PRODUCT AND BRAND MANAGEMENT

HISTORY OF A BRAND
A brand is an identity of a certain service, product or business. There are many forms of a brand such as name, symbol, sign, and command or color combination. The term brand came into existence as a simple way to identify cattle of different people by marking a hot iron stamp. A brand name that is lawfully protected is called trademark. The term brand covers individuality of the brand, service or product. A registered trade mark through IP Australia gives you the legal right to use, license or sell it within Australia for the goods and services for which it is registered. A concept of branding is linked with a concept rather than a definite business, product or service, whereas a commodity brand is linked with a commodity. In the early days the automotive industry called brands as mar ues! and the term is still in use as a synonym to refer to motor vehicles. The term brand! is often used as a metonym! that indicates a company which is strongly classified with a brand. "randing has a long history all over the world. The word is derived from a word brnadr!, that meant to burn!. This word was used by the early #orse tribesmen to brand their livestock by marking a hot iron stamp. $ith the passage of time, branding not only became an expression of ownership, but also a sign of uality. "uyer%s in &hicago%s meat market identified uality beef by means of brand mark on the cattle. It happened because the speciali'ed farms which brought improved uality of meat provided better grass or sufficient supply of water or improved living conditions to cattle. (oon meat on the hoot! was no longer a commodity) it became branded and better uality was visible. (everal years ago in the (oviet *nion products were sold under a common name. The manufacturers had to mark their packaging to put a name to their product. +ery soon customers were able to recogni'e that one brand of detergent was different or superior in uality from another brand. As a result homemakers began to look for the packaging of the product while purchasing to help them identify the brand they wanted. They were able to choose a product upon the packaging stamp and its manufacturing location. A manufacturer%s serial number became a brand because it was diverse from various detergents. According to the state laws, every manufacturer had to use the same formulas to produce detergents. In a market where products, services and industry limitations are in fluctuation, a well,run brand can be a primary source of competitive benefit. In present times branding has become a very strong force, to the point that everything in the market is branded. There are many roles of branding that serve many purposes such as-

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A brand recogni'es the seller or maker. A brand shields both the consumer and the producer from opponents who endeavour to present products that are identical in appearance. 0. A brand offers the seller an opportunity to draw a gainful set of customers. "rand reliability offers sellers protection from opposition and better control in preparing their marketing plans. 1. $ell,built brands help make the commercial image, making it simpler to begin and expand approval by distributors and consumers. 2. 3rgani'ing a positive brand image builds opportunities to launch new products that make brand e uity. It attracts and keeps first,class employees and the stockholders.

TYPES OF BRAND NAMES

"rand names come in different styles because each brand is uni ue and functions for different marketing strategies. (ome of the types of brands are as followsAcronym 4 A name made up of initials such as I"5 or *P( 6escriptive 4 #ames or tags that describe a product benefit or function such as Airbus or $hole 7oods Alliteration and 8hyme 4 #ames that are fun to say and retain in the mind such as 6unkin% 6onuts and 8eese%s Pieces 9vocative 4 #ames that suggests a related, brilliant image, for instance) &rest and Ama'on #eologisms 4 Totally made up names like :odak and $ii 7oreign word 4 Adopt a term from another language such as (amsung and +olvo 7ounder%s names 4 These names use the names of real people such as $alt 6isney and ;ewlett Packard <eography 4 +arious brands are named after landmarks and regions like 7u=i 7ilm and &isco Personification 4 (everal brands derive brand names from legends like #ike and "etty &rocker The practice of linking products and services with any brand has turned as a part of pop culture. 5any products have some sort of brand identity that ranges from table salt to designer wear. A brandnomer is a brand name that has informally become a generic word for a product or service, for instance, :leenex and "and,Aid. These brands are often referred to describe any particular brand of facial tissues or adhesives.

Types of brands
There are various kinds of brands where different products can be categorised. "randing is a powerful marketing tool that distinguishes your brands in such a manner that builds up consumer preference! and gives you the benefit to control premium pricing. .. Product brands &ommodities turn into branded products when the seller knows the market really well. The seller should know that his or her products have persuasive characteristics that differentiate them from other brands in the market and makes them better among the other brands in the same product line. /. (ervice brands (ervice brands are those products that people buy without seeing. These brands are sold entirely based on the trust that the seller will deliver the brand as promised. If you sell any services, you need to build up and organise a powerful and an influential brand image. 0. "usiness brands Anyone can brand his or her business itself. This can be done in place of branding the product and services or in addition to it. "usinesses that have insufficient marketing expertise or money, should build only one brand. It is advised that they should develop into a business brand because this way they will able to attract investors, =ob applicants and mainly) customers. Personal brands Personal brands endorse your own personality. >ou know it or not, every individual has a brand recognition) your name and face recognition becomes your brand image in the minds of people. Personality brands These brands endorse individual people who are very influential. They not only deliver broad,reaching personal celebrity but also build considerable worth when they are linked with different brands. 9meril ?agasse, 5artha (tewart and 3prah are perfect examples of personality brands. All these people are regular people, but they share brand associations with their names that speaks of their personality branding. The art of mak n! yo"r b"s ness name stand o"t >ou might want to put a name to your new group, program, product, service, company or a cause. >ou might also want to change a well known name, a refurbished image or change of name after a merger. ;ere are some benefits that you can get by ac uiring an appropriate brand name. This brand name can also save you from financial loss and public embarrassment. @ part ways from your competitors @ make it obvious to the people that you are special and memorable

@ emphasise an exclusive positioning policy @ produce positive and long,lasting commitment with your addressees @ drive itself through the world, becoming a 'ero,cost and self,financing P8 driving factor @ present a strong base of advertising and marketing descriptions @ be the originator of a brand that goes above the commodities and services you provide @ totally control a category "elow are some uestions that set the criteria for your appropriate brainstorming for selecting a name. In each uestion about selecting a brand name, start brainstorming yourself, as well as with others also. 3ther people can give you a lot of positive feedback and help you identify the drawbacks. .. /. 0. 1. 2. B. C. D. E. .F. $ho are your consumersA $hat are you namingA $hat kind of a name do you wantA ;ow lengthy should the name beA 6o the sounds in the chosen name contain the correct appealA $hat connections should the name remindA $hat are the foreign language inferences of the nameA ;ow should you assess the nameA ;ow will the name emerge in the local directoriesA $ill you be able to trademark the nameA

?ook out for below mentioned categories that will greatly help you to derive a creative name for your brand. .. /. 0. 8eal words examples such as Apple, &lick, <ather &ompound examples- "ubble share, Tail rank, Gump cut ?abor 7air Phrase examples- Alltop, (tumble*pon, 6oor3ne, ?inkedIn, (poon 5e Edouble meaning thereH 1. "lends or fusions, for example- Technorati, "randscendence and $ikipedia 2. Tweaked words, for example- e(nips and iPhone B. Affixed words, for example- Post(ecret C. 7abricated or vague origin examples- "ebo, 3deo, Iimbra, (panx D. Puns, for example- Tongue 7u, 7arecast, &onsumating, ?ickety(hip E. #ames of people, for example- Peter, Tom, #ing .F. Acronyms and Initials for example- A3? and <uba ... 7anciful or absolute bi'arre, for example- Tandango, Joosa, and 7andango

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6iscover secrets from earlier successes, for example 5o'illa 7oundation is a blend of 5osaic,:iller and <od'illa, and Alta+ista is (panish for elevated view.

Ho# to dent fy brand names

"rands are of vital importance to identify the manufacturers of particular goods and service providers. These brands give a clear idea about the product origination to the customers as well as develop competition among the producers of the same products. There are different ways that you can use to identify a particular brand. >ou can identify brand names by assessing what particular products and services you want. 7or example, clothing has numerous brands available in the markets. 3ther items such as computers and laptops have a very few brand names to select from. >ou can also look at the location where the brand was produced. *sually you can find tags on the front or back of clothing. 9very brand has its own tag, design or logo which it uses for selling the products for its exclusive identification. >ou can easily make out whether an article is branded or not. These things can be determined by checking the uality and price of the products. These two factors give a clear view to the maker of the brand or service provider. *sually higher prices of products or services indicate high uality, whereas low prices indicate cheap and less worthy ones. Though price is a relevant factor in assessing the true worth of a product, the discount! and sale! factors should not be ignored. These two forms of sales are very different. >ou can study different kinds of brand names on different products and advertisements. >ou can make out the uality of a brand with its taste, appearance and uality. Also pick out a specific brand from a designer wear clothing rack or advertisement. $hen you link the name with the attributes of the products, it becomes very easy to identify the brand make. (ome brands have serial numbers which proves that they are original. If you are looking for any particular item, then a thorough research about it will help you greatly to identify the high, average and low uality make.

BRANDIN$ APPROA%HES
Branding by Company name
The brands in the industrial sector are specially promoted through the company%s name such as I"5. I"5 has adopted one of the most influential branding statements that says- #o one ever got fired for buying I"5!. This method did not work for <eneral 5otors that recently renovated on how its corporate sector relate to the product brands. The relationship of a company with its product and services is known as brand architecture. A company%s decisions such as company names and product names, and their relationship with the company rely on various tactical concerns.

In such cases, a powerful and influential brand name or even a company%s name is used as a driving factor for a wide range of products such as "lack K 6ecker or 5ercedes "en'. There can also be various subsidiary brands such as &adbury 7lake, &adbury 6airy 5ilk or &adbury 8oses.

Individual branding
it is also known as multi,branding or individual product branding. "asically it is the marketing strategy of assigning each and every product a uni ue brand name in a portfolio. This is different with corporate branding, umbrella branding and family branding where all the products in a product line are assigned a particular overshadowing brand name. The individual branding has its own advantages such as each of its products carries a uni ue brand identity and image. This benefit helps in the location of all the products that allow a firm to position the brands diversely. Individual product branding includes Procter K <amble which promotes the multiple brands such as Pampers and *nilever that in return promote the individual brands, for instance, 6ove.

Attitude branding
Attitude brands symboli'e a larger substance which is not essentially linked with the product or its consumption at all. "rands labeled as attitude branding consist of The "ody (hop, #ike, (tarbucks, Apple Inc. and (afeway. Attitude branding is also defined as fetish strategy! by #aomi :lein in his book #o ?ogo!.

Iconic brands
Iconic brands are known to have features which add to the personal identity and self expression of the consumer. The products whose brand values are primarily sourced from the presence of identity value to the consumers are known as identity brands!. A few of these brands possess a very influential identity that they develop into cultural icons which makes them iconic brands!. 9xamples of iconic brands include #ike, ;arley 6avidson and Apple. (everal iconic brands comprise of customary behavior in the buying or consumption of the products. ;ere are the four ma=or factors that create iconic brands #ecessary &onditions 4 The product%s performance ranking must be at an acceptable level that should have a repute of fine uality, preferably. 5yth,making 4 It is significant storytelling made,up by the cultural insiders. These must be taken as lawful and respected by the consumers to gain acceptance. &ultural contradictions 4 This indicates some sort of disparity between developing undercurrents and existing beliefs in the society. In short, it involves the how the consumers are and how they hope they were. &ultural brand management process 4 This involves the active involvement in the development of myth,making! ensuring that the brands continue to hold their spot as an icon.

No-brand branding
In the recent times, more companies have started to follow successfully no,brand! strategies that reproduce general brand simplicity. A clear example is the Gapanese company 5u=irushi 8yohin 4 meaning no brand uality products, and 7lorida based company #o,Ad (unscreen. The term #o brand strategy! means that the company spends a little amount on advertisement and traditional marketing. The commercial success of 5u=i! is powered by the word,of,mouth, a simple and easy way of shopping and anti,brand association. It may be taken as a kind of branding because the product is made obvious by the nonexistence of a brand name. +ene'uelan brands such as >ellow &ap! or Tapa Amarilla! are a fine example of no,brand strategy. Their products were recogni'ed by the color of their company caps same as >ellow &absLTaxis. Brand extension and brand dilution If a product has a very influential brand name, it can be utili'ed as a driving tool for the new or customi'ed products. 7or example, several designer companies further extended their brands into other goods such as shoes, fragrance, accessories, home dMcor, home luggage, hotels, etc. &aterpillar extended its brands to watches and shoes, 5ars extended its brand into ice,cream, Puma and Adidas into a personal hygiene range and 5ichelin into restaurant channel. The infamous 6unlop! further extended its brand from selling tires to various rubber products such as tennis rac uets, golf balls, adhesives and shoes. There is a huge difference between line extension and brand extension. $hen companies want to enter a new market in the current product class on the basis of an existing brand name along with new flavors, varieties and si'es, it is called line extension. $hen a brand loses its brand connection with a product area) market segment, price, reputation or uality, the risk of over,expansion is called brand dilution!. Multi brands 3n the other hand, a fragmented market among various brands can deliberately launch a new set of brands against its own well,known brands. These multi products more or less have the same characteristics. This way the companies grab the leftover share of the market that otherwise would have gone to the minor brands. The logic behind is that when you have 0 out of ./ brands in this kind of market, it will give a bigger share overall rather than . out of .F. If a supplier wants to establish a new market that he finds commercially viable, he or she might launch a second brand in competition with the first brand. This strategy will obstruct other companies to enter the market. Individual brand names allow superior elasticity naturally by authori'ing a range of diverse products of different uality. These products can be sold without mystifying the consumer%s awareness about the nature of the business.

Private label brands Private label brands have also emerged as a ma=or factor in the market ever since the emergence of influential retailers. Private labels are also known as own brands! or store brands!. $hen a retailer has a particular a powerful brand identity, these own brands! may be capable to compete against the strongest brands and even out class those products which are not strongly branded otherwise. 3ne such example in this case is 5arks K (pencer%s clothing line in the *nited :ingdom%. Individual and organizational brands There are different types of branding that consider organi'ations and individuals as products to be recogni'ed. Personal branding is known to treat people and their profession as brands. This term was first used by Tom Peters in an article in .EEC. 7aith branding is known to regard religious personalities and associations as brands. Phil &ooke, a religious expert says that faith branding tackles the uestion of how a person can express his or her faith in a culture that is media, dominated.

Crowd-sourcing branding
These kinds of brands are established by the people meant for business) it is contrary to the conventional method where a business establishes a brand. This kind of method reduces the risk of brand failure, because the people who might discard the brand in the conventional manner are those who play a part in the branding process.

Nation branding
#ation branding considers the existence and reputation of countries as brands. It is a branch of theory and practice that determines, assembles and supervises the reputation of different countries. This is somewhat related closely to place branding. Approaches, such as application of increasing importance upon the figurative value of products have guided the countries to highlight their individuality. The branding and image,icon of a nation is e ually important as their sales and purchases.

TRADEMAR&
A trademark is typically a name, logo, word, phrase, design, image, symbol or a combination of these terms. The products and services which appear with this trademark inform consumers that they come from an exclusive source. Trademarks also distinguish one product and service from another. A trademark can be chosen with the following signs

designed for an unregistered trade mark that is used to endorse or brand. ,designed for an unregistered service mark that is used to endorse or brand services designed for a registered trademark

There is a broad range of alternative trademarks that include marks or signs which do not fall into these standard groups, for instance) marks and signs that are based on sound, smell or color. The holder of a registered trademark may instigate lawful proceedings in case of trademark infringement to stop illegal utili'ation of that trademark. The holder of a common law trademark can file a lawsuit also but an unregistered trademark can be guarded only in the geographical location where it is used or at geographical locations where it is probable to spread out. The word trademark is often used to refer to any apparent feature of any individual that marks him or her) such as an infamous uality or feature of a celebrity. A trademark might also be called a service mark! if its use is related to services rather than products, mainly in the *nited (tates.

United States Trademark Process

The law considers a trademark as a type of property. In the *nited (tates, the registration process involves several steps before a trademark receives its &ertificate of 8egistration. The person or entity that applies for registration files an application to register the trademark. The application is put in the order it was filed for an assessment by an examining attorney for the *.( Patent and Trademark 3ffice. #ext, the application is reviewed in three to six months to ensure that it fulfills all the re uirements to ualify for registration. 6uring the review it is assessed whether the applicant%s product or services are suitably recogni'ed. It also considers that the trademark sign of the applicant is not descriptive or causes doubt with any other applied,for or registered trademark sign. If the application is conflicted of any re uirement, the attorney will ask the applicant to address the conflicted information before registration. After the application has been examined, the application will be available for the third parties for a 0F day period if they want to file an 3pposition Proceeding! to discontinue the registration process. In the *nited (tates, the *(PT3, *nited (tates Patent and Trademark 3ffice is liable to preserve a database for all the registered trademarks. This database is open for the public, though, only a licensed attorney is permitted to read the search results. In the *nited (tates, an attorney%s advice on ac uiring a trademark search might protect a trademark user to pay treble damages and the attorney%s fees in case of a trademark infringement trial. This is important because it will demonstrate that the user acted upon due diligence! and used the trademark in good faith.

Australian Trademark Process

$hen you finally decide upon an appropriate trademark you should go for its registration. There are three ways to go through the application procedure for the registration of a trademark. These three procedures are described below >ou can re uest an assessment whether your trademark can ualify the registration process through T5 ;ead start. This should b e ensured before you fill up the trademark application form. >ou can apply for the registration of your trademark through any of the below mentioned alternativesThe (tandard Trade 5ark e,form application on the website) Through a downloadable form, Paper Application to 8egister a Trade 5ark which can be lodged at an IP ?odgment Point or through the post. 3therwise, you can take support or guidance from an IP professional.

SO'ND MAR&S
A sound trademark is a non,traditional trademark where sound is used to indicate the trademark purpose. It uni uely classifies the commercial viability of various products and services. 5ore recently, sounds are being used as trademarks in the marketplace. Though, conventionally it has been difficult to protect sounds as trademarks by means of registration because sounds were not regarded appropriate for trademark purposes. This issue was addressed by the $orld Trade 3rgani'ation Agreement on Trade 8elated Aspects of Intellectual Property 8ights!. It widened the lawful meaning of trademark to include any sign that is able of differentiating the products or services of one activity from those of other activities!. In spite of the acknowledgment which must agree to the sound trademarks in the ma=ority of countries) the graphical demonstration of such words occasionally includes a problem for trademark owners who want to protect their marks. All the countries deal individually with this issue.

Registration of sound marks in Australia

(ounds marks in Australia are usually acceptable if they can be characteri'ed through musical notations. According to the Australian Trademarks head uarters, sound trademark application that cannot be represented graphically along with musical notations must incorporate the following information. a graphic demonstration of the mark, for example e.g. ting ten tine!. a clear and concise description of the trademark Nexamples are given belowH) The trademark is an exclusive sound mark. It encompasses the sound of dogs barking to the usual tune <reen sleeves! as provided in the audio tape along with the application. It includes the sound of two steps taken by a cow on roadway, after the mooing sound of a cow, for example Nclap, clip, 533H as provided in the audio clip attached with the application.

The trademark includes the sound of a soprano voice! playing noiselessly on the tune embodied in the musical score attached to the application. The trademark is verified in the recording accompanying the application form. The trademark comprises of a fre uent and uick beating sound through a wooden stick drumming on a metal trash canister top which steadily turns louder in approximately .F seconds of time. The sound clip is attached in the recordings along with the application. A recorded sample of the trademark that can be played on the media. It should be accessible and easy. All the other conditions are available in the trademarks 3ffice 5anual of Practice and Procedures published by IP Australia.

US Sound Markets
In the *nited (tates, the condition that verifies whether a sound is capable to serve as a trademark varies upon the hearing opinion of the listener. It may be transitory except if the sound is essentially so diverse that it connects to the listener%s mind. The listener should feel the stimulation when he or she hears it and finds a connection with the occurrence or source of its evolution. The *nited (tates Trademark Trial and Appeal "oard strictly applied this test in <eneral 9lectric &ompany "roadcasting%s case. That happened due to the occasional toll of a bell clock of a ship.

$(OBA( BRAND )ARIAB(ES

Whats in a Global Brand
A global brand is a brand that is identified to reveal the similar set of values world over. (uch brands surpass their origins and craft concrete and long,lasting customer relationships spanning over countries and cultures. <lobal brands are also sold over the international markets. There are many global brands nowadays that are running across the globe very successfully such as &oca,&ola, ?evi%s, (hell, 5arlboro, 5ac6onald%s etc. All of these brands continually sell the same product in diversified markets. They can be taken as successful up to the level that their associated products are easily recogni'ed by different consumers from different cultures. There are many benefits associated with global branding. It serves outstanding growth opportunities which leads to increased interest in making the brands global. 7ollowing are some of the advantages of global branding.

Bene!its o! Global Branding

9conomies of scale, that takes account of production and distribution activities. 8educed costs of marketing 9nabling the establishment for probable extensions globally Preserving a steady brand image 7aster incorporation and recognition of creativity that is noticed world wide 3bstructs the global competitors to enter the local marketplace or impedes you out of other geographic marketplaces Increased contacts with the international media 9nhanced international business and tourism are also some benefits of global branding

"ariables o! Global Branding

The following characteristics of global branding might be different from country to country. &orporate catchphrase <oods and services #ames of the products Product characteristics Product positioning 5arketing mix that includes pricing, distribution, media and advertising tasks

All these characteristics depend upon the differences in the following

?anguage differences 6iverse mode of communication 3ther differences in cultures 6ifferences in grouping and brand growth 6issimilar consumption prototypes 6issimilar competitive strategies and market circumstances 6issimilar lawful and regulatory background 6issimilar national method for marketing such as media, pricing, distribution, etc.

#ocal Brand
This type of brand is marketed, promoted, distributed and sold in a comparatively small and limited geographical location. A local brand can be found only in any one country or location. It can also be called as a regional brand if that particular region consists of more than one urban market. Australia brands such as ;/<o, 5i'one are examples of local brands.

A$bient Brand
Ambient brand is considered as a movement! when the brands are actually bound to revolve around the social needs and values instead of endorsing a particular product. Its presence is

described by values and is taken up by a community or people who follow a particular trend. &omparatively, a traditional brand is completely dependent on products and their parent companies.

Brand Na$e
5ore often brand name! is used interchangeably with the term brand. In this perspective, a brand name represents a kind of trademark if it recogni'es the brand owner exclusively as a viable source of goods and services. A brand owner may demand to defend proprietary privileges of a brand through the registration of trademark. Australian brands such as Aerograd, #obby%s and Paddle Pop are examples of brand names

%ATT(E BRANDIN$
&attle branding is a techni ue that is used to mark livestock so that it is identifiable to the owner. Initially, cattle branding meant to be a hot brand used for a large stock, but today the term is also used for alternate methods such as free'e branding. There are other kinds of cattle branding identification in use, such as, ear tattoos, inner lip, ear tagging, earmarking and 87I6 N8adio, fre uency identificationH tags that are used with a microchip. The paint markings that are used to classify sheep are known as a paint! or color brand!. In the American $est, cattle branding has developed into an intricate marking method that is highly used today.

%igns and ter$inolog& in cattle branding

(everal brands in the *nited (tates use numbers, capital letters along with other signs such as circle, semi,circle, slash, bar and cross. These kinds of brands have a particular language for calling! the brand. (ome of the cattle owners also use simple pictures as cattle marks. The owners of these cattle call them using a short description of the picture e.g. shining moon. $hen an owner reads the brand loudly, it is known as calling the brand!. These brands can be called from different locations such as, outside to inside, right to left and top to bottom. 8eading complex and pictorial brands depends upon the interpretation of the owner, whereas some of the complex identity marks may re uire expert interpreter. (ome of the terms used are as follows-

'er$s used are(

*pright symbols are called normally by the letters, numbers or other symbols involved. 8everse or cra'y- The alphabet will be read as &ra'y :!. ?a'y- (igns turned EF degrees. Also, a symbol turned EF degrees can be interpreted as ?a'y 6own! or ?a'y 8ight!. In the same way, a symbol turned EF degrees can be interpreted as ?a'y *p! or ?a'y ?eft!. The number will be interpreted as ?a'y 2O, ?a'y *p 2O or ?a'y ?eft 2O. Tumbling- a symbol tilted around 12 degrees.

7lying- a sign that begins and ends with an extended serif or hori'ontal line. $alking- a sign along with. 8unning- a letter with a curved flare on its top that also sometimes leans towards the right side like an italic letter. 3ver- a sign over above another sign, but does not touch the other sign. The alphabet G above the # will be interpreted as G over #!.

'e$)orar& cattle branding

Temporary branding is accomplished by heat branding in a light mode. It is done lightly so that the hair on the cattle%s skin is burned and the skin remains safe. This method is not considered as long,lasting one because it remains until the animal sheds its hair.

*reeze branding cattle 7ree'e branding uses an iron that is chilled with a coolant such as li uid nitrogen or dry ice so it spoils the pigment,developing hair cells. As a result, the animal%s hair grows white where the mark is applied. The hair coat of the animal is shaved off so that the bare skin appears to mark the stamp. The time period differs with the animal species and the hair coat color. 7ree'e brands do not cause severe damage to the animal%s hide like an iron stamp does.

UNIT-1 What is the di!!erence between a )roduct and a brand

In marketing, product is anything that can be offered to the market that may satisfy the need, want, and demand of a certain individual or market. It is also called as goods or service. Product is more than =ust a material ob=ect. It is also an inclusive package of benefits or satisfactions that the consumer or buyer may achieve upon purchase or usage. A product is the total amount of all physical, psychological, symbolic, and service attributes. (everal examples of products are the following- hamburger, fries, and soft drink. 3n the other hand, brand is a symbolic manifestation of all the information connected with a company, product, or service. A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons. It is believe that a brand puts an impression to the consumer on what to expect to the product or service being offered. In other application, brand may be referred as a trademark, which is legally an appropriate term. In summary, a PbrandP is a symbol of a product NCoca-ColaH, service NEurostar trainsH, company NCampariH or even an individual NMichael JordanH to identify what it is. (pecifically, an example of brand is 5c6onald%s fast food restaurant, which carries the world%s most popular Golden Arches.

Wh& do co$)anies develo) core )roducts into brands

In uest for market leadership and inevitable competition, companies worldwide develop their core products into brands in order to present and maintain their company%s name existing in the marketplace through the productLservice itself. They utili'e the brand to present their company%s symbol, color, goal Nas to some cases of brand taglinesH, and some interesting and persuasive features of the company to all the consumers. The development of core products into brands is an innovative way to leave a lasting impact on memory of consumers on what the productLservice is and who manufactures or makes it. This is a simple way to established awareness on the specified target market of the productLservice or company.

What role does )ac+aging )la& in $ar+eting a brand

At the very heart of a strong brand sits the productLservice package. This is what the customer is buying. A product, a service or, more and more is a total package. A package serves as the protector of the product itself. It is very important for the product to have an innovative yet practical package. Packaging is of great significance in the final choice of the potential buyer.

&onsumers always look for something new. People choose a product that involves convenience, appeal, information and branding in the package. In this case, constant research and development of the product packaging should be done. Product package and packaging is absolutely critical for a product in order to survive the increasing competition. It is also argued that product innovation is absolutely the key to long,term competitiveness. &ustomer information in more traditional industries is of course also useful. Traditionally, product improvements and development of new products have been based on a combination of analysis of market trends and creativityLintuition. The combination of the two will always be re uired.

What is branding
"randing is the act of creating a brand. The process involves positioning your company or product in the market Ncarving out your own placeH, devising brand strategy Nhow you will reach your goalsH, creating your name Nyour verbal identityH, designing corporate identity or product identity Nyour visual identityH, writing brand messaging Nverbal and written toneH, and setting brand standards Nhow you keep your brand consistent and strongH.

What is &our brand

>our brand is the result of the branding effort. >our brand describes who you are and what you do by use of visual identity, verbal dialog and tone of actions. It is utili'ed for virtually all of your marketing communications. It is how people identify, know and remember you.

What is a brand design

According to American 5arketing Association, "rand is defined as a Qname, term, sign, symbol or design, or a combination of them pro=ected to recogni'e the goods and services to distinguish them from those of a group or sellers or one seller. "randing is not only targets market but also it provides solution to the problem. "randing differentiates themselves from the competition company and it creates loyalty in the market place. The ob=ective of a good brand is that it delivers the message clearly and it confirms your credibility. "randing also connects your target emotionally, motivates the buyer and also provides loyalty to the customers. A brand strategy always comes with a tag line of about three to seven word phrase that comes along with your logo. The tag line should express the important benefits and the uality offered to your customer. The tag =ust flows effectively without an effort too. The phrases should stick to the targeted customers mind forever.

,elation between logo and brand design

5ost common "randing is mistaken along with the logo. "ut logo is part of your branding strategy. It instantly provides consumers recognition of the business and for the services and products that

are offered. ?ogo and brand design is not the same but both of them are interlinked one with other. The mission of your logo and brand design should portray the values and goals of your company. Always be clear in finding out the message what your brand wants to convey. ?ogo and brand design should have strong connection between them. 5ake your logo simple and conveying message is the only way for your brand strategy. In short a confident and strong branding strategy should convey a message through the design. ?ogo and brand design should attract the audience that you want to attract. The way you create and differentiate your logo and brand design helps in differentiating you and your competitors. &reate a logo and a distinctive tag line while creating your brand strategy which provides the perfect image for the company.

'he Product Conce)tThis orientation holds that consumers will favor those products that offer the most uality, performance, or innovative features. 5anagers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well,made products and can appraise uality and performance. ;owever, these managers are sometimes caught up in a love affair with their product and do not reali'e what the market needs. 5anagement might commit the better,mousetrap! fallacy, believing that a better mousetrap will lead people to beat a path to its door.

5arketing strategy
5arketing strategy is a process that can allow an organi'ation to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive. 5arketing strategy includes all basic and long,term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market,oriented strategies and therefore contribute to the goals of the company and its marketing ob=ectives.

.evelo)ing a $ar+eting strateg&

5arketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing ob=ectives. Plans and ob=ectives are generally tested for measurable results. &ommonly, marketing strategies are developed as multi,year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time hori'ons covered by the marketing plan vary by company, by industry, and by nation, however, time hori'ons are becoming shorter as the speed of change in the environment increases. 5arketing strategies are dynamic and interactive. They are partially planned and partially unplanned. (ee strategy dynamics. 5arketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing, plus performance analysis and strategic constraints. 9xternal environmental factors include customer analysis, competitor, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or

politicalLlegal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a companyPs overarching mission statement. 3nce a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

!"!#$P A PR$ UCT MAR%!T&'( STRAT!()

6eveloping a marketing plan or strategy to introduce a new technical product can be painless, and seems confusing only when we lose site of ob=ectives. (tart by writing an outline of your marketing strategy. Then begin by gathering re uired information for each section in your outline. As you gather your market information, you may see critical gaps. 7ind a way to fill the gaps Ne.g. telemarketingH. Then polish the information with helpful tables, charts and graphs. >ou can even use the outline to organi'e your marketing presentationR 6eveloping a Product 5arketing (trategy is one of the most challenging and exciting aspects of product marketing and launching a new product. The marketing professional should begin by writing a working outline of his market plan to help organi'e the study, gather information, and organi'e the presentation.
Mission Statement

&orporate 5ission (tatement. 5anufacturing ob=ectives. Product 6evelopment ob=ectives. 5arketing ob=ectives.
Customers

;ow many of them are thereA $hat are they buyingA $hat practical problems do they try to solveA $hat emotional problems do they try to solveA $hat is the si'e of your marketA $hat is your customerPs price point and other economicsA 9xactly what does it take to win an orderA ;ow long does it take to win an orderA 9xactly how do customers use competitive productsA $hatPs the current satisfaction with competitorsA

Market Segmentation

<roup customers Nneeds, industry, distribution, geographyH. #arrow the targets. (elect targets. ?abel the segments. &onsider the similarities and differences. Anything missingA
Competitors

what are they doing nowA $here do competitors advertise, and how oftenA $hat is their sales pitchA ;ow do competitors priceA ;ow do they distributeA ;ow do competitors position themselvesA ;ow do competitors react to threatsA ;ow do successful competitors differ from the lesserA $hat are their market sharesA &ompare competitors to your organi'ation in terms of your%trengths Weaknesses /pportunities 'hreats
Product Position

6ifferentiate your product and your service. Find the opportunity. Its out there. 8emember that famous glass of waterA The one that optimists see as half full and pessimists see as half emptyA A scientist, however, sees a uestion ,, $as the glass designed with too much capacityA $hat we see is, actually, a matter of perception. $hat your customer sees is, also, a matter of perception ,, his perception. *nderstand your customerPs needs. 6escribe your products. 6escribe your customerPs pain ... (ome sales systems will script sales closing techni ues based on customer needs or wants. 5y opinion is to agree with other sales systems which insist that customers only buy on an emotional level. ;ave you bought everything you wantedA ;ave you bought everything you neededA 3f course not. "ut, how did you feel when your car stranded you on the highwayA $ere you a bit more receptive

to the idea of buying a new carA

Read this care u!!" #ecause this is the ke" to a!! market strategies$

$hen your sales force closes sales, they will do so only by understanding your customerPs emotions. >our customers will buy from &hina, India, (outh America, anybody. +ery few industrial customers have loyalty to any country or brand name today. If you donPt agree, =ust look at number of people drinking bottled water that is imported from other countries. The last time I looked, the *nited (tates did produce good clean water. <o 7igure. >ou must understand your customerPs psychological needs. Take a piece of paper out and write this down, Q>ou must understand your customerPs psychological needs to best succeed in product marketing and sales.Q

% Possi#!e& Do Market Testing

(how product and promotional concepts to customers. 6ouble check.

Make Strateg" Decisions

6ecide on new revenue growth and )ro!its. 6ecide on new )roduct development. 6ecide on )rice. 6ecide on sales force, distribution, service. 6ecide on customer )s&chological !actors, not features and benefits. 6ecide on product )ro$otion. A popular way to remember the function of marketing is the Qfour pPs of marketingQ, which are product Nyou must have a Qnew product development processQH, place Ndistribution or where you will sell your productH, promotion and price. A good definition of marketing will provide a more detailed definition of the standard marketing function, and the four pPs of marketing. I added psychological sales factors as a fifth p of marketing) because, your marketing strategy must list the relevant sales psychology factors, and state how these factors will be addressed. (ales psychology is arguably the most important part of a marketing strategy. >et, customer psychology is seldom mentioned in marketing strategies.
Write an Action Plan

Pert chart on product development. &alendar of planned media.

"udget
I$)le$ent 0our Plan

;old routine meetings to review progress on sales leads. Provide a lead tracking system. #othing is status, uo. 8evisit your plan and update.

Six Steps of New Product Planning

%dea Conception'

#ew product planning typically commences with a great idea. &ompany marketers, financial experts and engineers hold brainstorming sessions to decide the types of products to add to their existing product lines. They may also plan new lines of products. $hatever the case, company employees usually devise product concepts to solve consumer problems or fill voids in the marketplace. They then decide which types of customers are most likely to buy their products. (ales and profitability are factored into the evaluation process to determine whether the product idea is viable.

Concept Statement'

Product marketers use input from the idea generation session to start drafting a concept statement. A concept statement is a more specific version of the product idea or concept. It is the stage where companies determine what the product will look like, including special features, styles or dimensions. Product pricing and distribution are also determined as are the types of advertising and promotions that will be used to market the product. 5any companies will create different versions of products before narrowing their concept statement down to one specific product. This allows for input from consumers who will ultimately determine the productsP success.
(ocus Groups'

7ocus groups are used to present the product idea to a group of consumers, according to :nowthis.com, an online marketing reference site. 7ocus groups are usually run at focus group facilities. 5anagers observe how consumers react to their product idea through one,way mirrors. The focus group session is typically run by a professional moderator or interviewer. This person uses a discussion guide or uestionnaire to introduce the concept statement. They ask consumers if they would like the product as it is presented and whether or not they would purchase it. &ompanies use the input from focus groups to tweak their product concepts with respect to features, styles and price points.
Marketing Research Sur)e"s'

5arketing research surveys help uantify whether consumers will like and purchase the product. &ompanies often do hundreds of surveys to ensure that their results are valid and representative of the average consumer. This better ensures that the product will sell in the marketplace. 5ost

companies hire marketing research agencies to conduct surveys by phone, mail or via the Internet. These professionals use experienced interviewers to conduct the surveys and computer software to tabulate survey results.
Product De)e!opment'

&ompanies will usually start producing their products on a small scale if the survey results prove favorable. &ompanies start with smaller amounts of products so they can evaluate sales in specific markets. This helps them avoid high production costs if the product somehow fails. Products are usually produced for another phase of testing called beta testing.
Beta Testing'

&ompanies will usually sell the initial products in two are more cities that are comparable in si'e and demographics like age and income. These tests can run several months to one or more years. 6uring beta tests, companies advertise and promote their products as they planned when creating the concept statement. 7inancial managers then evaluate sales and profits. They then meet with product managers and engineers to determine whether further expansion is warranted.

Sta!es Pro*ess Steps of Ne# Prod"*t De+e,opment

The stages or process or steps involved in a new,product development are depicted in the image given below. &lick on it to get a 'oomed preview. The eight stages or process or steps involved in the development of a new product are listed and also hyper,linked as follows.. Idea generation. /. Idea screening. 0. &oncept testing. 1. "usiness analysis. 2. Product development. B. Test marketing. C. &ommerciali'ation. 8. 8eview of market performance. #ow letPs discuss each stage in the process of a new,product development.
-. Idea !enerat on

The first step in new,product development is idea generation. #ew ideas can be generated by.. &onducting marketing research to find out the consumersP needs and wants. /. Inviting suggestions from consumers. 0. Inviting suggestions from employees. 1. "rainstorming suggestions for new,product ideas.

2. (earching in different markets vi'., national and international markets for new,product ideas. B. <etting feedback from agents or dealers about services offered by competitors. C. (tudying the new products of the competitors.
/. Idea s*reen n!

5ost companies have an QIdea &ommittee.Q This committee studies all the ideas very carefully. They select the good ideas and re=ect the bad ideas. "efore selecting or re=ecting an idea, the following uestions are considered or asked.. Is it necessary to introduce a new productA /. &an the existing plant and machinery produce the new productA 0. &an the existing marketing network sell the new productA 1. $hen can the new product break evenA If the answers to these uestions are positive, then the idea of a new,product development is selected else it is re=ected. This step is necessary to avoid product failure.
0. %on*ept test n!

&oncept testing is done after idea screening. It is different from test marketing. In this stage of concept testing, the company finds out.. $hether the consumers understand the product idea or notA /. $hether the consumers need the new product or notA 0. $hether the consumers will accept the product or notA ;ere, a small group of consumers is selected. They are given full information about the new product. Then they are asked what they feel about the new product. They are asked whether they like the new product or not. (o, concept testing is done to find out the consumersP reactions towards the new product. If most of the consumers like the product, then business analysis is done.
1. B"s ness ana,ys s

"usiness analysis is a very important step in new,product development. ;ere, a detailed business analysis is done. The company finds out whether the new product is commercially profitable or not. *nder business analysis, the company finds out... .. $hether the new product is commercially profitable or notA /. $hat will be the cost of the new productA 0. Is there any demand for the new productA 1. $hether this demand is regular or seasonalA 2. Are there any competitors of the new productA B. ;ow the total sales of the new product beA C. $hat will be the expenses on advertising, sales promotion, etc.A D. ;ow much profit the new product will earnA (o, the company studies the new product from the business point of view. If the new product is profitable, it will be accepted else it will be re=ected.
2. Prod"*t de+e,opment

At this stage, the company has decided to introduce the new product in the market. It will take all necessary steps to produce and distribute the new product. The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide the finance for introducing the new product. The advertising department will plan the advertisements for the new product. ;owever, all this is done as a small scale for Test 5arketing.
3. Test market n!

Test marketing means to introduce the new product on a very small scale in a very small market. If the new product is successful in this market, then it is introduced on a large scale. ;owever, if the product fails in the test market, then the company finds out the reasons for its failure. It makes necessary changes in the new product and introduces it again in a small market. If the new product fails again the company will re=ect it. Test marketing reduces the risk of large,scale marketing. It is a safety device. It is very time, consuming. It must be done especially for costly products.
4. %ommer* a, 5at on

If the test marketing is successful, then the company introduces the new product on a large scale, say all over the country. The company makes a large investment in the new product. It produces and distributes the new product on a huge scale. It advertises the new product on the mass media like T+, 8adio, #ewspapers and 5aga'ines, etc.
6. Re+ e# of market performan*e

The company must review the marketing performance of the new product. It must answer the following uestions.. Is the new product accepted by the consumersA /. Are the demand, sales and profits highA 0. Are the consumers satisfied with the after,sales,serviceA 1. Are the middlemen happy with their commissionA 2. Are the marketing staffs happy with their income from the new productA B. Is the 5arketing manager changing the marketing mix according to the changes in the environmentA C. Are the competitors introducing a similar new product in the marketA The company must continuously monitor the performance of the new product. They must make necessary changes in their marketing plans and strategies else the product will fail.

/rganizational Arrange$ents
3rgani'ing #ew,Product 6evelopment Product managers #ew,product managers ;igh,level management committee #ew product department

+enture teams (tage,gate system

%tage-Gate - 0our ,oad$a) !or New Product .evelo)$ent

The need for lean, rapid and profitable new product development has never been greater. Product life cycles are shorter, competition is more intense and customers are more demanding. &ompanies that fail to innovate face a grim future. The problem is that winning with new products is not easy. An estimated 1BS of the resources that companies devote to the conception, development and launch of new products go to pro=ects that do not succeed , they fail in the marketplace or never make it to market.

1ow .oes the %tage-Gate Process Wor+ Product innovation begins with an idea and ends with the successful launch of a new product. The steps between these points can be viewed as a dynamic process. (tage,<ate divides this process into a series of activities NstagesH and decision points NgatesH. (tages are where the action occurs. The players on the pro=ect team undertake key activities to gather information needed to advance the pro=ect to the next gate or decision point. (tages are cross,functional Nthere is no research and development or marketing stageH and each activity is undertaken in parallel to enhance speed to market. To manage risk, the parallel activities in a certain stage must be designed to gather vital information , technical, market, financial, operations , in order to drive down the technical and business risks. 9ach stage costs more than the preceding one, resulting in incremental commitments. As uncertainties decrease, expenditures are allowed to rise and risk is managed. In addition to the discover stage, there are five key stages(tage F , 6iscovery- Activities designed to discover opportunities and to generate new product ideas. (tage . , (coping- A uick and inexpensive assessment of the technical merits of the pro=ect and its market prospects. (tage / , "uild "usiness &ase- This is the critical homework stage , the one that makes or breaks the pro=ect. Technical, marketing and business feasibility are accessed resulting in a business case which has three main components- product and pro=ect definition) pro=ect =ustification) and pro=ect plan. (tage 0 , 6evelopment- Plans are translated into concrete deliverables. The actual design and development of the new product occurs, the manufacturing or operations plan is mapped out, the marketing launch and operating plans are developed, and the test plans for the next stage are defined. (tage 1 , Testing and +alidation- The purpose of this stage is to provide validation of the entire pro=ect- the product itself, the productionLmanufacturing process, customer acceptance, and the economics of the pro=ect. (tage 2 , ?aunch- 7ull commerciali'ation of the product , the beginning of full production and commercial launch.

What are the bene!its o! using %tage-Gate

The (tage,<ate Product Innovation system has been referred to as the single most important discovery in product innovation 4 empowering almost D2S of all #orth American companies to achieve improved returns on their product development dollars and to achieve new growth. $hen implemented properly, (tage,<ate delivers tremendous impact

Accelerates speed,to,market Increases likelihood of product success Introduces discipline into an ordinarily chaotic process 8educes re,work and other forms of waste Improves focus via gates where poor pro=ects are killed Achieves efficient and effective allocation of scarce resources 9nsures a complete process 4 no critical steps are omitted

Managing the .evelo)$ent Process( Ideas

Idea <eneration Interacting with 3thers (ales representatives Intermediaries Product champion Techni ues for stimulating creativity in individuals and groups Attribute listing 7orced relationships 5orphological analysis 8everse assumption analysis #ew contexts 5ind,mapping

Idea (creening Idea 5anager Idea &ommittee Two types of errors in (creening ideas 683P,error <3,error

Attributes #isting Method

These may include

Physical 5ental 9motional (ocial and more Ndepending on the complexity of the challengeH

"y doing so, you can then concentrate on each attribute at a time. This will no doubt give you more peace of mind Nand pulling of your hairsH when generating your ideas. The attribute listing techni ue is often used in a 8esearch K 6evelopment N8K6H department of many companies, especially those who are constantly producing innovative products to have an advantage over their competitors. ?et%s go through this worked example to give you a better understanding of how attributes listing can be of help to you. 7or example, if your challenge is to design a new ladies% handbag, you could list the attributes asthe physical aspects which include, shape, length, color, and materials used and on the emotional aspects,the stress some women faced of misplacing their handbags. >ou might choose to first tackle the emotional stress of losing one%s handbag by creating a new small gadget to be placed within the handbag to sound the owner that she is moving too far away Nmaybe one or two metre awayH from her Ttreasure chest%. After that, you could work on the other attributes, one by one, be it the shape or materials used for the handbag. Putting >our 9lements to $orkTry to generate oodles of ideas using attributes listing with these sets of challenges.. 6esign a new toy for children under B years old to teach them simple arithmetic. (afety is an important attribute. /. &reate a campaign to encourage people to stop smoking. NThink through the attributes- Physical, 5ental, 9motional and (ocialH 0. (et up an effective marketing plan Nthere are many parts to a good marketing plan- the 1 P%s 4 Product, Price, Place and PromotionH for your new products. *orced ,elationshi)( 7orcing relationships is one of the most powerful ways to develop ways to develop new insights and new solutions. A useful way of developing the relationships is to have a selection of ob=ects or

cards with pictures to help you generate ideas. &hoose an ob=ect or card at random and see what relationships you can force.

M/,P1/#/GICA# ANA#0%I%
The morphological analysis is actually a group of methods that share the same structure. This method breaks down a system, product or process into its essential sub,concepts, each concept representing a dimension in a multi,dimensional matrix. Thus, every product is considered as a bundle of attributes. #ew ideas are found by searching the matrix for new combination of attributes that do not yet exist. It doesn%t provide any specific guidelines for combining the parameters. It tends to provide a large number of ideas.

Re+erse ass"mpt on ana,ys s

3ne of the techni ues of creativity used in generating new product ideas. In this techni ue all the normal assumption about an entity are listed and then they are reversed. 7or example, instead of assuming that a restaurant has menus, charges for food, and serves food, reverse each assumption to come out with some novel idea

What is a Mind Ma)

A mind map is an intricate web of thoughts, ideas, names, words and images that all stem from one central idea or word in diagram form. 5any designers use 5ind 5apping to brainstorm and generate ideas. The loose and visual manner in which a mind map is created is not only a fantastic tool to Tfree up% creativity, it%s a great way to communicate to clients, team members and professors while in a design%s concept phase.

A Q.ro) 2rrorQ occurs when a business errs in deciding to abandon a product idea that, in hindsight, may have been successful if developed. Too many drop errors indicate a conservative approach to product screening) A QGo 2rrorQ occurs when a business fails to identify a poor product idea that has already moved into the development and commerciali'ation stages. Too many go errors indicate a young, ambitious yet inexperienced approach to product screening.

3NI'-4
Managing the .evelo)$ent Process( Conce)t to %trateg&
&oncept 6evelopment and Testing Product idea Product concept

&oncept development &ategory concept Product4positioning map "rand concept

&oncept Testing 8apid prototyping N6esignH +irtual reality &ustomer,driven engineering

Juestions to measure product dimensions &ommunicability and believability #eed level <ap level #eed,gap score

Perceived value Purchase intention *ser targets, purchase occasions, purchasing fre uency

&on=oint Analysis 9xample- five design elements Three package designs Three brand names

 5arketing (trategy "usiness Analysis

Three prices Possible <ood ;ousekeeping seal Possible money,back guarantee

9stimating Total (ales (urvival,age distribution

9stimating &ost and Profits "reak,even analysis 8isk analysis

Concept testing
Conce)t testing is the process of using uantitative methods and ualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market. It can also be used to generate communication designed to alter consumer attitudes toward existing products. These methods involve the evaluation by consumers of product concepts having certain rational benefits, such as Qa detergent that removes stains but is gentle on fabrics,Q or non,rational benefits, such as Qa shampoo that lets you be yourself.Q (uch methods are commonly referred to as concept testing and have been performed using field surveys, personal interviews and focus groups, in combination with various uantitative methods, to generate and evaluate product concepts. The concept generation portions of concept testing have been predominantly ualitative. Advertising professionals have generally created concepts and communications of these concepts for evaluation by consumers, on the basis of consumer surveys and other market research, or on the basis of their own experience as to which concepts they believe represent product ideas that are worthwhile in the consumer market. The uantitative portions of concept testing procedures have generally been placed in three categoriesN.H concept evaluations, where concepts representing product ideas are presented to consumers in verbal or visual form and then uantitatively evaluated by consumers by indicating degrees of purchase intent, likelihood of trial, etc., N/H positioning, which is concept evaluation wherein concepts positioned in the same functional product class are evaluated together, and N0H productLconcept tests, where consumers first evaluate a concept, then the corresponding product, and the results are compared. 'he $ain t&)es o! 5ualitative research are

.e)th Interviews interview is conducted one,on,one, and lasts between 0F and BF minutes best method for in,depth probing of personal opinions, beliefs, and values laddering is a techni ue used by depth interviewers in which you start with uestions about external ob=ects and external social phenomena, then proceed to internal attitudes and feelings hidden issue 5uestioning is a techni ue used by depth interviewers in which they concentrate on deeply felt personal concerns and pet peeves s&$bolic anal&sis is a techni ue used by depth interviewers in which deeper symbolic meanings are probed by asking uestions about their opposites *ocus Grou)s an interactive group discussion led by a moderator unstructured Nor loosely structuredH discussion where the moderator encourages the free flow of ideas usually D to ./ members in the group who fit the profile of the target group or consumer but may consist of two interviewees Na dyadH or three interviewees Na triadH or a lesser number of participants Nknown as a mini,groupH Pro6ective 'echni5ues these are unstructured prompts or stimulus that encourage the respondent to pro=ect their underlying motivations, beliefs, attitudes, or feelings onto an ambiguous situation they are all indirect techni ues that attempt to disguise the purpose of the research examples of pro=ective techni ues include word association , say the first word that comes to mind after hearing a word , only some of the words in the list are test words that the researcher is interested in, the rest are fillers , is useful in testing brand names , variants include chain word association and controlled word association sentence completion , respondents are given incomplete sentences and asked to complete them story completion , respondents are given part of a story and are asked to complete it cartoon tests , pictures of cartoon characters are shown in a specific situation and with dialogue balloons , one of the dialogue balloons is empty and the respondent is asked to fill it in thematic apperception tests , respondents are shown a picture Nor series of picturesH and asked to make up a story about the pictureNsH role playing , respondents are asked to play the role of someone else , researchers assume that sub=ects will pro=ect their own feelings or behaviours into the role third,person techni ue , a verbal or visual representation of an individual and hisLher situation is presented to the respondent , the respondent is asked to relate the

attitudes or feelings of that person , researchers assume that talking in the third person will minimi'e the social pressure to give standard or politically correct responses

Ne*er Methods

O#ser)ationa! + Ethnographic Research

3ne of the more fundamental uses of ualitative research is understanding fundamental consumer behaviour through 3bservational research. The roots for this come from Anthropological studies where trained researchers went to observe tribes L cultures L societies , for periods as long as a couple of years. #owadays, this kind of research is being supplemented by more cutting edge fields like neuro,science where the observation is accompanied by measuring brain activity. This is under the assumption that very often our brain reacts without us even knowing it and asking uestions or pure observation by themselves are not enough to really pinpoint what goes on.

Ps"cho!ogica! Research

Jualitative marketing research comes in a lot of different guises but ualitative psychological research has crystallised as one the most effective ways of gathering insight into the behaviours, attitudes and decision, making processes of consumers and customers. 5ost ualitative research companies in the world will claim that they employ psychologists and base their findings on psychological theories.

Product )ositioning
Product positioning is a marketing strategy that aims to make a brand occupy a distinct Pposition,P relative to the competing brands, in the mind of the customer.7irms apply this strategy either by emphasi'ing the distinguishing features of their brand Nwhat it is, what it does and how, etc.H or try to create a suitable image Ninexpensive or premium, utilitarian or luxurious, entry,level or high,end, etc.H through advertising. 3nce a brand is positioned, it is very difficult to reposition it without destroying its credibility.

Product attributes
(ome products re uire attribute designation. 7or example, clothes are sold in different colors and si'es. In this case, color is a product attribute and si'e is another. $hen used in a market research context, QAttributesQ are simply properties of a given product, brand, service, advertisement or any ob=ect of interest. 5uch brand and market research is targeted at understanding the most significant and powerful attributes of a productLserviceLbrand or productLserviceLbrand class. A product, service, or brand can have many attributes including cost, value for money, prestige, taste, usability, liking NQaffectQH and a wide range of image or personality attributes. To use one very common example, the car or QautomobileQ brand class can sometimes include attributes such as prestige, cost, reliability, exclusivity, availability, type Ne.g. sporty, family, luxuryH and country of origin.

,a)id )rotot&)ing is a group of techni ues used to uickly fabricate a scale model of a physical part or
assembly using three,dimensional computer aided design N&A6H data.

"irtual ,ealit&(-In #ew Product 6evelopment, +8 can help streamline the process, cutting production time and expense by as much as /2S.

*nfinished ideas or designs that need to be changed are easily manipulated before beginning product design. The core elements of the virtual reality used in research can then be applied to marketing communications +8 is easily converted back to &A6 for engineering purposes

Additional benefits of applying +8 technology to research pro=ects are

+8 reduces concept development K testing time by 2FS Product development cycle time can be reduced by as much as /2S +8 allows concept testing to occur almost immediately without having to wait for prototypes +oice of the customer results are presented to engineering sooner eliminating engineering waste NredesignsH +irtual research environments can provide more control at a lower cost

+8 can be used during all stages of the product life cycle, but is especially useful during #ew Product 6evelopment, and in an online environment to offer participants a more realistic experience upon which to base their preferences.
Product Engineering

To define and extract the re uirements for the methodology development, it is useful to look at the motivation to introduce and to use a methodology in the first place. Answering the uestions- Q$hat is product engineering NP9H all aboutAQ and Q$hat distinguishes P9 from researchAQ offers some insight. The answers to these uestions can be summari'ed in the following points

Predefined time and budget limitations Activities focused on actual QproductQ 7ocus on reproducibility and uality Predictability of the development progress and process 7ocus on deliverables and the business case

Taking these re uirements for development into account, it becomes clear that a thorough and flexible methodology needs to be established. The processes of such a methodology need to be rather flexible. They must provide a framework for execution that can be amended and merged with the processes already established within an adopting organi'ation. The baseline for the framework should be a combination of a product development and a pro=ect management methodology. The product development method provides guidelines for target deliverables and the general steps as to how to progress the product development Nthe

strategic goals and proceduresH. The pro=ect management method supplements this with the tactical procedures needed. 9nriched with uality aspects and tools, a comprehensive, yet flexible methodology framework can be derived.

Con6oint anal&sis is a statistical techni ue used in market research to determine how people value
different features that make up an individual product or service. The ob=ective of con=oint analysis is to determine what combination of a limited number of attributes is most influential on respondent choice or decision making. A controlled set of potential products or services is shown to respondents and by analy'ing how they make preferences between these products, the implicit valuation of the individual elements making up the product or service can be determined. These implicit valuations Nutilities or part,worthsH can be used to create market models that estimate market share, revenue and even profitability of new designs.

Con6oint .esign
A product or service area is described in terms of a number of attributes. 7or example, a television may have attributes of screen si'e, screen format, brand, price and so on. 9ach attribute can then be broken down into a number of levels. 7or instance, levels for screen format may be ?96, ?&6, or Plasma.

Advantages

estimates psychological tradeoffs that consumers make when evaluating several attributes together measures preferences at the individual level uncovers real or hidden drivers which may not be apparent to the respondent themselves realistic choice or shopping task able to use physical ob=ects if appropriately designed, the ability to model interactions between attributes can be used to develop needs based segmentation

.isadvantages

designing con=oint studies can be complex with too many options, respondents resort to simplification strategies difficult to use for product positioning research because there is no procedure for converting perceptions about actual features to perceptions about a reduced set of underlying features respondents are unable to articulate attitudes toward new categories, or may feel forced to think about issues they would otherwise not give much thought to poorly designed studies may over,value emotionalLpreference variables and undervalue concrete variables does not take into account the number items per purchase so it can give a poor reading of market share

Business ris+s to consider !or each business !unction(

(afety .. Potential for human loss of life or in=ury /. Potential for ma=or incident or accident such as fire, explosion, release, spill

0. 9nvironmental damage 1. 3ffice or facility security 8evenues .. 8ecoverable monetary loss /. ?oss of customer base 0. ?ost opportunity in time to market 1. *nrecoverable monetary loss &osts .. &osts incurred due to problems that could have been prevented /. &osts due to lost discounts, increased warehousing space, vendor changes, etc. 0. ?egal defense costs ?egal .. 8egulatory compliance failures /. 8esults or actions which could =ustify legal actions against the company NlitigationH 8elated 9xposure .. ?oss of customer /. ?oss of goodwill 0. ?oss of shareholder confidence 1. ?oss of image or reputation Investor confidence (ecurity breaches .. (ystem breaches causing lost data /. (ystem breaches causing a loss of capital 0. Physical security breaches

'he Brea+-even Anal&sis de)ends on three +e& assu$)tions( .. Average )er-unit sales )rice 7)er-unit revenue8( This is the price that you receive per unit of sales. Take into account sales discounts and special offers. <et this number from your (ales 7orecast. 7or non,unit based businesses, make the per,unit revenue U. and enter your costs as a percent of a dollar. The most common uestions about this input relate to averaging many different products into a single estimate. The analysis re uires a single number, and if you build your (ales 7orecast first, then you will have this number. >ou are not alone in this, the vast ma=ority of businesses sell more than one item, and have to average for their "reak,even Analysis. /. Average )er-unit cost( This is the incremental cost, or variable cost, of each unit of sales. If you buy goods for resale, this is what you paid, on average, for the goods you sell. If you sell a service, this is what it costs you, per dollar of revenue or unit of service delivered, to deliver that service. If you are using a *nits,"ased (ales 7orecast table Nfor manufacturing and mixed business typesH, you can pro=ect unit costs from the (ales 7orecast table. If you are using the basic (ales 7orecast table for retail, service and distribution businesses, use a percentage estimate, e.g., a retail store running a 2FS margin would have a per,unit cost of .2, and a per,unit revenue of .. 0. Monthl& !ixed costs( Technically, a break,even analysis defines fixed costs as costs that would continue even if you went broke. Instead, we recommend that you use your regular running fixed costs, including payroll and normal expenses Ntotal monthly 3perating 9xpensesH. This will give you a better insight on financial realities. If averaging and estimating is difficult, use your Profit and ?oss table to calculate a working fixed cost estimateVit will be a rough estimate, but it will provide a useful input for a conservative "reak,even Analysis.

Managing 'he .evelo)$ent Process( .evelo)$ent to Co$$ercialization

Product 6evelopment &ustomer tests Alpha testing "eta testing &onsumer preference measures 5arket Testing &onsumer,<oods 5arket Testing (eeks to estimate four variables Trial 7irst repeat Adoption Purchase fre uency 8ank,order Paired,comparison 5onadic,rating Juality 7unction 6eployment NJ76H &ustomer attributes N&AsH 9ngineering attributes N9AsH

(ales wave research (imulated Test 5arketing &ontrolled Test 5arketing

Test 5arkets ;ow many test citiesA

$hich citiesA ?ength of testA $hat informationA $hat action to takeA

"usiness,<oods 5arket Testing

&ommerciali'ation $hen NTimingH 7irst entry Parallel entry ?ate entry

$here N<eographic (trategyH To $hom NTarget,5arket ProspectsH ;ow NIntroductory 5arket (trategyH &ritical path scheduling N&P(H

9ualit& !unction de)lo&$ent 79*.8(

Is a method to transform user demands into design uality, to deploy the functions forming uality, and to deploy methods for achieving the design uality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.!, as described by 6r. >o=i Akao, who originally developed J76 in Gapan in .EBB, when the author combined his work in uality assurance and uality control points with function deployment used in value engineering. J76 is designed to help planners focus on characteristics of a new or existing product or service from the viewpoints of market segments, company, or technology,development needs. The techni ue yields charts and matrices. J76 helps transform customer needs Nthe voice of the customer W+3&XH into engineering characteristics Nand appropriate test methodsH for a product or service, prioriti'ing each product or service characteristic while simultaneously setting development targets for product or service.

What are Custo$er attributes

is an organisation where they cannot hope to satisfy the needs and wants all the customers. &ustomer attributes includes the way the business is working and the way the customers are buying the products and the regular occasional shoppers form family status, like childrenPs and

adults.

Custo$er seg$ent attributes

>ou can create customer segments using any of the following attributes-

Address(-Cit& Target or exclude customers based upon the city in which they reside. %tate or Province Target or exclude customers based upon the state or province in which they reside. Countr& or ,egion Target or exclude customers based upon the country or region in which they reside. :IP or Postal Code Target or exclude customers based upon their IIP or Postal code. This supports string comparison, so you can target partial codes. Phone nu$ber Target or exclude customers based upon their telephone number. This supports string comparison, so you can target area codes, or specific exchanges. 2-$ail address Target or exclude customers based upon their e,mail address. This supports string comparison, so you can target domain names.

.e$ogra)hics(-Gender Target or exclude customers based upon their gender, or specifically target those customers who have not specified. Age Target or exclude customers whose age falls within a specified range. 5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi'ed as necessary. Annual Inco$e Target or exclude customers whose income falls within a specified range. 5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi'ed as necessary. Marital %tatus Target or exclude customers based upon their marital status, or specifically target those customers who have not specified. Nu$ber o! children Target or exclude customers who have a number of children that falls within a specified range. 5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi'ed as necessary. 1ousehold size Target or exclude customers whose household si'e falls within a specified range. 5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi'ed as necessary.

Purchase .etails(-A$ount s)ent Target or exclude customers whose total amount spent at the store falls within a specified range. 5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi'ed as necessary Nu$ber o! orders Target or exclude customers whose number of orders at the store falls within a specified range. 5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi'ed as

necessary. #ote that this total only captures the amount spent on orders in the database, and may not reflect an amount spent prior to database pruning. #ast )urchase date Target or exclude customers that made a purchase from the site on, before, or since a specified date, or number of days. 7or example, you can target customers who have made purchases in the last 0F days to follow,up with a coupon. #ast visit date Target or exclude customers that have visited the site on, before, or since a specified date, or number of days. This works like the last purchase date.

,egistration(-,egistration status Target or exclude customers based upon their registration status Nregistered or guestH, or specifically target those customers who have not specified. ,egistration date Target or exclude customers that registered at the site on, before, or since a specified date, or number of days. #ast ,egistration u)date Target or exclude customers that last updated their registration information on, before, or since a specified date, or number of days. Interests Target or exclude customers based on their specified interests. Co$)an& Target or exclude customers based on their specified employer. Currenc& Target or exclude customers based on their specified preferred currency. #anguage Target or exclude customers based on their specified preferred language. ;ob *unction Target or exclude customers based on their specified =ob function, such as senior management, or professional. These =ob functions can be customi'ed as necessary. Pre!erred $ethod o! co$$unication Target or exclude customers based on their specified preferred method of communication.

Accounts(-Account size Target customers that belong to accounts with a particular si'e, as specified during account creation. Account credit ris+ Target customers that belong to accounts with a particular account credit risk, as specified during account creation. Account geogra)hical location Target customers that belong to accounts that are based in a particular location, as specified during account creation. Account countries or regions o! o)eration Target customers that belong to accounts that operate in a particular location, as specified during account creation. This is distinct from the geographical location in that an American account may operate in the *(, &anada, and the *:.

Account industr& Target customers that belong to accounts that are within a particular industry, as specified during account creation.

Attribute(-Definition:-<- Mar+eting( A characteristic or feature of a product that is thought to appeal to customers. Attributes
usually represent a manufacturerPs or a sellerPs perspective and not necessarily that of a customer. Attributes of instant coffee, for example, may include its aroma, flavor, color, caffeine content, packaging and presentation, price, shelf,life, source, etc. Attributes have only two possible ratings Nnegative or positiveH expressed as acceptable or unacceptable, desirable or undesirable, good or bad, etc. 4- 2ngineering( A visual but non dimensional characteristic that is uantified by applying a numerical scale Nsuch as ?ikert (caleH between the two extreme values, such as acceptable,not acceptable, good,bad, or satisfactory,unsatisfactory. =- %tatistics( A characteristic of a system for which numerical measurements cannot be made and therefore Nirrespective of its importanceH cannot be treated as a variable in uantitative analysis. AlphaTesting Also known as alpha testing, here your main ob=ective is to find the bugs. >our product is not a prototype any longer. It has nearly all the features of its commercial model in terms of appearance and functionality, though its packaging and promotional materials may not be fully ready. >ou will want to test your product with and get feedback primarily from in,house staff, and additional parties like customers and partners you feel are close to the firm. <ive them a clear understanding of how the product should perform so they know what to look out for. ;ave a few members of your development team observe participants using the product andLor conduct surveys to gather the needed data. Field TestingORBetaTesting This process, also known as beta testing, is carried out usually for an extended period of time with a larger number of participants that includes customers, partners, and others whose feedback would be valuable, but may not be familiar with your company. >our product now fully resembles its planned launch model in all aspects. Participants% interaction rate is higher and they are much better informed on the product%s functions, features, benefits, and intended use conditions.

>our product testing has three primary ob=ectives. 7irst, you will want to measure participants% interest in the product and its features, their preference of individual attributes, and if they would be willing to purchase the product. It must not only be acceptable, but desirable compared to any current purchases or competitive offerings. (econdly, you will want to find out how the customer uses the product and its durability under normal conditions. Are there particular applications, use environments, or occasions that are appealingA #ot so appealingA $hat kinds of participants were theseA Third, you will need to record and analy'e all the feedback received. This will give you hints on minor design improvements that will not significantly affect your production, and perhaps if a line extension should be added or dropped. Additionally, your participants% responses will provide your sales K marketing team with words, phrases, and stories that can be used in communicating the product during the launch. The features and benefits that elicit the highest initial positive reactions can be used when designing advertisements, brochures and sales presentations.

Paired &omparison Analysis

$hen youPre choosing between many different options, how do you decide on the best way forwardA This is especially challenging if your choices are uite different from one another, if decision criteria are sub=ective, or if you donPt have ob=ective data to use for your decision. Paired &omparison Analysis helps you to work out the relative importance of a number of different options , the classical case of Qcomparing apples with oranges.Q In this article, wePll explore how you can use Paired &omparison Analysis to make decisions.

About the 'ool

Paired &omparison Analysis Nalso known as Pairwise &omparisonH helps you work out the importance of a number of options relative to one another. This makes it easy to choose the most important problem to solve, or to pick the solution that will be most effective. It also helps you set priorities where there are conflicting demands on your resources. The tool is particularly useful when you donPt have ob=ective data to use to make your decision. ItPs also an ideal tool to use to compare different, sub=ective options, for example, where you need to decide the relative importance of ualifications, skills, experience, and teamworking ability when hiring people for a new role. 6ecisions like these are often much harder to make than, for example, comparing three similar IT systems, where Grid Anal&sis or some form of !inancial anal&siscan help you decide.

1ow to 3se the 'ool

.. 5ake a list of all of the options that you want to compare. Assign each option a letter NA, ", &, 6, and so onH and note this down. /. 5ark your options as both the row and column headings on the worksheet. This is so that you can compare options with one,another.

0.

$ithin each of the blank cells, compare the option in the row with the option in the column. 6ecide which of the two options is most important. 1. $rite down the letter of the most important option in the cell. Then, score the difference in importance between the options, running from 'ero Nno differenceLsame importanceH to, say, three Nma=or differenceLone much more important than the other.H 2. 7inally, consolidate the results by adding up the values for each of the options. >ou may want to convert these values into a percentage of the total score. B. *se your common sense, and manually ad=ust the results if necessary.

5onadic 8ating
a method for measuring consumer preferences in which potential purchasers are asked to rate their liking for each of a certain number of products on a scale) that is, on a seven point scale Product A may be rated as B, Product " as 1, and Product & as .. The method allows researchers not only to derive the individualPs preference order, but also to know the ualitative levels of their preferences and the approximate distance between their preferences.

Sa,es7#a+e resear*h
one of the methods used in consumer goods market testing. In this type of research consumers who initially try the product at no cost are re,offered the product, or a competitor%s product, at slightly reduced prices. They may be re,offered the product as many as three to five times Nsales wavesH, with the company noting how many customers selected that product again and their reported level of satisfaction. (ales,wave research can be implemented uickly, conducted with a fair amount of security, and carried out without final packaging and advertising.

si$ulated test $ar+et

Definition
5arketing research techni ue in which consumers are exposed to staged advertising and purchase decisions to observe their response to a new product.

Controlled Mar+et 'esting

Provides an accurate forecast of the sales volume potential for a new product andLor promoted line extension. *nlike (imulated Test 5arket models, a Controlled Mar+et 'est allows you to assess an item%s sales potential in a real world environment with real consumers making real purchases, replicating a national marketing plan and sales volume, forecasted from a robust sample of nationally recogni'ed food, drug, andLor mass merchandise retailers.

A))lications !or Controlled Mar+et 'ests

o o

#ew product introduction ?ine extension "rand restage #ew formulation #ew positioning

7inal evaluation of marketing plan prior to regional or national roll out N?9A6 5A8:9TH 9valuate market level promotionsLmedia

Business goods $ar+et testing

"usiness goods can also benefit from market testing. 9xpensive industrial goods and new technologies will normally undergo alpha testing and beta testing. 6uring beta testing, the vendors technical people observe how test customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the vendor to customer training and servicing re uirements. The vendor can also observe how much value the e uipment adds to the customers operation as a clue to subse uent pricing. The vendor will ask the test customers to express their purchase intention and other reactions after the test. +endors must carefully interpret the beta test results because only a small number of test customers are used, they are not randomly drawn, and the tests are somewhat customi'ed to each site. Another risk is that test customers who are unimpressed with the product may leak unfavorable reports about it. A second common test method for business goods is to introduce the new product at trade shows. The vendor can observe how much interest buyers show in the new product, how they react to various features and terms, and how many express purchase intentions or place orders. #ew industrial products can be tested in distributor and dealer display rooms, where they may stand next to the manufacturers other products and possibly competitors products. This method yields preference and pricing information in the product normal selling atmosphere. The disadvantages are that the customers might want to place early orders that cannot be filled, and those customers who come in might not represent the target market. Industrial manufacturers come close to using full test marketing when they give a limited supply of the product to the sales force to sell in a limited number of areas that receive promotion support and printed catalog sheets.

&ommerciali'ationIf the company goes ahead with commerciali'ation, it will face its largest cost to date. The company will have to contract for manufacture or build or rent a full scale manufacturing facility. Plant si'e will be critical decision. $hen Juaker 3ats launched its .FF percent natural breakfast cereal, it built a smaller plant than called for by the sales forecast. The demand so exceeded the forecast that for about a year it could not supply enough product to stores. Although Juaker 3ats was gratified with the response, the low forecast cost it a considerable amount of profit. Another ma=or cost is marketing. To introduce a ma=or new consumer packaged good into the national market, the company may have to spend from U/2 million to as much as U.FFmillion in advertising, promotion, and other communications in the first year. In the introduction of new food products, marketing

expenditures typically represent 2C percent of sales during the first year. 5ost new product campaigns rely on a se uenced mix of market communication tools. In commerciali'ing a new product, market entry timing is critical. (uppose a company has almost completed the development work on its new product and learns that a competitor is nearing the end of its development work. The company faces three choices-, <- *irst entr&( The first firm entering a market usually en=oys the first mover advantages of locking up key distributors and customers and gaining leadership. "ut if the product is rushed to market before it is thoroughly debugged, the first entry can backfire. 4- Parallel entr&( The firm might time its entry to coincide with the competitors entry. The market may pay more attention when two companies are advertising the new product. =- #ate entr&( The firm might delay its launch until after the competitor has entered. The competitor will have borne the cost of educating the market, and its product may reveal faults the late entrant can avoid. The late entrant can also learn the si'e of the market. The timing decision involves additional considerations. If a new product replaces an older product, the company might delay the introduction until the old products stock is drawn down. If the product is seasonal, it might be delayed until the right season arrives) often a product waits for a killer application to occur. &omplicating new product launches, many companies are encountering competitive design,around rival are imitating inventions but making their own versions =ust different enough to avoid patent infringement and the need to pay royalties.

&ritical path
.e!inition
?ongest se uence of activities in a pro=ect plan which must be completed on time for the pro=ect to complete on due date. An activity on the critical path cannot be started until its predecessor activity is complete) if it is delayed for a day, the entire pro=ect will be delayed for a day unless the activity following the delayed activity is completed a day earlier.

Ado)tion Process o! New Products

The growth rate and total sales level of new products rely heavily on two related consumer behavior concepts- the adoption process and the diffusion process. ual consumer goes through when learning about and purchasing a new product. The process consists of these stages-

.. >nowledge( A person learns of a productPs existence and gains some understanding of how it functions. /. Persuasion( A person forms a favorable or unfavorable attitude about a product. 0. .ecision( A person engages in actions that lead to a choice to adopt or re=ect a product. 1. I$)le$entation( A person uses a product. 2. Con!ir$ation( A person seeks reinforcement and may reverse a decision if exposed to conflicting messages. The rate NspeedH of adoption depends on consumer traits, the product, and the firmPs marketing effort. Adoption will be faster if consumers have high discretionary income and are willing to try new offerings) the product presents little physical, social, or financial risk) the product has an advantage over other items already on the market) the product is a modification of an existing idea and not a ma=or innovation) the product is compatible with current consumer life,styles) the attributes of the product can be easily communicated) the importance of the product is low) the product can be tried in small uantities) mass advertising and distribution are used) the product is consumed uickly) or the product is easy to use. The diffusion process describes the manner in which different members of the target market often accept and purchase a product. It spans the time from product introduction until market saturation.. Innovators are the first consumers to buy a new product. They are venturesome, willing to accept risk, socially aggressive, communicative, and cosmopolitan. It is necessary to determine which innovators are opinion leadersA Those who influence others to purchase. This group represents /.2 per cent of the target market. /. 2arl& ado)ters are the next consumers to buy a new product. They en=oy the leadership, prestige, and respect that early purchases bring. These consumers tend to be opinion leaders. They adopt new ideas but use discretion. This group represents .0.2 per cent of the market. 0. 'he earl& $a6orit& is the first part of the mass market to buy a product. They have status in their social class and are outgoing, communicative, and attentive to information cues. This group represents 01 per cent of the target market. 1. 'he late $a6orit& is the second part of the mass market to buy a product. They are less cosmopolitan and responsive to change. The late ma=ority includes people with lower economic and social status, those past middle age, and skeptics. This group represents 01 per cent of the market. 2. #aggards are last to purchase. They are price conscious, suspicious of change, low in

income and status, tradition bound, and conservative. ?aggards do not adopt a product until it reaches maturity. (ome firms ignore them because it can be difficult to market a product to this small group. ;owever, a market segmenter may do well by concentrating on products for laggards. This group represents .B per cent of the market.

The Consumer Adoption Process

People differ greatly in their willingness to buy new products or try new concepts. 3n one extreme, some people are =ust waiting for the latest computer hardware to hit the store shelves, while on the other extreme) some people are still using the typewriter and couldn%t care less. ?etPs take an example- If the consumers in market is 02,21 years of age, have /.2 kids and drive an (*+) they are most likely in the 9arly 5a=ority stage. The more you understand about this group, the more adept you will be in anticipating their needs and developing advertising accordingly. ?isted below are the stages of the consumer adoption process.

Innovators( This group is young and educated. They tend to take risks and are hard for marketers to locate. 2arl& Ado)ters( This is a young and mobile group. They are similar to innovators but not uite as hard to find since they now have a history. They are likely to recommend products to others if they like it. 2arl& Ma6orit&( This group is a bit more cautious. Their ability to take risks is limited because of family and career obligations. #ate Ma6orit&( This group is older than the early ma=ority. This group is good target for referrals and personal endorsements. #aggards( This group is older and less knowledgeable than the others are. They don%t respond to most marketing messages and look to other laggards for guidance. They shouldn%t be discounted, but marketers won%t look to introduce a new innovative product to this group.

Product life-cycle management

Product li!e-c&cle $anage$ent Nor P#CMH is the succession of strategies used by business management as a product goes through its life,cycle. The conditions in which a product is sold Nadvertising, saturationH changes over time and must be managed as it moves through its succession of stages.

Goa!s
The goals of P?& management are to reduce time to market, improve product uality, reduce prototyping costs, identify potential sales opportunities and revenue contributions, and reduce environmental impacts at end,of,life.

Product !i e,c"c!e
The concept of product life cycle NP?&H concerns the life of a product in the market with respect to businessLcommercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and re uires many skills, tools and processes. P?& management makes the following three assumptions-

Products have a limited life and thus every product has life cycle. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Products re uire different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

Characteristics o P-C stages

The four main stages of a product's life cycle and the accompanying characteristics are: Stage 1. costs are very high 2. slow sales volumes to start 1. Market introduction stage . little or no competition !. demand has to "e created #. customers have to "e prompted to try the product $. ma%es no money at this stage 1. costs reduced due to economies of scale 2. sales volume increases significantly . profita"ility "egins to rise 2. Gro*th stage !. pu"lic awareness increases #. competition "egins to increase with a few new players in esta"lishing mar%et $. increased competition leads to price decreases 1. costs are lowered as a result of production volumes increasing and e&perience curve effects 2. sales volume pea%s and mar%et saturation is reached . increase in competitors entering the mar%et . Maturit" stage !. prices tend to drop due to the proliferation of competing products #. "rand differentiation and feature diversification is emphasi'ed to maintain or increase mar%et share $. (ndustrial profits go down !. Saturation and dec!ine stage 1. costs "ecome counter-optimal 2. sales volume decline . prices) profita"ility diminish !. profit "ecomes more a challenge of production*distri"ution efficiency than Characteristics

increased sales +ote: Product termination is usually not the end of the "usiness cycle) only the end of a single entrant within the larger scope of an on-going "usiness program.

P,/.3C' #I*2 C0C#2 P1A%2% 93IC> ,2*2,2NC2

IN',/.3C'I/N P1A%2
P8I&9- ;igh, customers willing to pay premium for new product. 9arly adopters. P8353TI3# - ?imited. ;ighly targeted promotional efforts aimed at specific customers 6I(T8I"*TI3#- 6irect Nfactory to customerH or limited distribution through specific strategic partners. (A?9( - (mall team of highly skilled salesmen with good knowledge of the market. 69+9?3P59#T- 7ocus on time to market and uni ueness. 5A#*7A&T*8I#<- ;igh expenditure for new production capacity. (98+I&9- ;igh level of service for targeted customers.

G,/W'1 P1A%2
P8I&9- .FS of market level. 4 .FS if the brand name is weak and competition is severe, Y .FS if sales are good and competition does not have similar product to offer. P8353TI3# - ;eavy. Targeted promotions, trade shows, direct mail, sales seminars, articles and press releases. 6I(T8I"*TI3#- ;ighly skilled. 7ocused channels with strong technical skills if needed, complementary products and services. (A?9(- 9verywhere possible. 8etail shops, telephone, internet. 69+9?3P59#T- &omplete development. 5arket penetration is sustained with variations and improvements of the product. 5A#*7A&T*8I#<- Addition of capacity and automation. Product ?ife &ycle *89#I3 -, *rban and 8egional Innovation 8esearch *nit (98+I&9- ?ocal and regional, fully staffed. (*PP38T - Phone support. T8AI#I#< - Transition to newer version of product. T9&;#3?3<>- #ewer and leading edge. &35P9TITI3#- #ew appearing worldwide. 5A8:9T (;A89- ;igh growth. All out market

MA'3,I'0 P1A%2
P8I&9- (table. P8353TI3#- 7ocused on reliability, uality, predictability, new enhancements. 6I(T8I"*TI3#- 5any distributors, alternative channels, offshore sales. (A?9(- 6irect sales focused on hi,volume, high profit. 69+9?3P59#T- 7ocused on cost reductions. 5A#*7A&T*8I#<- 7ocused on increasing yield and productivity. (98+I&9- 6istributors take over the service efforts. (*PP38T- ?ocal channels lead support. T8AI#I#<- &ompetition differentiation. T9&;#3?3<>- Aging &35P9TITI3#- $ell established. 5A8:9T (;A89- Predictable market share every year. ?imited opportunities for uick gains.

.2C#IN2 P1A%2
P8I&9- ;igh compared to the demand. P8353TI3#- ?imited 4 no promotion or advertising efforts.

6I(T8I"*TI3#- *se of existing channels. (A?9(- 5aintenance and repair orientated for high,tech products. 69+9?3P59#T- 7ocused on cost reduction. 5A#*7A&T*8I#<- #o capital expenditures, outsourcing. (98+I&9- ;igh prices on spare parts.

Specia! issue' Product !i ec"c!e management

6evelopment of Product ?ifecycle 5anagement metrics- measuring the impact of P?5 Product ?ifecycle Juality NP?JH- a framework within Product ?ifecycle 5anagement NP?5H for achieving product uality 5echatronics 6esign 5ethodology applied at manufacturing companies 5ultidisciplinary integrated design optimi'ation platform and application on active suspension Integrated P?5,process,approach for the development and management of telecommunications products in a multi,lifecycle environment Intelligent process modeling using 7eed,7orward #eural #etworks A survey on the integration of product and package development The impact of Product ?ifecycle 5anagement on virtual team creation- a concept change model for heightened productivity Product ?ifecycle 5anagement in support of green manufacturing- addressing the challenges of global climate change 9ntry,level engineering professionals and Product ?ifecycle 5anagement- a competency model P?5,based certification process in aeronautics extended enterprise Application of P?5 in higher education procurement

UNIT-3 Brand &dentity * efinition and Concept

Brand identit& stems from an organi'ation, i.e., an organi'ation is responsible for creating a distinguished product with uni ue characteristics. It is how an organi'ation seeks to identify itself. It represents how an organi'ation wants to be perceived in the market. An organi'ation communicates its identity to the consumers through its branding and marketing strategies. A brand is uni ue due to its identity. "rand identity includes following elements , "rand vision, brand culture, positioning, personality, relationships, and presentations. "rand identity is a bundle of mental and functional associations with the brand. Associations are not reasons, to,buy! but provide familiarity and differentiation that%s not replicable getting it. These associations can include signature tuneNfor example , "ritannia ting,ting,ta,ding!H, trademark colours Nfor example , "lue colour with PepsiH, logo Nfor example , #ikeH, tagline Nfor example , Apple%s tagline is Think different!H,etc. "rand identity is the total proposalLpromise that an organi'ation makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumer%s minds. "rand identity is all that an organi'ation wants the brand to be considered as. It is a feature linked with a specific company, product, service or individual. It is a way of externally expressing a brand to the world.

"rand identity is the noticeable elements of a brand Nfor instance , Trademark colour, logo, name, symbolH that identify and differentiates a brand in target audience mind. It is a crucial means to grow your company%s brand. "rand identity is the aggregation of what all you Ni.e. an organi'ationH do. It is an organi'ations mission, personality, promise to the consumers and competitive advantages. It includes the thinking, feelings and expectations of the target marketLconsumers. It is a means of identifying and distinguishing an organi'ation from another. An organi'ation having uni ue brand identity have improved brand awareness, motivated team of employees who feel proud working in a well branded organi'ation, active buyers, and corporate style. "rand identity leads to brand loyalty, brand preference, high credibility, good prices and good financial returns. It helps the organi'ation to express to the customers and the target market the kind of organi'ation it is. It assures the customers again that you are who you say you are. It establishes an immediate connection between the organi'ation and consumers. "rand identity should be sustainable. It is crucial so that the consumers instantly correlate with your productLservice. "rand identity should be futuristic, i.e., it should reveal the associations aspired for the brand. It should reflect the durable ualities of a brand. "rand identity is a basic means of consumer recognition and represents the brand%s distinction from it%s competitors.

Sources of Brand &dentity

1. %0MB/#%- (ymbols help customers memori'e organi'ation%s products and services. They help us correlate positive attributes that bring us closer and make it convenient for us to purchase those products and services. (ymbols emphasi'e our brand expectations and shape corporate images. (ymbols become a key component of brand e uity and help in differentiating the brand characteristics. (ymbols are easier to memori'e than the brand names as they are visual images. These can include logos, people, geometric shapes, cartoon images, anything. *or instance, 5arlboro has its famous cowboy, Pillsbury has its Poppin% 7resh doughboy, 6uracell has its bunny rabbit, 5c 6onald has 8onald, 7ed 9x has an arrow, and #ike%s swoosh. All these symbols help us remember the brands associated with them. "rand symbols are strong means to attract attention and enhance brand personalities by making customers like them. It is feasible to learn the relationship between symbol and brand if the symbol is reflectiveLrepresentative of the brand. 7or instance, the symbol of ?< symboli'e the world, future, youth, humanity, and technology. Also, it represents ?<%s efforts to keep close relationships with their customers.

/. ?3<3(, A logo is a uni ue graphic or symbol that represents a company, product, service, or other entity. It represents an organi'ation very well and make the customers well, ac uainted with the company. It is due to logo that customers form an image for the productLservice in mind. Adidas%s Three (tripes! is a famous brand identified by it%s corporate logo.
*eatures o! a good logo are (

a. b. c. d. e. f.

It should be simple. It should be distinguishedLuni ue. It should differentiate itself. It should be functional so that it can be used widely. It should be effective, i.e., it must have an impact on the intended audience. It should be memorable. It should be easily identifiable in full colours, limited colour palettes, or in black and white.

g. It should be a perfect reflectionLrepresentation of the organi'ation. h. It should be easy to correlate by the customers and should develop customers trust in the organi'ation. i. It should not loose it%s integrity when transferred on fabric or any other material. =. It should portray company%s values, mission and ob=ectives.
'he ele$ents o! a logo are(

a. ?ogotype , It can be a simple or expanded name. 9xamples of logotypes including only the name are :ellogg%s, ;yatt, etc. b. Icon , It is a name or visual symbol that communicates a market position. 7or example,?I& %hands%, *TI %kalash%. c. (logan , It is best way of conveying company%s message to the consumers. 7or instance, #ike%s slogan Gust 6o It!. 0. T8A695A8:(, Trademark is a uni ue symbol, design, or any form of identification that helps people recogni'e a brand. A renowned brand has a popular trademark and that helps consumers purchase uality products. The goodwill of the dealerLmaker of the product also enhances by use of trademark. Trademark totally indicates the commercial source of productLservice. Trademark contribute in brand e uity formation of a brand. Trademark name should be original. A trademark is chosen by the following symbols-

Z Ndenotes unregistered trademark, that is, a mark used to promote or brand goodsH)
(5 Ndenotes unregistered service markH [ Ndenotes registered trademarkH. 8egistration of trademark is essential in some countries to give exclusive rights to it. $ithout ade uate trademark protection, brand names can become legally declared generic. <eneric names are never protectable as was the case with +aseline, escalator and thermos. %o$e guidelines !or trade$ar+ )rotection are as !ollows(

a. b. c. d. e.

<o for formal trademark registration. #ever use trademark as a noun or verb. Always use it as an ad=ective. *se correct trademark spelling. &hallenge each misuse of trademark, specifically by competitors in market. &apitali'e first letter of trademark. If a trademark appears in point, ensure that it stands out from surrounding text.

Brand &mage
Brand i$age is the current view of the customers about a brand. It can be defined as a uni ue bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set o! belie!s held about a s)eci!ic brand . In short, it is nothing but the consumers% perception about the product. It is the manner in which a specific brand is positioned in the market. "rand image conveys emotional value and not =ust a mental image. "rand image is nothing but an organi'ation%s character. It is an accumulation of contact and observation by people external to an organi'ation. It should highlight an organi'ation%s mission and vision to all. The main elements of positive brand image are, uni ue logo reflecting organi'ation%s image, slogan describing organi'ation%s business in brief and brand identifier supporting the key values.

"rand image is the overall impression in consumers% mind that is formed from all sources. &onsumers develop various associations with the brand. "ased on these associations, they form brand image. An image is formed about the brand on the basis of sub=ective perceptions of associations bundle that the consumers have about the brand. +olvo is associated with safety. Toyota is associated with reliability. The idea behind brand image is that the consumer is not purchasing =ust the productLservice but also the image associated with that productLservice. "rand images should be positive, uni ue and instant. "rand images can be strengthened using brand communications like advertising, packaging, word of mouth publicity, other promotional tools, etc. "rand image develops and conveys the product%s character in a uni ue manner different from its competitor%s image. The brand image consists of various associations in consumers% mind , attributes, benefits and attributes. "rand attributes are the functional and mental connections with the brand that the customers have. They can be specific or conceptual. "enefits are the rationale for the purchase decision. There are three types of benefits- 7unctional benefits , what do you do better Nthan others H,emotional benefits , how do you make me feel better Nthan othersH, and rational benefitsLsupport , why do I believe youNmore than othersH. "rand attributes are consumers overall assessment of a brand. "rand image has not to be created, but is automatically formed. The brand image includes productsP appeal, ease of use, functionality, fame, and overall value. "rand image is actually brand content. $hen the consumers purchase the product, they are also purchasing it%s image.

Brand &dentity +s Brand &mage

Brand Identit& Brand I$age

"rand identity develops from the source or the company.

"rand image is perceived by the receiver or the consumer.

"rand message is tied together in terms of brand identity.

"rand message is untied by the consumer in the form of brand image.

The general meaning of brand identity is who you really areA!

The general meaning of brand image is ;ow market perceives youA!

It%s nature is that it is substance oriented or strategic.

It%s nature is that it is appearance oriented or tactical.

"rand identity symboli'es firms% reality.

"rand image symboli'es perception of consumers

"rand identity represents your desire!.

"rand image represents others view!

It is enduring.

It is superficial.

Identity is looking ahead.

Image is looking back.

Identity is active.

Image is passive.

.7

It signifies where you want to be!.

It signifies what you have got!.

..

It is total promise that a company makes to consumers.

It is total consumers% perception about the brand.

,hat is Brand Personality "rand personality is the way a brand speaks and behaves. It means assigning human personality traitsLcharacteristics to a brand so as to achieve differentiation. These characteristics signify brand behaviour through both individuals representing the brand Ni.e. it%s employeesH as well as through advertising, packaging, etc. $hen brand image or brand identity is expressed in terms of human traits, it is called brand personality. 7or instance , Allen %olle& brand speaks the personality and makes the individual who wears it stand apart from the crowd.In!os&s represents uni ueness, value, and intellectualism. "rand personality is nothing but personification of brand. A brand is expressed either as a personality who embodies these personality traits N7or instance , (hahrukh :han and Airtel, Gohn Abraham and &astrolH or distinct personality traits N7or instance , .ove as honest, feminist and optimist) 1ewlett Pac+ard brand represents accomplishment, competency and influenceH. "rand personality is the result of all the consumer%s experiences with the brand. It is uni ue and long lasting. "rand personality must be differentiated from brand image, in sense that, while brand image denote the tangible Nphysical and functionalH benefits and attributes of a brand, brand personality indicates emotional associations of the brand. If brand image is comprehensive brand according to consumers% opinion, brand personality is that aspect of comprehensive brand which generates it%s emotional character and associations in consumers% mind.

"rand personality develops brand e uity. It sets the brand attitude. It is a key input into the look and feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge of customers feelings about the brand. "rand personality differentiates among brands specifically when they are alike in many attributes. 7or instance , (ony versus Panasonic. "rand personality is used to make the brand strategy lively, i.e., to implement brand strategy. "rand personality indicates the kind of relationship a customer has with the brand. It is a means by which a customer communicates his own identity. "rand personality and celebrity should supplement each other. Trustworthy celebrity ensures immediate awareness, acceptability and optimism towards the brand. This will influence consumers% purchase decision and also create brand loyalty. 7or instance , "ollywood actress Priyanka &hopra is brand ambassador for G.;ampstead, international line of premium shirts. "rand personality not only includes the personality featuresLcharacteristics, but also the demographic features like age, gender or class and psychographic features. Personality traits are what the brand exists for. "rand anatomy approach looks at a personality in three forms 4 9ssence, "enefit, and Attribute. 7or instance "rand anatomy of coke is) 9ssence- >outh "enefit- Goyous, Attribute- 7i''y 6rink Nproducing small kind of bubbles with the carbon dioxideH.

'NIT71 BRAND POS%T%ON%NG'

Brand )ositioning re!ers to ?target consu$ers@ reason to bu& &our brand in )re!erence to others. It is ensures that all brand activity has a common aim) is guided, directed and delivered by the brand%s benefitsLreasons to buy) and it focusses at all points of contact with the consumer. "rand positioning must make sure that

Is it uni ueLdistinctive vs. competitorsA Is it significant and encouraging to the niche marketA Is it appropriate to all ma=or geographic markets and businessesA Is the proposition validated with uni ue, appropriate and original productsA Is it sustainable , can it be delivered constantly across all points of contact with the consumerA Is it helpful for organi'ation to achieve its financial goalsA Is it able to support and boost up the organi'ationA

In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential advantage must be created in their mind. "rand positioning is a medium through which an organi'ation can portray its customers what it wants to achieve for them and what it wants to mean to them. "rand positioning forms customer%s views and opinions.

"rand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer%s mind. 7or instance,:otak 5ahindra positions itself in the customer%s mind as one entity, :otak !, which can provide customi'ed and one,stop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of Think Investments, Think :otak!. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt. "rand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. "rand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uni ueness of brand and it%s similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the re uired knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. 7or instance, :ingfisher stands for youth and excitement. It represents brand in full flight.

There are various positioning errors) such as.. *nder positioning, This is a scenario in which the customer%s have a blurred and unclear idea of the brand. /. 3ver positioning, This is a scenario in which the customers have too limited an awareness of the brand. 0. &onfused positioning, This is a scenario in which the customers have a confused opinion of the brand. 1. 6ouble Positioning, This is a scenario in which customers do not accept the claims of a brand. Under*positioning is disadvantageous to a brand or product because marketers do not position it strongly enough. They do not associate the brandLproduct with a clear benefit or competitive edge so that consumers know what exactly sets it apart from other competitors. Therefore, consumers may not have a strong connection with a brand and instead buy products from the competition because they don%t know what advantages it will provide them. 7or example, the 7lip video camera was discontinued because they did not establish a good positioning strategy against mobile video cameras that were easier to use. &onsumers were not willing to buy an extra device when they already had one on their mobile phone. $+er*positioning can happen when there is too much focus on position, ultimately giving the audience a too narrow depiction of the product. This mistake can ultimately alienate consumers from the product, creating a narrow group of customers that can actually identify with it. If the target audience is too small it limits potential consumers of the product. Confused positioning happens when marketers either change their position too often or has benefits that contradict each other that an audience becomes confused of what the product actually offers.

Apple is the first company that comes to mind when I consider successful positioning strategies. 6uring Apple%s lifespan it has successfully positioned itself in the mind of consumers as the company on cutting,edge technology innovation with an ease,of,use appeal and design that is for individuals who think differently. Apple offers a sense of prestige, stature and creativity. &ompanies, consumers and admirers all look to Apple for the newest and coolest products and accessories.

Brand Positioning Strategies

A product can be positioned based on / main platforms- The &onsumer and The &ompetitor. $hen the )ositioning is on the basis of &3#(*598, the campaigns and messages are always targeted to the consumer himself Nthe user of the productH Peter England alwa s campaigns their product concentrating on the consumer! the user of its product" ?ouis Philip also concentrates on this kind of campaigns. The other kind of )ositioning is on basis of &35P9TITI3#. These campaigns are targeted towards competing with other players in the market. #ettol television commercials alwa s concentrate on advertisements! which show that this product would give ou more protection! then the others" A number of positioning strategies might be employed in developing a promotional program. The C such strategies are discussed below-

POSITIONIN$ BY PROD'%T ATTRIB'TES AND BENEFITS Associating a product with an attribute, a product feature or a consumer feature. (ometimes a product can be positioned in terms of two or more attributes simultaneously. The priceL uality attribute dimension is commonly used for )ositioning the products. A common approach is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. (ometimes a product may be positioned on more than one product benefit. 5arketers attempt to identify salient attributes Nthose that are important to consumers and are the basis for making a purchase decisionH

&onsider the example of Ariel that offers a specific benefit of cleaning even the dirtiest of clothes because of the micro cleaning system in the product.

&olgate offers benefits of preventing cavity and fresh breath. Promise, "alsara%s toothpaste, could break &olgate%s stronghold by being the first to claim that it contained clove, which differentiated it from the leader. #irma offered the benefit of low price over ;industan ?ever%s (urf to become a success. 5aruti (u'uki offers benefits of maximum fuel efficiency and safety over its competitors. This strategy helped it to get BFS of the Indian automobile market.

P$S&T&$'&'( B) PR&C!. /UA#&T) 5arketers often use priceL uality characteristics to position their brands. 3ne way they do it is with ads that reflect the image of a high, uality brand where cost, while not irrelevant, is considered secondary to the uality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning.

Another way to use priceL uality characteristics for positioning is to focus on the uality or value offered by the brand at a very competitive price. Although price is an important consideration, the product uality must be comparable to, or even better than, competing brands for the positioning strategy to be effective. Parle $isleri % &$ada $isleri! same price' ad campaign" P$S&T&$'&'( B) US! $R APP#&CAT&$' Another way is to communicate a specific image or position for a brand is to associate it with a specific use or application. (urf E)cel is positioned as stain remover * (urf E)cel hena+, Also! Clinic All Clear % &#are to wear $lack'" P$S&T&$'&'( B) PR$ UCT C#ASS 3ften the competition for a particular product comes from outside the product class. 7or example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. 5anufacturers of music &6smust compete with the cassettes industry. The product is positioned against others that, while not exactly the same, provide the same class of benefits. P$S&T&$'&'( B) PR$ UCT US!R Positioning a product by associating it with a particular user or group of users is yet another approach. 5otography 5otorola 5obile Ad.n this ad the persona of the user of the product is been positioned.

P$S&T&$'&'( B) C$MP!T&T$R &ompetitors may be as important to positioning strategy as a firm%s own product or services. In today%s market, an effective positioning strategy for a product or brand may focus on specific competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category. 3nida was positioned against the giants in the television industry through this strategy, 3#I6A colour T+ was launched with the message that all others were clones and only 3nida was the leader. neighbor%s 9nvy, 3wners Pride!.

P$S&T&$'&'( B) CU#TURA# S)MB$#S An additional positioning strategy where in the cultural symbols are used to differentiate the brands. 9xamples would be ;umara "a=a=, Tata Tea, 8onald 5c6onald. 9ach of these symbols has successfully differentiated the product it represents from competitors.

Brand Positioning !0ample

Part of the branding process is working out your brand position. "rand position is all about where your brand currently sits in your market place and where you want it to sit in your marketplace against your competitors. "y talking to your customers and also relevant focus groups you can build up a picture of where your brand sits within the marketplace. This can be visualised by plotting the results on a graph. The / axis used in this example are, value against luxury and traditional against innovation. Is your productLservice a luxury item, or is it more of a commodity NvalueH. Also is a traditional product or a more cutting edge innovative productLservice.

Also you need to plot your competitors on the graph, to see where they are in the market place and identify any gaps in the market. Then we can plot were we want to be in the marketplace as part of the overall brand of our product. There are no wrong or right answers, it =ust a matter of understanding your brand, it%s strengths and then playing to the strengths. >ou may find through this exercise that your productLservice is undervalued in the market,place, your marketing is not getting the message across. >ou can then address the problem and measure the returns. 3nce this is established and complete, we can use it as part of our brand strategy to inform our clients and potential clients on where we sit within the market. This is =ust one example of brand positioning, there are many other techni ues, which can be used and depending on your business, some are more effective than others. 5ost marketing uses brand positioning as part of its message, but sometimes we see examples of brand positioning, being the message. "elow is an examples of this in practice.

BRAND E8'ITY9
"rand 9 uity is the value and strength of the "rand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the "rand 5arketing. "rand 9 uity exists as a function of consumer choice in the market place. The concept of "rand 9 uity comes into existence when consumer makes a choice of a product or a service. It occurs when the consumer is familiar with the brand and holds some favourable positive strong and distinctive brand associations in the memory.

Brand !1uity can be determined by measuring2

8eturns to the (hare,;olders. 9valuating the "rand Image for various parameters that are considered significant. 9valuating the "rand%s earning potential in long run. "y evaluating the increased volume of sales created by the brand compared to other brands in the

same class. The price premium charged by the brand over non,branded products. 7rom the prices of the shares that an organi'ation commands in the market Nspecifically if the brand name is identical to the corporate name or the consumers can easily co,relate the performance of all the individual brands of the organi'ation with the organi'ational financial performance. 38, An amalgamation of all the above methods.

3actors contributing to Brand !1uity

.. "rand Awareness /. "rand Associations 0. "rand ?oyalty 1. Perceived Juality- refers to the customer%s perception about the total uality of the brand. $hile evaluating uality the customer takes into account the brands performance on factors that are significant to him and makes a relative analysis about the brand%s uality by evaluating the competitors brands also. Thus uality is a perceptual factor and the consumer analysis about uality varies. ;igher perceived uality might be used for brand positioning. Perceived uality affect the pricing decisions of the organi'ations. (uperior uality products can be charged a price premium. Perceived uality gives the customers a reason to buy the product. It also captures the channel member%s interest. 7or instance , American 9xpress. 2. 3ther Proprietary "rand Assets- Patents, Trademarks and &hannel Inter,relations are proprietary assets. These assets prevent competitors attack on the organi'ation. They also help in maintaining customer loyalty as well as organi'ation%s competitive advantage. Brand awareness is the probability that consumers are familiar about the life and availability of the product. It is the degree to which consumers precisely associate the brand with the specific product. It is measured as ratio of niche market that has former knowledge of brand. "rand awareness includes both brand recognition as well as brand recall. "rand recognitionis the ability of consumer to recogni'e prior knowledge of brand when they are asked uestions about that brand or when they are shown that specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or heard. $hile brand recall is the potential of customer to recover a brand from his memory when given the product classLcategory, needs satisfied by that category or buying scenario as a signal. In other words, it refers that consumers should correctly recover brand from the memory when given a clue or he can recall the specific brand when the product category is mentioned. It is generally easier to recogni'e a brand rather than recall it from the memory. Brand association is an&thing which is dee) seated in custo$ers $ind about the brand"rand should be associated with something positive so that the customers relate your brand to

being positive. "rand associations are the attributes of brand which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a consumer relatesLassociates with a specific brand name. Brand #o&alt& is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. "rand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. "rand loyalty exists when the consumer feels that the brand consists of right product characteristics and uality at right price. 9ven if the other brands are available at cheaper price or superior uality, the brand loyal consumer will stick to his brand.

How to add value to your brand

5arketers see a brand as an implied promise regarding the level of uality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products more favourable. It may also enable the company to charge more for the product. The value of the brand is determined by the amount of profit it generates for the company. This can result from a combination of increased sales and increased price, andLor reduced &3<( Ncost of goods soldH, andLor reduced or more efficient marketing investment. All of these enhancements may improve the profitability of a brand, and thus, Q"rand 5anagersQ often carry line, management accountability for a brandPs PK?, in contrast to marketing staff manager roles, which are allocated budgets from above, to manage and execute. In this regard, "rand 5anagement is often viewed by companies as a broader and more strategic role than 5arketing alone. The annual list of the world%s most valuable brands, published by Inter brand and "usiness $eek, indicates that the market value of companies often consists largely of brand e uity. 8esearch suggests that strong, well,leveraged brands produce higher returns to shareholders or company owners than weaker, narrower brands. Taken together, this means that brands seriously impact shareholder value, which ultimately makes branding a "oard responsibility.

Brand Principles
A good brand name should.. "e protected Nor at least protectableH under trademark law. /. "e easy to pronounce. 0. "e easy to remember. 1. "e easy to recogni'e. 2. "e easy to translate into all languages in the markets where the brand will be used. B. Attract attention. C. (uggest product benefits

8. (uggest the company or product image 9. 6istinguish the productPs positioning relative to the competition.

.F. "e attractive ... (tand out among a group of other brands.

Types of brands
A number of different types of brands are recogni'ed. A A)re$iu$ brandA typically costs more than other products in the same category. These are sometimes referred to as Ptop,shelfP products. An Qeconomy brandQ is a brand targeted to a high price elastic market segment. They generally position themselves as offering all the same benefits as a premium product, for an PeconomicP price. A A!ighting brandA is a brand created specifically to counter a competitive threat. $hen a companyPs name is used as a product brand name, this is referred to as corporate branding. $hen one brand name is used for several related products, this is referred to as family branding. $hen all a companyPs products are given different brand names, this is referred to as individual branding. $hen a company uses the e uity associated with an existing brand name to introduce a new product or product line, this is referred to as Qbrand extension.Q $hen large retailers buy products in bulk from manufacturers and put their own brand name on them, this is called private branding, store brand, white labeling, private label or own brand N*:H. Private brands can be differentiated from QmanufacturersP brandsQ Nalso referred to as Qnational brandsQH. $hen different brands work together to market their products, this is referred to as Qco, brandingQ. $hen a company sells the rights to use a brand name to another company for use on a non,competing product or in another geographical area, this is referred to as Qbrand licensing.Q An Ae$)lo&$ent brandA is created when a company wants to build awareness with potential candidates. In many cases, such as <oogle, this brand is an integrated extension of their customer.

Brand ar*h te*t"re

The different brands owned by a company are related to each other via brand architecture. In Qproduct brand architectureQ, the company supports many different product brands with each having its own name and style of expression while the company itself remains invisible to consumers. Procter K <amble, considered by many to have created product branding, is a choice example with its many unrelated consumer brands such as Tide, Pampers, Ivory and Pantene. $ith Qendorsed brand architectureQ, a mother brand is tied to product brands, such as The &ourtyard ;otels Nproduct brand nameH by 5arriott Nmother brand nameH. 9ndorsed brands benefit from the standing of their mother brand and thus save a company some marketing expense by virtue promoting all the linked brands whenever the mother brand is advertised. The third model of brand architecture is most commonly referred to as Qcorporate brandingQ. The mother brand is used and all products carry this name and all advertising speaks with the same

voice. A good example of this brand architecture is +irgin. +irgin brands all its businesses with its name Ne.g., +irgin 5egastore, +irgin AtlanticH and uses one style and logo to support each of them.

Te*hn :"es
&ompanies sometimes want to reduce the number of brands that they market. This process is known as Q"rand rationali'ation.Q (ome companies tend to create more brands and product variations within a brand than economies would indicate. (ometimes, they will create a specific service or product brand for each market that they target. In the case of product branding, this may be to gain retail shelf space Nand reduce the amount of shelf space allocated to competing brandsH. A company may decide to rationali'e their portfolio of brands from time to time to gain production and marketing efficiency, or to rationali'e a brand portfolio as part of a restructuring. A recurring challenge for brand managers is to build a consistent brand while keeping its message fresh and relevant. An older brand identity may be misaligned to a redefined target market, a restated corporate vision statement, revisited mission statement or values of a company. "rand identities may also lose resonance with their target market through demographic evolution. 8epositioning a brand Nsometimes called rebrandingH, may cost some brand e uity, and can confuse the target market, but ideally, a brand can be repositioned while retaining existing brand e uity for leverage. "rand orientation is a deliberate approach to working with brands, both internally and externally. The most important driving force behind this increased interest in strong brands is the accelerating pace of globali'ation. This has resulted in an ever,tougher competitive situation on many markets. A product%s superiority is in itself no longer sufficient to guarantee its success. The fast pace of technological development and the increased speed with which imitations turn up on the market have dramatically shortened product life cycles. The conse uence is that product,related competitive soon risk being transformed into competitive prere uisites. 7or this reason, increasing numbers of companies are looking for other, more enduring, competitive tools 4 such as brands. "rand 3rientation refers to Qthe degree to which the organi'ation values brands and its practices are oriented towards building brand capabilities!

%ha,,en!es
There are several challenges associated with setting ob=ectives for a brand or product category. "rand managers sometimes limit themselves to setting financial and market performance ob=ectives. They may not uestion strategic ob=ectives if they feel this is the responsibility of senior management. 5ost product level or brand managers limit themselves to setting short,term ob=ectives because their compensation packages are designed to reward short,term behavior. (hort,term ob=ectives should be seen as milestones towards long,term ob=ectives. 3ften product level managers are not given enough information to construct strategic ob=ectives.

It is sometimes difficult to translate corporate or company level ob=ectives into brand, or product, level ob=ectives. &hanges in e uity are easy for a company to calculate. It is not so easy to calculate the change in shareholdersP or owners% e uity that can be attributed to a product or category. 5ore complex metrics like changes in the net present value of shareholdersP or owners% e uity are even more difficult for the product manager to assess. In a diversified company, the ob=ectives of some brands may conflict with those of other brands. 3r worse, ob=ectives may conflict with the specific needs of your brand. This is particularly true in regard to the trade,off between stability and riskiness. &orporate ob=ectives must be broad enough that brands with high,risk products are not constrained by ob=ectives set with revenue in mind The brand manager also needs to know senior managementPs harvesting strategy. If corporate management intends to invest in brand e uity and take a long,term position in the market Ni.e. penetration and growth strategyH, it would be a mistake for the product manager to use short,term cash flow ob=ectives Nie. price skimming strategyH. 3nly when these conflicts and tradeoffs are made explicit, is it possible for all levels of ob=ectives to fit together in a coherent and mutually supportive manner. "rand managers sometimes set ob=ectives that optimi'e the performance of their unit rather than optimi'e overall corporate performance. This is particularly true where compensation is based primarily on unit performance. 5anagers tend to ignore potential synergies and inter,unit =oint processes.

Brand loyalty
The American 5arketing Association defines brand lo&alt& as.. QThe situation in which a consumer generally buys the same manufacturer,originated product or service repeatedly over time rather than buying from multiple suppliers within the categoryQ Nsales promotion definitionH. /. QThe degree to which a consumer consistently purchases the same brand within a product classQ Nconsumer behavior definitionH. In a survey of nearly /FF senior marketing managers, BE percent responded that they found the QloyaltyQ metric very useful. "rand ?oyalty is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc.

"rand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. "rand loyalty exists when the consumer feels that the brand consists of right product characteristics and uality at right price. 9ven if the other brands are available at cheaper price or superior uality, the brand loyal consumer will stick to his brand. Brand lo&al consu$ers are the !oundation o! an organization- <reater loyalty levels lead to less marketing expenditure because the brand loyal customers promote the brand positively. Also, it acts as a means of launching and introducing more products that are targeted at same customers at less expenditure. It also restrains new competitors in the market. "rand loyalty is a key component of brand e uity.

3 ;ays to %reate Brand (oya,ty

45 Be Better than Anyone- $hat is your one thing and how can you do it better than anyoneA This is not to say to only have one product but more to focus on what you really do better than anyone else. "eing better than anyone else does not allow for consumers to consider alternatives as they know that they cannot receive what they get with you elsewhere. &hris "rogan says it best in his #o -ne .hing /er 0ell post.

65 Belonging5 &reate a sense of belonging whether it be via a community! that is exclusive to your brand to give people a reason to want to wear that badge. Answer why should they be associated with you and loyal to you. <o beyond the we have a great product and identify why people would want everyone to know that they are connected to you. 75 Credibility5 This is more than doing what you say you will or a product that does what you say it will. 8emember we are talking about how to build loyalty with the tools available. >ou may have a great product, message but your marketing materials are photo copied or a profile that is a template and not reflective of your brand identity. $ell done, aesthetically pleasing and user focused organi'ed websites, materials and profiles give a sense of credibility which leads to trust. 85 Accessibility5 This ties into belonging as if the right! person is accessible, people want to be a part of that to say that they know! this person or the &93 of the company reached out to me. This is where the humani'ation of the brand comes in as we are able to connect and really let people know that behind the brand is a consumer, family manLwoman, etc who eats lunch, drinks coffee, etc. 95 Connection ability5 ;ow do you speak to your audienceA ?earn to talk like they do or teach them how you want them to talk about you. This is widely used with tag lines and the brand

message however there are times that a brand takes on a new language! that is driven by the audience. :now this and adopt it Nso long as it is what your brand representsH. 3utside #evada, it is pronounced #a,vah,da where locally it is #eh,vada. $hile some may use the outside version locally to grab attention, the focus goes off of the productLservice and becomes about how the name is not pronounced properly. :5 Repeat5 (tay on top of what consumers are saying and avoid being stale or changing too fast. "rands have a very long shelf life and those that are on top of where change or the shift in the mindset of consumers are able to adapt and maintain loyal customers. "e proactive and not reactive to try and pull people back as once they are gone, they are gone. "rand loyalty is more than the product itself. >es, it has to perform well, actually better than any alternative so there is no alternative in the mind of the consumer but place this more in the aspect of behavior. (ocially how does your product fit into their social development and why should itA $hy should they want to be a part of your brand and what emotionally will they gainA In some areas it will be the perceived value vs the uality Nthink laundry detergentH where with a television show it is about the connection to the characters and the plot.

6 T ps For B" ,d n! Brand (oya,ty

45 3irst impressions matter
It doesnPt hurt to think of your interactions with customers as if youPre on a date. Are you putting your best foot forwardA "e nice. "e flattering. If you do damage to your business relationships early on, it will take time and money to fix it. (how your genuine, best self.

65 #et people connect with you on their own terms

Put together some sort of regular and recurring e,mail newsletter, but allow people to opt in to it. $ould you appreciate an endless barrage of e,mails from some company you did business with one time and never wanted to hear from againA ;ow would that stream of =unk mail make you think about that companyA $ould you ever be interested in dealing with that organi'ation a second timeA

75 %eep in touch; but do it meaningfully

After people have opted in to your newsletter, send them information they care about. >es, send them coupons and information on upcoming sales, but donPt stop there. 7igure out a way to include engaging content. 5aybe itPs a humorous update on whatPs been going on around the office. <et creative. $hat would you personally want to readA The more it feels like a conversation, the better.

85 Set the stakes high

<et your customers invested. A high switching cost is an asset, not an obstacle. $hy are Apple fans fre uently seen as rabid and devotedA ItPs because theyPve invested in an expensive product, and after switching from a P&, theyPve had to learn how to work with a completely new operating system. (et things up so that people have doubled down on your product as soon as they buy it.

95 Reward your customers

;onoring coupons and implementing loyalty programs will go a long way towards ensuring repeat business. ItPs a no,brainer method to get people coming back. The greater the rewards, the more business you can expect. Think big but practical at the same time.

:5 Make your diehard fans e0tra talkati+e

A paid representative can only be so convincing. A personPs friend or family member will go miles farther for free. 8eward people who refer business to you. If you do it well, theyPll only keep referring.

<5 (i+e your fans a name

?ady <aga has her Qlittle monsters.Q Gimmy "uffett has the Parrot heads. #aming your fans will help create a sense of identity and community at the same time.

=5 Make your customers feel famous

?ots of companies employ some sort of Qcustomer spotlightQ feature because it works. People want their .2 minutes of fame. Talk to your users, and when they say something interesting, share it with attribution. If you implement it in a compelling way, soon youPll have customers reaching out all the time.

'NIT72 Managing Brands o+er Time

The markets in which companies operate are highly dynamic in nature. There is constant evolution in products, introduction of new technology, government rules, regulatory framework, consumer taste and preference. "etween all these companies have to devise marketing communication and branding programs, which look forward to maintaining consumer based brand e uity. 7or example, consumer promotion activity like providing /FS extra for the said product will not create the same response but may raise expectations of /FS during the normal purchase also. &ompanies have to balance brand management that they are able to understand the future preference of consumer. This calls for companies to be pro,active and thinking standing on their feet. 3ne way of brand management over time is to strengthen brand e uity by developing marketing programs,

which express brand knowledge consistently as not to confuse the consumer. 7or example, Apple, their programs are developed to reinforce their commitment to offer world class full entertainment and communication devices, so introduction Iphone had ready acceptance from consumers. 5arket leader like coca,cola has constantly run marketing program even after been market leaders. ;owever, this does not imply that same campaign is running repeatedly, rather coming up innovative strategies to reinforce brand knowledge. "rand knowledge comes from brand attributes and brand association) if companies try to fiddle with these sources of brand e uity conse uences can be disastrous. In early EFs Intel microprocessor had a technical flaw but the company was not swift enough to rectify the problem, thereby damaging brand e uity source of power and safety. Intel reali'ed the importance source of brand e uity and was uick in solving the problem by offering replacement. Another dilemma for companies is of choosing the right way to use the developed brand e uity, normal course is to generate maximum price premium, but that should not be at cost of brand e uity. Innovation is one of the keys in managing brand and ensuring that brand remains ahead of the competition curve. If companies operating in entertainment category or matter of fact insurance do not innovate then value of their brand is lost as these categories are product driven. 7or example, Apple, without its innovation in the form of iPod mp0 player, apple would have found it difficult facing completion from (ony. If the company%s category is not a product driven marketing campaigns associated with brand image play an important role in sustaining the brand. 7or example, Pepsi, it is operating in highly competitive carbonated drinksP category, over the years their marketing campaign is focused on their highlighting their brand position as a drink for young generation. 9very brand faces challenges as it moves in the product life cycle and at some point faces saturation. At this point, it is important to focus on expanding brand awareness that is looking for ways to generate more consumption by highlighting instance of consumption. 7or example, toothpaste revitali'ed consumption by highlighting advantages of twice daily usage. Another way to increase consumption is by highlighting diverse ways and occasion where brand can be consumed. This is more prevalent in food and beverages industry.

9 Steps to Start Creating a Brand

?A business based on brand isB ver& si$)l&B a business )ri$ed !or success-@ 6avid 7. 6%Alessandro The brand creation process is a long one) it re uires perseverance, consistency and an underlying emotional connection with the target segment. Its aim is to instill a level of brand loyalty in its customers, which will in turn generate exponentially increasing recurring streams of income. This process needs to be thought through thoroughly from the very beginning of developing a business model. It is far more challenging to change the perception of your productLservice in the mind of your customer once it is established. Therefore, focus on first impressions and how to position your productLservice from the onset.

?isted below are 2 steps to help you get started in the brand creation process. I believe these are vital foundational steps. The development of a brand is however not limited to these steps alone, and I will discuss advanced branding concepts in later posts. <- Brand Personalit&( A brand personality consists of two important components. The first being a thorough understanding of what your business is, and what it stands for. These can be goals, ob=ectives and core strengths. The second component is understanding your target segment. 3ne should be completely aware of their needs, pain points, competition and goals. $hen these two components are brought together a better understanding emerges of how to get across to customers and stakeholders. To learn more about creating a brand personality please clickhere. 4- Co$)etitive 2dge( $hy should a customer pick your productLservice over a competitor%sA >our brand needs to communicate its competitive edge clearly to help develop a connection with the target audience. *se your competitive edge as an integral part of brand development and positioning strategy to enable you to not only build a worthwhile brand, but also a strong business model. To learn more about integrating your competitive edge into the brand development process please click here. =- Positioning( 9very customer classifies a business or brand internally. This internal wiring is the definitive feeling at the interaction point with your productLservice. The last thing you want as a start,up organi'ation is to be known as 3h you do the same thing as say\ 7acebook!. 5uch thought needs to be put into how you want the customer to perceive your brand. ;ow is it distinctive, what are the common associations with your business model and how can you use them to your advantageA To learn more about positioning your brand correctly please click here. C- %electing a Na$e( 3nce you have a good understanding of the steps mentioned above, sit down and brainstorm possible names for your business. I find it useful to follow basic guidelines of keeping them simple, avoid generic terms, the name should be easy to pronounce and spell and, should be uni ue. Apart from that, formulate a list of uestions highlighting word associations, emotional associations and other factors which help formulate a right name. After this process, shortlist and get feedback from friends, family or even stake holders. Take your time with this step, do not force a name =ust because you cannot think of anything else. This is something you are going to have to live with for a long time. To learn more about selecting a name please click here. D- >e& Brand 2le$ents( The devil is always in the details. The final step in the process focuses our attention to key brand elements which include, logos and word marks, tag,lines, colors and typography selection. These elements need to reflect your brand personality and positioning. These factors are integral for instigating a connection with your target customer. It also helps to

establish consistency in how we communicate with our customers and stakeholders at every touch point. $ithout this consistency we will not be able to establish a level of trust which results in brand loyalty. To learn more about different key brand elements please click hereAs you can see, the brand development process is a lot more than selecting a name and creating a logo or word,mark. It re uires us to think deeply about the business we are establishing, the message we want to communicate and how we want to communicate it. There needs to be a story behind your brand and what it stands for. $hen you look at world class brands today, each one of them means something different to each and everyone one of us.

N ne Brand n! Pr n* p,es I have identified nine fundamental ualities of a good branding program. IPm sure there are more, but these are my favorites.. :eep It (imple- one big idea is best. /. 5ass,produced word of mouth NP8H builds brands. 0. 7ocused brands are more powerful than diffused brands. 1. (omehow, some way, you have to be different. 2. The first brand in a category has a huge advantage. B. Avoid sub,brands at all cost. C. Juality is important, but not as important as the perception of uality. D. "e consistent and patient. "uilding a strong brand takes time. E. Put your brand definition in writing, otherwise youPll get off course. Branding Principle >42 %eep &t Simple 3ne of the most common mistakes that marketing and advertising people make is they say too much. I understand why this happens. A world,class product or service is difficult to create, and there is a lot to communicate about why your stuff is better than everybody else%s stuff. >ou%re proud of it and you don%t want to leave anything unsaid. ;owever, the reality is that if you say too much, no one will listen.
Brand n! Pr n* p,e <09 Fo*"sed Brands are More Po#erf",

3ne of the goals of a powerful branding program is to create a memorable concept. And to stay in people%s minds, you must first get inside. This re uires focused, sharp and to,the,point branding. ;ow do you do thisA
Def ne Yo"r Brand

5ake a list of every uality that describes your company@ Are you big or smallA @ 7riendly or whimsicalA @ 9xpensive or inexpensiveA @ 6urable or disposableA @ ?ocal, national or internationalA @ 8ed or purpleA
Brand n! Pr n* p,e <39 A+o d S"b7brands at A,, %ost

The easiest way to destroy a brand is to put its name on everything.! 3ne of the most common mistakes made by marketing professionals is relying too much on sub, brands as a means for introducing new products or services. 3ften referred to as line extensions, this marketing strategy not only usually fails to create a market for the new product or service, but the parent brand also suffers as a result.

Brand n! Pr n* p,e <49 Per*ept on +s. 8"a, ty

$e don%t need marketingR This product is pure uality and will sell itselfR! ;ow many times have you heard thisA ;ow many times have you believed itA 9very day, buyers like you and I make =udgments about uality. "ut how much of our assessment is due to the actual uality of the itemA #ot much, I%m afraid. It%s not all about uality, but the perception of uality that really counts.

Brand name de* s on7mak n!

"rand name refers to the decision,making decisions all the products use one or several brands, or different products were using a different brand. 3n this issue, can generally have the following four types of decision,making mode-

45 &ndi+idual brand name5 That is, the decision of each product using a different brand. *se of
individual brand name for each product to a different market position and is conducive to increasing sales and confrontation competitors, it can also disperse risks, so that enterprises will not be because of the reputation of certain products affected by the poor performance. (uch as QP K <Q a washing powder company to use the Qelimination of stains,Q Q"ilangQ) soap to use the Qskin (hu,kaiQ the use of toothpaste, QGia Gieshi.Q /. All products use a common family of brand names. $hich means that enterprises of all products using the same brand. 7or those who en=oy high reputation of the well,known enterprises, all brand name products adopt a unified strategy to take full advantage of its brand name effect, so that enterprises of all products sold. At the same time businesses on the cost of introducing new products is also relatively low cost, to new products enter the market. 7or example, the *.(. <eneral 9lectric &ompanyPs <9 products are used as a brand name. 0. The ma=or categories of products using a different family of brand names. 9nterprises to use this strategy, the general is to distinguish between different categories of products, a product category of products to use the common brand family, so in different product categories in the area of establishing their own brand image. &ompanies such as the swift production of a product category is the ham) There is also a ma=or chemical fertili'ers, were named QPuli 5uQ and Qhigh,fat ?uo.Q 1. Individual brand name and corporate name and use. That is, the decision of its different types of products are taking a different brand name, brand name and before adding the names of enterprises. (uch strategies of the enterprises for the development of new products. In the new products with brand names on the business name, so that new products can en=oy the reputation of enterprises, and a different brand name, will enable all kinds of new products show different characteristics. 7or example, ;aier <roup launched a QPathfinderQ color T+, Q;erculesQ 7ree'er, QPrinceQ, Q?ittle PrinceQ and Qsmall child prodigyQ washing machines.

&mportance of Brand 'ames

>our business is known by its name, it is an everlasting identity that will remain with your business forever. Therefore, any business or trade must have a name that consumers will easily pair with one or more products. "efore branding your company, remember that the name represents your company and speaks for it. To create an effective brand identity there are several steps that you must follow45 %trong Mar+eting2 It is not enough to setup a business. >ou must make sure you market it well. >ou must get the customers to recogni'e the value of doing business with you and motivate them to buy your products. >our marketing techni ues should be convincing enough to win the trust of the consumers for better results.

65 Advertise$ents2 The world must know that your business exists and provides exclusive services. To make this happen you must advertise your brand on all possible media to reach a maximum audience. &ustomers will never come searching for you) you have to attract customers. 75 Brochures and )a$)hlets2 Target individuals to promote your brand in its initial stage. 6istribute pamphlets and slips to introduce the brand and let the people know about your products and services. 85 Cli))ings on the internet1] Announce your brand on the internet by posting ad clippings on various sites, which market products similar to yours. Also, try to post reviews and opinions on social networks and affiliate sites for a better response. 95 Business .irectories2 8egister your brand with as many business directories, search engines and online information banks as possible. *se all of the keywords that could possibly match your product and service.

BRA' !?T!'S&$'2
"rand 9xtension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renownedLsuccessful brand helps an organi'ation to launch products in new categories more easily. 7or instance, #ike%s brand core product is shoes. "ut it is now extended to sunglasses, soccer balls, basketballs, and golf e uipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchroni'ingLmatching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. 9xtending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource re uirements, lowers risk, and measures brand%s relevance and appeal.

Ad+antages of Brand !0tension

"rand 9xtension has following advantages1. It makes acce)tance o! new )roduct eas&-

a. It increases brand image. b. The risk perceived by the customers reduces. c. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.

d. The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other. e. &ost of developing new brand is saved. f. &onsumers can now seek for a variety. g. There are packaging and labeling efficiencies. h. The expense of introductory and follow up marketing programs is reduced.

2. There are !eedbac+ bene!its to the parent brand and the organi'ation.

a. b. c. d. e. f.

The image of parent brand is enhanced. It revives the brand. It allows subse uent extension. "rand meaning is clarified. It increases market coverage as it brings new customers into brand franchise. &ustomers associate originalLcore brand to new product, hence they also have uality associations.

isad+antages of Brand !0tension

1. "rand extension in unrelated markets may lead to loss o! reliabilit& if a brand name is

extended too far. An organi'ation must research the product categories in which the established brand name will work. 2. There is a risk that the new product may generate implications that da$age the i$age of the coreLoriginal brand. 3. There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new product assuming that the spin,off effects from the original brand name will compensate. 1. If the brand extensions have no advantage over competitive brands in the new category, then it will !ail-

Brand E=tens on > -? pr n* p,es

5any brand extensions are simply bad business ideas. Gust because consumers would accept chocolate pudding from #estle does% it mean this is a good business idea. The category may be dominated by another company. #estle may not be able to efficiently manufacture the product. The margins in the new category may be too small to =ustify the investment, etc. ?aunching a brand extension that is an orphan in the category can be a prescription for failure because the item cannot generate sufficient sales to be ade uately supported and defended. &onsidering these, here are <E basic )rinci)les to consider, regarding brand extensions.. "rands should not be extended unless they are well,known, have high awareness and a good reputation among the new target market. /. "rand extensions must be a logical fit with consumers expectations.

0. "rand extensions must have leverage in the new category a transfer to the new product of a distinctive property associated with the parent brand that gives the brand extension an edge in the new category. The test =ust knowing the brand name, customers of the new category should be able to identify a reason why they might prefer the new brand extension to existing competition. 1. "rand extensions that could create confusion or a negative image for the parent should not be undertaken. 2. "rands that consumers use synonymously with a category NgenericH should not be extended to other categories. B. "rands should not be stretched to too many diverse categories risking dilution in the long run. NThere are cases, however, where a brand dominates a modest si'ed category and has no room to grow. In these instances, the upside potential of extending is worth the risk of dilutionH C. "rand extensions that will not create positive synergy for the parent brand should not be pursued. NAsk consumers whether their opinion of the parent would be lowered if the new brand extension were available.H D. "rand extensions must make business sense. E. 9very brand extension should open a category for the firm. The whole point of brand extension is to efficiently and successfully enter a new category. .F. A critical part of every brand extension research study is developing a brand plan. (hort and long term possibilities should be identified up,front.

Brand product relationship

In marketing, product is anything that can be offered to the market that may satisfy the need, want, and demand of a certain individual or market. It is also called as goods or service. Product is more than =ust a material ob=ect. It is also a inclusive package of benefits and satisfaction. 3n the other hand, brand is a symbolic manifestation of all the information connected with a company, product, or service. A brand is typically composed of a name logo, and the other visual elements such as images, colours, and icons.

Product Concept of Brand2

It is an elaborate version of a product idea. A product idea can be considered in terms of several concepts from the view point of consumers. 7or examples a soft drink can be considered as number of concepts. .. $ho would be the consumer for this product /. $hat will be the product benefit 0. $hat will be the occasion associated with this drink

Models of Brand* Product Relationship . Branding Strategies2

An analysis of company strategies reveals six models in management of brand,product relationships. 9ach model denotes a certain role for the brand, its status as well as its relationship with the products which the brand encompasses. .. /. 0. 1. 2. B. Product "randing ?ine "randing 8ange "randing 9ndorsement "randing *mbrella "randing (ource "randing

.. Product Branding2 * It is widely known that a brand is at the same time a symbol, a word, an ob=ect. A symbol. (ince it has numerous facets and it incorporates figurative symbols such as logos, colors, and emblems. A word, it is the name which spports for oral or written information. A ob=ect, because the brand distinguishes each of the products from the other products or services. The product 4 brand strategy involves the assignment of a particular name to one, and only one, product as well as one exclusive positioning. /. #ine Branding2 * It produces variety of products in the same category level. It reinforces the selling power of the brand creates a strong brand image, and also facilitates distribution for each line extension. It reduces launch costs. 0. Range Branding2* It bestow a single brand name and promote through a single promise a range of products belonging to the same area of competence 1. !ndorsement Branding2 * The advantage of the brand is the greater freedom of movement that it allows. *nlike the source brand, the endorsing brand profits less from its products . each particular product name evokes a forceful image and has a power of recall or the consumer. There is little image transfer to the endorser. The endorsing brand strategy is one of the least expensive ways of giving substance to a company name and allowing it to achieve a minimal brand status. 2. 3le0ible umbrella brand2 * This is characteri'ed by a single brand level- the products are not given a daughter brand. They may possibly be given code names, but only with the aim of identifying them catalogues or price lists. B. Source Brand Strategy2 * This is identical to the umbrella brand strategy except for one key point 4 the products have their own brand name. this two,tier brand structure is known as double branding.

3$brella brand

An u$brella brand can be referred to as a brand when a group of products possess the same brand name which is known as a family brand or an umbrella brand. 6ifferent products having different images are put together under one ma=or brand or parent brand and are marketed by the firm. *mbrella branding does not mean that the whole product portfolio of a firm will fall under one brand name as company can go for different approaches of branding for different product lines.

,&amples
A$ul is an example of umbrella brand. Amul "utter, Amul &heese spreads, Amul 5ilk, Amul ice creams, Amul ghee all fall under single brand name A5*?. Godre6 is another example of umbrella brand. Products like locks, steel cupboards, office furniture electronic typewriters, desktop printers, refrigerators, air conditioners etc. all come under one parent name <3689G. ;ohnson F;ohnson is yet another umbrella brand. The company Gohnson K Gohnson sells many of its baby care products under the GohnsonPs brand name V GohnsonPs "aby Powder, GohnsonPs "aby soap, GohnsonPs "aby (hampoo etc.

-erits of .m"rella "randing

.. Promotion is very cheap and easy for products falling under umbrella branding. This strategy is generally implemented by firms coming up with a new product. /. 7or all the different products and services, advertising, promotion and I5& tools can be combined. 0. Also, launching of a new product under umbrella gains recognition easily as it is introduced in the market which has already accepted the brand image.

/emerits of .m"rella 0randing

.. If any one product under umbrella branding does not do well in the market then it can affect the overall brand /. 6ifferent brands in umbrella branding will have different ualities which will vary and thus it can be an obstacle for smooth functioning of brand as well as firm. 0. Also, if there is negative publicity for any product or even new product it can affect the other brands under umbrella branding.

(-P12TA+C, 13 .-02,44A 02A+/(+5

.. It is easy to identify the new brand in the company under umbrella branding by the customers. /. It gives uniformity to all the brands falling under it may be through one designated approach of advertising, promotion, packing etc. 0. It is a very economical strategy to be implemented. 1. It is probably the best way to enter into new segments or introduce a new product to market. 2. It will be very profitable for firms which are having different uality of brands and different images of brands if followed properly. B. It is the branding strategy that gives the probability of a brand extension for every possible uality of profile. 8esearchers argue that umbrella branding generates fairly large amount of savings in brand development and marketing costs over time, also, umbrella branding can create advertising efficiencies. &onsumer%s experience in one category may affect their uality perception of other product or service falling under same umbrella brand. (ome factors which may influence the impact of umbrella branding are, .. The degree of commonality among the products falling under umbrella brand for same usage by customers. /. #ature of branding policy applied by the firm as advertising and marketing different products under umbrella brand will be less informative but at the same time it will be less complex for target audience to understand.

!ndorsed brands; and sub*brands , 7or example, #estle :it:at, &adbury 6airy
5ilk, (ony Play(tation or Polo by 8alph ?auren. These brands include a parent brand , which may be a corporate brand, an umbrella brand, or a family brand , as an endorsement to a sub,brand or an individual, product brand. The endorsement should add credibility to the endorsed sub,brand in the eyes of consumers.

B" ,d n! a Brand Re,at onsh p

&ompanies around the globe continue to worry about customer retention. 5any have been taking steps to improve, rather than =ust monitor, the strength of their customer relationships. ThatPs because they reali'e that customer attrition is costly, but retention ,, at least when itPs earned instead of bribed ,, is uite profitable.

In order to grow, endure, and achieve long,term success, companies must also attract new customers. (ince itPs impossible to retain every customer forever, organi'ations must regularly add new ones to the mix. The alternative is brand starvation by customer attrition. $ithout an infusion of new customers, the brand ,, and the company ,, eventually wither and disappear. 5arketing departments have traditionally had the task of attracting new customers. In tackling that important =ob, marketers have employed comprehensive communications programs, with their most notable tool Nalthough not always the most effective oneH being T+ advertising. 3f course, marketers have used many other vehicles to reach out to prospects, such as event sponsorships and promotional offers or enhancements in product accessibility and visibility that include expanded distribution and enticing packaging. The stated goal of these various efforts and activities has been to raise potential customersP awareness of the companyPs branded products or services and to provide prospects with a compelling reason to try those offerings. The assumption is that once the hurdle of trial has been overcome, itPs up to the products and services to perform ,, and product performance will then ensure customer retention. ?ike most assumptions, this one seems straightforward. "ut it fails to address this fact- $hat a company must do toattract a new customer may not be the same as what it must do to keep that customer. This assumption also places responsibility for the companyPs future ,, and the enduring health of its precious brand assets ,, in the hands of two separate and often uncoordinated departmentsmarketing and customer relationship management. >et consumers donPt experience brands as unrelated silos of effort, each with its separately focused brand initiatives and consumer touchpoints. 8ather, buyers experience brands as a consistent ,, or, depending on the case, an inconsistent ,, whole. A hea,thy brand As <allup scientists have noted, the relationship between customer and company is, at its very foundation, emotional. N(ee Q5anaging an 9conomy of 9motion, #ot 8eason NPart .HQ and Q"eyond &ustomer ?oyaltyQ in (ee Also.H And the strongest relationships are those grounded in the most passionate emotional connections. <allup research has consistently shown that these emotional connections are the keys to an enduringly profitable relationship between the company and the customer. *ntil recently, customer relationships of this sort had proven to be difficult to measure and manage. "ut <allupPs customer engagement metrics now provide companies with measurement capabilities that are the core re uirement for assessing and managing emotional connections. 8ecent <allup research has shown that the process of forming emotional connections doesnPt begin when consumers try the brand. Instead, emotional connections start to take shape with every brand encounter that leads up to trial.

This insight reveals new truths about the creation of profitably passionate brand connections. In a study that included customers and non,customer prospects for heavily promoted brands in categories ranging from fast food to coffee, <allup researchers noted some important, and even surprising, results

Prospects are attracted to "rands that show promise of uni6uely meeting their important emotional needs) not merely their rational re6uirements. 0efore prospective customers will seriously entertain purchasing and using a "rand) the "rand must inspire high degrees of confidence) integrity) pride) and passion. 5allup's research shows that these emerging emotional connections can "e relia"ly measured through eight 7engagement potential7 rating scales.

Consumers won't "uy "rands in which they have no confidence. 8owever) confidence in a "rand is almost never enough to trigger trial. That's "ecause) in most product categories) consumers have confidence in many "rands) not 9ust one. :hile confidence represents the foundation of a relationship) it's not a "rand differentiator.

&ompanies that want to energi'e and activate a brandPs prospects must tap the deeper emotional connections ofpride and passion. $hile prospective buyers may feel that many brands demonstrate integrit , relatively few brands are able to stimulate the pangs of prospect passion. Passion is a brand differentiator. "rand passion begins to take shape well before the brand is purchased) it doesnPt develop overnight. $hatPs more, research shows that this passion is never simply ,, or perhaps even mainly ,, the result of QemotionalQ messages delivered through QimageQ advertising, packaging, or product styling and design. >es, these marketer,controlled vehicles certainly do contribute to creating passion. ;owever, <allup scientists have found that brand passion is often derived less from what the company directly controls than from what consumers hear from others Nword,of,mouth Qbu''QH or experience through their own casual encounters with the brand NpublicityH and its representatives and users NQevangelistsQH. $hile it takes pride and passion to lure a new customer, it takes confidence and integrity to keep them coming back. Passion can bring new customers in the door, but a long,term relationship canPt be maintained unless the brand proves its ability to deliver consistently on its core, differentiating brand promise. (lip,ups may be tolerated, given sufficiently strong brand passion. "ut these performance hiccups must be rare rather than fre uent, or the new and carefully woven relationship fabric will unravel.

Brand Portfo, o

The Brand Portfo, o

The composition of a brand portfolio is imperative for the basic architectural parameter. $hich brands to add or delete are ma=or decisions to be taken. "uilding a brand re uires ade uate resources. If there are too many brands, there may not be enough resources to support them all. The task here is to choose and pick- $hich brands will add value and which won%tA The brands that are not adding to the overall e uity in any way need to be eliminated.

Portfo, o Ro,es
"rand Portfolios incorporate different brand roles that create synergy. This imparts a strategic perspective to the brands. +arious roles include those of a strategic brand, linchpin brand, silver bullet brand, and a cash cow brand. A brand could even be a combination of more than one.

Strategic Brand2 A brand that is pro=ected to reap future sales and profits. It may be a laid,back
brand that is headed towards becoming a ma=or one. ?eesures is a strategic brand for ?ee%s as it lays the foundation for a position in casual wear in India.

#inchpin Brand2 A brand that holds the entire organi'ation together. It is a number one brand
that indirectly influences a business area providing a strong base for customer loyalty. &adbury%s 6airy 5ilk is a linchpin brand for &adbury%s as it controls a critical segment in the confectionery industry.

Sil+er Bullet Brand2 A brand or sub,brand that positively influences the image of another brand.
It can be a ma=or factor in changing, creating or maintaining a brand image. ;P%s laser =et resolution enhancement is a branded feature that instantly reflects on the image of ;P being a breakthrough company in printer technology.

Cash Cow Brands2 "rands with significant customer bases that re uire less attention than other
brands. The total sales may be on a decline, yet there are a group of hard,core loyal customers who do not leave the brand. The role of a cash cow brand is to generate resources that can be invested in other brands for future growth. #ivea &r^me is one such example of a brand that has been extended to other skin,related products to provide resources for other brands by banking on its customer base. "rand architecture is the unification of branding decisions and media. This provides a sound foundation for the integration of all brands in a portfolio to synergi'e them into a powerful brand and identity.

Brand re+itali@ation
efinition

A strategy to recapture lost sources of brand e uity and identifies and establishes new sources of brand e uity. This may include product modification or brand repositioning.

8evitali'ation efforts could move in two directions. The brand may be ad=usted or modified to appeal in the market "rand%s market may be ad=usted

Brand re+itali@ation tools.measures

; ; ; ; Increasing usage. #ew markets. Image change. "rand enhancement,

&ncreasing usage
; ; ; ; More convenient to use----MAGGIBM',B>2##/G% etc,educe doubts associated- -----"A'I>AB %2' W2'B #/,2A# etcProvide incentives----B,I'I%1 AI,WA0%BICICI P#A'IN3M CA,. New uses- ------;2' M/%93I'/ MA'-

'ew markets5
; ; 8each to new markets not targeted so far,,,,Asian countries N5c 63#A?6%(H,rural areasN;*?H #9$ (9<59#T(,,,,,,cover unattached segmentsNshampoo pouches, solar lightsH

&mage change5
; ; Add new associations when existing one becomes obsolete,,,,,,(P?9#638 pro &ommoditi'ation. ,,,,,,,,_983_ does not mean photocopying, it%s a brand.

Brand enhancement
; Add new valued differentiators,,,,,,availabilityN;*?H,

+alue disciplines,,,,innovationN(3#>H,intimacyN5A88I3TTH

'NIT73
Meas"re and Interpret Brand Performan*e9
In order to understand the effects of brand marketing programs it is important to measure and interpret the performance of brand a useful tool in order to measure it is brand value chain. A brand value chain is a means to trace the value creation process for brands to better understand the financial impact of brand marketing expenditures and investments. The brand value chain provides help to direct marketing research efforts. The brand value chain assumes that brand value creation process starts when the company invests in any marketing program by targeting its actual or potential customers. Any marketing program investment that potentially can be attributed to brand value development falls into this category for example product research, development and design, trade or intermediary support or any marketing communication program. A profitable brand management system re uires successfully designing and implementing a brand e uity measurement system which consists of set of research procedures designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and strategic decision for the long run. Implementing such kind of system involves two important aspects like conducting tracking studies and implementing a brand e uity management systemN:eller, /FF/H
Gro* and Sustain Brand E8uit"'

According to :eller, /FF/ The skillful design and implementation of marketing programs that capitali'es on well,conceived brand positioning, strong brand leader ship positions can be achieved. 5aintaining and expanding on brand e uity however, can be challenging for a company. "rand e uity management concerns those activities that take a broader and more diverse perspective of the brandTs e uity,understanding how branding strategies should reflect organi'ation concerns and be ad=usted, if at all, over time or over geographical boundaries or market segments. 5anaging brand e uity involves managing brands within the context of other brands, as well as managing the brands over multiple categories, overtime and across multiple market segments
Components o #randing'

#ow, here we would focus the elements which lead to create the brand differentiation gradually Image, identity, reputation and the positioning are the most important components of the branding when company strive for making its brand different from its competitor and are described in depth as followsBrand %mage'

&reating a brand image involves getting customers to know that the brand exists. 3nce a brand has been separated from the crowd, it is easier to develop its image. The branding process itself

may be the starting point for product differentiation. "rand image enables consumer to recogni'e a product, lower purchase risks, evaluate the uality and obtain certain experience and satisfaction out of product differentiation. The image a top brand develops may be the only way for the consumers to tell the difference. The difference will exist primarily in the mind of the consumer. Image is the receiverTs perception regarding the particular brand and it is formed in the mind of the receiver and is therefore beyond control by the sender. The consumer will perceive one brand as more desirable than its competitors and purchase it based on those perceptions N8ooney, .EE2H.
Brand %dentit"'

"rand Identity is a central concept in branding as it describes the core values and provides direction, purpose and meaning of brand NAaker, .EEBH. According to 8ooney, N.EE2H if brand has a recogni'able identity, then it should be aimed at opportunity markets to yield maximum success. The company can control the identity that is sent but cannot control the image .Although identity and image are different terms but several times these terms are used by the companies in the same way. &ompanies must manage the image and identity of a brand and tie it to the total business strategy. 9ach organi'ation must decide how branding fits into its general strategy because one strategy does not work for all. The point is business strategy and brand strategy should be relevant to the goals of the organi'ation. Although there are specific directions for matching a brand with a certain strategy the individual operations must create a uni ue strategy that works for them.
Brand Positioning'

Positioning may be simply defined in a term of how a brand is positioned in the minds of customers with respect to the values with which it is differentially associated or which it owns. The commercial utility of Positioning lies in how the imbuing of trademarks with uni ue, true and compelling values can influence purchasing decision and its impact on the sales. Indeed, the entire enterprise of branding itself can be understood as an exercise in positioning) using product experience and marketing initiative to increase profitability by associating the trademarks with compelling the consumer values N5arsden, /FF/H. According to :apferer, N.EECH "rand Positioning focuses on the uni ue characteristics that makes the brand uni ue from the competitorTs brand and provide attraction to customers so that they could buy the product The essence of brand positioning is that the brand has a sustainable competitive advantage or Quni ue selling pro positionQ that gives consumers a compelling reason for buying that particular brand. According to $ood K Pierson, N/FFBH in consumer marketing, branding provides points of differentiation between competitive offerings and allows for market positioning. The brand can create an image of the product in the consumersT mind that is associated with uality, and informs the market of the productTs uni ueness in general, or in relation to other competing products. The success of brand development may depend on the approach taken to brand description, the use of the marketing mix to position a brand in the market place is very important.

Measuring Brand Performance

>ou can%t manage what you don%t measure.! ` Peter 6rucker If you are a brand manager, by definition, you are measuring the performance of your brand on a regular basis. 3therwise, how can you successfully manage your brandA ;ere are the items I recommend brand managers measure

*naided brand awareness Nfor the categories in which the brand competes and perhaps for the customer benefits the brand deliversH Top,of,mind brand associations Nyour brand%s true position in its customer%s mindsH Perceived brand delivery against the most important customer benefits Attitudinal loyalty toward the brand $hat customers think makes your brand uni ue NdifferentiationH "rand price sensitivity Na measure of brand strengthH "rand vitality Na measure of brand marketplace momentumH "rand uality perceptions "rand value perceptions "rand accessibility perceptions 9motional connection to the brand "rand values alignment with its customers "rand distribution "rand market share "rand sales "rand profitability

If you have access to these brand metrics, it is more likely that you are actively managing your brand to increase its strength and performance. 3ne should measure most of these items at least once a year and immediately after ma=or brand initiatives.

M!ASUR&'( TA! S$URC!S $3 BRA' !/U&T) B CUST$M!R M&' S!T

5easuring the sources of brand e uity and customer mind set encompasses following techni ues .. Jualitative 8esearch Techni ue /. Juantitative 8esearch Techni ue /ualitati+e Research Techni1ues2** Jualitative 8esearch Techni ue are often employed to identify possible brand associations and sources of brand e uity. Jualitative 8esearch Techni ues area a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover. The range of possible Jualitative 8esearch Techni ues is limited only by the creativity of the marketing researcher. 7ollowing are the main ualitative techni ues used for measurement of brand e uity sources-

.. 7ree associations /. Pro=ective techni ues 0. "rand personalities and values 1. 9xperimental methods 3ree association2 *** The simplest and often most powerful way to profile brand associations involves free association tasks whereby sub=ects are asked what comes to mind when they think of the brand without any more specific probe or cue than perhaps the associated product category. The primary purpose of the free association tasks is to identify the range of possible brand associations in consumers mind, but they may also provide some rough indication of the relative strength, favorability, and uni ueness of brand associations. Thus useful uestions include following uestions.. $hat do you like best about the brandA $hat are its positive aspectsA $hat do you dislikeA $hat are its disadvantagesA /. $hat do you find uni ue about the brandA ;ow is it different from other brandsA In what ways is it the sameA To provide more structure and guidance, consumers can be asked further follow,up uestions to describe what the brand means to them in terms of who, what, when, where, why, and how! uestions such as the following.. $ho uses the brandA $hat kind of personA /. $hen and where do they use the brandA $hat type of situationsA 0. $hy do people use the brandA $hat do they get out of using itA 1. ;ow do they use the brandA $hat do they use for itA ProCecti+e Techni1ues2 *** Pro=ective Techni ues are diagnostic tools to uncover the true opinions and feelings of consumer when they are unwilling or otherwise unable to express themselves on these matters. The idea behind Pro=ective Techni ues is that consumers are presented with an incomplete stimulus and asked to complete it or are given an ambiguous stimulus that may not make sense in and of itself and asked to make sense of it. %inds of ProCecti+e Techni1ues2 *** .. Completion and interpretation Tasks2 ** Pro=ective Techni ues use incomplete or ambiguous stimuli to elicit consumer thoughts and feelings. 3ne such approach is with bubble exercise! based on cartoons or photos in which different people are depicted buying or using certain products or services. 9mpty bubbles, as found in cartoons, are

placed in the scenes to represent the thoughts, words, or actions of one or more of the participants in the scene. /. Comparison Tasks2 ,,, In this techni ue the consumers are asked to convey their impressions by comparing brands with other brands, people, countries etc, the ob=ects chosen to represent the brand and the reasons they were chosen can provide glimpses into the psyche of the consumer with respect to a brand.

ProCecti+e Techni1ues * 4D !0amples

BRA' A' US!R &MA(!R) Juick exercises designed to draw out consumersP perceptions of particular brands as compared to the people who use them. The image of the brand is often distinct from that of the user. 3r, the brand image may be a role model to which the user aspires in lifestyle or values. As an example of the differences between brand and user. . . . The image of a brand of toothpaste might be characteri'ed as a tall, attractive middle,aged man in an expensive three,piece suit, who is described as gentle, pleasant to be with, trustworthy, established and who drives a 5ercedes "en'. The user, on the other hand, might be a pla ue conscious mother who is worried about gum disease for herself and her husband, who uses a more colorful brand that might be personified as a good natured, funny clown for her young children. CAT!($R) SCU#PT&'( Another techni ue used to obtain impressions of brand images is called &ategory (culpting. In this exercise, an entire category of brands is considered as a mega, family. 9ach brand within the family is personified and assigned a role with specific character traits. $e ask uestions such as where does this family member live, with whom, how does heLshe spend his time, how old is he, what does he value, how does he dress, what kind of car does he drive, what is his relationship to the other family membersLbrands, how is he regarded by the rest of the family, etc. 7or example, in the cereal category, four brands out of a much larger grouping were nicknamedThe 7amily Pet, The Irresponsible *ncle, The 6omineering 5other, and The Teeny "opper Teenager. The actual brands discussed for the four were- ?ucky &harms, (hredded $heat, 7ruit ?oops and &rispy &ritters. 7or fun, guess which refers to which. As a hint Nwhich you probably donPt needH, The 6omineering 5other title was granted by a group on non,users of that brand. *sers in another session named the same product QAunt (arah.Q If youPre not sure of the match of brand to profile, ask on of us at the end of this talk. TA! #$$%&'( (#ASS This is a form of guided imagery in which respondents are asked to close their eyes, relax and imagine an QAlice in $onderlandQ , like mirror which permits them to step through to a broadened

reality. 3n the other side of the mirror, they are guided towards doors which can be marked with brand or corporate names, product benefits, short strategy statements or positioning differences. After each door is identified, respondents open them one by one and explore what they see behind each. This techni ue takes pressure off the respondents because they do not have to come up with a rational or QrightQ response. People tend to forget themselves in their involvement with the process, allowing them to be more creative in their inner thoughts and feelings. This leads to richer, deeper and more textured pictures and stories. This flexible tool is particularly useful in understanding differences in consumer perceptions. It has been used effectively in problem detection, understanding of brand imagery and creative development. T!##!PATA) Tellepathy is our creative group story,telling excursion. This techni ue is particularly useful in understanding the common denominator in the imagery created by a concept or statement for strategy development. $e often start with The ?ooking <lass, and lead respondents to a door labeled with the core concept. 8espondents are invited to cross the threshold, guided through their experiences and then welcomed back into the room to =ot down a summary of what happened on the other side of the door. They are then instructed to create a group story, including timing, setting, characters, plot and resolve with the same title as the core concept. The story must be based on the commonalities experienced by all or most, yet be garnished with flourishes of individual differences. M$ &3&! TATES 5arket researchers sometimes employ the Q5odified TAT,Q an adaptation of the Thematic Apperception Test NTATH used by psychologists, in developing print ads and billboards. The participants are first shown an unbranded visual that is under consideration for the ad and asked to create a story around it. The moderator or interviewer encourages participants to go beyond the literal and release some of the more elusive feelings and associations that the imagination stirs up. $hat is happening in this pictureA $hat are the characters doing, thinking, and feelingA $hat happens nextA $hat will the outcome beA Participants do not directly address their feeling about a product or brand, but reveal them indirectly through their responses to visuals. 9ven a slight change in presentation,a tilt of the modelPs head in a photograph, for example,can evoke a significantly different response. The picture might be shown a second time with a brand name and a tagline. The participant is asked whether he or she sees the same scenario and how well the picture and the brand match. (ometimes an appealing story loses its intrigue when a less than popular brand is added.

3n the other hand, a neutral visual can become more exciting when a well,liked product or tagline is added. The interplay of brand and visual can then be explored. "ecause most people view these exercises as fun, they take the opportunity to express themselves more fully and openly. 3ne interesting finding is that people from different segments of the population tell similar stories about the same photos or images. M&' ,A#% This techni ue is useful in exploring new avenues of communicating an important product benefit. 8espondents are directed to imagine a time when they had a positive experience with a particular product. They are asked to experience that memory fully,picturing where they were, being in touch with how they felt, remembering conversations that may have been happening at the time, etc. They are asked to capture the feeling they had and hold it for a moment. The situation that they described will be allowed to dissipate while the feeling will be maintained so that they can imagine a different, uni ue occasion when the same emotion was present. This exercise works well in eliciting themes that could be developed in terms of product positioning and advertising strategies. In particular, it provides uni ue visuals and situations that can communicate underlying motivations attached to use of the product. T&M!SCAP! This techni ue is used in new product ideational sessions to help establish future needs and wants. Participants are invited aboard a time machine thatPs set 0, 2, .F or even /2 years in the future. $hen they step out into their town, they are asked to fully explore their environment in terms of differences, new items and products in use and new problems created by the changes. These differences are utili'ed to develop a wish list of possible product innovations that would be relevant for that future time. SC!'T*SAT&$'S (cent,(ations is the techni ue we recommend when scent and aroma are a key characteristic of the product. The sensing of aroma is registered in the temporal lobe of the brain which is the seat of primitive memory. A potent and highly productive way of eliciting early memories associated with a particular fragrance is to stimulate through scent. The respondents are asked to close their eyes and inhale the aroma of unidentified product. This would be used as a catalyst to guide them to an early memory connected to their first use. They are then told the brand name of the product they sniffed to see how that alters their memories and feeling. The results can help marketers understand a productPs emotional heritage, both positive and negative.

S)'!STA!S&A In (ynesthesia, participants are asked to mix up the senses to more fully understand a particular attribute, product uality or marketing application, i.e., $hat does the color red smell likeA $hat

does red sound likeA If it could talk, what would the color red sayA $hat does delicious tasteLlook likeA $hat color is deliciousA ;ow does delicious feel in your handA MAR%!T*P#A)S &ommunication research indicates that

only CS of what we say is conveyed through the actual words we use) 0DS by tone and inflection) 22S by non,verbals.

5arket,Plays is a system of action techni ues borrowed from the performing arts and Psychodrama utili'ing consumers andLor marketers as the players. Participants enact and express their feeling about a product or brand indirectly which allows them to go beyond the literal and convey more of the elusive feelings and associations that the product evokes. 5arket,Plays is used to demonstrate and better understand the dynamics of

product posturing and position the in,store drama between brands the impact of marketing applications, i.e., name, graphics, packaging, color, etc. the interplay of consumersP functional and emotional needs in brand selection.

Brand personality and +alues2 ***

"rand personality is the human characteristics or traits that can be attributed to a brand. "rand personality can be measured in different ways. Perhaps the simplest and most direct way is to solicit open,ended responses to a probe such as the following.. if the brand were to alive as a person, what would it be likeA /. $hat would it doA $here would it leaveA $hat would it wearA 0. $ho would it talk to if itL went to a party Nand what would it talk aboutHA

!0perimental Method2**
Increasingly researchers are attempting to improve the effectiveness of their ualitative approaches as well as go beyond traditional techni ues to research consumers in their natural environment. (o many experimental methods are conducting regarding the brands in order to know the consumer behavior and way of their responding towards the branded one%s.

/uantitati+e Research Techni1ues2**

Juantitative measures are often the primary ingredient in tracking studies that monitor brand knowledge structures of consumers over time, it includes following aspects-

.. Awareness 2"rand awareness is related to the strength of the brand in memory, as

reflected by consumer%s ability to identify various brand elements Ni.e...% brand name, logo, symbol, character, packaging and sloganH under different conditions.

Recognition2 In the abstract, recognition processes re uire that consumers be able to

discriminate a stimulus 4 a word, ob=ect, image or whatever 4 as something they have previously seen. There are some types of recognition process are there, such as , $e are giving a set of items to consumers and asking them if they have seen it visually or listened about that things orally in the previous times A number of additional, somewhat more subtle, recognition measures involve perceptually degraded! versions of the brand. The brand name is to be tested with missing letters such as 6a a#9a, :3a a :, ;a a?5Aa a, i.e., 6I(#9>, :3TA:, ;A??5A8:. Recall2 brand recall relates to consumers ability to identify the brand under a variety of circumstances. $ith brand recall consumers must retrieve the actual brand element from memory when given some related probe or cue. Correction for guessing2* Any research measure must consider the issue of consumers making up responses or guessing. That problem may be especially evident with certain types of aided awareness or recognition measures for the brand.
/. &mage2 ,, one vitally important aspect of the brand is its image, as reflected by the

associations that consumers hold regarding the brand. 5ainly it represents the organi'ation%s character. (trong, favorable, and uni ue associations provide the foundation for customer, based brand e uity.
0. Brand responses2** purchase intentions are another set of possible measures closely

related to brand attitudes and consideration is purchase intentions. Intention measures could focus on the likelihood of buying the brand or the likelihood of switching from the brand to another brand.
1. Brand Relationships-,, "ehavioral ?oyalty is used to capture reported brand usage and

behavioral loyalty, consumers could be asked several uestions directly. 7or example, the marketers or brand managers of film might ask the following uestionsa. $hich brands of film do you usually buyA b. $hich brands of film do you buy last timeA c. 6o you have any film on handA $hich brandA

M!TA$ S $3 M!ASUR&'( $UTC$M!S $3 BRA' !/U&T)2 5ethods of measuring outcomes of brand e uity can be broadly categori'ed into two segments.. Comparati+e Methods2 ** The main way to measure the outcomes and benefits of brand e uity is with comparative methods. It involves experiments that examine consumer attitudes and behavior toward a brand to more directly estimate the benefits arising from having a high awareness and a positive image. There are three comparative methods, which are as followsA. Brand F based Comparati+e Approaches- ,, ;ere mainly consumer responses are to be identified. These responses may be on the basis of beliefs, attitudes, intentions, actual behavior, or even feelings. These measurement approach typically employ experiments where one group of consumers responds to uestions about the product or some aspect of its marketing program when it is attributed to brand, where one Nor moreHgroup of consumers responds to uestions about the different products or some aspect of its marketing program when it is attributed to brand, or competitor brand. &omparing the responses of the two groups provides some useful insights into the e uity of the brand. ". Marketing F based Comparati+e Approaches - ,, It uses experiments where consumers respond to changes in the marketing program or marketing activity for the target brand or competitive brands. &. ConCoint Analysis2 ** It is identified as a techni ue that combines the two approaches. The main disadvantage of this techni ue is that marketing profiles may be presented to consumers that violate their expectations based on what they already know about brands. /. Aolistic methods2 ** comparative methods attempt to approximate specific benefits of brand e uity. ;olistic methods attempt to place an overall value for the brand in either abstract utility terms or concrete financial terms. These two approaches are as followsA. Residual Approaches2 several researchers have employed residual approaches! to estimate "rand e uity. According to these approaches, brand e uity is what remains of consumer preferences and choices after subtracting out ob=ective characteristics of the physical product. ". "aluation Approaches2 The ability to evaluate and put a price tag on a brand%s value may be useful for a number of reasons such as "rand licensing, brand management decisions and fund 4 raising for sale or leaseback arrangements.

BRA' ASS!SSM!'T
,AAT &S A BRA' Though a brand is oftentimes mistaken as a variety of different things, it%s important to understand its ambiguous nature. A brand is not simply the logo, nor the visual identity. A brand is not the product, the service, the slogan or the advertising campaign. A brand is not even controlled by the company behind it. 8ather, a brand is a collection of perceptions that reside in the mind of the consumerLcustomer. It is the gut feeling a customer has about your company Nthus, your brandH. $hile you may not have direct control over your brand, you most certainly are its steward. 9very interaction the customer has with you or your company inbuences their perception. The product experience, customer service, slogans, ads, and even product manuals all contribute to the customer%s perception of your company, service or product. >our =ob is to cultivate, guard, and maintain a strong brand 4 the rewards of which are consistently loyal customers and a continual increase in customer preference. ,AAT MA%!S A' !?C!##!'T BRA' A good brand communicates a clear message about what it stands for and how it differentiates itself from its competitors. An excellent brand persuades a market that their lives will be better by attaching themselves to said brand, and without it, their lives would be greatly lacking. (temming from your market positioning, customers understand and internali'e the brand through its consistent use. 9ach touch point within your customers% experience should seek to reinforce this same, consistent message. $ith a well crafted strategy, a good brand begins to look more like a belief system, or a cult following than anything else. It takes on a vibrant life of its own, and customers will stand behind the brand, adopting its claims and evangeli'ing it to others whatever that message maybe Neven so much as if what one is claiming is not necessarily trueH. 5a=or national brands N(uper "randsH know this and use it to great effect. &oke has us believing it is TThe real thing% and no other poor excuse for a cola will do. "5$ owners believe they have the T*ltimate driving machine%, rather than =ust another ordinary, <erman,made luxury car.
9here is "our #rand toda":

$e operate in a changing marketplace. &ompetitors change) consumer perceptions change) our customers% values change) and our products and services change. That%s why successful organi'ations periodically reassess and refresh their brands. A brand assessment provides an opportunity to evaluate the strength of your brand, to underscore the value of your brand with customers, and to reposition the brand, if necessary, to reflect changes in the marketplace. $hat%s more, it helps you and your staff recommit to the vision and goals of the business. 7inally, it ensures accurate application of your brand across the organi'ation.

$e evaluate your brand from both internal and external perspectives, identifying the gaps between what you want your brand to represent and how your customers perceive your brand in the marketplace.
%nterna! Brand Audit

$e evaluate existing marketing strategies, materials, media and communications. $e engage with key management to obtain internal perceptions of your brand and how the company competes in the market. $e interview employees across multiple levels of your organi'ation to assess differences in internal brand perceptions. And, we review your most current existing customer and market research, including customer satisfaction surveys.
E;terna! Brand Audit

"ased on the outcome of the internal brand audit, we conduct an assessment of external audiences and their brand perceptions. 6epending on your company%s existing andLor ongoing research studies, our team develops a market research program that may include any number of the following types of external studies- existing customer brand perception, research on a competitive set, and prospective customer attitudes and perceptions.

Brand Assessment $bCecti+es2

.. To know whether the brand currently have a brand promise /. To know whether the brand stands in the minds of the executive team 0. To know the promise which the various stakeholders perceive to be 1. To know the brand identity which the current customer service reflect 2. To identify the brand current and future status B. To identify the brand current and future customers C. To know the current media messages D. To know the current brands position E. To identify the most effective way to use marketing, promotions and so forth, to increase sales, profits and brand e uity. .F. To identify the brand strengths and weakness and its positive benefits.

Brand Assessment through Research2**

"rand assessment through process includes following steps-

.. Conduct Customer Research2 The purpose of the consumer and customer research is to create a perceptual map that illustrate a brand%s position relative to it%s competitive set in the customer mind. An essential step in the assessment process is to gain insight from all stakeholders in the brand. These include current customers, potential customers, and intermediaries such as distributors or dealers, suppliers and employees. /. Current Marketing Strategy2 ** the purpose of this current marketing strategy is to gain insights onto the consistency, commitment, and effectiveness of the current and proposed programs. ;ere the uestions should be asked like $ho are the target customersA $ho are the most featured competitors today as well as futureA 0. Business !n+ironment Re+iew2 ,, An environmental review is a long range perspective of the business aspects of a brand market place. ;ere all the historical background of the company or organi'ation is to be known and their achievements are also to be considered. 1. Customer Transaction Analysis2 ** ;ere mainly we consider the customer responses and their way of behavior when we asked uestions regarding the brand or product category. 2. Market Research and Competiti+e Trends2 ,, the ob=ect of this analysis is to find out as much as possible about the segment or category in which a brand does business. B. Technology Migration Analysis2 ** There is not any brand today that will not be affected by technological change. It is only a uestion of how the brand will change or be affected as a result of competitors embracing new technologies and racing to apply them strategically to their business and brands. C. Concluding The Brand Assessment2 ,, 3nce the various research efforts have been completed, a written report on each sub=ect should be prepared following a outline such as "ackground Npurpose, methodsH and brand conclusions. D. Create ,ritten Brand Assessment and Present to !0ecuti+e Team2 ** The assessment team should then meet and present their findings a s draft report. A written executive summary of the summary of the assessment research should be prepared by one person and circulated to other team members for comments.

U'&T*<
BRA' P!RS$'A#&T)2
MEANIN$ AND DEFINITION OF BRAND PERSONA(ITY

The definitions of brand personality available in literature can be classified into three types.. Emotion % centered definition1 these definitions contend that brand personality is the emotional component of a brand. These definitions see brand personality as the emotional link between the brand and the consumer. According to (engupta brand personality is defined as the symbolic aspect of brand. This is also in line with the emotion 4 centered definition. /. 2uman % centered definitions1 - It will ask the uestion what happens when this brand becomes a human beingA! ;uman characteristics might be demographic traits such as gender, age, socio,economic class besides subtle personality traits like warmth, concern and sentimentality. "rand personality can thus have demographic factors like feminine versus 5asculine, old versus new, upper class versus lower class etc. 0. -ther definitions1 The third type definitions include the tangible aspects of the brand as well as their account of brand personality. T)P!S $3 BRA' P!RS$'A#&T&!S2 &hris 5crae has divided brand personalities into six types .H 8itualistic brands /H (ymbol "rands 0H ;eritage brands 1H 9xclusive brands 2H "elonging "rands BH legendary brand 4G Ritualistic brands2 brands associated with particular occasions- for e.g &rackers are associated with 6iwali and Archies greeting cards with birthdays and anniversary. Also "ritannia 5arie is a tea time brand associated with the ritual of the consumption. Titan is for celebrationLgift 6G Symbol Brand2 The logo or the name of the brand is more important than what it contains. &hivas 8egal is strongly identified with the eagle shaped container. 3nida is strongly identified with the devil 7G Aeritage Brands2 These are the brands that have pioneer advantage. Philips has a strong position in the audio system market because of its reputation. 6abur has a strong reputation in ayurveda

8G !0clusi+e Brands2 These are termed cloof!or (nobbish brands. "5$ B2F cc bikes, 5aybach L8olls 8oyce are meant for an exclusive clientile in India. #ot everyone can buy them. 9G Belonging Brands2 ;uman "eings are constantly in need of being socially accepted. "rands which make the consumer a part of a larger family are belonging brands. A ?evi (trauss =ean puts a youth at par with youth in the rest of the world. A 8ay,"an sunglass means a lot to the user. :G #egendary Brands2 "rands which have a great deal of history behind them and have achieved demi,god status are legendary brands. &oke, 5arlboro, ?ifebuoy, ?ux. 7rom the corporate brands, TATA and <odre=.

: Components of Branding
"randing is not =ust a logo or trademark. It incorporates many components that work together to form the destination brand concept. Their management is part of the brand strategy. The value of the brand is described by the term brand e uity. "rand positioning and leveraging are branding management approaches. The identity, image, personality, essence or soul, character and culture are the brand components.
BRAND & !'T&T)

Is how brand strategists want the brand to be perceived. It is a set of uni ue brand associations that represent what the brand stands for. These associations imply a promise to customers from organi'ation members. "rand identity should help establish a relationship between the brand and the customer by generating a value proposition involving functional, emotional or self expressive benefits.

Is a key component in the formation of a clear and recogni'able brand identity in the market. "rand image is related to how the brand is currently perceived by consumers. In other words what is the reputation of the brand in the market placeA
BRAND IMAGE

Is related to its internal constitution, how it is perceived in terms of integrity, trustworthiness and honesty. This is also related with the promise of the brand to deliver the experience associated with its name.
BRAND CHARACTER BRAND CULTURE Is about the system of values that surround a brand much like the cultural

aspects of a people or a country. Is the set of human characteristics that are associated with the brand. It includes such characteristics as gender, age, socioeconomic class, as well as human personality traits such as warmth and sentimentality.
BRAND PERSONALITY

8epresents the emotional elements and values of the brand. 9ssence should be part of a long term positioning that does not change with every communication
BRAND ESSENCE (BRAND SOUL)

,hen to change your brand name

The sweetest word in the brand universe is your brand%s name.! This obvious uote is from "ill (chley K &arl #ichols, Gr. in their unheralded book $hy Gohnny &an%t "rand.! >our name is the first and most powerful part of your brand. A great name can help you stand out in a crowded market. It can position you as a leader, convey your culture, even explain what you do in a word or two. &onversely, a weak name can neutrali'e or even negate the work you do to build a brand and market position. A weak name is easily forgotten and can limit your opportunities in other markets if you plan to expand. &onsumer product companies understand this, and tie their brand names directly to their brand strategies. 5ost "/" companies take a more hapha'ard approach. Those that don%t put any effort into branding simply choose a name, charge forward and end up being branded! by the market. 3r worse yet, they%re simply ignored. It%s a big undertaking to change your brand name. $hen is it worth itA &onsider changing your name if you%re redefining or repositioning your brand. ;ere are three reasons to do it.. &hange to distance yourself from a negative event. /. &larify a confusing or non,descript brand. 0. "etter represent an upgraded productLservice that%s outgrown the existing brand.

/uantify the Costs

6id I mention that changing a brand name is a big undertakingA As with any business decision, it%s important to weigh the costs and benefits. "reak down the costs into hard materials and the time and effort to replace them. These can run anywhere from tens of thousands to millions of dollars, depending on your company si'e. &orporate IdentityLProduct Packaging Items ?etterhead "usiness cards All printed materials All promotional items, signage and banners (ales ?iterature and Tools $ebsite &ompany brochure Product L service data sheets All presentation materials Product demos 7olders Templates Interactive Tools 9mail newsletter

9lectronic branding on other websites &ompany blog

!+aluate the Benefits

It%s straightforward Nthough not easyH to estimate the cost to change your brand name. The benefits aren%t so easy to uantify. 5any of them are intangible and sub=ective. $hile this is pretty easy for a branding expert to pinpoint, most (5"s don%t have branding experts facilitating this decision, making process and are left fending for themselves. (tart by considering the following;ow many years have you been using the existing nameA $ould a change alienate or confuse any existing customersA ;ow much goodwill is built into your existing nameA If you were to change your name, would you lose any revenue as a resultA 9stimate the dollar loss Nif anyH over a period of one year. #ow review your brand strategy. Is your name in sync with your brandA 6oes it reflect your brand promiseA &arefully evaluate your position in the marketplace and your last 0,2 years of sales revenue. ;ow well does the market respond to your existing brandA Are your revenues growing at the same rate as your competitorsA 6o your marketing programs produce large uantities of new leadsA 3r is it a battle =ust to keep your existing customersA If you%ve significantly changed your product or are trying to distance yourself from a negative brand, this decision is easy. The tough decision comes when you%re attempting to =umpstart a weak brand. 5any times, a weak name and indistinguishable brand cause the above problems. A fresh name and well thought,out brand strategy might open new avenues for growth that far outweigh even substantial rebranding costs.

There are seven main factors of a successful brand.

There is plenty of evidence to prove that customers will pay a premium for a good brand and remain loyal to that brand. "rand identity and the uality associated with it secures that relationship. This brand e3uit also adds non,tangible value to the business. "ut, how does one build and maintain brand e uityA

/uality
Aa+e you e+er purchased a lousy product or ser+ice and gone back for more from the same +endor3f course you haven%t. Juality is a vital ingredient of a good brand and the surest way to build customer loyalty. 7or the sake of positive brand identity, the core benefits of your product or service must be articulated easily and consistently.

Market Positioning
id you know that; for many years; the lowest*rated car brand was the most popular in Pittsburgh- 'ow; why is thatIt has nothing to do with Pittsburghers and everything to do with positioning the product to the right audience in the right language" A blue,collar product was well,targeted to the Pittsburgh market. &onsistent brand identity was forged and loyalty followed. $ith most consumers, perception is everything. $hat matters is the position a brand occupies in the minds of the consumers. (trong brands have a clear, often uni ue position in the target market. In addition to an identity that clearly distinguishes the brand from competitors, successful positioning usually re uires a combination of

"rand name) (ervice standards) Product guarantees) Testimonials) Packaging, and more.

3le0ibility
&f you think youH+e eaten at %entucky 3ried Chicken in the last fi+e years; you are mistaken5 )ou ate at %3C5 (ometimes consumers% tastes change or a brand becomes Qtired.Q A good brand should be flexible enough to adapt to evolving markets without losing its e uity. :entucky 7ried &hicken identified market trends away from fried foods, successfully retooled their name and modified their menu to reflect the market dynamic. Today, :7& still uses familiar icons, like &olonel (anders, in their promotions to preserve their core identity.

3irst*mo+er Ad+antage
o you ha+e a ?ero0 machine in your office&s that machine really from ?ero0A wealth of evidence shows that the first successful brand in a market creates a clear positioning in the minds of target customers before the competition enters the market. These first movers typically define the market that others will follow. ;owever, without proper brand management, they run the risk of commoditi'ing! their name and diluting their brand. >es, copy,cats will also enter the market and change the competitive dynamic. 7lexibility and aggression within the marketplace, product diversification and good brand management can help keep the brand from becoming _eroxed,! :leenexed! or "and,Aided.!

&nternal Marketing
Aow many times ha+e you gone to a restaurant where your ser+er didnHt know anything about the menu(uccessful brands are marketed internally! as well as externally. The entire organi'ation should understand the value propositions and positioning so they can talk to the company line.! >ou must have buy,in at all levels of the organi'ation. If not, your employees will visibly be going through the

motions, which will compromise the brand. This staff training is especially important in service businesses.

Communications
,hy does Mc onaldHs do so much ad+ertising,e know what they sell and can find one +irtually anywhere5 Perception is critical to market positioning, with communications playing a key role in building and maintaining a successful brand. >ou have to build and retain a clearly defined position in the minds of your target audience. .he right language to the right audience" Initially, 5c6onald%s challenge was to build awareness, then to develop the brand personality and reinforce the perception. Today, they use every promotional tool to develop and sustain customer perceptions. If they stopped tomorrow, they would risk being conspicuous in their absence. &ompanies like 5c6onald%s have mastered brand management, which is a key part of any product strategy, particularly those operating in highly competitive consumer markets.

#ong*term Perspecti+e
&tHs nearly impossible to become a millionaire by Cust sa+ing money5 Gust like building one%s personal wealth, successful brand building re uires long,term commitment and the willingness to take chances. "uilding customer awareness, communicating the brand%s message and creating customer loyalty takes time. This means that management must avoid the trappings of risk aversion and appropriately invest! in a brand, perhaps at the expense of short, term profitability. The cost of bringing a product to market must be properly funded and part of any initial budget.

3&'A'C&A# ASP!CTS $3 BRA' 2*

7inancial aspects of brand are closely related and dependent to the measuring the financial value of the brand assessing the overall brand performance in terms of the total financial value it brings to the company. "roadly it can be said that financial measures are the dependent and variable factors of the brand e uity and brand valuation. These two important financial measures of brand, crucial to revive the brand health and maintaining the good brand image.

Brand equity
Brand e5uit& is a phrase used in the marketing industry which describes the value of having a well,known brand name, based on the idea that the owner of a well,known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well,known name is better than products with less well known names. Another word for Qbrand e uityQ is Qbrand valueQ or Qbrand recognitionQ. (ome marketing researchers have concluded that brands are one of the most valuable assets a company has,as brand e uity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one.9lements that can be included in the valuation of brand e uity include Nbut not limited toH- changing market share, profit margins, consumer

recognition of logos and other visual elements, brand language associations made by consumers, consumersP perceptions of uality and other relevant brand values.

%onstr"*t on
There are many ways to measure a brand. (ome measurements approaches are at the firm level, some at the product level, and still others are at the consumer level. 3irm #e+el- 7irm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. 7or example, if you were to take the value of the firm, as derived by its market capitali'ationVand then subtract tangible assets and QmeasurableQ intangible assetsVthe residual would be the brand e uity. 3ne high,profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of pro=ected profits discounted to a present value. The discount rate is a sub=ective rate determined by Interbrand and $all (treet e uity specialists and reflects the risk profile, market leadership, stability and global reach of the brand. Product #e+el- The classic product level brand measurement example is to compare the price of a no,name or private label product to an Qe uivalentQ branded product. The difference in price, assuming all things e ual, is due to the brand. 5ore recently a revenue premium approach has been advocated. Consumer #e+el- This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness Nrecall and recognitionH and brand image Nthe overall associations that the brand hasH. 7ree association tests and pro=ective techni ues are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. "rands with high levels of awareness and strong, favorable and uni ue associations are high e uity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.
Positi)e #rand e8uit" )s$ negati)e #rand e8uit"

"rand e uity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received. There are two schools of thought regarding the existence of negative brand e uity. 3ne perspective states brand e uity cannot be negative, hypothesi'ing only positive brand e uity is created by marketing activities such as advertising, P8, and promotion. A second perspective is that negative e uity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention N"lackwater or ;alliburton, for exampleH. &ollo uially, the term Qnegative brand e uityQ may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no,name or private label product.
(ami!" #randing )s$ indi)idua! #randing strategies

The greater a companyPs brand e uity, the greater the probability that the company will use a family branding strategy rather than anindividual branding strategy. This is because family

branding allows them to leverage the e uity accumulated in the core brand. Aspects of brand e uity include- brand loyalty, awareness, association and perception of uality. Brand )a,"at on9 The f nan* a, +a,"e of brands In the last uarter of the /Fth century there was a dramatic shift in the understanding of the creation of shareholder value. 7or most of the century, tangible assets were regarded as the main source of business value. These included manufacturing assets, land and buildings or financial assets such as receivables and investments. They would be valued at cost or outstanding value as shown in the balance sheet. The market was aware of intangibles, but their specific value remained unclear and was not specifically uantified. 9ven today, the evaluation of profitability and performance of businesses focuses on indicators such as return on investment, assets or e uity that exclude intangibles from the denominator. 5easures of price relatives Nfor example, price,to, book ratioH also exclude the value of intangible assets as these are absent from accounting book values. This does not mean that management failed to recogni'e the importance of intangibles. "rands, technology, patents and employees were always at the heart of corporate success, but rarely explicitly valued. Their value was subsumed in the overall asset value. 5a=or brand owners like The &oca,&ola &ompany, Procter K <amble, *nilever and #estlM were aware of the importance of their brands, as indicated by their creation of brand managers, but on the stock market, investors focused their value assessment on the exploitation of tangible assets.

A))roaches to brand valuation

7inancial values have to some extent always been attached to brands and to other intangible assets, but it was only in the late .EDFs that valuation approaches were established that could fairly claim to understand and assess the specific value of brands. The idea of putting a separate value on brands is now widely accepted. 7or those concerned with accounting, transfer pricing and licensing agreements, mergers and ac uisitions and valuebased management, brand valuation plays a key role in business today. *nlike other assets such as stocks, bonds, commodities and real estate, there is no active market in brands that would provide comparable values. (o to arrive at an authoritative and valid approach, a number of brand evaluation models have been developed. 5ost have fallen into two categories

research,based brand e uity evaluations, and purely financially driven approaches

,esearch-based a))roaches There are numerous brand e uity models that use consumer research to assess the relative performance of brands. These do not put a financial value on brands) instead, they measure consumer behavior and attitudes that have an impact on the economic performance of brands. Although the sophistication and complexity of such models vary, they all try to explain, interpret

and measure consumers% perceptions that influence purchase behavior. They include a wide range of perceptive measures such as different levels of awareness Nunaided, aided, top of mindH, knowledge, familiarity, relevance, specific image attributes, purchase consideration, preference, satisfaction and recommendation. (ome models add behavioral measures such as market share and relative price. Through different stages and depths of statistical modeling, these measures are arranged either in hierarchic order, to provide hurdles that lead from awareness to preference and purchase, or relative to their impact on overall consumer perception, to provide an overall brand e uity score or measure. A change in one or a combination of indicators is expected to influence consumers% purchasing behavior, which in turn will affect the financial value of the brand in uestion. ;owever, these approaches do not differentiate between the effects of other influential factors such as 8K6 and design and the brand. They therefore do not provide a clear link between the specific marketing indicators and the financial performance of the brand. A brand can perform strongly according to these indicators but still fail to create financial and shareholder value. The understanding, interpretation and measurement of brand e uity indicators are crucial for assessing the financial value of brands. After all, they are key measures of consumers% purchasing behavior upon which the success of the brand depends. ;owever, unless they are integrated into an economic model, they are insufficient for assessing the economic value of brands. *inanciall& driven a))roaches &ost,based approaches define the value of a brand as the aggregation of all historic costs incurred or replacement costs re uired in bringing the brand to its current state- that is, the sum of the development costs, marketing costs, advertising and other communication costs, and so on. These approaches fail because there is no direct correlation between the financial investment made and the value added by a brand. 7inancial investment is an important component in building brand value, provided it is effectively targeted. If it isn%t, it may not make a bean of difference. The investment needs to go beyond the obvious advertising and promotion and include 8K6, employee training, packaging and product design, retail design, and so on. Co$)arables- Another approach is to arrive at a value for a brand on the basis of something comparable. "ut comparability is difficult in the case of brands as by definition they should be differentiated and thus not comparable. 7urthermore, the value creation of brands in the same category can be very different, even if most other aspects of the underlying business such as target groups, advertising spend, price promotions and distribution channel are similar or identical. &omparables can provide an interesting cross,check, however, even though they should never be relied on solely for valuing brands. Pre$iu$ )rice- In the premium price method, the value is calculated as the net present value of future price premiums that a branded product would command over an unbranded or generic e uivalent. ;owever, the primary purpose of many brands is not necessarily to obtain a price premium but rather to secure the highest level of future demand. The value generation of these brands lies in securing future volumes rather than securing a premium price. This is true for many durable and non,durable consumer goods categories.

This method is flawed because there are rarely generic e uivalents to which the premium price of a branded product can be compared. Today, almost everything is branded, and in some cases store brands can be as strong as producer brands charging the same or similar prices. The price difference between a brand and competing products can be an indicator of its strength, but it does not represent the only and most important value contribution a brand makes to the underlying business. 2cono$ic use- Approaches that are driven exclusively by brand e uity measures or financial measures lack either the financial or the marketing component to provide a complete and robust assessment of the economic value of brands. The economic use approach, which was developed in .EDD, combines brand e uity and financial measures, and has become the most widely recogni'ed and accepted methodology for brand valuation. It has been used in more than 0,2FF brand valuations worldwide. The economic use approach is based on fundamental marketing and financial principles The marketing principle relates to the commercial function that brands perform within businesses. 7irst, brands help to generate customer demand. &ustomers can be individual consumers as well as corporate consumers depending onthe nature of the business and the purchase situation. &ustomer demand translates into revenues through purchase volume, price and fre uency. (econd, brands secure customer demand for the long term through repurchase and loyalty. The financial principle relates to the net present value of future expected earnings, a concept widely used in business. The brand%s future earnings are identified and then discounted to a net present value using a discount rate that reflects the risk of those earnings being reali'ed. To capture the complex value creation of a brand, take the following five steps45 Market segmentation5 "rands influence customer choice, but the influence varies depending on the market in which the brand operates. (plit the brand%s markets into non,overlapping and homogeneous groups of consumers according to applicable criteria such as product or service, distribution channels, consumption patterns, purchase sophistication, geography, existing and new customers, and so on. The brand is valued in each segment and the sum of the segment valuations constitutes the total value of the brand. 65 3inancial analysis5 Identify and forecast revenues and earnings from intangibles generated by the brand for each of the distinct segments determined in (tep .. Intangible earnings are defined as brand revenue less operating costs, applicable taxes and a charge for the capital employed. The concept is similar to the notion of economic profit. 75 emand analysis5 Assess the role that the brand plays in driving demand for products and services in the markets in which it operates, and determine what proportion of intangible earnings is attributable to the brand measured by an indicator referred to as the role of branding index.! This is done by first identifying the various drivers of demand for the branded business, then determining the degree to which each driver is directly influenced by the brand. The role of

branding index represents the percentage of intangible earnings that are generated by the brand. "rand earnings are calculated by multiplying the role of branding index by intangible earnings. 85 Competiti+e benchmarking5 6etermine the competitive strengths and weaknesses of the brand to derive the specific brand discount rate that reflects the risk profile of its expected future earnings Nthis is measured by an indicator referred to as the brand strength score!H. This comprises extensive competitive benchmarking and a structured evaluation of the brand%s market, stability, leadership position, growth trend, support, geographic footprint and legal protectability. 95 Brand +alue calculation5 "rand value is the net present value N#P+H of the forecast brand earnings, discounted by the brand discount rate. The #P+ calculation comprises both the forecast period and the period beyond, reflecting the ability of brands to continue generating future earnings. This calculation is useful for brand value modeling in a wide range of situations, such as@ predicting the effect of marketing and investment strategies) @ determining and assessing communication budgets) @ calculating the return on brand investment) @ assessing opportunities in new or underexploited markets) and @ tracking brand value management.

Methods for Brand "aluation2**

.. &ost 4 "ased Approach-,, Typically, cost, based approaches take into consideration the costs that have been incurred by the company to create the brand. In order to arrive the value figure, all costs 4 advertising, promotions, research and development 4 which have gone into brand creation are added and converted into current price. /. 5arket 4 based approach-, ;ere the price is estimated as per the previous similar products which are available in the market, and contains some similar characteristics of the product. 0. 8oyalty Approach-,, In this approach the brand value is estimated by the royalty income that a brand would generate if it is licensed out to another party. The royalties in this method are added for a specific period in future and then added and discounted to arrive at the net present value. This method of brand valuation is uite popular among accounting firms.