 145 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n keep the product mix small to provide a clear focus and keep costs
under control. Also, confine the mix to just a few variations that reflect
the underlying concept of the entire category. (Baby food, for
example, was initially launched with a mix of only five products.)
As for your channel strategy, attempt to secure maximum availability
of your product in the right outlets. It is essential to the success of
your marketing effort that you obtain the support of middlemen and
‘filling the pipeline’ to the consumer. Choosing the right intermediaries is a difficult decision in itself, unless your channel is already
set through your current relationships.
Also essential is the support given to your product in the form of
advertising. Anything less than generous funding and an all-out
advertising effort will reduce the product’s chances for survival.
Giving a new product lukewarm advertising support is generally
tantamount to signing its death warrant.
With pricing, you have the option to set it fairly low – a strategy
called penetration pricing – aimed at creating a mass market and
discouraging competitive imitation through low unit profits and large
investment requirements. Or you may consider a skimming strategy
that starts out with a comparatively high price aimed at recovering
your initial outlays for development and market introduction before
competitive pressure erodes your temporary advantage. Growth
In the growth stage, you will want to modify your basic product to
take care of any problems discovered through initial consumer reactions. However, since the product category is selling so well, the
product mix can remain small.
With regard to channels of distribution, your goals will include
persuading current channel members to buy more and to sign up
new channel members. This drive is greatly aided by booming
demand, which strains the industry’s supply capability and has
distributors scurrying for merchandise. Your salespeople will
continue to sell along the same lines as before, building upon the
emerging success story of your innovation.
Your advertising emphasis is likely to shift somewhat from creating
product awareness to expanding market volume. Prices soften as
price-cutting competitors enter the market. 146 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n Maturity
Moving into the maturity phase can be traumatic, because the
peaceful coexistence of competitors now turns into a fight for market
share. At this time, it pays to redesign your product to make it more
distinctive and easier to differentiate from competitive offerings. Since
product technology is well developed, changes tend to be more
cosmetic than functional.
The following three categories of strategies apply when a product
reaches the troublesome mature stage of the product life cycle, where
managers devote much of their trouble-shooting time: 1. Market modification
• Expand the number of users by converting non-users to your
product, entering new market niches, and converting competitors’ customers to your company. • Increase customers’ usage of your product by presenting ways
to use the product more frequently, in greater quantities, and
for more varied applications. 2. Product modification
• Utilize quality improvement to increase the product’s functional
performance, such as through durability, reliability, and
speed. • Add feature improvements that expand the product’s versatility, safety, and convenience through size, materials, additives,
or accessories. • Implement style improvements using shape, packaging,
colour and other aesthetic and functional modifications. 3. Marketing-mix modification
• Examine the wide range of non-product strategies connected
with price, sales, advertising, service, and distribution. Saturation
As your product enters the saturation stage of its life cycle, typically a no-holds-barred fight develops for market share. With market
volume stabilizing, growth typically is achieved at the expense of
competitors. In your product strategy, you will find yourself
compelled to differentiate further by offering even more choice. 147 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n Also, it would pay to examine a strategy of diversification. Entering
another field (if consistent with your strategic direction) could reduce
your risk by decreasing your exposure to the fate of a particular
product and could thus add stability, as well as potential revenue
and profit, to your business.
Your supply chain strategy remains unaltered in the saturation phase.
You should attempt to gain even more intensive distribution and,
thereby, maximize availability and exposure. Toward this end, your
salespeople will have to make a well planned, concerted effort to
obtain more trade cooperation.
The primary function of advertising at this point is to maintain the
status quo. Little new ground can be broken, so advertising of the
reminder or reinforcement type is needed. Elasticity of demand
reaches its highest point at this stage. This fact is of little strategic
consequence, however, since most possibilities for cost reduction
have been exhausted. Decline
With consumer interest in the product waning in the decline phase,
competitors drop out of the market in droves. If you are still in the
market, you will trim your product offering to the bone, vigorously
weeding out weak products and concentrating on a few unchanged
items.
Similarly, you will attempt to reduce distribution cost by consolidating warehouses and sales offices, as well as establishing
minimum orders to discourage small shipments. Your sales effort
will tend to be low key, with an emphasis on retaining as much of
your market as you can. Advertising support will diminish to the
low-budget, infrequent-reminder type. Your prices will stay right
about where they are.
Finally, studies have shown that the classic product life cycle pattern
conforms reasonably well to reality. It remains a pragmatic and useful
tool to monitor your product’s life and to develop short – and longterm product strategies. 148 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n Product
competition Generating higher revenue
Overview: To gain a larger share of a total market, consider introducing additional products as competing lines or as private labels.
The additional products provide a solid front against competitors.
Overall, the strategy aims at generating higher revenue than does
the use of only a single product.
The following case illustrates a significant application of product
competition. Symbian
This London-based company is a maker of a software operating
system for mobile phones and handheld devices. Yet, this smallish
company turns out to be a troublesome competitor to the mighty
Microsoft Corporation. Overlaying the situation is an even greater
dilemma for Microsoft: Symbian has created powerful jointventures with Nokia, Ericsson, Panasonic, Motorola, Siemens, and
Samsung.
The core advantage, however, is that Symbian wields its powerful
digital software for the next generation of products, such as wireless Web-surfing phones and souped-up mobile phones that will give
callers access to the Internet. Symbian’s aim is to disconnect the Net
from desktops and phone lines. If Symbian prevails, these machines,
from phones to palmtops, will run on Symbian O2 software – not
on Microsoft’s system for handheld machines. Symbian’s goal is to
become the industry and wireless standard.
The product competition has evolved as an all-out fight for market
domination. Symbian, with its powerful partners, provide a solid
customer base and a capability to produce and market its smart
phones. Microsoft, not to be outdone, is busy signing up partners,
from British Telecommunications PLC to Qualcomm Inc. of the U.S.,
to push handsets and other devices using its new Windows software. Action strategy
What can you learn from the Symbian/Microsoft case? To develop
competing products, make certain you apply a meaningful product
differentiation strategy, and be certain you have a capability to reach
a market with a substantial customer base.
Here are some useful guidelines for developing a competitive product:
• Features and benefits: Identify characteristics that complement your product’s primary functions. Start with your basic 149 EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 1/29/2017 4:15 PM via TRIDENT UNIVERSITY
AN: 399013 ; Paley, Norton.; The Marketing Strategy Desktop Guide
Account: s3642728 H o w t o m a n a g e y o u r p r o d u c t s t r a t e g y Copyright © 2007. Thorogood. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. s e v e n product. Then add unique features and services; ideally, ones
based on users’ expectations. Product mix • Performance: Relate to the level at which the product operates – including quality. Ideally, levels of performance should
exceed those of competing products. • Acceptance: Measure how close the product comes to established standards or specifications. • Endurance: Tell of the product’s expected operating life. • Dependability: Measure the probability of the product
breaking or malfunctioning within a specified period. • Appearance: Cover numerous considerations ranging from
image, function, look, or feel. Different from performance,
appearance integrates the product with all its differentiating
components, including packaging. • Design: Unite the above differentiating components, as well.
While design encompasses the product’s appearance,
endurance and dependability, there is particular emphasis
placed on eas...

 


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