Product Mix and Product Life Cycle
For the last twenty years, your firm has been producing a simple health drink called Nutri A. It is aimed at health-conscious adults aged between twenty-one and forty-four years. Nutri A is in the mature stage of the category’s life cycle; as a result, industry sales are flat. Your marketing manager decides that it is time to expand the depth of the product line and increase market share. He wants you to come up with a new health drink aimed at a younger market, the fifteen- to twenty-one-year-olds.
Create a 300- to 400-word that addresses the following:
- Describe the new product.
- Would you keep that same brand name or use a new one? Why?
- Would it be similar to or different from the existing drink? Why? If it would be different, explain how.
Be sure to properly cite your sources using APA; include your references and in-text citations. Comment on the postings of your classmates. Do you agree with their position? Why or why not? As you respond to your classmates, make sure you use the course concepts that you have studied so far.
Product Planning and Development
A product is the foundation of the marketing mix and the beginning of an organization’s marketing strategy. It is
the need-based offering of an organization. In economic terms, it creates either form or task utility. Form utility is
applied when raw materials are combined with labor to create a physical good of value. Company X uses raw
rubber combined with steel to form steel-belted tires. Therefore, it represents form utility. On the other hand,
task utility is applied when labor is used to provide a service. Company Y provides spa services, which involve
physical labor. Therefore, it represents task utility. It is important for organizations to be aware of these utility
types. Too often, organizations develop products they are interested in producing rather than conducting
research to see what the consumers’ needs actually are. To make a product successful, an organization requires a
good product plan. Good product planning and development starts with conducting research on the target
market to determine its needs and wants. There are three research methods of determining consumer needs and
wants. These methods are focus groups, consumer panels, and ladder interviews.
Consumer panel : is a long-term advisory group comprising consumers who match the demographics and
psychographics of the target market. An organization usually sends its consumer panel test products for
feedback.
Focus group : is one of the most common methods of conducting consumer research. In this method, marketing
managers gather consumers to get their views on product ideas or to explore what they are looking for in a new
product.
Ladder Interview : is a personal interview in which individuals are asked a series of questions about a product and
how they use it.
A product strategy is a response to the marketing objective formulated after performing a strengths, weaknesses,
opportunities, threats, and trends (SWOTT) analysis and a market growth strategy analysis. Regardless of
whether the organization pursues a new product growth strategy or an existing one, tactical decisions need to be
made concerning the following key issues:
Features and design: Features are what differentiate a product from its competitors in the market. Design
can be a crucial element in differentiating and positioning the product in the market. Design includes the
physical and functional aspects of the product.
Variety and quality: Variety in a product refers to slight differences in the attributes of the product. The
quality of a product refers to its ability to ful?ll its role and deliver the bene?ts it is supposed to offer.
Branding, packaging, and labeling: A brand can be a symbol, a name, or a design that identi?es an
organization and its products. Therefore, one of the key roles of a marketer is to develop, enhance, and
preserve the brand. As the package is the customers’ ?rst contact with the product, it is essential that the
product be packaged well. A well-designed package and labeling may be required to emphasize the bene?ts
or features of a product.
Support services: Support services supplement the actual product offering. Although some organizations
may not offer these services, the ones that do easily gain an advantage over their competitors.
Additional Materials
View a Pdf Transcript of Product Planning and Development
(media/transcripts/Week_1/SUO_MKT3010%20W3%20L1.pdf?
_&d2lSessionVal=c5XpM4qciRJZShXpP1mm48ljV&ou=83096)
?
Stages of the New Product Development Process
The product planning and development process is a systematic approach that the ?rm must undertake while
designing, developing, and launching new products. Once marketing managers have used marketing research to
understand the needs of their target market, they need to create a new product development process based on
the research. The new product development process consists of ?ve stages:
1. The ?rst stage is to generate ideas. This is where research plays a critical role since the needs identi?ed in
the target market provide the inspiration for new product ideas.
2. The next stage is to screen the ideas. Here, the consumer panel plays a key role in providing feedback on the
ideas.
3. The next stage is the actual development and testing of the product. Again, the consumer panel plays a key
role in ?eld-testing the product and providing feedback to improve the product.
4. The next stage is to test-market the product before its commercial launch. In this stage, marketing
managers often use focus groups to get feedback on the product in the test market.
5. Finally, the product is launched, and the process starts all over again for a new product.
The product mix is the width and depth of a ?rm’s product line. The combination of the width and depth of a ?rm’s
product line constitutes its offering to the marketplace. A ?rm increases the width and depth of its product line so
as to serve new market segments and better serve existing customers, respectively. Both width and depth are
critical to the success of a ?rm. For example, in addition to motorcycles, Harley-Davidson offers its customers
leather jackets, boots, and other related products favored by Harley-Davidson riders.
Supplemental/Transitional/Introductory Text:
Managing Products
The product life cycle is one of the most powerful tools available to marketing managers. Every product category
goes through ?ve stages—development, introduction, growth, maturity, and decline—and the product strategy
changes with each stage.
Development: This stage marks the development of an idea into a product. During this stage, sales are zero and
the company costs keep building up.
Introduction: The product is introduced in the market, and the focus is on increasing sales. The heavy expenses at
this stage rarely result in pro?ts.
Growth: During this stage, the product sees growing market acceptance and pro?ts.
Maturity: The product is accepted by most of its potential buyers and faces rising competition in the market. The
sales growth begins to slow down, along with the leveling off or decline of pro?ts.
Decline: This is the stage when the product is said to be “dying” and its sales start to decline.
Additional Materials
View a Pdf Transcript of Stages in the New Product Development Process
(media/transcripts/Week_1/SUO_MKT3010%20W3%20L2.pdf?
_&d2lSessionVal=c5XpM4qciRJZShXpP1mm48ljV&ou=83096)
?
Branding Strategies
Firms create a brand identity by developing an easily recognized brand name. The brand name is then associated
with desirable attributes and product bene?ts. The association of these attributes with the brand name results in
a successful branding strategy. Brand positioning is an essential element of a winning branding strategy. “Brand
positioning” is the term used to describe how a ?rm’s brands are located relative to competitive products in the
minds of the consumers. A brand’s position is based on the consumer’s perception of that brand and of competing
brands. Companies determine this position by measuring consumer attitudes and plotting them relative to
competing brands.
An example is Starbucks. Starbucks has marketed its coffee as a premium coffee; hence consumers are willing to
pay more to get that perceived superior taste.
Marketing managers start the process of positioning a ?rm’s brand by identifying the current position of the
brand and then locating it relative to the competitors’ brands with regard to desired attributes such as price,
quality, and other features. The managers generally use a perceptual map—a graph with a vertical and a horizontal
scale, one for each desired attribute. Once the ?rm determines the current market position of its brand relative to
the desired position, it then needs to move the brand to the desired position. To do this, the ?rm develops an
integrated marketing communication campaign with the goal of changing the consumer’s attitudes toward the
brand. This campaign should serve to alter the consumer’s image of the product to the one the ?rm chooses.
The American Marketing Association (AMA) de?nes a brand as a “name, term, sign, symbol or design, or a
combination of them intended to identify the goods and services of one seller or group of sellers and to
differentiate them from those of other sellers” (Brand, 2007, para. 118)
Therefore, it makes sense to understand that branding is not about getting your target market to choose you over
the competition. It is about getting your prospects to see you as the only one that provides a solution to their
problem.
To succeed in branding, you must understand the needs and wants of your customers and prospects by
integrating your brand strategies at every point of public contact in your company.
Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their
experiences and perceptions, some of which you can in?uence and some that you cannot.
A strong brand is invaluable as the battle for customers intensi?es day by day. It’s important to spend time
investing in researching, de?ning, and building your brand. After all, your brand is the source of a promise of
quality products and services to your consumer. It’s a foundational piece in your marketing communication and
one you do not want to be without.
Reference:
Brand (2007).American Marketing Association (https://www.ama.org/resources/Pages/Dictionary.aspx)?
Additional Materials
View a Pdf Transcript of Branding Strategies (media/transcripts/Week_1/SUO_MKT3010%20W3%20L3.pdf?
_&d2lSessionVal=c5XpM4qciRJZShXpP1mm48ljV&ou=83096)
?
Branding Strategies
© 2016 South University
Page 2 of 2
Marketing Management
©2016 South University
2
Branding Strategies
Week 3 Lecture 3
Firms create a brand identity by developing an easily recognized
brand name. The brand name is then associated with desirable
attributes and product benefits. The association of these attributes
with the brand name results in a successful branding strategy.
Brand positioning is an essential element of a winning branding
strategy.
“Brand positioning” is the term used to describe how a firm’s
brands are located relative to competitive products in the minds of
the consumers. A brand’s position is based on the consumer’s
perception of that brand and of competing brands. Companies
determine this position by measuring consumer attitudes and
plotting them relative to competing brands. Since Starbucks has
marketed its coffee as a premium coffee, consumers are willing to
pay more to get that superior taste.
Developing a brand position
Marketing managers start the process of positioning a firm’s brand
by identifying the position of the brand and then locating it relative
to the competitors’ brands with regard to desired attributes such as
price, quality, and other features. The managers generally use a
perceptual map—a graph with a vertical and a horizontal scale,
one for each desired attribute. Once the firm determines the
current market position of its brand relative to the desired position,
it then needs to move the brand to the desired position. To do this,
the firm develops an integrated marketing communication
campaign with the goal of changing the consumer’s attitudes
toward the brand. This campaign should serve to alter the
consumer’s image of the product to the one the firm chooses.
Product Planning and Development
© 2016 South University
Page 2 of 2
Marketing Management
©2016 South University
2
Product Planning and Development
Week 3 Lecture 1
Utility Types and Research Methods
A product is the foundation of the marketing mix and the beginning
of an organization’s marketing strategy. It is the need-based
offering of an organization. In economic terms, it creates either
form or task utility.
Form utility is applied when raw materials are combined with labor
to create a physical good of value. Company X uses raw rubber
combined with steel to form steel-belted tires. Therefore, it
represents form utility. On the other hand, task utility is applied
when labor is used to provide a service. Company Y provides spa
services, which involve physical labor. Therefore, it represents task
utility. It is important for organizations to be aware of these utility
types. Too often, organizations develop products they are
interested in producing rather than conducting research to see
what the consumers’ needs actually are.
To make a product successful, an organization requires a good
product plan. Good product planning and development starts with
conducting research on the target market to determine its needs
and wants. There are three research methods of determining
consumer needs and wants. These methods are focus groups,
consumer panels, and ladder interviews.
demographics and psychographics of the target market. An
organization usually sends its consumer panel test products for
feedback. A focus group is one of the most common methods of
conducting consumer research. In this method, marketing
managers gather consumers to get their views on product ideas or
Page 3 of 2
Marketing Management
©2016 South University
3
Product Planning and Development
Week 3 Lecture 1
to explore what they are looking for in a new product. A ladder
interview is a personal interview in which individuals are asked a
series of questions about a product and how they use it. Together,
these three research methods provide an organization with input
on the needs of the target market and how the organization can
fulfill those needs with its product.
Stages of the New Product Development
Process
© 2016 South University
Page 2 of 2
Marketing Management
©2016 South University
2
Stages of the New Product Development Process
Week 3 Lecture 2
The product planning and development process is a systematic
approach that the firm must undertake while designing, developing,
and launching new products. Once marketing managers have used
marketing research to understand the needs of their target market,
they need to create a new product development process based on
the research.
The new product development process consists of five stages:
1. The first stage is to generate ideas. This is where research plays
a critical role since the needs identified in the target market provide
the inspiration for new product ideas.
2. The next stage is to screen the ideas. Here, the consumer panel
plays a key role in providing feedback on the ideas.
3. The next stage is the actual development and testing of the
product. Again, the consumer panel plays a key role in field-testing
the product and providing feedback to improve the product.
4. The next stage is to test-market the product before its
commercial launch. In this stage, marketing managers often use
focus groups to get feedback on the product in the test market.
5. Finally, the product is launched, and the process starts all over
again for a new product.
The product mix is the width and depth of a firm’s product line. In
the two scenarios provided, select the width of the product line.
Page 3 of 2
Marketing Management
©2016 South University
3
Stages of the New Product Development Process
Week 3 Lecture 2
The width of a product line means the variety of similar products a
firm offers. For example, Ford Motor Company offers a width of
products, from small economical cars to large trucks. On the other
hand, the depth of a product line means the number of variations of
a product offered by a firm. Ford Motor Company also offers
several different pickup truck models, from the small Ranger to the
large Ford 350. The combination of the width and depth of a firm’s
product line constitutes its offering to the marketplace. A firm
increases the width and depth of its product line so as to serve new
market segments and better serve existing customers,
respectively. Both width and depth are critical to the success of a
firm. For example, in addition to motorcycles, Harley-Davidson
offers its customers leather jackets, boots, and other related
products favored by Harley-Davidson riders.
The combination of the width and depth of a firm’s product line
constitutes its offering to the marketplace. : A firm increases the
width and depth of its product line so as to serve new market
segments and better serve existing customers, respectively. Both
width and depth are critical to the success of a firm. For example,
in addition to motorcycles, Harley-Davidson offers its customers
leather jackets, boots, and other related products favored by
Harley-Davidson riders.
At other times, increasing the width of the product line involves
developing flanking brands. A firm develops flanking brands to
serve the needs of different segments of the markets it is serving.
Coca-Cola is a good example of this type of branding strategy. The
Coca-Cola Company offers a variety of soft drinks. Its flagship
brand, Coca-Cola, has variants such as Coca-Cola, Cherry Coke,
Page 4 of 2
Marketing Management
©2016 South University
4
Stages of the New Product Development Process
Week 3 Lecture 2
and Diet Coke. The company also offers flanking brands, such as
Sprite, Orange Sunkist, Mr. Pibb, and Fanta, to increase the width
of its product line.
https://www.ama.org/the
–
definition
–
of
–
marketing
–
what
–
is
–
marketing/
MKT3010 Week 3 Project Rubric
Course: MKT3010-Marketing Management SU01
Criteria
No Submission
0 points
Emerging (F through
D range) (1–6)
6 points
Satisfactory (C
range) (7)
7 points
Proficient (B range)
(8)
8 points
Exemplary (A range)
(9–10)
10 points
Criterion Score
Summarized key
details about the
selected scenario
including details
about the firm
and/or product
line.
/ 10Did not identify
scenario or details
about firm or
product line.
Unsupported with
research.
Identified scenario,
firm, and product
line.
Lacked credible
research support.
Outlined scenario,
firm, and product
line.
Weakly supported
with research.
Summarized
scenario, firm, and
product line.
Sufficiently
supported with
research
Summary of key
details about
scenario, firm, and
product line was
compelling, with
well-developed
logical progression.
Well supported by
research.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–20)
20 points
Satisfactory (C
range) (21–23)
23 points
Proficient (B range)
(24–26)
26 points
Exemplary (A range)
(27–30)
30 points
Criterion Score
Assessed which of
Michael Porter’s
basic strategies
will be used to
market this
product and why.
/ 30Did not identify
stages in the
consumer decision
making process.
Unsupported with
research.
Identified strategies.
Lacked credible
research support.
Described strategies.
Weakly supported
with research.
Assessed strategies.
Sufficiently
supported with
research
Assessment of
strategies was
compelling, with
well-developed
logical progression.
Well supported by
research.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–27)
27 points
Satisfactory (C
range) (28–31)
31 points
Proficient (B range)
(32–35)
35 points
Exemplary (A range)
(36–40)
40 points
Criterion Score
Defended
selection of target
markets.
/ 40Did not identify
improvements to the
product line or
estimated cost.
Unsupported with
research.
Identified target
markets.
Lacked credible
research support.
Described target
markets.
Weakly supported
with research.
Defended target
markets.
Sufficiently
supported with
research
Defense of target
markets was
compelling and
showed well-
developed logical
progression.
Well supported by
research.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–27)
27 points
Satisfactory (C
range) (28–31)
31 points
Proficient (B range)
(32–35)
35 points
Exemplary (A range)
(36–40)
40 points
Criterion Score
Justified the
stages in the
consumer
decision making
process for
selected product.
/ 40Submission
contained no
discernible overall
intent in author’s
selection of
ideas.
Identified stages in
the consumer
decision making
process.
Lacked credible
research support.
Outlined stages in
the consumer
decision making
process.
Weakly supported
with research.
Justified stages in
the consumer
decision making
process for selected
product.
Sufficiently
supported with
research.
Justification of
stages in the
consumer decision
making process for
selected product was
compelling and
actionable, with
well-developed
logical progression.
Well supported by
research.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–27)
27 points
Satisfactory (C
range) (28–31)
31 points
Proficient (B range)
(32–35)
35 points
Exemplary (A range)
(36–40)
40 points
Criterion ScoreCriteria
No Submission
0 points
Emerging (F through
D range) (1–27)
27 points
Satisfactory (C
range) (28–31)
31 points
Proficient (B range)
(32–35)
35 points
Exemplary (A range)
(36–40)
40 points
Criterion Score
Justified where
improvements
should be made to
the product line
and estimated
cost.
/ 40Errors in basic
writing conventions
were sufficiently
numerous to prevent
reader
comprehension.
Identified
improvements to the
product line and
estimated cost.
Lacked credible
research support.
Described
improvements to the
product line and
estimated cost.
Weakly supported
with research.
Justified
improvements to the
product line and
estimated cost.
Sufficiently
supported with
research
Justification of
improvements to the
product line and
estimated costs were
compelling and
actionable, with
well-developed
logical progression.
Well supported by
research.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–6)
6 points
Satisfactory (C
range) (7)
7 points
Proficient (B range)
(8)
8 points
Exemplary (A range)
(9–10)
10 points
Criterion Score
Communication:
Use of tone, word
choice, audience,
transitions, and
progression of
ideas
/ 10Did not identify
strategies.
Unsupported with
research.
Submission
contained random
presentation of
ideas, which
prevents
understanding the
majority of author’s
overall intent.
Ideas were
presented in a way
that forced the
reader to make
repeated inferences
in order to identify
and follow the
author’s overall
intent.
The reader could
follow the author’s
overall intent as
stated.
The writer’s overall
argument and
language were clear
and tightly focused,
leaving the reader
with no room for
confusion about
author’s intent.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–6)
6 points
Satisfactory (C
range) (7)
7 points
Proficient (B range)
(8)
8 points
Exemplary (A range)
(9–10)
10 points
Criterion Score
Criteria
No Submission
0 points
Emerging (F through
D range) (1–6)
6 points
Satisfactory (C
range) (7)
7 points
Proficient (B range)
(8)
8 points
Exemplary (A range)
(9–10)
10 points
Criterion Score
Mechanics: Use of
grammar,
sentence
structure, and
spelling.
/ 10Did not identify
target markets.
Unsupported with
research.
Errors in basic
writing conventions
were sufficiently
numerous to prevent
reader
comprehension of
majority of the work.
Errors in basic
writing conventions
interfered with, but
did not prevent,
reader
comprehension.
The reader noticed a
few errors in basic
writing conventions
but these few errors
did not interfere with
reader
comprehension.
Text was basically
error free, so that a
reader had to
purposely search to
find any errors that
may be present.
Criteria
No Submission
0 points
Emerging (F through
D range) (1–13)
13 points
Satisfactory (C
range) (14–15)
15 points
Proficient (B range)
(16–17)
17 points
Exemplary (A range)
(18–20)
20 points
Criterion Score
Academic/APA
Formatting: Use
of citations,
references, and
structural
formatting
including such
elements as title
page, running
head, page
numbers,
introduction,
headings (as
appropriate), and
conclusion.
/ 20No attempt at
Academic/APA
formatting in
presentation.
Academic/APA
format attempted,
but errors were
significant.
Academic/APA
format attempted
but errors were
distracting.
Used Academic/APA
format, accurately.
Errors were
noticeable but minor.
Used Academic/APA
format proficiently.
Text was basically
error free.
Total / 200
Overall Score
No Submission
0 points minimum
Emerging (F through D range)
1 point minimum
Satisfactory (C range)
140 points minimum
Proficient (B range)
160 points minimum
Exemplary (A range)
180 points minimum
