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

8/10/2019 Product and Brand Management a Concise Note on Everything About Product and Brand Management ESTUPENDO

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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!he processthrough which "#$%& is e'changed

What is a product?

#nything that can be offered to a market for attention, ac(uisition, use, or

consumption that might satisfy a need or want

Product &ssentials:

Product features and benefits

Packaging Branding

Warranties and guaranties !ime to market $ifecycles

$evels of product

)ore product

#ctual product

#ugmented product

Product *tems, $ines, and Mi'es

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

offering among an organizations products.

Product $ine+ a group of closely related product items.

Product Mi'+ all products that an organization sells.

Product trategy

-efines what the organization does and why it e'ists *t *nvolves creating a product

offering that is a bundle of physical .tangible/, service .intangible/, and symbolic

.perceptual/ attributes designed to satisfy customer0s needs and wants *t trives to

overcome commoditization


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*nnovators represent the first 12 percent of all individuals who ultimatelyadopt a new product !hey 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

&arly adopters represent the ne't 34 to 35 percent who adopt !hey are more

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

members of the early ma6ority group .because of their social pro'imity/, 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: Roers! "#erett M! Diffusion of Inno#ations! thed% &'ew (or): *ree Press! +,,-.


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!he early ma6ority includes 45 percent of those who adopt !hese 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

!he $ate ma6ority represents another 45 percent 7re(uently, theseindividuals adopt a new product because they are forced to do so for either

economic or social reasons !hey participate in community activities less than

the previous groups and only rarely assume a leadership role

$aggards comprise the last 38 percent of adopters 9f all the adopters, they

are the most local; !hey participate less in community matters than

members of the other groups and stubbornly resist change *n some cases,

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

new product

- efforts 9r - specialists, !hecompetition, uppliers, =etailers, *ndependent inventors

creening+creening separates ideas with commercial potential from those

that cannot meet company ob6ectives

Business #nalysis+!he business analysis consists of assessing the new

product0s market potential, growth rate, likely competitive strengths, and

compatibility of the proposed product with organizational resources

'ew Product De#elopment Process


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-evelopment+)onverting an idea into a physical product =e(uires

interaction among many of the firm0s departments Prototypes may go

through many changes

!est Marketing+*ntroduction of a trial version of a new product supported

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

)ommercialization+ is stage, the firm establishes marketing strategies,and funds outlays for production and marketing

#ttributes #ssociated with a Product 9ffering

What isBrand?

# brand is a person0s gut feeling about a product, service or organization

l # brand defines the relationship customers have with usl # brand is a promise we make to our customers

and to ourselves

l # brand is shaped by each e'perience customers have with the firm

# brand differentiates the product from similar offerings

!raditional view: # 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

=ecent 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.

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

!or customer brand is an experience

=ole of Brand:

ignify (uality

)reate barriers to entry

erve as a competitive advantage

ecure price premium


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!he uni(ue brain space; that your brand occupies in the minds of your

customers

Brand e%uity is defined in terms of the marketing effects uni%uely attributable to the

brand.

Brand image: # strong brand *mage is created by marketing programs that link

strong favorable and uni(ue associations to the brand in the memory

Brand image reflects the linking of strong, favorable and uni(ue associations to the

brand in memory

7our steps in building brand e(uity:

3 Who are you?1 What are you?

4 What about you? What do * think or feel about you?

5 What about you and me?

'onProductRelated&e%%! Price! Pac)ain!

0ser and 0sae

ProductRelated&e%%! color! si1e!desin features.

*unctional

Sym2olic

"3 eriential

4ttri2utes

5enefits

6#erall"#aluation&4ttitude.

Types of5rand 4ssociations

*a#ora2ility!Strenth! and

0ni7ueness of

5rand 4ssociation

5randReconition

5randRecall

5rand4waren

ess

5randImae

5rand8nowle

de

Sources of Brand Equity


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!his pictorial 6argon is also called as consumer+based brand e(uity

pyramid.)BB&P/

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

they think the brand actually does *t is more a kind of intangible stuff

E What is the most valuable brand dimension in the )BB& Model?

#ns Brand resonance

E When does brand resonance happen?

#ns When all other core brand values are in sync; with respect to customer

needs, wants and demands

E What does brand resonance reflect?

#ns # completely harmonious relationship between the brand and the customer

Ways to differentiate:

Being first

$eadership

@eritage

Preference

E!!E"#S B"$%D "ES%$%'E P"$ID

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 *dentity

Brand identity is a uni(ue set of brand associations that the brand strategist

aspires to create or maintain

!hese associations represent what the brand stands for and imply a promise

to customers from organizational members

# brand identity provides direction, purpose and meaning for the brand *t is

central to a brand0s strategic vision and the driver of one of the four principal

dimensions of brand e(uity: associations, which are the heart and soul of the

brand

#spects of Brands:

B=#

B=#


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!he epferer brand identity prism:

i' 7acets of Brand *dentity

Brand Identity System

Brand Identity

Brand as

Product

Brand as

Organization

Brand as

Person

Brand as

Symbol

Value Proposition Credibility

Brand-Customer elations!ip


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3 # brand has physical (ualities or a Fphysi(ue0

What does it do?

What does it look like?

1 # brand has its own personality

pokesperson or figurehead role What brand would be if it were a person

4 # brand has its own culture

et of values feeding the brand0s inspiration

)ountry of origin

5 # brand has its own relationship

&'changes between people and brand

ervice sectors and retailers

2 # brand is a reflection

Produces a reflection or image of the buyer or user

-ifferent from target the describes brand0s potential buyer or user

)ustomer is reflected as sGhe wishes to be seen from using the brand )onsumers use brands to built their own identities

8 # brand speaks to our self image

elf image is the target0s own internal mirror

#ttitude toward the brand fosters an inner relationship with self

Brand positioning:

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

individual customer0s mind

# point which is determined by the consumer0s perception of the brand in (uestion

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

#ositioning is what you do to the minds of the consumers.

Perceptual Mapping:

!echni(ues that use consumer perceptions to identify similarities and differences

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

competing alternatives

*n order to position a brand you must decide,

" Who the !arget )onsumer is" Who your main competitors are

" @ow the Brand is similar to your competitors .P9P/" @ow the Brand is different from you competitors .P9-/

Point of Parity: re(uired to include your product as a member of certain product

category

Point of -ifference: 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

-eveloping and communicating a positioning strategy

#ttribute positioning Benefit positioning

%se or application positioning

%ser positioning

)ompetitor positioning

Product category positioning

Euality or price positioning

$#roducts increase the customers choices brand simplifies it."

eneric format for positioning statements:

7or &target market'our &brand'is the &concept'that &point of difference'

Brand &lements:

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

product does

Brands don0t describe the products

Brands distinguish the products

!he name must serve to add e'tra meaning to convey the spirit of the brand

ElementsSlogans

Brandnames

*"!s

!ogos

Sym+ols',aracters


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# brand is not a product !herefore it should not describe what a product does but

reveal a difference *ts 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 &'tension:it involves using an e'isting brand name to launch a product ina different category

)ategory e'tension: parent brand is used to enter a different product category from

that currently served by the parent brand

$ine e'tension: 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

#dvantages of brand e'tension:

=educe risk perceived by customers > distributors -ecrease cost of gaining distribution > trial

*ncrease efficiency of promotional e'penditures

#void cost .and risk/ of developing new names

#llow for packaging and labeling efficiencies

"ariety+seeking

-isadvantages:

&'tensions have risks, too

++!hey can fail

Moreover, e'tensions can potentially result in the following costs:++)annibalize sales of the parent brand

++@urt the image of the parent brand

7orego the chance to develop a new brand name or market the parent brand

differently .opportunity cost/

Brand &'tendibility:

!he Product Brand

7ormula Brand

now+how Brand

*nterest Brand Philosophy

Product Brand *t is a situation where there is very little difference between

the brand and the product Brand is a close appro'imation

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

product, maybe for internal purposes !he brand does not

play any role from the customer0s point of view


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7ormula Brand7ormula means a set procedure .used to make the product/

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

food, and pickles

now+how

Brand

now+how is an e'pertise that a firm develops in a

specialized area of activity ony is know to have e'pertise in

miniaturization and robotics @onda has know+how inengines #mul has developed e'pertise in milk processing

*nterest Brand *t0s the centre of interest or the core spirit of the brand

illette brand maintains its focus on men0s grooming in all

its brands


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!he ob6ective is to ma'imize clarity, synergy and leverage to ma'imize customer

value and internal efficiencies

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

markets, and may result in a brand rationalization

!hree main brand architecture systems:

#$ Monolithic+where the corporate name is used on all products and servicesoffered by the company

%$ &ndorsed+where all sub+brands are linked to the corporate brand by means

of either a verbal or visual endorsement

&$ 7reestanding+where the corporate brand operates merely as a holding

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

market

@ouse of brands: *ndependent Brands, &ach working in their own right, belonging

to a =emote; parent firm !argets


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ubstantial potential impact on the master brand

)ritical: -egree to which they )o+-rive; the buying processGdecision

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

benefits or specifications

Master Brand is driver across Multiple categories

%nder that H primarily Product -escriptors;G @ighly descriptivetrademarks

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

the firms offerings

Branding policies:

*ndividual Branding

# policy of naming each product differently

#voids stigmatizing all products due to a failed product

7amily Branding

Branding all of a firm0s products with the same name

Promotion of one item also promotes all other products

Brand+&'tension Branding

%sing an e'isting brand name for an improved or new product

Provides support for new products through established brand name

and image

)o+Branding

%sing two or more brands on one product to capitalize on the brand

e(uity .customer confidence and trust/ of multiple brands

Brands involved must represent a complementary fit in the minds of

consumers

@elps differentiate a firm0s product from those of its competitors @elps take advantage of distribution capabilities of co+branding

partners

eneric Brands: # no+frills, no+brand+name, low+cost product that is simply

identified by its product category

Brand $icensing: # practice allowing other companies to use a brand name

in e'change for a payment

Multibrand strategy:

*n this strategy, the company has more than one brand of product, competing

with each other, in a given market

%nder multibrand strategy there may not even be manufacturer

identification, unless re(uired by law

!his 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:

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

!he product group may or may not be all of that firmIs product line !he individual members of the family also carry individual brands to

differentiate them from other family members

*n rare cases there are family brands that have as members other family

brands, each of which has individual brands

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

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