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In the decline phase, the product is losing market share and profitability rapidly.Colour can also be important: for example, Heinz's use of a turquoise label for their baked beans tin emphasises the orange colour of the beans when the can is opened.Some consumers are driven to buy new products almost as soon as they become available, whereas others prefer to wait until the product has been around for a while before risking their hard-earned money on it. Innovations therefore take time to filter through the population: this process is called diffusion and is determined partly by the nature of consumers and partly by the nature of the innovation itself.BRANDING oDeChernatony and McDonald offer the following definition of brand;

oA successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely.o In Figure 6.6, the consumer benefits from the brand in terms of knowing what the quality will be, knowing what the expected performance will be, gaining some self-image values o(for example, a prestigious product conveys prestige to the consumer by association - conversely, a low-price product might enhance a consumer's sense of frugality and ability to find good value for money).In 1982 Barksdale and Harris proposed two additions to the BCG matrix.4

War Horses have high market share, but the market has negative growth; the problem for management is to decide whether the product is in an irreversible decline, or whether it can be revived, perhaps by repositioning into another market.Engineers, accountants and managers may have differing definitions; there is, however, general agreement that firms must introduce new products if they are not to be left with a range of obsolete, dying products.Everett Rogers (1962) identified the following perceived attributes of innovative products, by which consumers apparently judge the product during the decision-making process (weather to buy the product or not):

oRelative advantage.This definition emphasises the increased value that accrues to the consumer by buying the established brand rather than a generic or commodity product.6) They should encourage the development of a nickname (for example, Bud for Budweiser Beer).6.2 Brands and semiotics Semiotics is the study of meaning, and is concerned with the symbolism conveyed by objects and words.RETAILERS' OWN-BRANDS Often manufacturers will become suppliers of retailer-brand products which compete with their own branded goods.The manufacturer may be able to buy raw materials in greater quantities, or may be able to invest in more efficient production methods, if the throughput of product is increased.Packaging decisions might include such areas as tamper resistance (paper strips around caps to prevent bottles being opened while on supermarket shelves).It is therefore difficult to generalise about the process, but a frequently quoted model of the NPD process was given by Crawford,7 and follows this sequence: 1.Trickle-down theory says that the wealthy classes obtain information about new products, and the poorer classes then imitate their 'betters'. The other ways of achieving the brand's objectives, and the other factors involved in its success, have a bearing on the choice of brand name.Ries suggests that brand names should have some, or all, of the following characteristics: 1)They should shock, i.e. catch the customer's attention.EX: UK biscuit brand Hob Nobs conveys an image of a warm kitchen (the hob) with friendliness (hob-nobbing).The same is true of James Bond's Aston Martin, and several brands of beer.STRATEGIC ISSUES IN BRANDING oAdding value to the product by branding involves a great deal more than merely giving the product a catchy name.o Overall family branding is where one brand name is used for a range of products, such as Heinz 57 Varieties, o and line family branding is where a smaller group of brands carries a single identity.oA further extension of this concept is brand architecture, which is concerned with setting up 'partner' brands and creating a balance between branding at the product level and corporate or banner levels.9.osupporting a product for which there is little natural demand is very unprofitable, but sometimes products can be revived and relaunched, perhaps in a different market.Consulting Group (BCG) developed.4.2 Product positioning oProduct positioning is about establishing the product in the consumer's perceptual map in a position relative to other products.Three main theories concerning the mechanisms for this have been proposed: (trickledown theory - two-step flow theory - multi- stage interaction theory).The strategic considerations for brand naming are as follows: 1)Marketing objectives.This is about the practical aspects of the product, and includes meanings of reliability, effectiveness, fitness for the purpose and so forth.This is about the social effects of buying (or not buying) the product, with meanings about membership of aspirational groups or about the fitness of the product for filling social roles.The main purpose of packaging is to protect the contents from the outside environment and vice versa, but packaging also carries out the following functions:- o Informs customers.and customer usage (e.g. the development of beer packaging from bottles to cans to ringpulls to non-waste ring pulls to draught beer systems).For marketers, the definition must be 'a product that more closely meets our customers' needs than does the product it supersedes.It is important that the position corresponds with the actual product attributes, or cognitive dissonance (dissatisfaction) will follow.The brand name should fit the overall marketing objectives of the firm: for example, a firm intending to enter the youth market will need to develop brand names that appeal to a young audience.Brands are important symbols, often using more than one sign system to create meaning; the brand name, the logo, the colour and the design of the packaging all contribute.Myths are heroic stories about the product, many of which have little basis in fact: for example the Harley Davidson motorcycle brand has a strong mythical value due (in part) to its starring role in the film Easy Rider.Customer acceptability is of obvious importance; packaging must be hygienic and convenient for the consumer.Screening and evaluation. 3)socio-cultural sign.2.3.4.5.6.6.

In the decline phase, the product is losing market share and profitability rapidly. At this stage the marketer must decide whether it is worthwhile supporting the product for a little longer, or whether it should be allowed to disappear.
•supporting a product for which there is little natural demand is very unprofitable, but sometimes products can be revived and relaunched, perhaps in a different market.Consulting Group (BCG) developed. The original BCG growth-share matrix is as shown in Figure 6.3 below.
•Stars are products with rapid growth and a dominant share of the market.
•Cash Cows are the former Stars. They have a dominant share of the market, but are now in the maturity phase of the life cycle and consequently have low growth.
•Dogs have a low market share and low growth prospects.
•The Problem Child (?) has a small share of a growth market, and causes the marketer the most headaches since it is necessary to work out a way of building market share so as to turn the product into a Star.
In 1982 Barksdale and Harris proposed two additions to the BCG matrix.4

War Horses have high market share, but the market has negative growth; the problem for management is to decide whether the product is in an irreversible decline, or whether it can be revived, perhaps by repositioning into another market.
Dodos have a low share of a negative growth market (shinking market), and are probably best discontinued

4. DEVELOPING BETTER PRODUCTS
   •There is often debate within firms as to what constitutes a ‘better’ product.

For marketers, the definition must be ‘a product that more closely meets our customers’ needs than does the product it supersedes.
Engineers, accountants and managers may have differing definitions; there is, however, general agreement that firms must introduce new products if they are not to be left with a range of obsolete, dying products.

4.1 New product development (NPD)
•The task of creating new products is, of course, more art than science. It is therefore difficult to generalise about the process, but a frequently quoted model of the NPD process was given by Crawford,7 and follows this sequence:

1. New product planning. The firm examines its current portfolio, opportunities and threats and decides what kind of new product would best fit in with future strategy.


2. Idea generation. Specific ideas for the product are expressed, perhaps through a brainstorming session of the venture team.


3. Screening and evaluation. The ideas are checked for feasibility and marketability.


4. Technical development. The engineering aspects of the product are investigated, and a prototype is developed.


5. Market appraisal. Formal market research is carried out to assess the product’s viability in the market.


6. Launch. Assuming the market research is positive about the product, the firm puts it into production.
   All of these stages are likely to be covered in one form or other, but in many cases the methods used are likely to be subjective, or carried out ineffectively.
   4.2 Product positioning
   •Product positioning is about establishing the product in the consumer’s perceptual map in a position relative to other products.
   It is important that the position corresponds with the actual product attributes, or cognitive dissonance (dissatisfaction) will follow.
   Positioning needs to be carried out with a competitive edge so as not to cannibalise the firm’s own products, and also (often) not to meet its competition head-on unless there is a real competitive advantage in the product.

•NPD is extremely risky; eight out of ten new products eventually fail (i.e. do not recover their development costs) and the remaining two out of ten thus have to fund all the others. Great effort has been expended on trying to find better ways of forecasting a product’s prospects in the market, with only limited results.5. DIFFUSION OF INNOVATION
•New products are not immediately adopted by all consumers.
Some consumers are driven to buy new products almost as soon as they become available, whereas others prefer to wait until the product has been around for a while before risking their hard-earned money on it.
Innovations therefore take time to filter through the population: this process is called diffusion and is determined partly by the nature of consumers and partly by the nature of the innovation itself.
The process of diffusion of innovation is carried out through reference-group influence.
Three main theories concerning the mechanisms for this have been proposed:
(trickledown theory - two-step flow theory - multi- stage interaction theory).
Trickle-down theory says that the wealthy classes obtain information about new products, and the poorer classes then imitate their ‘betters’.
Two-step flow theory is similar, but this time it is ‘influentials’ rather than wealthy people who are the start of the adoption process.
Everett Rogers (1962) identified the following perceived attributes of innovative products, by which consumers apparently judge the product during the decision-making process (weather to buy the product or not):

•Relative advantage. The degree to which the innovation is perceived as better than the idea it supersedes.
•Compatibility. Consistency with existing values, past experiences and needs of potential adopters.
•Complexity. Ideas that are easily understood are adopted more quickly.
•Trialability. The degree to which a product can be experimented with.
•Observability. The degree to which the results of an innovation are visible to others.
6. BRANDING
•DeChernatony and McDonald offer the following definition of brand;

•A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. Furthermore, its success results from being able to sustain those added values in the face of competition.
This definition emphasises the increased value that accrues to the consumer by buying the established brand rather than a generic or commodity product.
6.1 Brand names
•A brand name is a term, symbol or design that distinguishes one seller’s product from its competitors.
The strategic considerations for brand naming are as follows:
1)Marketing objectives. The brand name should fit the overall marketing objectives of the firm: for example, a firm intending to enter the youth market will need to develop brand names that appeal to a young audience.
2)Brand audit. An estimate of the internal and external forces such as critical success factor (also known as the unique selling proposition).
3)Brand objectives. As with the marketing objectives, the overall intentions about the brand need to be specified.
4)Brand strategy alternatives. The other ways of achieving the brand’s objectives, and the other factors involved in its success, have a bearing on the choice of brand name.Ries suggests that brand names should have some, or all, of the following characteristics:
1)They should shock, i.e. catch the customer’s attention. French Connection UK use their FCUK acronym for this purpose.
2)They should be alliterative: this helps them to be memorable. For example, West’n’Welsh double-glazing is a more memorable name than BJ double glazing.
3)They should connect to the product’s positioning in the consumer’s perceptual map. EX: UK biscuit brand Hob Nobs conveys an image of a warm kitchen (the hob) with friendliness (hob-nobbing).
4)They should link to a visual image: again, this helps the memorability. Ex: Timberland outdoor clothing conjures a visual image of mountain country.
5)They should communicate something about the product, or be capable of being used to communicate about the product. EX: Duracell conveys the main advantage of the batteries – they are durable.
6) They should encourage the development of a nickname (for example, Bud for Budweiser Beer).6.2 Brands and semiotics
Semiotics is the study of meaning, and is concerned with the symbolism conveyed by objects and words.
Brands are important symbols, often using more than one sign system to create meaning; the brand name, the logo, the colour and the design of the packaging all contribute.

In terms of semiotics brands have four levels:
1)A utilitarian sign. This is about the practical aspects of the product, and includes meanings of reliability, effectiveness, fitness for the purpose and so forth.
2)commercial sign. This is about the exchange values of the product, perhaps conveying meanings about value for money or cost-effectiveness.
3)socio-cultural sign. This is about the social effects of buying (or not buying) the product, with meanings about membership of aspirational groups or about the fitness of the product for filling social roles.
4)sign about the mythical values of the product. Myths are heroic stories about the product, many of which have little basis in fact: for example the Harley Davidson motorcycle brand has a strong mythical value due (in part) to its starring role in the film Easy Rider. The same is true of James Bond’s Aston Martin, and several brands of beer.STRATEGIC ISSUES IN BRANDING
•Adding value to the product by branding involves a great deal more than merely giving the product a catchy name. The brand acts as a common point of contact between the producer and the consumer, as shown in Figure 6.6.
• In Figure 6.6, the consumer benefits from the brand in terms of knowing what the quality will be, knowing what the expected performance will be, gaining some self-image values
•(for example, a prestigious product conveys prestige to the consumer by association – conversely, a low-price product might enhance a consumer’s sense of frugality and ability to find good value for money).
EXTENDING THE BRAND
•A brand extension is another product in the company’s range that uses a similar brand name. For example, Cherry Coke is a brand extension of the original Coca- Cola.
• Overall family branding is where one brand name is used for a range of products, such as Heinz 57 Varieties,
• and line family branding is where a smaller group of brands carries a single identity.
• A more recent development has been compositioning, in which products are grouped under a brand name to create a composite value greater than that of the components.
•A further extension of this concept is brand architecture, which is concerned with setting up ‘partner’ brands and creating a balance between branding at the product level and corporate or banner levels.9. RETAILERS’ OWN-BRANDS
Often manufacturers will become suppliers of retailer-brand products which compete with their own branded goods. Reasons for doing this are as follows:
•Economies of scale. The manufacturer may be able to buy raw materials in greater quantities, or may be able to invest in more efficient production methods, if the throughput of product is increased.
•Utilise excess capacity. Seasonality or production synergies may make production of own-brand products attractive in some cases.
•Base for expansion. Supplying a retailer with own-brand goods may lead to other opportunities to supply the retailer with other products in future.
•No promotion costs. The retailer bears all the investment in the brand (which is, of course, a brand extension of the retailer’s trading name in any case).
•No choice. Some retailers (the UK’s Marks and Spencer being an example) only trade in their own-brands. Manufacturers who wish to trade with these retail- ers have no choice but to produce under the retailer’s brand name.
• To shut out the competition. If the manufacturer does not produce goods under the retailer’s brand name, another manufacturer will and will thus gain ground.10. PACKAGING
•Packaging of the product is equally part of the product, since the packaging can itself convey benefits. The main purpose of packaging is to protect the contents from the outside environment and vice versa, but packaging also carries out the following functions:-
• Informs customers.
• Meets legal information requirements.
• Sometimes aids the use of the product (e.g. ring pulls on drinks cans make it easier to open the can).
Packaging decisions might include such areas as tamper resistance (paper strips around caps to prevent bottles being opened while on supermarket shelves).
and customer usage (e.g. the development of beer packaging from bottles to cans to ringpulls to non-waste ring pulls to draught beer systems).
The protection of the environment has become important to consumers in recent years, so much packaging is either recyclable or biodegradable.
Customer acceptability is of obvious importance; packaging must be hygienic and convenient for the consumer.
Colour can also be important: for example, Heinz’s use of a turquoise label for their baked beans tin emphasises the orange colour of the beans when the can is opened.