Course Objective

To develop an understanding of the basic branding principles and

their exposure to classic and contemporary branding applications. brand equity, and the advantages of creating strong brands. implementing, and evaluating brand strategies

To make the students aware about the role of brands, the concept of

To increase the understanding of the important issues in planning,

To acquaint the students with the appropriate concepts, theories,

models and other tools to make better brand decisions.

To understand the latest developments and cultivate an

understanding of the adjustments to be made in branding strategies over time and geographic boundaries to maximize brand equity

Text Books
Product Management by Lehman & Winer, 4th

Edition, Tata McGraw Hill Publishing Pvt Ltd.

Strategic Brand Management by Kevin Lane Keller,

3rd Edition, Pearson Education India Limited

Responsibilities of Product Manager

Product Planning Analysis of market Customer Competitors External Environment Deciding objectives & strategies Coordination with other departments

A Product Managers Potential Interactions

Suppliers Trade Suppliers Research and development Manufacturing and distribution Advertising agency Agency media department Company media department Media sales reps Media

Promotion services

Premium suppliers Premium screening Store testing Sampling Couponing

Legal

Product manager

Packaging

Fiscal

Purchasing

Designers Researchers

Market research Research suppliers

Publicity Sales Trade

Suppliers

Product Vs. General Marketing

Product Management Scope of Responsibility Narrow General Marketing Broad

Nature of decision making

Time Horizon

Tactical

Strategic

Short run

Long Run

Marketing Organization
Organizing by Product Organizing by market Organizing by function

Product-Focused Structure
Head of company/division

Manufacturing

Marketing

Finance

Corporate communications

Marketing Research

Product management

Support

Manager of product A

Manager of product B

Manager of product C

Evaluation of Product Focused Structure

Advantages
Easier to assess work-

Disadvantages

Duplication of activities

unit performance Decision-making is faster

Market-Focused Organization

Head of the company/division

Manufacturing

Marketing

Finance

Corporate communications

Manager, market A

Manager, market B

Manager, market C

Evaluation of Market Focused Structure

Advantages
Focuses on customer Focuses on customer

Disadvantages

needs needs Products and services Products and services tailored tailoredto tocustomer customer needs needs

Duplication Duplicationof of resources resources Difficult Difficultto tocoordinate coordinate across acrossdepartments departments

11 11

Marketing Organization: Regional Bell Operating Company

Vice president, marketing

Assistant vice president, consumer marketing

Assistant vice president, business marketing

Assistant vice president, interindustry marketing

Product management

Marketing planning and product development

Carrier marketing

Operations and sales

Product management

Operator services

Customer billing

Operations

Revenue and market forecasting

Directory products

Functionally-Focused Organization

Head of the company/division

Manufacturing

Marketing

Finance

Corporate communications

Product marketing

Advertising

Sales promotion

Marketing research

Evaluation of Functionally Focused Structure

Advantages
Work done by highly

Disadvantages

skilled specialists Lowers costs through reduced duplication

May lead to slower decision making Produces managers with narrow experiences

Skills of Product Managers

Background, desirable but not essential Negotiation Skills Teamwork Communication Skills Analytical Skills

Changes Affecting Product Management

The Web Data explosion Increased emphasis of brands

Changes in the balance of market power

Increased importance of customer retention

programs Increased global competition

CATEGORY ATTRACTIVENESS ANALYSIS

 Product category defines set of competitors against

which one most often competes on a daily basis.

Category Attractiveness Factors

Aggregate Market Factors Category Factors Environmental Factors

Aggregate Category Factors

Category size Category growth

Stage in product life cycle

Sales cyclicity

Seasonality
Profits

Attractiveness of Market Variables

Category Attractiveness over the Product Life Cycle

Sales

Stage of product life cycle

Introduction

Growth

Maturity

Decline

Time

Category size
Category growth Category attractiveness

Small Low

Moderate High High

Large Low

Moderate Negative Low

Low

Low/high

Category Factors
Threat of new entrants Bargaining power of buyers

Bargaining power of suppliers

Current category rivalry

Pressure from substitutes

Category capacity

Threat of new entrants

Can be managed by creating high entry barriers like: Economies of scale Product differentiation Capital requirements cost Distribution

Buyer Bargaining Power is High When:

Product bought is a large percentage of the

buyers cost. Product bought is undifferentiated. Buyers earn low profits. Buyer has full information. Substitutes exist for the sellers product or service. Buyers have formed a union

Supplier Bargaining Power is High When:

Suppliers are highly concentrated, that is,

dominated by a few firms. (OPEC) There is no substitute for the product supplied. (Petrol) Supplier has differentiated its product or built in switching costs. (Providing raw materials that are not provided by any other) Supply is limited.

Major Characteristic of Categories Exhibiting Intensive Rivalries

Many or balanced competitors Slow growth High fixed costs Lack of product differentiation Personal rivalries

Pressure from substitutes

As the substitutes are more, category is lesser

attractive and as they are less, it is more.

Category capacity
If category unused capacity is high, bargaining power

of buyers are more.

Impact of Category Factors on Attractiveness

Environmental Factors

Technological
Political Economic Regulatory Social