17045977 product and brand management a concise note on everything about product and brand...

7/27/2019 17045977 Product and Brand Management a Concise Note on Everything About Product and Brand Management

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Product and Brand Management:

What is marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer

relationships in ways that benefit the organization and its stakeholders. The processthrough which VALUE is exchanged.

What is a product?

Anything that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy a need or want.

Product Essentials:

Product features and benefits

Packaging Branding

Warranties and guaranties Time to market Lifecycles

Levels of product

Core product

Actual product

Augmented product

Product Items, Lines, and Mixes

Product Item- a specific version of a product that can be designated as a distinct

offering among an organizations products.

Product Line- a group of closely related product items.

Product Mix- all products that an organization sells.

Product Strategy

Defines what the organization does and why it exists. It Involves creating a product

offering that is a bundle of physical (tangible), service (intangible), and symbolic

(perceptual) attributes designed to satisfy customers needs and wants. It Strives to

overcome commoditization.


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Innovators represent the first 2.5 percent of all individuals who ultimatelyadopt a new product. They are more venturesome than later adopters, more

likely to be receptive to new ideas, and tend to have high incomes, which

reduces the risk of a loss arising from an early adoption.

Early adopters represent the next 13 to 14 percent who adopt. They are more

a part of the local scene, are often opinion leaders, serve as vital links to

members of the early majority group (because of their social proximity), and

participate more in community organizations than do later adopters.

Product Life Cycle

Introduction Growth Maturity Decline

PostMortem

Loss/profit

Time

$ SalesSales

ProfitProfit

Progression of product life stages (sales & time)

Diffusion of Innovations

Source: Rogers, Everett M, Diffusion of Innovations, 4th ed. (New York: Free Press, 1995)


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The early majority includes 34 percent of those who adopt. These individuals

display less leadership than early adopters, tend to be active in community

affairs (thereby gaining respect from their peers), do not like to take

unnecessary risks, and want to be sure that a new product will prove

successful before they adopt it.

The Late majority represents another 34 percent. Frequently, theseindividuals adopt a new product because they are forced to do so for either

economic or social reasons. They participate in community activities less

than the previous groups and only rarely assume a leadership role.

Laggards comprise the last 16 percent of adopters. Of all the adopters, they

are the most local. They participate less in community matters than

members of the other groups and stubbornly resist change. In some cases,

their adoption of a product is so late it has already been replaced by another

new product.

New Product Development:

The development of original products, product improvements, productmodifications, and new brands through the firms own R&D efforts Or New

products can also come from acquisition of other companies, patents, or licenses

Idea Generation-Sales force, Customers, Employees, R&D specialists, Thecompetition, Suppliers, Retailers, Independent inventors.

Screening-Screening separates ideas with commercial potential from those

that cannot meet company objectives.

Business Analysis-The business analysis consists of assessing the new

products market potential, growth rate, likely competitive strengths, and

compatibility of the proposed product with organizational resources.

New Product Development Process


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Development-Converting an idea into a physical product Requires

interaction among many of the firms departments. Prototypes may go

through many changes.

Test Marketing-Introduction of a trial version of a new product supported

by a complete marketing campaign to a selected city of television coverage.

Commercialization- is stage, the firm establishes marketing strategies,and funds outlays for production and marketing.

Attributes Associated with a Product Offering

What isBrand?

A brand is a persons gut feeling about a product, service or organization.

l A brand defines the relationship customers have with us.

l A brand is a promise we make to our customers

and to ourselves.

l A brand is shaped by each experience customers have with the firm.

A brand differentiates the product from similar offerings.

Traditional view: A brand is a name, term, sign, symbol, or design which is intended

to identify the goods or services of one seller or group of sellers and to differentiate

them from those of competitors.

Recent views:

Brand is what is experienced and valued by customers in everyday social life.

Brand is the culture of the product- shared, taken-for granted brand stories,

images and associations.

Brand is the emotional file we have for a product or a service or entity.

A brand is a sellers promise to deliver consistently a specific set of features,benefits and services to buyers.

For customer brand is an experience

Role of Brand:

Signify quality

Create barriers to entry

Serve as a competitive advantage

Secure price premium


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How Brand works?

Level-1: Identification-Brand name and logo ensure the product can be recognized

and distinguished from the competition.

Level-2: Security- You get what you expect.Level-3: Added value- individual laddered benefits.

Level-4: Transformation-the brand actually invokes change in the consumer.

Brand: A brand is a mixture of attributes, tangible and intangible, symbolized in a

trademark, which, if managed properly, creates value and influence.

Branding:The purpose of branding is to transform a product. Transforming a commodity like

product into customer satisfying value added propositions is the essence of

branding.

BRANDING IS A:

A physical product is combined with something else- symbols, images and feelings to

produce an idea or concept. The two grow with and live on one another in a

mutually enhancing partnership.

Branding is emotional product development.

Two routes of brand building:

1. from product advantage- intangible values

2. from values-products

Promotion is the vehicle that allows us to access the consumers mind, to

create a perceptual inventory of imagery, symbols and feelings that come to

define the perceptual entity we call a Brand.

The Brand and Value

The brand is a central point for all the positive and negative impressions createdby the buyer over time as he comes into contact with the brands products,

distribution channel, personnel and communication...

The value of a brand comes from its ability to gain an exclusive, positive andprominent meaning in the minds of a large number of consumers (Kapferer 1997,

pg. 25).


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What is brand equity?

The differential effect that brand knowledge has on consumer response to the

marketing of that brand.

The unique brain space that your brand occupies in the minds of yourcustomers.

Brand equity is defined in terms of the marketing effects uniquely attributable to the

brand.

Brand image: A strong brand Image is created by marketing programs that link

strong favorable and unique associations to the brand in the memory.

Brand image reflects the linking of strong, favorable and unique associations to the

brand in memory.

Four steps in building brand equity:

1. Who are you?

2. What are you?

3. What about you? What do I think or feel about you?

4. What about you and me?

Non-Product-Related(e.g., Price, Packaging,

User and UsageImagery)

Non-Product-Related(e.g., Price, Packaging,

User and UsageImagery)

Product-Related(e.g., color, size,design features)

Product-Related(e.g., color, size,design features)

FunctionalFunctional

SymbolicSymbolic

ExperientialExperiential

AttributesAttributes

BenefitsBenefits

OverallEvaluation(Attitude)

OverallEvaluation(Attitude)

Types ofBrand Associations

Types ofBrand Associations

Favorability,Strength, andUniqueness of

Brand Association

Favorability,Strength, andUniqueness of

Brand Association

BrandRecognition

BrandRecognition

BrandRecall

BrandRecall

BrandAwareness

BrandAwareness

BrandImage

BrandImage

BrandKnowledge

BrandKnowledge

Sources of Brand Equity


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This pictorial jargon is also called as consumer-based brand equitypyramid(CBBEP)

Brand imagery: It is how people think about a brand abstractly, rather than what

they think the brand actually does. It is more a kind of intangible stuff.

Q. What is the most valuable brand dimension in the CBBE Model?

Ans. Brand resonance

Q. When does brand resonance happen?

Ans. When all other core brand values are in sync with respect to customer

needs, wants and demands.

Q. What does brand resonance reflect?

Ans. A completely harmonious relationship between the brand and the customer.

Ways to differentiate:

Being first

Leadership

Heritage

Preference

KELLERS BRAND RESONANCE PYRAMID

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

INTENSE,

ACTIVE LOYALTY

INTENSE,

ACTIVE LOYALTY

POSITIVE,

ACCESSIBLE

REACTIONS

POSITIVE,

ACCESSIBLE

REACTIONS

STRONG, FAVORABLE

& UNIQUE BRAND

ASSOCIATIONS

POINTS-OF-PARITY

& DIFFERENCE

DEEP, BROAD

BRAND

AWARENESS

DEEP, BROAD

BRAND

AWARENESS

RESONANCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

SALIENCE


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Brand Identity

Brand identity is a unique set of brand associations that the brand strategist

aspires to create or maintain.

These associations represent what the brand stands for and imply a promiseto customers from organizational members.

A brand identity provides direction, purpose and meaning for the brand. It is

central to a brands strategic vision and the driver of one of the four principal

dimensions of brand equity: associations, which are the heart and soul of the

brand.

Aspects of Brands:

BRAND IMAGE

How the brand is now perceived

BRAND IDENTITY

How strategists want the brand to be perceived

BRAND POSITION

The part of the brand identity and value proposition to be actively

Communicated to a target audience.

Brand identity and Brand equity:

BrandIdentity

BrandAssociations

BrandEquity


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The Kepferer brand identity prism:

Six Facets of Brand Identity

Brand Identity System

Brand Identity

Brand as

Product

Brand asOrganization

Brand as

Person

Brand as

Symbol

Value Proposition Credibility

Brand-Customer Relationship


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1. A brand has physical qualities or a physique

What does it do?

What does it look like?

2. A brand has its own personality

Spokesperson or figurehead roleWhat brand would be if it were a person

3. A brand has its own culture

Set of values feeding the brands inspiration

Country of origin

4. A brand has its own relationship

Exchanges between people and brand

Service sectors and retailers.

5. A brand is a reflection

Produces a reflection or image of the buyer or user.

Different from target the describes brands potential buyer or user.

Customer is reflected as s/he wishes to be seen from using the brand.Consumers use brands to built their own identities.

6. A brand speaks to our self image

Self image is the targets own internal mirror.

Attitude toward the brand fosters an inner relationship with self.

Brand positioning:

The idea that each brand if at all noticed occupies a particular point of space in the

individual customers mind.

A point which is determined by the consumers perception of the brand in question

and in relation to other brands. It is this concept of Perceptual space that forms thetheoretical basis for Brand Positioning

Positioning is what you do to the minds of the consumers.

Perceptual Mapping:

Techniques that use consumer perceptions to identify similarities and differences

between brands. Produces a visual representation of how the target market views

competing alternatives.

In order to position a brand you must decide,

Who the Target Consumer is Who your main competitors are

How the Brand is similar to your competitors (POP) How the Brand is different from you competitors (POD)

Point of Parity: required to include your product as a member of certain

product category

Point of Difference: properties which places your product distinctly in that

product category.


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Brand Position: how a brand is perceived by a target audience so that it is

distinguished from competition as being the best at satisfying a particular need.

Developing and communicating a positioning strategy

Attribute positioning Benefit positioning

Use or application positioning

User positioning

Competitor positioning

Product category positioning

Quality or price positioning

Products increase the customers choices brand simplifies it.

Generic format for positioning statements:

For (target market) our (brand) is the (concept) that (point of difference).

Brand Elements:

Brand name: Most of the time managers want the brand name to describe what the

product does.

Brands dont describe the products

Brands distinguish the products

The name must serve to add extra meaning to convey the spirit of the brand.

ElementsSlogans

Brandnames

URLs

Logos

SymbolsCharacters


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A brand is not a product. Therefore it should not describe what a product does but

reveal a difference. Its better to chose some abstract brand name and then develop a

meaning of its own.

Brand element choosing criteria: Memorable, meaningful, adaptable,

appealing, protectable, transferable etc

Brand Extension: it involves using an existing brand name to launch a product ina different category.

Category extension: parent brand is used to enter a different product category from

that currently served by the parent brand.

Line extension: parent brand is used to brand a new product that targets a new

market segment within a product category currently served by the parent brand.

Advantages of brand extension:

Reduce risk perceived by customers & distributors Decrease cost of gaining distribution & trial

Increase efficiency of promotional expenditures

Avoid cost (and risk) of developing new names

Allow for packaging and labeling efficiencies

Variety-seeking

Disadvantages:

Extensions have risks, too.

--They can fail.

Moreover, extensions can potentially result in the following costs:--Cannibalize sales of the parent brand

--Hurt the image of the parent brand

Forego the chance to develop a new brand name or market the parent brand

differently (opportunity cost)

Brand Extendibility:

The Product Brand

Formula Brand

Know-how Brand

Interest Brand Philosophy

Product Brand It is a situation where there is very little difference between

the brand and the product. Brand is a close approximation

of the product. Passively, the brand is used to identify the

product, maybe for internal purposes. The brand does not

play any role from the customers point of view


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Formula BrandFormula means a set procedure (used to make the product).

This type of brand may be find in categories like cooking oil,

food, and pickles

Know-how

Brand

Know-how is an expertise that a firm develops in a

specialized area of activity. Sony is know to have expertise in

miniaturization and robotics. Honda has know-how inengines. Amul has developed expertise in milk processing

Interest Brand Its the centre of interest or the core spirit of the brand.

Gillette brand maintains its focus on mens grooming in all

its brands. Nikes focal point is winning. Whirlpools centre

of interest is the home (homemaker)

Philosophy The brand at this level acquires more intangible character

and orientation. This generally happens in case of designers

and artists. The Armani signature on the product provides a

higher philosophical meaning a meaning proudly expresses

in Armanis creatively styled products

Branding Strategy: Brand Architecture Branding strategy: Leveraging the power of the brand name to cover the market

more effectively.

Brand Architecture: How an organization structures and names the brands

within its portfolio.

Definition: The organization and structure of the brand portfolio by specifying brand

roles and the nature of brand relationships between brands

and between different product-market contexts.

Building a strategic brand architecture:

The logical, strategic and relational structure for all of the brands in the

organizations brand portfolio

Brand Hierarchy: Definitions; in Keller, K. L (1998), Strategic Brand Management,Chapter 11 Branding Strategies, pp. 428-431.

Brand architecture

Corporatedominant strategy

Dual brandstrategy

Endorsed brandstrategy

Mixed brandstrategy

Brand dominantstrategy


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The objective is to maximize clarity, synergy and leverage to maximize customer

value and internal efficiencies

Should clarify what role each of your brands and products play in different

markets, and may result in a brand rationalization.

Three main brand building systems:

1. Monolithic-where the corporate name is used on all products and services

offered by the company.

2. Endorsed-where all sub-brands are linked to the corporate brand by means

of either a verbal or visual endorsement.

3. Freestanding-where the corporate brand operates merely as a holding

company, and each product or service is individually branded for its target

market.

House of brands: Independent Brands, Each working in their own right, belonging

to a Remote parent firm. Targets Niche Markets

Highlights new offerings

Avoids incompatibility

Allows powerful names tied to benefit

Avoids channel conflict

Shadow Endorser: A Known organization is backing this brand

Endorsed brands: Strong Brands on their own, strengthened in a customer-relevant

way by an association with the parent brand.

Independent

Can provide Relevant Support Degree of relevant support determines level:Token, Linked Names, Strong

Can Build Strength for both brands

Sub-brands: Separate, Strong Brands tied to and synergistic with the parent

brand.

Connected directly to the master brand --modify the emotional takeaway or

proposition.

BrandRelationship

Spectrum

Brand

RelationshipSpectrum

BrandedHouse

BrandedHouse

Sub-Brands

Sub-Brands

Endorsed Brands

Endorsed Brands

House ofBrands

House ofBrands


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Substantial potential impact on the master brand

Critical: Degree to which they Co-Drive the buying process/decision

Branded house: Parent Brand Drives, products under it are named following their

benefits or specifications.

Master Brand is driver across Multiple categories

Under that primarily Product Descriptors/ Highly descriptivetrademarks.

Master brand should be in a position to add to and be strengthened by all

the firms offerings.

Branding policies:

Individual Branding

A policy of naming each product differently

Avoids stigmatizing all products due to a failed product

Family Branding

Branding all of a firms products with the same name

Promotion of one item also promotes all other products

Brand-Extension Branding

Using an existing brand name for an improved or new product

Provides support for new products through established brand name

and image

Co-Branding

Using two or more brands on one product to capitalize on the brand

equity (customer confidence and trust) of multiple brands

Brands involved must represent a complementary fit in the minds of

consumers.

Helps differentiate a firms product from those of its competitors Helps take advantage of distribution capabilities of co-branding

partners

Generic Brands: A no-frills, no-brand-name, low-cost product that is simply

identified by its product category.

Brand Licensing: A practice allowing other companies to use a brand name

in exchange for a payment.

Multibrand strategy:

In this strategy, the company has more than one brand of product,

competing with each other, in a given market.

Under multibrand strategy there may not even be manufacturer

identification, unless required by law.

This contrasts with the strategy of family brands where the separate items

are given a common line identity and are usually each directed to one

segment within the market.


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Multi product strategy:

A strategy where a brand is used on two or more individual products.

The product group may or may not be all of that firm's product line. The individual members of the family also carry individual brands to

differentiate them from other family members.

In rare cases there are family brands that have as members other family

brands, each of which has individual brands.

17045977 product and brand management a concise note on everything about product and brand...

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