Product and Brand Management:

What is marketing?
Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders. The process
through which VALUE is exchanged.
What is a product?
Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a need or want.
Product Essentials:
Product features and benefits
Packaging
Branding
Warranties and guaranties
Time to market
Lifecycles
Levels of product
Core product
Actual product
Augmented product
Product Items, Lines, and Mixes
Product Item- a specific version of a product that can be designated as a distinct
offering among an organizations products.
Product Line- a group of closely related product items.
Product Mix- all products that an organization sells.
Product Strategy
Defines what the organization does and why it exists. It Involves creating a product
offering that is a bundle of physical (tangible), service (intangible), and symbolic
(perceptual) attributes designed to satisfy customers needs and wants. It Strives to
overcome commoditization.

Product Life Cycle

Introduction

Growth

Maturity

Decline

Post
Mortem

Sales

Profit

Time

Loss/profit

Progression of product life stages (sales & time)

Diffusion of Innovations

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

Innovators represent the first 2.5 percent of all individuals who ultimately
adopt a new product. They are more venturesome than later adopters, more
likely to be receptive to new ideas, and tend to have high incomes, which
reduces the risk of a loss arising from an early adoption.
Early adopters represent the next 13 to 14 percent who adopt. They are more
a part of the local scene, are often opinion leaders, serve as vital links to
members of the early majority group (because of their social proximity), and
participate more in community organizations than do later adopters.

 The early majority includes 34 percent of those who adopt. These individuals
display less leadership than early adopters, tend to be active in community
affairs (thereby gaining respect from their peers), do not like to take
unnecessary risks, and want to be sure that a new product will prove
successful before they adopt it.
The Late majority represents another 34 percent. Frequently, these
individuals adopt a new product because they are forced to do so for either
economic or social reasons. They participate in community activities less than
the previous groups and only rarely assume a leadership role.
Laggards comprise the last 16 percent of adopters. Of all the adopters, they
are the most local. They participate less in community matters than
members of the other groups and stubbornly resist change. In some cases,
their adoption of a product is so late it has already been replaced by another
new product.
New Product Development:
The development of original products, product improvements, product
modifications, and new brands through the firms own R&D efforts Or New
products can also come from acquisition of other companies, patents, or licenses

New Product Development Process

Idea Generation-Sales force, Customers, Employees, R&D specialists, The

competition, Suppliers, Retailers, Independent inventors.
Screening-Screening separates ideas with commercial potential from those
that cannot meet company objectives.
Business Analysis-The business analysis consists of assessing the new
products market potential, growth rate, likely competitive strengths, and
compatibility of the proposed product with organizational resources.

Development-Converting an idea into a physical product Requires

interaction among many of the firms departments. Prototypes may go
through many changes.
Test Marketing-Introduction of a trial version of a new product supported
by a complete marketing campaign to a selected city of television coverage.
Commercialization- is stage, the firm establishes marketing strategies,
and funds outlays for production and marketing.

Attributes Associated with a Product Offering

What is Brand?
A brand is a persons gut feeling about a product, service or organization.
l
l
l

A brand defines the relationship customers have with us.

A brand is a promise we make to our customers
and to ourselves.
A brand is shaped by each experience customers have with the firm.
A brand differentiates the product from similar offerings.

Traditional view: A brand is a name, term, sign, symbol, or design which is intended
to identify the goods or services of one seller or group of sellers and to differentiate
them from those of competitors.
Recent views:
Brand is what is experienced and valued by customers in everyday social life.
Brand is the culture of the product- shared, taken-for granted brand stories,
images and associations.
Brand is the emotional file we have for a product or a service or entity.
A brand is a sellers promise to deliver consistently a specific set of features,
benefits and services to buyers.
For customer brand is an experience
Role of Brand:
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium

 How Brand works?

Level-1: Identification-Brand name and logo ensure the product can be recognized
and distinguished from the competition.
Level-2: Security- You get what you expect.
Level-3: Added value- individual laddered benefits.
Level-4: Transformation-the brand actually invokes change in the consumer.
Brand: A brand is a mixture of attributes, tangible and intangible, symbolized in a
trademark, which, if managed properly, creates value and influence.

Branding:
The purpose of branding is to transform a product. Transforming a commodity like
product into customer satisfying value added propositions is the essence of
branding.
BRANDING IS A:
A physical product is combined with something else- symbols, images and feelings to
produce an idea or concept. The two grow with and live on one another in a
mutually enhancing partnership.
Branding is emotional product development.
Two routes of brand building:
1. from product advantage- intangible values
2. from values-products
Promotion is the vehicle that allows us to access the consumers mind, to
create a perceptual inventory of imagery, symbols and feelings that come to
define the perceptual entity we call a Brand.

The Brand and Value

The brand is a focal point for all the positive and negative impressions created by
the buyer over time as he comes into contact with the brands products, distribution
channel, personnel and communication...
The value of a brand comes from its ability to gain an exclusive, positive and
prominent meaning in the minds of a large number of consumers (Kapferer 1997,
pg. 25).
What is brand equity?
The differential effect that brand knowledge has on consumer response to the
marketing of that brand.
The unique brain space that your brand occupies in the minds of your
customers.

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

Sources of Brand Equity

Brand
Brand
Recognition
Recognition
Brand
Brand
Awaren
Awaren
ess
ess
Brand
Brand
Knowle
Knowle
dge
dge
Brand
Brand
Image
Image

Brand
Brand
Recall
Recall

Non-Product-Related
Non-Product-Related
(e.g.,
Price, Packaging,
(e.g.,
Price,
User
and Packaging,
Usage
User
and Usage
Imagery)
Imagery)

Attributes
Attributes

Types of
Types of
Brand Associations
Brand Associations

Benefits
Benefits

Favorability,
Favorability,
Strength, and
Strength, and
Uniqueness of
Uniqueness of
Brand Association
Brand Association

Overall
Overall
Evaluation
Evaluation
(Attitude)
(Attitude)

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

Functional
Functional
Symbolic
Symbolic
Experiential
Experiential

Brand image: A strong brand Image is created by marketing programs that link
strong favorable and unique associations to the brand in the memory.
Brand image reflects the linking of strong, favorable and unique associations to the
brand in memory.
Four steps in building brand equity:
1. Who are you?
2. What are you?
3. What about you? What do I think or feel about you?
4. What about you and me?

KELLERS BRAND RESONANCE PYRAMID

4.RELATIONSHIPS=
4.RELATIONSHIPS=
Whataboutyou&me?
Whataboutyou&me?

3.RESPONSE=
3.RESPONSE=
Whataboutyou?
Whataboutyou?

2.MEANING=
2.MEANING=
Whatareyou?
Whatareyou?

1.IDENTITY=
1.IDENTITY=
Whoareyou?
Whoareyou?

INTENSE,
INTENSE,
ACTIVELOYALTY
ACTIVELOYALTY

RESONANCE

JUDGMENTS

FEELINGS

PERFORMANCE

SALIENCE

IMAGERY

POSITIVE,
POSITIVE,
ACCESSIBLE
ACCESSIBLE
REACTIONS
REACTIONS

STRONG,FAVORABLE
POINTSOFPARITY
&UNIQUEBRAND
&DIFFERENCE
ASSOCIATIONS

DEEP,BROAD
DEEP,BROAD
BRAND
BRAND
AWARENESS
AWARENESS

This pictorial jargon is also called as consumer-based brand equity

pyramid(CBBEP)
Brand imagery: It is how people think about a brand abstractly, rather than what
they think the brand actually does. It is more a kind of intangible stuff.
Q. What is the most valuable brand dimension in the CBBE Model?
Ans. Brand resonance
Q. When does brand resonance happen?
Ans. When all other core brand values are in sync with respect to customer
needs, wants and demands.
Q. What does brand resonance reflect?
Ans. A completely harmonious relationship between the brand and the customer.
Ways to differentiate:
Being first
Leadership
Heritage
Preference

Brand Identity
Brand identity is a unique set of brand associations that the brand strategist
aspires to create or maintain.
These associations represent what the brand stands for and imply a promise
to customers from organizational members.
A brand identity provides direction, purpose and meaning for the brand. It is
central to a brands strategic vision and the driver of one of the four principal
dimensions of brand equity: associations, which are the heart and soul of the
brand.
Aspects of Brands:
BRAND IMAGE
How the brand is now perceived
BRAND IDENTITY
How strategists want the brand to be perceived
BRAND POSITION
The part of the brand identity and value proposition to be actively
Communicated to a target audience.
Brand identity and Brand equity:

Brand
Identity

Brand
Associations

Brand
Equity

Brand Identity System

Brand Identity
Brand as
Product

Brand as
Organization

Value Proposition

Brand as
Person

Brand as
Symbol

Credibility

Brand-Customer Relationship

The Kepferer brand identity prism:

Six Facets of Brand Identity

1. A brand has physical qualities or a physique

What does it do?
What does it look like?
2. A brand has its own personality
Spokesperson or figurehead role
What brand would be if it were a person
3. A brand has its own culture
Set of values feeding the brands inspiration
Country of origin
4. A brand has its own relationship
Exchanges between people and brand
Service sectors and retailers.
5. A brand is a reflection
Produces a reflection or image of the buyer or user.
Different from target the describes brands potential buyer or user.
Customer is reflected as s/he wishes to be seen from using the brand.
Consumers use brands to built their own identities.
6. A brand speaks to our self image
Self image is the targets own internal mirror.
Attitude toward the brand fosters an inner relationship with self.

Brand positioning:
The idea that each brand if at all noticed occupies a particular point of space in the
individual customers mind.
A point which is determined by the consumers perception of the brand in question
and in relation to other brands. It is this concept of Perceptual space that forms the
theoretical basis for Brand Positioning
Positioning is what you do to the minds of the consumers.
Perceptual Mapping:
Techniques that use consumer perceptions to identify similarities and differences
between brands. Produces a visual representation of how the target market views
competing alternatives.

In order to position a brand you must decide,

Who the Target Consumer is
Who your main competitors are
How the Brand is similar to your competitors (POP)
How the Brand is different from you competitors (POD)

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

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

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

distinguished from competition as being the best at satisfying a particular need.
Developing and communicating a positioning strategy

Attribute positioning
Benefit positioning
Use or application positioning
User positioning
Competitor positioning
Product category positioning
Quality or price positioning
Products increase the customers choices brand simplifies it.

Generic format for positioning statements:

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

Brand Elements:

Brand
names

Slogans

URLs

Elements

Characters

Logos

Symbols

Brand name: Most of the time managers want the brand name to describe what the
product does.
Brands dont describe the products
Brands distinguish the products
The name must serve to add extra meaning to convey the spirit of the brand.
A brand is not a product. Therefore it should not describe what a product does but
reveal a difference. Its better to chose some abstract brand name and then develop a
meaning of its own.

 Brand element choosing criteria: Memorable, meaningful, adaptable,

appealing, protectable, transferable etc

Brand Extension: it involves using an existing brand name to launch a product in

a different category.
Category extension: parent brand is used to enter a different product category from
that currently served by the parent brand.
Line extension: parent brand is used to brand a new product that targets a new
market segment within a product category currently served by the parent brand.
Advantages of brand extension:

Reduce risk perceived by customers & distributors

Decrease cost of gaining distribution & trial
Increase efficiency of promotional expenditures
Avoid cost (and risk) of developing new names
Allow for packaging and labeling efficiencies
Variety-seeking

Disadvantages:
Extensions have risks, too.
--They can fail.
Moreover, extensions can potentially result in the following costs:
--Cannibalize sales of the parent brand
--Hurt the image of the parent brand
Forego the chance to develop a new brand name or market the parent brand
differently (opportunity cost)

Brand Extendibility:
The Product Brand
Formula Brand
Know-how Brand
Interest Brand
Philosophy

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

the brand and the product. Brand is a close approximation
of the product. Passively, the brand is used to identify the
product, maybe for internal purposes. The brand does not
play any role from the customers point of view
Formula Brand Formula means a set procedure (used to make the product).
This type of brand may be find in categories like cooking oil,
food, and pickles

Know-how
Brand

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

specialized area of activity. Sony is know to have expertise in
miniaturization and robotics. Honda has know-how in
engines. Amul has developed expertise in milk processing
Interest Brand Its the centre of interest or the core spirit of the brand.
Gillette brand maintains its focus on mens grooming in all
its brands. Nikes focal point is winning. Whirlpools centre
of interest is the home (homemaker)
Philosophy
The brand at this level acquires more intangible character
and orientation. This generally happens in case of designers
and artists. The Armani signature on the product provides a
higher philosophical meaning a meaning proudly expresses
in Armanis creatively styled products

Branding Strategy: Brand Architecture

Branding strategy: Leveraging the power of the brand name to cover the market
more effectively.
Brand Architecture: How an organization structures and names the brands
within its portfolio.
Definition: The organization and structure of the brand portfolio by specifying brand
roles
and
the
nature
of
brand
relationships
between
brands
and between different product-market contexts.

Brand architecture

Corporate
dominant strategy
Dual brand
strategy

Mixed brand
strategy

Brand dominant
strategy

Endorsed brand
strategy

Brand Hierarchy: Definitions; in Keller, K. L (1998), Strategic Brand Management,

Chapter 11 Branding Strategies, pp. 428-431.

Building a strategic brand architecture:

The logical, strategic and relational structure for all of the brands in the
organizations brand portfolio
The objective is to maximize clarity, synergy and leverage to maximize customer
value and internal efficiencies

 Should clarify what role each of your brands and products play in different
markets, and may result in a brand rationalization.
Three main brand architecture systems:
1. Monolithic-where the corporate name is used on all products and services
offered by the company.
2. Endorsed-where all sub-brands are linked to the corporate brand by means
of either a verbal or visual endorsement.
3. Freestanding-where the corporate brand operates merely as a holding
company, and each product or service is individually branded for its target
market.

Brand
Brand
Relationship
Relationship
Spectrum
Spectrum
House of
House of
Brands
Brands

Endorse
Endorse
d Brands
d Brands

SubSubBrands
Brands

Branded
Branded
House
House

House of brands: Independent Brands, Each working in their own right, belonging
to a Remote parent firm.
Targets Niche Markets
Highlights new offerings
Avoids incompatibility
Allows powerful names tied to benefit
Avoids channel conflict
Shadow Endorser: A Known organization is backing this brand
Endorsed brands: Strong Brands on their own, strengthened in a customer-relevant
way by an association with the parent brand.
Independent
Can provide Relevant Support Degree of relevant support determines level:
Token, Linked Names, Strong
Can Build Strength for both brands
Sub-brands: Separate, Strong Brands tied to and synergistic with the parent
brand.
Connected directly to the master brand --modify the emotional takeaway or
proposition.
Substantial potential impact on the master brand
Critical: Degree to which they Co-Drive the buying process/decision

Branded house: Parent Brand Drives, products under it are named following their
benefits or specifications.
Master Brand is driver across Multiple categories
Under that primarily Product Descriptors/ Highly descriptive
trademarks.
Master brand should be in a position to add to and be strengthened by all
the firms offerings.
Branding policies:
Individual Branding
A policy of naming each product differently
Avoids stigmatizing all products due to a failed product
Family Branding
Branding all of a firms products with the same name
Promotion of one item also promotes all other products
Brand-Extension Branding
Using an existing brand name for an improved or new product
Provides support for new products through established brand name
and image
Co-Branding
Using two or more brands on one product to capitalize on the brand
equity (customer confidence and trust) of multiple brands
Brands involved must represent a complementary fit in the minds of
consumers.
Helps differentiate a firms product from those of its competitors
Helps take advantage of distribution capabilities of co-branding
partners
Generic Brands: A no-frills, no-brand-name, low-cost product that is simply
identified by its product category.
Brand Licensing: A practice allowing other companies to use a brand name
in exchange for a payment.
Multibrand strategy:
In this strategy, the company has more than one brand of product, competing
with each other, in a given market.
Under multibrand strategy there may not even be manufacturer
identification, unless required by law.
This contrasts with the strategy of family brands where the separate items
are given a common line identity and are usually each directed to one
segment within the market.

 Multi product strategy:

A strategy where a brand is used on two or more individual products.
The product group may or may not be all of that firm's product line.
The individual members of the family also carry individual brands to
differentiate them from other family members.
In rare cases there are family brands that have as members other family
brands, each of which has individual brands.