Professional Documents
Culture Documents
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 process
through 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 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 customer’s needs and wants. It Strives to
overcome commoditization.
Product Life Cycle
Post
Introduction Growth Maturity Mortem
Decline
$ Sales
Profit Time
Loss/profit
Progression of product “life” stages (sales & time)
Diffusion of Innovations
Source: Rogers, Everett M, Diffusion of Innovations, 4th ed. (New York: Free Press, 1995)
Innovators represent the first 2.5 percent of all individuals who ultimately
adopt 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.
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, these
individuals 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.
• What is Brand?
A brand is a person’s gut feeling about a product, service or organization.
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 seller’s 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
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.
• 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”.
The brand is a focal point for all the positive and negative impressions created by
the buyer over time as he comes into contact with the brand’s products, distribution
channel, personnel and communication...
The value of a brand comes from its ability to gain an exclusive, positive and
prominent meaning in the minds of a large number of consumers” (Kapferer 1997,
pg. 25).
Brand equity is defined in terms of the marketing effects uniquely attributable to the
brand.
Brand
Non-Product-Related
Recognition (e.g., Price, Packaging,
User and Usage
Brand Imagery)
Awaren
ess
Brand Attributes
Recall Product-Related
(e.g., color, size,
Brand design features)
Knowle
dge
Types of
Brand Associations Benefits Functional
Brand
Image Symbolic
Favorability, Overall
Strength, and Evaluation
Uniqueness of Experiential
(Attitude)
Brand Association
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.
4. RELATIONSHIPS =
4. RELATIONSHIPS = INTENSE,
INTENSE,
What about you & me?
What about you & me? RESONANCE ACTIVE LOYALTY
ACTIVE LOYALTY
POSITIVE,
POSITIVE,
3. RESPONSE =
3. RESPONSE = ACCESSIBLE
ACCESSIBLE
What about you?
What about you? JUDGMENTS FEELINGS REACTIONS
REACTIONS
STRONG, FAVORABLE
POINTSOFPARITY
2. MEANING =
2. MEANING = & UNIQUE BRAND
What are you?
What are you? PERFORMANCE IMAGERY & DIFFERENCE
ASSOCIATIONS
DEEP, BROAD
DEEP, BROAD
1. IDENTITY =
1. IDENTITY =
SALIENCE BRAND
BRAND
Who are you?
Who are you? AWARENESS
AWARENESS
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.
Ways to differentiate:
Being first
Leadership
Heritage
Preference
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 promise
to customers from organizational members.
A brand identity provides direction, purpose and meaning for the brand. It is
central to a brand’s 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
Brand-Customer Relationship
Brand positioning:
The idea that each brand if at all noticed occupies a particular point of space in the
individual customer’s mind.
A point which is determined by the consumer’s perception of the brand in question
and in relation to other brands. It is this concept of Perceptual space that forms the
theoretical 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.
Attribute positioning
Benefit positioning
Use or application positioning
User positioning
Competitor positioning
Product category positioning
Quality or price positioning
For (target market) our (brand) is the (concept) that (point of difference).
Brand Elements:
Brand
URLs
names
Slogans Elements
Logos
Characters Symbols
Brand name: Most of the time managers want the brand name to describe what the
product does.
Brands don’t describe the products
Brands distinguish the products
The name must serve to add extra meaning to convey the spirit of the brand.
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.
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
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”.
Brand architecture
Brand
Relationship
Spectrum
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”
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.
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 descriptive
trademarks.
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 firm’s 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 firm’s 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.
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.
Multi product strategy: