PRODUCT AND BRAND MANAGEMENT

Course Content

1. Introduction to Product management.

2. Role and operation of Product management in Marketing.

3. Product analysis: Category / Competitor / Customer / Demand.

4. New Product Development Process and Role of Product Mangers.

5. Brand vs. Product, Brand Elements.

6. Brand Extension / Brand Relationship Spectrum.

7. Brand Identity.

8. Brand Equity.

9. Brand Building Strategies.

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TOPIC- 1

INTRODUCTION TO PRODUCT MANAGEMENT

Product

In marketing, a product is anything that can be offered to a market that might satisfy a
want or need. In retailing, products are called merchandise. In manufacturing, products
are purchased as raw materials and sold as finished goods. Commodities are usually raw
materials such as metals and agricultural products, but a commodity can also be anything
widely available in the open market. In general usage, product may refer to a single item
or unit, a group of equivalent products, a grouping of goods or services, or an industrial
classification for the goods or services.

Product Management

Product Management is an organizational lifecycle function within a company dealing

with the planning or marketing of a product or products at all stages of the product
lifecycle.

Product management (inbound focused) and product marketing (outbound focused) are
different yet complementary efforts with the objective of maximizing sales revenues,
market share, and profit margins. The role of product management spans many activities
from strategic to tactical and varies based on the organizational structure of the company.
Product management can be a function separate on its own or a member of marketing or
engineering.

While involved with the entire product lifecycle, product management's main focus is on
driving new product development. According to the Product Development and
Management Association (PDMA), superior and differentiated new products - ones that
deliver unique benefits and superior value to the customer - is the number one driver of
success and product profitability.

Aspects of Product Management

Depending on the company size and history, product management has a variety of
functions and roles. Sometimes there is a product manager, and sometimes the role of
product manager is held by others. Frequently there is Profit and Loss (P&L)
responsibility as a key metric for evaluating product manager performance. In some
companies, the product management function is the hub of many other activities around
the product. In others, it is one of many things that need to happen to bring a product to
market.

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Product planning

1. Defining new products

2. Gathering market requirements
3. Building product roadmaps, particularly Technology roadmaps
4. Product Life Cycle considerations
5. Product differentiation

Product marketing

 Product positioning and outbound messaging

 Promoting the product externally with press, customers, and partners
 Bringing new products to market
 Monitoring the competition

Changes affecting Product Management

 The web
 The data explosion
 The increased emphasis on the brands
 Changes in the balance of market power
 Increased importance of customer retention programs
 Increased global competition

Product Life Cycle

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Product Life Cycle Management is the succession of strategies used by management as
a product goes through its product life cycle. The conditions in which a product is sold
changes over time and must be managed as it moves through its succession of stages.

The product life cycle goes through many phases, involves many professional disciplines,
and requires many skills, tools and processes. Product life cycle (PLC) has to do with the
life of a product in the market with respect to business/commercial costs and sales
measures; whereas product lifecycle management (PLM) has more to do with managing
descriptions and properties of a product through its development and useful life, mainly
from a business/engineering point of view.

To say that a product has a life cycle is to assert four things:

1) Products have a limited life

2) Product sales pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller

3) Profits rise and fall at different stages of product life cycle

4) Products require different marketing, financial, manufacturing, purchasing, and

human resource strategies in each life cycle stage.

The different stages in a product life cycle are:

1. Market Introduction Stage

 costs are high

 slow sales volumes to start

 little or no competition - competitive manufacturers watch for

acceptance/segment growth losses

 demand has to be created

 customers have to be prompted to try the product

 makes no money at this stage

2. Growth stage

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  costs reduced due to economies of scale

 sales volume increases significantly

 profitability begins to rise

 public awareness increases

 competition begins to increase with a few new players in establishing market

 increased competition leads to price decreases

3. Mature stage

 Costs are lowered as a result of production volumes increasing and experience

curve effects

 sales volume peaks and market saturation is reached

 increase in competitors entering the market

 prices tend to drop due to the proliferation of competing products

 brand differentiation and feature diversification is emphasized to maintain or

increase market share

 Industrial profits go down

4. Saturation and Decline stage

 costs become counter-optimal

 sales volume decline or stabilize

 prices, profitability diminish

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  profit becomes more a challenge of production/distribution efficiency than
increased sales

Problems with Product Life Cycle.

In reality, very few products follow such a prescriptive cycle. The length of each stage
varies enormously. The decisions of marketers can change the stage, for example from
maturity to decline by price-cutting. Not all products go through each stage. Some go
from introduction to decline. It is not easy to tell which stage the product is in. Remember
that PLC is like all other tools. Use it to inform your gut feeling.

Product Differentiation

In marketing, Product Differentiation (also known simply as "differentiation") is the

process of distinguishing the differences of a product or offering from others, to make it
more attractive to a particular target market. This involves differentiating it from
competitors' products as well as one's own product offerings.

Differentiation Strategy

Definition

“Differentiation is a competitive business strategy whereby firms attempt to gain a

competitive advantage by increasing the perceived value of their products and
services relative to the perceived value of other firm's products and services”
-CharlesW.L.Hill,Gareth R.Jone

Differentiation is a source of competitive advantage. Marketing or product differentiation

is the process of describing the differences between products or services, or the resulting
list of differences. This is done in order to demonstrate the unique aspects of your product
and create a sense of value. The term unique selling proposition refers to advertising to
communicate a product's differentiation.

In economics, successful product differentiation leads to monopolistic competition and is

inconsistent with the conditions for perfect competition, which include the requirement
that the products of competing firms should be perfect substitutes.

The brand differences are usually minor; they can be merely a difference in packaging or
an advertising theme. The physical product need not change, but it could. Differentiation
is due to buyers perceiving a difference; hence causes of differentiation may be

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functional aspects of the product or service, how it is distributed and marketed, or who
buys it. The major sources of product differentiation are as follows.

 Differences in quality which are usually accompanied by differences in price

 Differences in functional features or design
 Ignorance of buyers regarding the essential characteristics and qualities of goods
they are purchasing
 Sales promotion activities of sellers and, in particular, advertising
 Differences in availability (e.g. timing and location).

The objective of differentiation is to develop a position that potential customers see as

unique.

The Three Elements of Product Differentiation

1. Convenience (or timing)

2. Customization.

3. Cost Recovery

Convenience: People don't want to wait these days. In order to differentiate your
product from your competitors', consider how you can deliver your goods and services
precisely when they are needed. Often, this means being faster than your competitor.

Customization: Customization is an element of product differentiation that cannot be

over-emphasized. The more you know about your customers' needs — and the better you
do in serving those needs to your customers' satisfaction — the stronger your competitive
position will be in the market. Service-based businesses are particularly capable of
customization. (When I order those drapes, I don't want just any old size or pattern. They
need to fit perfectly to my windows, and I want them in the style and color pattern that
goes best in my house.)

Cost Recovery: Cost recovery does not mean paying the cheapest price. It does mean
gaining the highest advantage per dollar spent. Often, in fact, it makes more sense to
spend a little more to obtain a product or service that most closely aligns with your needs
and brings satisfaction. Too frequently, "I got it cheap" is the consolation prize when you
end up with something that really does not properly serve your needs.

The following differentiation types are commonly found

Differentiation based on ingredients

 TTK group launched its Prestige range of non-stick frying pans.

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  Balsara’s Promise toothpaste with clove oil which acts as herbal remedy for tooth
and gum pains.

Differentiation through additional features

 Godrej with its 300 ltrs and 390 ltrs refrigerators targeting high lifestyle people.

 Whirlpool refrigerators with ‘Sixth Sense Technology’.

Differentiation by packaging

 Brylcream in handy tube.

 Kissan ketchup in a squeezy plastic bottle.

 Hit for cockroaches with sleek nozzle for hidden areas

Differentiation by design
 Kinetic Honda with electronic ignition, to avoid kick-start.

Differentiation by positioning
 Dominos Pizza with their ‘30 minutes home delivery or free’ concept.
 Maggi with their ‘2 minutes noodles’.

Differentiation based on Opportunities in the External Environment

 Trends: Firms can provide a differentiated product to satisfy the needs of

customers who are responding to trends. eg Integreted mp3 players in Sunglasses.

 Government Policy: Changes in government policy provide many opportunities

for firms to develop differentiated products. Tax incentives by the Indian
government helped the introduction of the new electric car Reva.

 Social Causes: Social causes can create demand for differentiated products that
help people further their cause of choice.

 Economic Conditions: Economic condition creates opportunities for product

differentiation .It can cater to either the premium or the low-end market
depending on the state of economy. Like Nokia has launched a variety of
economic handsets for rural India. HUL has also come up with many affordable
products for the bottom of the pyramid.

TOPIC-2

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ROLE AND OPERATION OF PRODUCT MANAGEMENT IN
MARKETING

Marketing:

Marketing is an essential management function needed to create a demand for your

product.
The following are the primary functions in marketing planning –

a. to understand the needs and desires of present and potential customers ,

b. to select and develop products that would best satisfy those customers
within the limits of your resources ,
c. to develop a program to tell your customers about the benefits of your
product ,&
d. to ensure that your product gets to your customer.

Marketing Mix:

PRODUCT PROMOTION

Marketing Mix

PRICE PLACE

PRODUCT: A Product is designed to satisfy consumer needs. Product strategy

includes decisions about its uses, quality, features, brand name, style , packaging,
guarantees, design and options.

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Classification of the types of products

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A. Convenience products: These are consumer products that the customer buys very
frequently, without much deliberation. They are low priced of low value and are widely
available at many outlets. They may be further subdivided as:

 Staple Products: Items like milk, bread, butter etc. which the family consumes
regularly. Once in the beginning the decision is programmed and it is usually
carried on without change.

 Impulse Products: Purchase of these is unplanned and impulsive. Usually

when the consumer is buying other products, he buys these spontaneously for
e.g. Magazines, toffees and chocolates. Usually these products are located
where they can be easily noticed.

 Emergency products: Purchase of these products is done in an emergency as a

result of urgent and compelling needs. Often a consumer pays more for these.
For example while traveling if someone has forgotten his toothbrush or
shaving kit; he will buy it at the available price.

B. Shopping products: These are less frequently purchased and the customer carefully
checks suitability, quality, price and style. He spends much more time and effort in
gathering information and making comparisons. E.g. furniture, clothing and used cars.

 Specialty products: These are consumer goods with unique characteristics /

brand identification for which a significant group of buyers is willing to make a
special purchase effort. For example, Mitsubishi Lancer, Ray ban glasses.

 Unsought product: These are products that potential buyers do not know exist or
do not yet want .For example Life Insurance, a Lawyers services in contesting a
Will.

The above product decisions are very important to ensure the sale of products. A product
has both tangible and intangible components. While buying a product, the customer does
not merely look for the physical product, but a bundle of satisfaction. Thus the impact

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that any product has upon a buyer goes well beyond its obvious characteristics. There is a
psychological dimension to all customer purchases; what a customer thinks about a
product is influenced by far more than the product itself. For example, the buyer of an air
conditioner is not purchasing cooling machine only. He looks for attractive color and
design, durability, low noise, quick cooling, etc. These influencing factors must be
considered by the small firms to meet the requirements of different kinds of customers.

PRICE

It is the amount you charge from your customers for your product and also the policies
on discounts, allowances, credit terms, payment periods, transit payments, etc.

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The pricing policies mainly followed by the small firms are:

a. Competitive pricing: This method is used when the market is highly competitive and
the product is not differentiated significantly from the competitor’s products.

b. Skimming-the-cream pricing: Under this pricing policy, higher prices are charged
during the initial stages of the introduction of a new product. The aim is to recover the
initial investment quickly. This policy is quite effective when the demand for a product is
likely to be more inelastic with respect to price in its early stages; to segment the market
into segments that differ in price elasticity of demand and to restrict the demand to a
level, which a firm can easily meet.

c. Penetration pricing: Under this policy, prices are fixed below the competitive level to
obtain a larger share of the market. Penetration pricing is likely to be more successful
when the product has a highly elastic demand; the production is carried out on a large
scale to achieve low cost of production per unit; and there is strong competition in the
market.

PROMOTION
It is informing and persuading your target market of the value of your product by using
various promotional tools such as advertising, publicity, personal selling, etc.

PLACE
Placing your product means providing it at the right place at the right time.

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Thus, success or failure of a product very much depends on the marketing mix used by
the company.

Four main reasons for the success of a product:

1. Use of an effective marketing approach.

2. Have a unique product.
3. Technical competence.
4. Competitive pricing.

Seven main reasons for the failure of a Product :

1. Misunderstanding the market.

2. Product quality.
3. Lack of marketing efforts.
4. Poor planning.
5. Competition.
6. Failure to adopt.
7. Lack of technical competence.

Marketing Plan

A marketing plan is a written document containing the guidelines for the business
center’s marketing programs and allocations over the planning period.

Marketing planning has become a major activity in most firms. It can be divided into two
general parts: the situation analysis, which analyses the background of the market for the
product and the objectives, strategy , and programs based on the background analysis that
direct the product managers action .

The Planning Process

In general, the planning process works as follows:

* Planning [ analysis, objectives & strategy ]
* Implementing
* Evaluating

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Steps in the Planning Process

1. Update historical data.

2. Collect current data.
3. Data analysis.
4. Develop objectives, strategies & action program.
5. Develop pro forma financial statements.
6. Negotiate.
7. Measure progress.
8. Audit.

Marketing Environment

Luck comes to those who are prepared .In marketing, being in the right place at the right
time means being in tune with your marketing environment .This environment consists of
major social forces that you cannot control, but which affect your company’s ability to
operate effectively and profitably. One needs to take advantage of the opportunities and
avoid threats.
The following are the major environmental forces that affect the marketing environment.

 Demographics
 Technology
 Culture
 Economy
 Politics

Market Segmentation

In past, it was a standard practice of many business houses to produce their product
massively , advertise and glut the market .As competition intensified, profit levels
declined and the firms recognized that they cannot sell everything to everyone. Thus, the
concept of subdividing the market started gaining more and more importance.
The objective of segmentation is to structure the services and the firm to be responsive to
the submarket’s needs.

Segmentation can be done in any of the following ways:

1. Geographies
2. Demographics
3. Household
4. Psychographics
5. Purchase behavior
6. Type of user

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Market Positioning

Having determined which segments exist, one must decide which segment to serve and
how to position your product to distinguish it from the ones of the competitors. The
purpose is to establish a distinctive image of your product in your customer’s mind.
Positioning should be done on the basis of your abilities to provide benefits that are
distinct from your competitors.
E.g. A soft drink company should provide a zero calorie fruit drink among other soft
drink providers.

Market Research

Areas to research:
 Who is your market?
 What products do they buy?
 When do they buy?
 Who is involved in the purchase decision?
 Where is your market?
 Where should you sell your product?
 Why does your market buy your product?

Data for research purpose can be collected through two major sources:

DATA COLLECTION

PRIMARY DATA SECONDARY DATA

 Sales records  Government

 Sales representatives  Trade associations
 Questionnaires  Research organisations
 Group survey  Libraries
 Telephone survey  Marketing firms
 Expert opinion  Consultants
 Test market  Colleges
 Mail order catalogue  Universities
 Trade shows
 Direct mail

TOPIC-3

PRODUCT ANALYSIS

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Everyday we use thousands of different products, from telephones to bikes and drinks
cans to washing machines. But have you ever thought about how they work or the way
they are made?

Every product is designed in a particular way - product analysis enables us to understand

the important materials, processing, economic and aesthetic decisions which are
required before any product can be manufactured. An understanding of these decisions
can help us in designing and making for ourselves.

Getting started

The first task in product analysis is to become familiar with the product! What does it do?
How does it do it? What does it look like? All these questions, and more, need to be
asked before a product can be analyzed. As well as considering the obvious mechanical
(and possibly electrical) requirements, it is also important to consider the ergonomics,
how the design has been made user-friendly and any marketing issues - these all have
an impact on the later design decisions.

Let's take the example of a bike:

 What is the function of a bicycle?

 How does the function depend on the type of bike (e.g. racing, or about-town, or
child's bike)?
 How is it made to be easily maintained?
 What should it cost?
 What should it look like (colors, etc.)?
 How has it been made comfortable to ride?
 How do the mechanical bits work and interact?

If you do this exercise for various products, you will very quickly discover something
interesting.

Systems and components

There are two main types of product - those that only have one component (e.g. a
spatula) and those that have many components (e.g. a bike). Products with lots of
components we call systems. For example:

Product Components
Bike Frame, wheels, pedals, forks, etc.
Drill Case, chuck, drill bit, motor, etc.

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 Multi-gym Seat, weights, frame, wire, handles, etc.

In product analysis, we start by considering the whole system. But, to understand why
various materials and processes are used, we usually need to 'pull it apart' and think about
each component as well. We can now analyze the function in more detail and draft a
design specification.

Some important design questions

To build a design specification, consider questions like the following:

 What are the requirements on each part (electrical, mechanical, aesthetic,

ergonomic, etc)?
 What is the function of each component, and how do they work?
 What is each part made of and why?
 How many of each part are going to be made?
 What manufacturing methods were used to make each part and why ?
 Are there alternative materials or designs in use and can you propose
improvements?

These are only general questions, to act as a guide - you will need to think of the
appropriate questions for the products and components you have to analyze. For a drinks
container, a design specification would look something like:

 provide a leak free environment for storing liquid

 comply with food standards and protect the liquid from health hazards
 for fizzy drinks, withstand internal pressurization and prevent escape of bubbles
 provide an aesthetically pleasing view or image of the product
 if possible create a brand identity
 be easy to open
 be easy to store and transport
 be cheap to produce for volumes of 10,000+

Once we have a specification, the next stage in the process is to understand how the
materials are chosen.

Choosing the right materials

Given the specification of the requirements on each part, we can identify the material
properties which will be important - for example:

Requirement Material Property

must conduct electricity electrical conductivity

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 must support loads without breaking strength
cannot be too expensive cost per kg

One way of selecting the best materials would be to look up values for the important
properties in tables. But this is time-consuming, and a designer may miss materials which
they simply forgot to consider. A better way is to plot 2 material properties on a graph, so
that no materials are overlooked - this kind of graph is called a materials selection chart
(these are covered in another part of the tutorial).Once the materials have been chosen,
the next step is normally to think about the processing options.

Choosing the right process

It is all very well to choose the perfect material, but somehow we have to make
something out of it as well! An important part of understanding a product is to consider
how it was made - in other words what manufacturing processes were used and why.
There are 2 important stages to selecting a suitable process:

 Technical performance: can we make this product with the material and can we
make it well?
 Economics: if we can make it, can we make it cheaply enough?

Process selection can be quite an involved problem - we deal with one way of
approaching it in another part of the tutorial.

So, now we know why the product is designed a particular way, why particular materials
are used and why the particular manufacturing processes have been chosen. Is there
anything else to know?

CONCLUSION

Product analysis can seem to follow a fixed pattern:

1. Think about the design from an ergonomic and functional viewpoint.

2. Decide on the materials to fulfill the performance requirements.
3. Choose a suitable process that is also economic.

CATEGORY ANALYSIS

For either new or existing products, product managers must ask whether the category of
interest is sufficiently attractive to warrant new or continued investment. An essential
component of the marketing planning process is an analysis of a product’s potential to
achieve a desired level of return on the company’s investment. An analysis of this type
not only assesses the financial opportunities but also provides ideas about how to
complete better given structural characteristics of the category.

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Aggregate Category Factors

 CATEGORY SIZE
 CATEGORY GROWTH
 STAGE IN PRODUCT LIFE CYCLE
 SALES CYCLICITY
 SEOSONALITY
 PROFITS

Category Factors

 Threat of new entrants

 Bargaining power of buyers
 Bargaining power of suppliers
 Current category rivalry
 Pressure from substitutes
 Category capacity

Environment factors

 Technological
 Political
 Economic
 Regulatory
 Social

COMPETITOR ANALYSIS

Concerning the difficulties of the product manager’s job, competitor analysis has
received more attention in recent years. In slow growth markets, sales growth must come
from the competitors. With shorter product life cycles, product managers must recoup
investments in a shorter period of time. Technology available to the managers makes
collecting and disseminating information within the organization easier as well as
quicker. Product managers face a high level of turbulence from increased foreign
competition, changing technology and rates of innovation. The manager of competitor
intelligence has become an important figure in many multinational corporations.

Competitor Analysis System

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 SECONDARY PRIMARY DATA
DATA

Who are they?

What are their product’s features?
What do they want?
What is their current strategy?

Who has the competitive

product advantage?

What are they

going to do?

Sources of Information

1. Primary sources
2. Secondary sources
3. Other sources
4. Ethically questionable sources

Primary sources

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 Bankers

Consultants Sales force

Primary data

Employees Suppliers

Customers

Secondary sources:

Product managers should always begin a competitor analysis with a search of secondary
sources of information. Secondary sources are generally less expensive and easier to
obtain than primary data and often cover most of the questions we need to ask about
competitors. Following are the major sources of secondary information:

 Internal sources
 Local news papers
 Annual reports
 Patent filings
 Press
 Government
 Electronic databases
 News releases
 Trade associations
 Promotional literature
 Internet
 Trade press
 Consultants
 Customer communications
 10K statement

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Other sources:

 Help – wanted ads

 Trade shows
 Plant tours
 Reverse engineering
 Monitoring test markets
 Hiring key employees

Ethically questionable sources:

 Aerial reconnaissance
 Buying / stealing trash
 Bribing printers
 Running phony want ads
 Snooping on aero planes

Assessing competitors’ current objectives

A critical step in a competitor analysis is to assess what the current objectives are for the
major competitor products. An assessment of current objectives provides valuable
information concerning the intended aggressiveness of the competitors in the market in
the future. It also provides a context for assessing the capabilities of the competitors.

Assessing competitors’ current strategies

The second stage in competitor analysis is to determine how competitors are attempting
to achieve their objectives. This question is addressed by examining their past and current
marketing strategies.

Marketing strategy

At product level, a marketing strategy can be thought of in terms of three major

components:
1. Target market selection
2. Core strategy (positioning and differential advantage)
3. Implementation (supporting marketing mix)

Assessing a competitors’ will

Even the strongest competitor can be overcome if it is not committed to the market.
Similarly, a weak competitor can cause massive damage if it is fanatically committed. At
the same time it is crucial to assess a competitors’ strength of will or commitment. This
requires going beyond objectives to assess the intensity with which they approach the

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task. In assessing the likelihood that a competitor will continue the fight, one should
assess the following factors:
1. How crucial is the product to the firm?
2. How visible is the commitment to the market?
3. How aggressive are the managers?

Predicting future strategies

The next step is to know what is our competitors likely to do in future.We are particularly
interested in their likely strategies over the subsequent planning horizon, usually a year.
However, the competition does not come right out and indicate what strategies they will
pursue. In that case, subjective estimates can be based on the information previously
collected and analyzed. This can also be done in many other ways like Role playing, etc.

CUSTOMER ANALYSIS

Since business runs on revenue and revenue comes from customers, it is critical to
understand them. Customers, not products are the ultimate source of operating income.
All companies are becoming customer-centric and a large number of them have created
the position of customer insights managers or the equivalent to assemble and disseminate
the customers’ “voice” throughout the organization.
By customers we mean not only current customers of a given product but also both
customers of competitors and potential customers. The focus is on understanding
customers.

What We Need To Know About Customers??

 Who buys and uses the product?

 What customers buy and how they use it?
 Where customers buy?
 When customers buy?
 How customers choose?
 Why they prefer a product?
 How they respond to marketing programs?
 Will they buy it in future too?

Segmentation

Each customer is unique to some degree. As a consequence, mass marketing is typically

inefficient. Since it is time consuming and not very profitable to develop a separate
strategy for each customer, some grouping of customers into segments is very useful.
Some categories have so few customers that each can be treated as a separate segment
and analyzed separately. In addition, there is a trend towards mass customization or one

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to one marketing which focuses on marketing products and services to individuals rather
than to segments.
E.g. Levis custom tailored jeans for women.

Desirable criteria for segments

The following six criteria provide a useful standard for evaluation:

1. Sizable
2. Identifiable
3. Reachable
4. Respond differently
5. Coherent
6. Stable

Methods for market segmentation

1. Cluster analysis
2. Tabular analysis
3. Regression analysis
4. Latent class analysis

ILLUSTRATION

ENERGY BARS
Who are the customers?
 Hard core athletes
 Dieters
 Health conscious
 Nutrition seeking families, etc

DEMAND ANALYSIS

Demand

Definition

The amount of a particular economic good or service that a consumer or group of

consumers will want to purchase at a given price. The demand curve is usually downward
sloping, since consumers will want to buy more as price decreases. Demand for a good or
service is determined by many different factors other than price, such as the price of
substitute goods and complementary goods. In extreme cases, demand may be completely
unrelated to price, or nearly infinite at a given price. Along with supply, demand is one of
the two key determinants of the market price.

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In economics, demand is the desire to own something and the ability to pay for it. The
term demand signifies the ability or the willingness to buy a particular commodity at a
given point of time. Demand is also defined elsewhere as a measure of preferences that is
weighted by income.In economics, the law of demand is an economic law that states that
consumers buy more of a good when its price decreases and less when its price increases.

There are certain goods which do not follow this law. These include Veblen and Giffen
goods.

Demand schedule

In microeconomic theory, demand is defined as the willingness and ability of a

consumer to purchase a given product in a given frame of time.

The demand schedule, depicted graphically as the demand curve, represents the amount
of goods that buyers are willing and able to purchase at various prices, assuming all other
non-price factors remain the same. The demand curve is almost always represented as
downwards-sloping, meaning that as price decreases, consumers will buy more of the
goods.

Just as the supply curves reflect marginal cost curves, demand curves can be described as
marginal utility curves.

The main determinants of individual demand are: the price of the good, level of income,
personal tastes, the population (number of people), the government policies, the price of
substitute goods, and the price of complementary goods.

The shape of the aggregate demand curve can be convex or concave, possibly depending
on income distribution. In fact, an aggregate demand function cannot be derived except
under restrictive and unrealistic assumptions.

As described above, the demand curve is generally downward sloping. There may be rare
examples of goods that have upward sloping demand curves. Two different hypothetical
types of goods with upward-sloping demand curves are a Giffen good (an inferior, but
staple, good) and a Veblen good (a good made more fashionable by a higher price).

Similar to the supply curve, movements along it are also named expansions and
contractions. A move downward on the demand curve is called an expansion of demand,
since the willingness and ability of consumers to buy a given good has increased, in
tandem with a fall in its price. Conversely, a move up the demand curve is called a
contraction of demand, since consumers are less willing and able to purchase quantities
of the product in question

Thus a product manager needs to take care about all these factors to be able to do a
successful demand analysis.

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TOPIC-4

NEW PRODUCT DEVELOPMENT PROCESS

Each year thousands of new products are introduced in national and international
markets. Most of them are not very new. Some are slightly new products which consist of
minor variations on existing products through changing ingredients, adding features, or
the “me too” entrants. These products are the types generally introduced by the existing
product managers and account for substantial sales and profits and hence are very
important. The production process involved may be quite sophisticated.
New products can be introduced either for offensive or defensive purposes. Offensive
is to gain market share whereas defensive is to match the competitors.

Product stages

1. Idea generation
2. Concept development
3. Feasibility screening
4. Concept testing
5. Product development
6. Product testing
7. Market testing
8. Go-No go decision

Product Modifications

“Continuous quality improvement”

Phrases like these point towards modifying the product. Such modification can be of
three types:
1. Clearly better
2. Different
3. Inferior

Line Extensions

 Introducing additional product variants that use the existing brand name is known
as “Line extension”. It is a popular way to capitalize on the original brand’s
equity. Many products are actually product families with a number of close
relatives designed to appeal to various segments.

Getting Ideas For New Products

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Ideas for product modifications and extensions come from many sources, both proactive
and reactive. Sources that rely on active efforts of the company utilize many aspects of
the situation analysis:

Customer Brain
analysis storming

IDEAS

Competitor Category
analysis analysis

Active search

Testing New Products

1. Concept testing
2. Product testing
3. Market tests

Forecasting

Forecasting sales is always difficult. However, at least for frequently purchased consumer
products, some fairly widely used procedures have been developed. It is possible to
simply wait and see at what levels sales stabilize. Unfortunately, this takes a fairly long
period and hence a lot of money. What is really desired is an early warning system that
forecasts the eventual sales level of a new product before it is attained. Four basic factors
are the keys to eventual sales:
1. Awareness.
2. The eventual proportion of consumers who try the product.
3. The proportion of triers who remain with the brand.

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 4. The usage rate of the product category among eventual users.

Brand Extensions

It means extending brands beyond their original category. Nowadays this trend is
becoming increasingly popular. This decision is riskier and beyond the control of a
manager as it is likely to influence the original brand too.

Really New Products

Really new products are different. They

1. Create or expand a new category

2. Are new to customers
3. Need proper channels of distribution
4. Create a need for infrastructure, software, advertising, etc.

Getting ideas for Really New Products

Ideas for such products can come through following sources:

1. Asking dissatisfied customers.
2. Asking nonrepresentative customers.
3. Involving customers as co-developers.
4. Listening to the scientists.
5. Scanning the literature.

Evaluating Really New Products

Really new products take a long time from conception to development and from initial
development to mass sales. Hence, one needs to have a lot of patience, which is hard to
find. Such products can be evaluated in the following ways:
1. Relative advantage
2. Compatibility
3. Risk
4. Complexity
5. Communicability
6. Trialability

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ROLE OF PRODUCT MANAGERS

It is to oversee all aspects of a product line and deliver superior customer satisfaction. A
recent national survey of product manager showed that a significant proportion of product
managers spent much of their time in responding to sales force requests and expediting
products through other departments but wished that they could spend less time on those
activities.

TYPES OF PRODUCT MANAGERS

1. Consumer product managers

2. Business product managers
3. Global product managers

A Product Manager has to perform broadly three kinds of duties:

1. Day-to-Day duties

 Maintain a product fact book

 Motivate the sales force
 Collect marketing information
 Act as a liaison between sales, manufacturing, research & development, etc.
 Control the budget
 Achieve sales targets

2. Short- term duties

 Participate in annual marketing plan

 Work with advertising agencies
 Coordinate trade shows
 Initiate regulatory acceptance
 Participate in new product development team
 Predict and manage competitors actions
 Modify products
 Recommend for line extension
 Eliminate a product

3. Long-term duties

 Create a long-term competitive strategy for a product

 Identify new product opportunities
 Recommend for product introduction, modification, enhancement, etc.

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A product manager researches, selects, develops, and places a company's products.A
product manager considers numerous factors such as target demographic, the products
offered by the competition, and how well the product fits in with the company's business
model. Generally, a product manager manages one or more tangible products. However,
the term may be used to describe a person who manages intangible products, such as
music, information, and services.A product manager's role in tangible goods industries is
similar to a program director's role in service industries.

Diverse interpretations regarding the role of the product manager are the norm. The
product manager title is often used in many ways to describe drastically different duties
and responsibilities. Even within the high-tech industry where product management is
better defined, the product manager's job description varies widely among companies.
This is due to tradition and intuitive interpretations by different individuals.In the
financial services industry (banking, insurance etc.), product managers manage products
(for example, credit card portfolios), their profit and loss, and also determine the business
development strategy.In some companies, the product manager also acts as a:

 Product marketing manager — may perform all outbound marketing activities

 Project manager — may perform all activities related to schedule and resource
management
 Program manager — may perform activities related to schedule, resource, and
cross-functional execution

TOPIC-5

BRAND V/S PRODUCT

Brand

Meaning 

A Brand is a distinctive name, symbol, design, logo, or a package assigned to a particular

product which distinguishes it from the other products of the same category.

The American Marketing Association (AMA) defines a brand as a "name, term, sign,
symbol or design, or a combination of them intended to identify the goods and services of
one seller or group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target
market to choose you over the competition, but it is about getting your prospects to see
you as the only one that provides a solution to their problem.

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The objectives that a good brand will achieve include:

 Delivers the message clearly

 Confirms your credibility
 Connects your target prospects emotionally
 Motivates the buyer
 Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and
prospects. You do this by integrating your brand strategies through your company at
every point of public contact.

Your brand resides within the hearts and minds of customers, clients, and prospects. It is
the sum total of their experiences and perceptions, some of which you can influence, and
some that you cannot.

A strong brand is invaluable as the battle for customers intensifies day by day. It's
important to spend time investing in researching, defining, and building your brand. After
all your brand is the source of a promise to your consumer. It's a foundational piece in
your marketing communication and one you do not want to be without.

Product

Meaning

A Product is anything, which is offered to the market to satisfy a want or need. In

marketing, a product is anything that can be offered to a market that might satisfy a want
or need. In retailing, products are called merchandise. In manufacturing, products are
purchased as raw materials and sold as finished goods. Products can be classified as
tangible or intangible. A tangible product is any physical product that can be touched like
a computer, automobile, etc. An intangible product is a non-physical product like an
insurance policy.

Comparison

1. Brands personify the products: for Brands define a products quality.

However, if the customers do not know about the brands, they would remain
unsung heroes. As the saying goes in Hindi, “who sees a peacock that dances in
the forest.” the brand names must reach the customers not once but repeatedly in
order to be of value creating awareness, interest & desire to buy.
2. Brands make presale of the products a reality: The moment the
prospective customer sees an advertisement of the product with its brand

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 prominently displayed, it brings the salient features and product benefits to
customer’s minds. The task of the sales person thus becomes easier.
3. Brands are intangible: The products are tangible but brands are not. Only
their impact on the customers could be felt.
4. Not all products have a brand name attached: A few products are just
locally manufactured and sold to people of the lower strata of the society. Such
products may also make huge profits like those of the branded ones. On the
contrary, sometimes even a branded product may incur huge losses.
5. Prejudice: Many people are prejudiced that only branded products are of good
and consistent quality. Therefore, to attract higher number of customers, a product
needs a brand name.
6. Brands name may replace the product name : Sometimes a company
introduces its product to its customers so effectively that the brand name replaces
the product name. E.g. The brand name Dalda is used for buying a vegetable
ghee.
7. A Brand is a protector: A brand name protects the customer and the
producer from the competitors who would attempt to provide products that appear
to be identical.
8. A Brand exists in the minds of a consumer: A product does not exist in
our minds the way brands do. A product is just what the manufacturer makes. It
comes off the production line with features and functions but with no relationship
to the consumers. e.g. Brands like Lakme, Revlon, Ponds, etc always remain in
the minds of a woman.
9. A product transforms into a Brand: Once a product acquires a distinctive
name, symbol, design, packaging, advertising, etc, it transforms into a Brand on
its own.

Brand Elements

The most important elements of brands are as follows:

Brand name

Certain factors must be considered before selecting a brand name;

 Distinguish a product from other brands.

 Memorable & easy to pronounce.
 Easy to say & spell.
 Should allude to the products uses, benefits, characteristics, etc.
 No negative references.
 Evoke positive mental image.
 Evoke positive emotional reaction.
 Simple but unique.

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  Translate well in other languages too. (Renault)

Examples: Kodak, Surf, Tide, etc

Brand position

A product can be positioned based on 2 main platforms:

The Consumer and The Competitor.
When the positioning is on the basis of CONSUMER, the campaigns and messages are
always targeted to the consumer himself (the user of the product)
 Peter England always campaigns their product concentrating on the consumer,
the user of its product.
 Louis Philip also concentrates on this kind of campaigns. 

The other kind of positioning is on basis of COMPETITION. These campaigns are

targeted towards competing with other players in the market.

 Dettol television commercials always concentrate on advertisements, which show

that this product would give you more protection, then the others .(Savlon)

A number of positioning strategies might be employed in developing a promotional

program. The 7 such strategies are discussed below:

1. Positioning By Product Attributes And Benefits

Associating a product with an attribute, a product feature or a consumer feature.

Sometimes a product can be positioned in terms of two or more attributes simultaneously.
The price/ quality attribute dimension is commonly used for positioning the products.

A common approach is setting the brand apart from competitors on the basis of the
specific characteristics or benefits offered. Sometimes a product may be positioned on
more than one product benefit. Marketers attempt to identify salient attributes (those that
are important to consumers and are the basis for making a purchase decision)

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  Ariel offers a specific benefit of cleaning even the dirtiest of clothes because of
the micro cleaning system in the product.

 Colgate offers benefits of preventing cavity and fresh breath.

 Promise, Balsara’s toothpaste, could break Colgate’s stronghold by being the first
to claim that it contained clove, which differentiated it from the leader.

 Nirma offered the benefit of low price over Hindustan Lever’s Surf to become a
success.

 Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its
competitors. This strategy helped it to get 60% of the Indian automobile market.

2. Positioning By Price/ Quality

Marketers often use price/ quality characteristics to position their brands. One way they
do it is with ads that reflect the image of a high-quality brand where cost, while not
irrelevant, is considered secondary to the quality 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 price/ quality characteristics for positioning is to focus on the quality
or value offered by the brand at a very competitive price. Although price is an important
consideration, the product quality must be comparable to, or even better than, competing
brands for the positioning strategy to be effective.

 Parle Bisleri – “Bada Bisleri, same price” ad campaign.

 Chota Munch

 Maggi small Rs 5/ pack

3. Positioning By Use or Application

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Another way is to communicate a specific image or position for a brand is to associate it
with a specific use or application.

 Surf Excel is positioned as stain remover ‘Surf Excel hai naa!!!’

 Clinic All Clear – “Dare to wear Black”.

4. Positioning By Product Class

Often the competition for a particular product comes from outside the product class. For
example, airlines know that while they compete with other airlines, trains and buses are
also viable alternatives. Manufacturers of music CDs must compete with the cassettes
industry. The product is positioned against others that, while not exactly the same,
provide the same class of benefits.

 Air Arabia providing the same aircraft and seat comfort and extremely low fares.

5. Positioning By Product User

Positioning a product by associating it with a particular user or group of users is yet

another approach.

 In the Garnier light,Mens’ fairness cream Ad, the persona of the user of the
product, John Abraham is been positioned.

6. Positioning By Competitor

Competitors 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.

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  Onida was positioned against the giants in the television industry through this
strategy, ONIDA colour TV was launched with the message that all others were
clones and only Onida was the leader. “Neighbour’s Envy, Owners Pride”.

7. Positioning By Cultural Symbols

An additional positioning strategy where in the cultural symbols are used to differentiate
the brands. Examples would be Humara Bajaj, Tata Tea, Ronald McDonald. Each of
these symbols has successfully differentiated the product it represents from competitors.

Brand promise

 The one most important thing that the brand promises to deliver to its
customers- Every time!
 What customers and partners should expect from every interaction?
 How should customers feel as branded customers?

Brand personality

Brand personality is the way a brand speaks and behaves. It means assigning human
personality traits/characteristics to a brand to achieve differentiation. These
characteristics signify brand behaviour through both individuals representing the brand
(i.e. it’s employees) as well as through advertising, packaging, etc. When brand image or
brand identity is expressed in terms of human traits, it is called brand personality.
 Allen Solley brand speaks the personality and makes the individual who wears it
stand apart from the crowd.
 Infosys represents uniqueness, value, and intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a

personality who embodies these personality traits or distinct personality traits.
 Shahrukh Khan and Airtel
 John Abraham and Castrol
 Aiswarya Rai Bacchan and Lux

Brand personality is the result of all the consumer’s experiences with the brand. It is
unique and long lasting.Brand personality must be differentiated from brand image, in
sense that, while brand image denote the tangible (physical and functional) 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.

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Brand personality develops brand equity. 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. Brand personality
differentiates among brands specifically when they are alike in many attributes. For
instance - Sony versus Panasonic. Brand personality is used to make the brand strategy
lively, i.e , to implement brand strategy. Brand personality indicates the kind of
relationship a customer has with the brand. It is a means by which a customer
communicates his own identity.

Brand 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.

Brand personality not only includes the personality features/characteristics, but also the
demographic features like age, gender or class and psychographic features. Personality
traits are what the brand exists for.

Brand logo

Elements of a good logo are as follows

 Have a lasting value

 Distinctive and unique
 Appealing to the target market
 Supports your USP
 Legible

Brand slogans and jingles

Slogans and Jingles form an essential part of the advertising industry. The main role of an
advertising slogan or radio jingle is to create an identity for the brand.

Once the catchy slogan or jingle becomes popular, it further leads to brand recognition
and services as a reminder for the target audiences. A lot of effort goes into brainstorming
and creating an advertising slogan / tag line / jingle for a brand / product. The creative tag
line must fall in place and gel with the overall marketing efforts and corporate identity of
the brand being advertised and promoted.

Over the years, it has been seen that certain advertising campaigns have been a huge hit
with its target audiences. People, till date, relate to the brand through its catchy and
creative ad slogan . jingle. Such is the power of creativity!

Here are a few of my all time favorites - Jingles, Advertising Slogans and Tag Lines

 Complan - "I'm A Complan Boy - I'm A Complan Girl!"

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  Lijjat Papad - "Kharram Khurram, Khurram Kharram - Mazedar Lazedar Swaad
Swaaad Mein Lijjat Lijjat Papad"
 Nirma Detergent - "Nirma Detergent Tikiya - Iski Jhaag Ne Jadu Kar Diya
Hawkins
 Mentos - "Dimaag Ki Batti Zala De"
 Sprite - "Clear Hai!"
 Coke - "Thanda Matlab Coca-Cola", "Piyo sar utha ke"
 Saffola - "Abhi to main jawan hoon"

Characteristics of a good jingle are:

 Audible
 Catchy
 Effective
 Long lasting impact

Brand story

 The companys history and how it adds value to the brand.

 A summary of products.

The Power of a Brand

Marketing is not a battle of products, it's a battle of perceptions. The power of a brand
lies in what resides in the minds of customers – what they learned, felt, seen, and heard
about the brand as a result of their experiences over time.

Strategic Brand Management

When you have a brand that works for people, you should work the brand.
"Strategic brand management involves the design and implementation of marketing
programs and activities to build, measure, and manage brand equity."1 These concepts
and techniques are to improve the long-term profitability of your brand strategies.

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TOPIC-6

Brand Extension

Meaning: When a company launches another product into a related or an unrelated

category, under the same brand name, it is said to have done a “Brand Extension”

Example
 Maggi noodles, Aata noodles, Rice Mania, Soupy noodles, Soups, Magic masala,
ketchup, Pasta, etc

Classification of Brand Extension

Brand Extension

Related Unrelated

Category related Image related

Re
lationship between parent and three types of Brand Extensions:

1. Category related: Products have same use, slightly different benefit, same or
different set of customers.
2. Image related: A relationship that transfers the emotional benefits and image of
the parent to the extension.
3. Unrelated: Almost no relationship except brand name.

Need For Brand Extension

The cost of establishing a new brand especially in the international markets is

enormous. It is also a known fact that about one in ten product launches meet success.
This makes the thought of launching a new brand risky. Often marketers tend to play
safe by extending the brand to either the same category or a different category. Thus,
marketers view brand extension as a risk minimization exercise.

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 The following reasons justify the need for brand extension:

1. Energizing a brand
2. Expanding core promise to new users
3. Blocking competition
4. Managing a dynamic environment
5. Better survival

Advantages of Brand Extention

1. Strengthens the existing brand

2. Risk is minimized
3. Cost of extension is lesser
4. Helps a firm to survive in a competitive environment
5. Maximize profits

Disadvantages of Brand Extension

1. Rarely expand category demand

2. All retailers can provide more shelf space
3. Over extension may prove to be costly
4. Negative impact on the parent brand in case of failure

BRAND RELATIONSHIP SPECTRUM.

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What are some of the advantages and disadvantages of each strategy?

House of brands. (P&G)

They manufacture Head & Shoulders, Pert Plus, Herbal Essences and Vidal Sassoon.
They give up economies of scale by having multiple unconnected brands. However,
P&G's house of brands strategy lets them market to distinct niches by providing each
niche its own value proposition - dandruff control, combined shampoo and conditioner,
etc. Additionally, the house of brands strategy lets you avoid incompatible brand
associations (Budweiser beer is incompatible with a Budweiser cola), distinguish new
offerings (like Toyota did with Lexus), minimize channel conflict (like L'Oreal sold
through drugstores and Lancome sold through high end department stores) and minimize
conflicting product lines (Nestle and Purina shouldn't be related).

Endorsed brands.

There are several endorsed brands strategies. For instance, the typical endorsed brand
strategy is based on lending the endorser's credibility to the endorsed brand.

There is also the shadow endorser strategy which is a variant of the house of brands in
that there are two master brands. The difference lies in the fact that many people know
that there is a relationship between the two brands. The key to this strategy is that the
endorsed brand yields the benefit derived from the endorser but at the same time there is
a degree of separation that allows the endorsed brand to develop its own personality.

Additionally, there is the token endorser strategy that features, albeit less prominently,
the endorsement. The token endorser might simply lend a logo to provide the
endorsement benefit. But the reason the token endorser takes a less prominent role is to
allow the endorsed enough distance to develop on its own.

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Next, there is the linked name strategy where the endorser uses naming to create the
endorsement. For instance, think about McDonald's and the BigMac, McNuggets,
McSwiss, McMuffins, McRib, etc. McDonald's lends the Mac or Mc to their naming
system to establish an endorsed relationship.

Subbrands

Subbrands can allow companies with too broad of an appeal to target niche markets.
They also can stretch the master brand into new areas of emphasis and signal a new
offering. A downside to this strategy can come from the close proximity to the master
brand and the inherent risk of associations. Additionally, such close proximity can also
restrain the subbrand's development.

Branded House.

A branded house moves the master brand from the primary driver role to the dominant
driver role. The branded house strategy leverages an established brand and minimizes the
investment required for each product. There are economies of scale. While this strategy
can provide synergy and maximize clarity, it can also limit niche opportunities and
adversely effect the whole staple of products when the brand falters

Master Brand

A specific overarching brand name that serves as the main anchoring point on which all
underlying products are based. Masterbranding attempts to create a strong association
between a company's products and what the brand represents. While individual products
will always have their own names/brands, it is the masterbrand that contributes to the
consumer's belief that the product is different compared to all others in its class.

TOPIC-7

BRAND IDENTITY

A genuine brand is unique, that is it has an individual identity. Brand identity is a concept
that has been much debated. It is one branding concept that has generated much
enthusiasm.

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Definition: Brand identity is the total proposition that a company makes to consumers-
the promise it makes. It may consist of features and attributes, benefits, performance,
quality, service support and the values that the brand possesses.

Signifiers of Brand identity:

Brand identity is the manifestation of inner face of the brand, it is transmitted to the
outside world through brand embodiments like brand symbols, name, communication,
style, message and so on. These outward manifestations of brand are responsible for
creating its identity, as perceived by consumers.

1. Product
2. Packaging
3. Brand name
4. Symbols and logos
5. Brand endorser
6. Country of origin
7. Advertising

BRAND IMAGE V/S BRAND IDENTITY

Brand image Brand identity

1. Passive Active
2.Tactical Strategic
3. Short-term Long-term
4. Fleeting Quintessential

BRAND IDENTITY V/S BRAND POSITIONING

Brand identity Brand positioning

1. Forms the basis for strategies for
current & future.
2. Provides guidelines for developing
the product range.
3. Symbolizes what the brand aspires
Deals with current strategies.
Tackles every product class under
the brand.
Symbolizes what the brand is.

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to be.
4. Specifies the limits of positioning Creates specific positioning
strategy. propositions for the brand.

BRAND IDENTITY SYSTEM

TOTAL BRAND IDENTITY MODEL

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A Brand sets the Agenda
Again, in contrast to purely image led concepts of brands, the Pentagon Brand Identity
Model is based on the notion that while brands have to be meaningful to customers, they
have to begin by having a very clear picture of who they are in a first place. Great brands
clearly and sharply define their character and their turf. The first element in the Pentagon
Brand Identity Model therefore answers the existential question “Who am I?”

Customer Insight
Customer insight is crucial to brand success. Therefore, besides having an element where
the brand states its individuality, the model has another dimension, which articulates key
customer insights relevant to the brand domain and agenda. The model reflects the
importance of customer insight by posing the question “Who is my customer?”

The Relationship
A brand is an idea in the mind of the customer. But today, brands have to go beyond this
to also become an integral part of a customer’s experience. In the intensively competitive
markets that exist today, brands are required to “walk the talk” to maintain their
credibility and distinctiveness.

How a brand relates to a customer is a crucial element in a Brand Identity, especially in

cases of such as Retail, Service and Employer Brands. The relationship element forms the
third construct in Pentagon’s Brand Identity Model. It essentially answers the question
“How does the brand relate to the customer?”

TOPIC-8
BRAND EQUITY

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The aim of all marketing and branding activities is to strengthen brands and turn them
into valuable assets. Brand equity deals with brand as an asset and its study is helpful in
keeping a track of brand health. It allows a company to establish a baseline and track any
change in brand value over time. Brand has been termed as an asset and a creator of
wealth. A way to measure the wealth generated by a brand is to determine its equity. The
concept of brand equity holds that every brand has a value attached to it.

Definition:
1. “The total accumulated value or worth of a brand, the tangible and intangible assets
that the brand contributes to its corporate parent, both financially and in terms of selling
leverage.” (Upshaw, 1995)

BRAND EQUITY MODELS

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TOPIC-9
BRAND BUILDING STRATEGIES

Building strong brands is a prerogative of every marketing organization. A Product

manager should have a complete knowledge of Brand building tools in order to be
able to develop a strong “Brand building strategy.” The following are the major
Brand building tools used by a Product manager:

1. Advertising
2. Brand sites
3. Public relations
4. Sponsorships
5. Sales promotion

Hierarchy of brand building tasks

Brand customer relationship

Developing brand loyalty

Creating unique brand positioning

Developing brand image

Building brand associations

Creating brand awareness

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Brand Building Strategies

Mergers, consolidation and worldwide expansion greatly affect the way the insurance
industry does business today. As boundaries collapse and markets change, there is a tool
you can use to gain an edge over the competition. Other industries already embrace a
strategy. In an era of global competition, you must build your company's brand to survive
—and thrive.

To most consumers-your customers-the insurance industry is confusing and crowded.

Consumers face many options, but what factors will resonate with them when they
purchase insurance? As with most industries, and particularly those where experience and
trust are so important, the stronger brand will win.

Insurance organizations and financial services firms have various operating units,
divisions, subsidiaries, products and services. Often, those units or subsidiaries do not
consider the larger picture when it comes to the corporate identity and branding. Some
communicate their own set of messages without relating them to the overall organization.
What is the result? The messages of the overall organization become fragmented and
diluted. A strong brand unites your company's messages to drive communication with a
clear and consistent voice, and in the process, further strengthening your business.

All brands have several components. As the Brandscape graphic shows, that "brand
essence" is at the core. Your brand essence is simple: It is what you stand for, what sets
you apart and what makes you unique. This is the overall message and feeling about your
company you want consumers to understand.

Outside the center are the "core identity elements," which include the names, designs and
brand structure of your company's various brands. In addition, beyond the core identity
level are the "communication elements." These include all the ways you communicate
your identity to the public—everything from advertising, letterhead, printed materials and
signage to web sites, uniforms and vehicle graphics.

Finally, the outermost layer consists of performance, service, quality and actions.
Through these, your company demonstrates that the promise of its brand is authentic. The
inner layers of the brand mean nothing to customers if your company does not deliver on
the brand's promise.

This is the most important lesson of all: if your contact with customers is not in harmony
with your brand promise, you will lose the opportunity to influence the decisions people
make.

Success Criteria of a Brand

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To grow into a strong identity, your brand must incorporate four fundamental building
blocks:

1. Legitimacy—What is your key audience's concept of you? Your positioning must be

built around a promise on which you can legitimately deliver. In addition, the positioning
must be consistent with how audiences think of you.

2. Distinctiveness—Consumers are bombarded with hundreds, even thousands, of

messages each day. Your name and identity must be distinctive enough to cut through the
clutter. The purpose of a brand is not to describe, but to distinguish.

3. Relevancy—The messages must be meaningful to key audiences. Many companies

spend a lot of time talking to themselves, using their own internal jargon, as opposed to
communicating in terms of the benefits that are most meaningful to key audiences.

4. Consistency—Can you live the message consistently? A consideration is whether you

can deliver on all of these messages through all the things you do, from how you train
employees to the way you deal with consumers. Moreover, can you communicate it
consistently through the name, brand structure and design?

Branding Challenges

It is not easy to develop a strong brand. Moreover, in the insurance industry, consistent
brand management can be even more difficult for independents, since large state and
national direct writers offer their captive agents branding muscle not commonly available
to independents at the local level. While independent agents have wide latitude in
matters of branding strategies, captive agents generally must follow strict branding
guidelines set forth by the insurance company they represent. Compliance departments
ensure that they cooperate when creating new signage, sending out marketing letters and
advertising in the mass media—and this effectively carries the insurance company's
branding efforts to the local level where business is built. Independent agents generally
have no such constraints since they represent several different markets; however, on the
other hand, scant support from the home office in branding matters poses a challenge that
captive agents do not face. Nevertheless, both captives and independents stand toe-to-toe
in the marketplace. To ensure success at the local level and throughout the distribution
channels, it is vital to establish as strong a brand at as many levels as possible. A strong
brand, effectively communicated, will bring your company higher visibility, and that will
bring more customers.

IMPORTANCE OF BRANDING.

Branding is a more sophisticated form of marketing communication. The purpose of

branding a project is to establish an identity that conjures up a positive image. This is
exactly what the marketing people try to do when they brand a product. For instance, The
Coca-Cola Company hopes that you feel good about their products and that you will

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choose their products from a crowded store shelf because you like the image and emotion
associated with it. Maybe it works. If you throw a party and you provide a cooler full of
Cokes and Sprites, you probably feel pretty good about the image you're portraying. If
you stock a cooler full of "Joe's" cola, you might feel a little embarrassed.

Does it impact a large number of people or maybe the entire company?

Will it require a culture change or a change in the way people do their job?

Will your project make people nervous?

Will it result in efficiencies so that less people are required to do the same function?

These are the types of projects that would be candidates for branding. Examples of
branding activities include:

1. Establishing a positive project name: For instance, a project called MarketForce,

probably gives more of a positive image than one called Marketing Process
Improvement Initiative. You can build a positive image with an easy-to-remember
acronym as well.

2. Establishing an image/logo: The project should have an image or logo associated

with it. The image must be positive and it should be included on all communication
coming from the team.

3. Buying trinkets: Put your project name or logo on pins, tee shirts, pencils,
Frisbees, etc. Reward people with a token that contains the project logo when they do
something good. Senior professionals don't always care about trinkets. However, many of
your users like them.

4. Holding face-to-face meetings. Spend the time to see as many people as possible
in person-to-person meetings or small group meetings, especially at the beginning of the
project. No one wants to hear all the information about an important project on e-mail. It
cheapens the project.

Of course, branding takes time, so you also need to have a project with a long time
horizon. A steady stream of positive communication, combined with the positive feeling
of the project branding, will help the project be successful and should help overcome any
negative perceptions about the project.

Why Branding Pays Off ??

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 Time, money and effort spent on branding comes back many times over when the
process plays out intelligently. Here s why:

1. Memorability. It s easier to remember the branded company than the what s its name?
one.

2. Loyalty. When people have a positive experience with a memorable brand, they're
more likely to buy that product or service again than competing brands.

3. Familiarity. Psychologists have shown that familiarity induces liking, and this makes
even non-customers more likely to recommend a brand they know.

4. Premium image, premium price. Branding can lift what you sell out of the realm of
a commodity, with customers willing to pay more for the well-branded product or
service.

5. Extensions. With a well-established brand, you can spread the respect you've earned
to a related new product, service or location more easily

6. Greater company equity. Making your company into a brand usually means that you
can get more money for the company when you decide to sell it.

7. Lower marketing expenses. Although you must invest money to create a brand, once
it's created you get a bigger bang for every marketing buck using it.

8. For consumers, less risk. People tend to choose the brand-name supplier over the no-
name one when afraid of the consequences of a mess-up.

References

Books:

1. Product management Donald Lehman

2. Strategic Brand Management Jean/ Noel
3. Brand Management Sweta Johri
4. The Product manager’s handbook Linda Gorchels
5. Product management in India Ramanuj Majumdar
6. Marketing your Product Donald Cyr/Douglas
7. Brand management YLR Murthi
8. Brand management S A Chunawala
9. Managing Indian Brands S Ramesh Kumar

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 10. Srategic Brand Management Kevin Lane Keller

Magazines/ Journals

1. Marketing Mastermind
2. Brand reporter
3. Indian Journal of Marketing
4. Advertising Express

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