BRAND MANAGEMENT

ASSIGNMENT

ON

THEODORE LEVITT`S MODEL:



"1HE 1O1AL PRODUC1 COACEP1"

BY

SYNDICATE 8
(Systems & Finance)









SITM, Pune.

BUDELE PARAC 9
KAUSHAL CHHAYA 9
NAVSANCEET KAUR 98
PADADE ABHILESH 99
SUMTANU SARKAR 98
SHADAB BAIC 99
Introduction:

The most valuable asset in any business organization is the strength oI its relationships with its
customers. Long-term relationships are the basis Ior enhanced proIitability. Such relationships
will, however, only exist as long as the customer perceives there to be superior beneIit arising
Irom the arrangement. In today`s market place the customer has become more demanding as
expectations Ior product perIormance and service provision continue to increase. The power oI
the brand or corporate image has diminished as sophisticated customers have come to recognize
that there is almost always a choice. To win and retain customers requires an understanding oI
what those customers value and a Iocus on the processes whereby that value can consistently be
delivered. Clearly there is an equation between the value that customers perceive they are getting
and the price they are prepared to pay. Hence the challenge is to identiIy ways in which customer
value can be enhanced through marketing strategies that go beyond the traditional Iocus on
brands and images.

The transition from brand value to customer value:

There has been considerable discussion in recent years concerning a purported decline in the
strength oI brands. Evidence oI the growing penetration oI private labels and the willingness oI
customers to select Irom a portIolio oI brands or suppliers adds to the view that the nature oI
brand loyalty has certainly changed. Whilst there can be no question that strong brands are still a
signiIicant asset to a business, whether they are consumer brands or corporate brands`, it seems
that in today`s marketing environment there is a need to deliver more than just an image.

Theodore Levitt introduced the idea oI the The Total Product Concept`, and this concept still
holds good today. Essentially, the notion oI the The Total Product Concept` is that it is not
suIIicient to Iocus marketing eIIort on the tangible product Ieatures alone. Product Ieatures are
quickly imitated or cloned by competitors, and in any case, as Levitt would argue, customers
don`t buy products, they buy benefits`. Instead the marketer needs to identiIy other ways in
which value can be delivered to the customer over and above the intrinsic elements embedded in
the product itselI.

The Total Product Concept:
Theodore Levitt (1980) distinguishes between Generic product, Expected product, Augmented
Product and Potential Product.
Generic (Core) Product:
Generic means type`. Generic product is the basic product. This Iirst product level core
product core beneIit. What is the basic requirement oI buyer? For example, the core beneIit oI
buying a drill is making holes and the core beneIit oI a car is transportation.


The Expected Product:
People are not satisIied with the core beneIit oI a product or service. They expect additional
things
This product level comprises all the attributes oIIered in the actual product. It includes the design
oI the product, packaging, quality levels, Ieatures and brand names. II these Ieatures exceed the
buyer`s expectations they will be satisIied. For Example, A CD or DVD player is expected to
oIIer a certain quality oI sound, a choice oI battery, control lights, look sophisticated.
The Augmented Product:
Competition Iorces Iirms to oIIer more than the expected products. The augmented product has
to oIIer additional aspects or elements that support the core and actual product Ieatures Customer
service, delivery, aIter-sales service, guarantee. Many products are marketed at augmented
product level USP. The Augmented Products can be augmented by:
O Image
O Assistance
O Credit
O Delivery
O Installation
O Service
O Guarantees
Example: Dell computers
Problem: %4/ays Augmente/ Pr4/ucts bec4me %4m4rr4s Expecte/ Pr4/ucts
The potential product:
Comprises all the augmentations and transIormations a product might undergo in the Iuture. The
emphasis is put on Iuture product improvements to keep the product competitive. The marketers
must be creative, innovative. The potential product has to include everything that might be done
to attract and keep customers.
Essential aspects of a product:
O Product benefits: all the elements oI an oIIer which consumers perceive as meeting their
needs and wants and provide satisIaction through
O Performance and Image
O Product Attributes: Quality, Features, Styling, Design, Branding, Packaging
O The Marketing Support Services: AIter Sales Service, Installation, Delivery,
Guarantee


Example: DELL COMPUTERS





Think about how Dell sells laptop computersthey let customers "build" their own
computers on their Web site. By providing an easy way oI selecting how much memory or disk
space is desired, Dell simpliIies a very complex task and provides exactly what the customer
requested. Talk about selI-segmentation! Dell can reach customers that want a laptop built Ior
games Ior under $1000and show them exactly what they are looking Ior at the moment they
want it. The Web is a great way to mask the complexity oI a customized manuIacturing process.
Dell has one simple concept: to sell computer systems directly to customers. Dell`s
customers are global wide and range Irom individuals, small businesses, large businesses, and
institutional organizations, such as schools and hospitals.

The Augmented Product Features of DELL:
O Image:
4 The study "The 2005 Technology Brand Scorecard," Forrester Research surveyed
more than 4,000 U.S. households about 22 technology brands and then used the
results to grade each brand on brand trust, brand potential and brand adoption.
One oI the strongest showings came Irom computer-maker Dell, which got an
overall A-plus.
4 What Laptop Awards 2009:
Best Gaming Laptop 2009: Alienware M17x :
Best Laptop Ior Power & Features 2009: Dell Studio XPS 16
Best Ultraportable Laptop 2009: Dell Adamo
2009 Editor`s Choice Award: Dell Studio 15
O Product Customization & Segmentation:
Dell has one simple concept: to sell computer systems directly to customers. Dell`s
customers are global wide and range Irom individuals, small businesses, large businesses,
and institutional organizations, such as schools and hospitals. Customers can buy the
product with Ieatures oI their own choice. Thus Dell provides a broad range oI
customized products which tends to higher satisIaction levels oI customers.
Dell caters to Iollowing market segments with dedicated brands:
4 Home & Home OIIice (Dell Inspiron, Dell XPS)
4 Small & Medium Business (Dell Latitude)
4 Large Business (Dell Precision Workstations)
4 Gaming (Dell Alienware)

O Assistance:
4 Dell Support: Online Support, Live Chat, Community, RSS Feeds, Discussion
Forums, Blogs

O Dell Financing Options:
4 Helps conserve cash Ilow, Flexibility to acquire new technology at any time, Pay
oII your balance at any time, No down payment, initiation Iee or annual Iee, Make
Payments Online, Paperless Statements

O Delivery:


O Installation:
Dell Installation Services provides the expert knowledge and the resources to get your new
systems up and running quickly. Dell CertiIied Technicians use proven methodologies to
minimize installation time. Dell Installation Services include:

4 Server Installation Services
4 Switch Installation Services
4 Storage Installation Services
4 Dell Custom Installation Services
Marketing Mix for Dell Computers:

Traditionally, companies rely on marketing to provide inIormation to their target
market about their product and possibly attract the market that they are targeting.
However, that may not suIIice nowadays. Studies have indicated that 'Iunctional,
process, and relationship beneIits are among the most signiIicant elements needed Ior
marketing superiority in these contemporary times. Basically, being competitively
superior depends highly on how well a company manages its marketing mix. The
marketing mix is the proverbial four Ps (product, price, place, and promotion) oIten
pointed out in business lectures and organisational studies.
In the context oI Dell Inc, their product is predominantly computer-hardware
with rather competitive prices as compared with the other top manuIacturers and
distributors in the industry. In terms oI promotional endeavours, Dell Inc has been
among the leaders in using contemporary marketing schemes. These promotional
activities range Irom print ads, billboards, television advertisements, Internet
advertisement, and even contemporary marketing techniques like sponsorships in
proIessional sports and product placements in television and Iilms. One distinct
characteristic oI the marketing mix oI Dell is its place, or what it is normally reIerred to
as the distribution channels oI the company. This appears to be one oI the distinguishing
Iactors that put Dell among the top oI the computer-hardware Iood-chain.


Driving Wheel: Promotional Endeavours:

In terms oI promotional endeavours, Dell Inc has been among the leaders in using
contemporary marketing schemes. These promotional activities range Irom print ads, billboards,
television advertisements, Internet advertisement, and even contemporary marketing techniques
like sponsorships in proIessional sports and product placements in television and Iilms.

Dell advertisements have appeared in several types oI media including television,
the Internet, magazines, catalogs and newspapers. Some oI Dell Inc's marketing strategies
include lowering prices at all times oI the year, oIIering Iree bonus products (such as Dell
printers), and oIIering Iree shipping in order to encourage more sales and to stave oII
competitors. In 2006, Dell cut its prices in an eIIort to maintain its 19.2 market share.
However, this also cut proIit-margins by more than halI, Irom 8.7 to 4.3 percent. To maintain its
low prices, Dell continues to accept most purchases oI its products via the Internet and through
the telephone network, and to move its customer-care division to India and El Salvador.

A popular United States television and print ad campaign in the early 2000s Ieatured the
actor Ben Curtis playing the part oI "Steven", a lightly mischievous blond-haired kid who came
to the assistance oI bereIt computer purchasers. Each television advertisement usually ended
with Steven's catch-phrase: Dude, you're gettin' a Dell!

A Dell advertising campaign Ior the XPS line oI gaming computers Ieatured in print in the
September 2006 issue oI re/. It used as a tagline the common term
in Internet and gamer slang: FTW, meaning For The Win. However, Dell Inc.
soon dropped the campaign.

In the Iirst-person shooter game F.E.A.R. Extraction Point, several computers visible on desks
within the game have recognizable Dell XPS model characteristics, sometimes even including
the Dell logo on the monitors.

In 2007 Dell switched advertising agencies in the US Irom BBDO to Mother. In July 2007, Dell
released new advertising created by Mother to support the Inspiron and XPS lines. The ads
Ieatured music Irom the Flaming Lips and Devo who re-Iormed especially to record the song in
the ad Work it Out.
Dell recently began using the slogan Yours is here to show that it customizes computers to Iit
customers' requirements.