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VI Semester BBA


Study Material - 2017
Prepared By,
Ms. Lincy Joykutty,
Assistant Professor, NHC-M













Product is the sum total of physical, economic, social and psychological benefits
offered to a market to satisfy a want or need.

Product may take any forms as listed below:

The components of a Product which may be the selling points for that product are:

 Physical Attributes
 Psychological Benefits
 Brand Image
 Guarantee/ Warranty
 Service
 Special Features

Product Levels


Product Plan or Strategy
A product strategy is a company plan for marketing its products. The product plan
involves a number of issues such as:
• Product Line
• Product Mix
• Organising for Product planning and New Product development
• Branding
• Packaging
• Labeling etc.
Product Line : is a group of products that are closely related either because they satisfy
 similar needs of different market segments
eg. Cosmetics range for girls, women, men
 different needs of one market segment
eg. Soaps and Moisturizers for body care; Shampoos and Hair Oil for hair care
Types of Product Line:
Line stretching: It occurs when the company tries to stretch its existing range of products either
upwards or downwards .Ex: Titan’s Fastrack & Sonata.

Line Filling: When marketers add more products to their existing range of products, it is known
as line filling. Ex: Procter & Gamble’s added Rejoice to its existing range of shampoo brand’s
Pantene & Head & Shoulders.


Product Line Pruning: Manufacturers dispose of certain products that no longer contribute to
the overall profitability of the organisation. Companies can optimally divert the resources spent
on such products to more profit generating products.

1. Consumer Products: are the products that are brought by a consumer for
personal, family or house hold use.They are bought with the intension of
satisfying individual or personal needs. Consumer products can further be
divided into:
a. Convenience products: are the products that are relatively inexpensive
& are bought frequently. These products are mutually bought with a
minimum of cost & effort.
i. Stable Product: Milk,newspaper,etc.
ii. Impulse Goods; Magazines, chewing gums
b. Shopping products: are products for which a buyer is willing to spend
time & effort in planning & making purchase decisions. These
products are expected to have a longer life & are purchased less
frequently. Ex: Home appliances, stereos, cameras, etc.
c. Speciality products: These are products that have 1 or more unique
characteristic feature. These products are available in few select outlets
or only through a single outlet. Ex: An antique car, benz, etc.
d. Unsought goods: are goods that customer purchases when he is faced
with a sudden problem. Customers are not greatly aware of the need &
there they do not think it literally necessary to purchase the product.
Ex: Umbrella, insurance polcies,medicine,etc
2. Industrial Product: These are products that are purchased to produce
other products or facilitate he smooth function of the production. They are
further divided into :
a. Raw material: It is the basic input used in manufacturing a product in
large quantity according to the grade & specification. Ex: Crude oil,
Fabric, chemicals, farm products, etc.
b. Manufacture materials & component parts: Manufactured materials are
that have undergone some processing before entering into the
manufactured process of a product. Ex: Rubber sheets or crumb rubber
made out of natural latex. Component Parts are manufactured items
sub assemblies or completely assembled unit are incorporated into
buyer’s final product. Ex: Dash board instruments, automobile tyres,
c. MRO supplies: Maintenance repairs & operating supplies gets used up
in facilitating the operation of the enterprises but do not become part of

They are also known as foundation goods. “Rin”(Blue coloured).Ex: HUL decided to launch “Surf Ultra”. f. & “Sunlight”(Yellow coloured detergent) 2. Business services: These cover a broad spectrum like technical service of maintaining equipment non technical services of maintaining premises like janitorial services & commercial services like banking. Women . 3. paints. Capital equipments & Investments: These include capital goods. paper. Cosmetics range for girls. “Wheel”(Green coloured). Ex: Maintenance supplies include cleaning compounds. Product modification: It is achieved by reformulation. insurance. etc. redesign changing sizes & adding or removing features. building & other companies. Depth: No. Product abandonment: It refers to deletion of either an individual product or the entire product line. ink. Process materials: It is used in manufacturing of products may be distinguishable in the final product like sheet metals. Width : No. etc. electric & electronic circuits wiring. of product lines in the company 2. Product Line addition or deletion: A firm may add or delete existing ones or do both in the existing product lines. of Variants offered of each product item in the line. the finished product. of product items in each product line 3. Consistency: Products have similarity due to production or marketing aspects TYPES OF PRODUCT MIX DECISION 1. 6 . research. women. hair care products Product Mix : is the entire range of products of a company. Operating supplies include office supplies such as pen. Bearing gears & filters are examples for repairs.Ex: Parle withdraw Bigbite & Bisca –a cup noodle from the market. Standard Industrial Classification system: It refers to the scheme by which industries & products were systematically classified in the united states so as to easily identify products by industry. 4. group & subgroup within the industry & other relevant product particulars. men  different needs of one market segment eg.body care products . Product Line : is a group of products that are closely related either because they satisfy  similar needs of different market segments eg. brooms & light bulbs. d. Length: No. etc or indistinguishable like certain ingredients used in pharmaceuticals & food products. The product mix has four main characteristics: 1. e. etc. land.

TWO MARKS 1. Write a note on product personality. 2. Explain product levels. Explain the types of product line. What is product line? 4. Explain the types of products. What is product mix? 3. 2. Fifteen Marks 1. 7 . 2. What is product width? Eight Marks 1. Give the meaning of product.

etc which would help to enhance the sale of an organisation. Marketing mix: The marketing mix variables such as product. the modification of existing lines. External appearance: It has to be determined by size. Customers: The requirements’ of the customer need to be understood by product designer such as quality. Factors of production: The factors of production such as materials. ornamentation & other physical features that appeal to the consumer senses of beauty-utility & distinctiveness. finish. price. money. Available capital: Capital available is so sufficient that enables the producer to purchase the facilities. proportions. Production capacity: The ability of the plant & the personel to make design economic & profitable. texture. 3. reliability. Competitive Intensity: The competitor’s design has deeper bearing on the company product designs. etc also influence the design of product which would fulfil the taste & preferences of customer. 4. UNIT -2 PRODUCT DEVELOPMENT FACTORS INFLUENCING DESIGN OF THE PRODUCT: 1. development & commercialisation of new products. & the discontinuance of marginal or unprofitable items. 6. “Product planning is the act of marketing out & supervising the search.”-Mr Karl H Tietjen Objectives of Product Planning: 8 . 2. dimensions. durability. 7. 5. Usage: Uses or applications for a product should be considered in designing its appearance & internal construction features so as to provide greater utility & usefulness to the users. colour. promotion strategies influence the success of product design which has to be rightly understood by a marketer & tap the market rightly with target customers. shape. 8. screening. machinery. place. equipment & the necessary tools & materials to make a new & improved product.

likes & preferences & guides the firm’s resources & efforts towards the accomplishment of satisfying a want.  To guarantee firm’s survival: Product planning that predicts the likely changes in products. etc which would help the firm to survive for several years. facilitating transfer of technology. requirements.As diversified products broaden the production base which benefits in the form of growth & stability to an organisation. Product planning helps to identify the customer needs.  To Increase firm’s sales: Product planning activity is designed to achieve the sales of an organisation by promoting healthier competition& designing right marketing mix.  To meet the customer needs: Customer is the king of marketing. 9 . inputs. New Product: There are 3 types of new product:  Copy of the existing product: There are many products without patent or other legal hurdles which can be copied & marketed. streamlined economic relations.  To evaluate the firm’s strength & weaknesses: Product planning that brings these strength & weaknesses of the organisation in order that the product would be devised so as to minimise the weaknesses & maximizes the strength. technologies. It is an essential tool for product planning in order to improve productivity.  To maximise utilisation of resources: Product planning is related with development of new products. etc. discontinuance of marginal products. aspirations.  To standardize the products: Standardisation is the by-product of simplification of products.term & long term profitability through right investment on various product portfolios.  To manage product diversification: product planning helps to handle diversified products . etc. Ex: First Airplane  Dynamically continuous Innovation: These are innovations which introduce products with significantly improved features to satisfy the need or products which enhance the product applications & benefits.  To enhance profit: Product planning helps to enhance the short.  Significantly modified product or product modification: Export opportunities  Innovative Product/Innovation: A product which is entirely original & new to the market. product ideas. Product planning is a dependable tool for marketing manager to achieve the ultimate objective. modification of existing one to changing consumer needs. Types of Innovations:  Discontinuous Innovation: It introduces entirely new or very substantially different products.

R&D professional. customers. When and how? Usage 2. Step 6 : Test Marketing Objective: Test the Product as real products in a small segment of target market under controlled test market conditions. marketing cost • Financial projections: Sales. Step 2 : Idea Screening Objective: Critically evaluate the ideas to isolate most attractive options. Methodology: All ideas and innovations are evaluated by analyzing :  Project Attractiveness: Strategic and Financial Attractiveness  Capability to execute: Requisite skills and resources Step 3 : Concept Development & Testing All ideas that survive screening process is studied in details. dealers etc. 10 . top management. Step 4 : Business Analysis Objective: Analyze the viability of product ideas from business viewpoint. Develop the Product-Idea into a Product Concept • Express the idea in a meaningful consumer terms • Defining the concept in terms of  Who/ For Whom? Target market  What? Product features  Why? Product benefits  Where. Estimation is done on : • Overall demand forecast / Estimation of market size • Operational Costs: Production cost. addition of new features. sales force. Profitability and BEP. It is a combination of cost benefit and profitability analysis. marketing cost • Financial projections: Sales. Step 5 : Product Development Objective: Analyze the viability of product ideas from business viewpoint. It is a combination of cost benefit and profitability analysis. Profitability and BEP. Steps in New Product Development Step 1 : Idea Generation Objective is to Create a large pool of ideas as potential product options :  New ideas for products  New attributes for current products  New Uses for current products Ideas may be contributed by scientists. Estimation is done on : • Overall demand forecast / Estimation of market size • Operational Costs: Production cost. Testing for Target consumer reaction by asking them to offer their comments on product attributes and expected benefits. Continuous Innovations: It refers to incremental improvements to existing products such as improvement in quality. Test Marketing Is also known as Pre-Testing. Objective here is to: 1.

it may not succeed in the market if not marketed effectively. Definition: Pre-Testing involves a research technique in which the product under study is placed on sale in one or more of selected localities or areas. recorded and analysed. Decisions are taken on following product launch aspects:  When (Timing): • First entry.  The me-too product meeting a competitive brick wall: Products which are mere imitations of competitor’s products may find it difficult to succeed in the market because of intense competition from firms which established market share & customer loyalty. etc should be considered since conception of the product idea to its launch. technology. Heavy users.  Environmental Ignorance: Performance standards. Late entry  Where (Geographic strategy): • Role out the product in waves with different part of the markets receiving products on different schedules/ all-out launch  To Whom (Target Market prospect): • Opinion leaders. 11 .  Price crunch: New products also fail because of mismatch between price of the product & value of the product as perceived by the customers. Step 7 : Commercialization Objective: To launch the product and monitor early delivery/ market response • Product Launch needs to be well planned and product Quality has to be maintained. environmental aspects.  Technological dog products: These are products which fail to rise up to the expectations of the customers. Early adopters  How (Introductory market strategy).Action Plan ORGANISING FOR NPD Process:  New Product Committee  Task Force  Venture teams Reasons for failure of New Products:  The better mouse trap no one wanted: These are products which have some uniqueness or some superiority but which failed to generate enough demand. safety norms.  Competitive one-upmanship: Even if a product is good. Parallel entry. customer preferences & demands. competitive environment. and its reception by consumer is observed.

rate of growth is slow. Strategies for introduction stage: With regardto price & promotion. companies adopt the rapid penetration strategy. distribution and promotion.  Rapid penetration: When the product is unknown to the market & the market size is relatively large. Marketers offer the product at a very low price & the product promotion budget is large. Decline : Falling Sales 1. Introduction : Product is introduced in the market. Maturity : Rising Sales at decreasing rate 4. 12 . Introduction : Sales are starting 2. Product development and Design are critical factors. Growth : Rising Sales at increasing rate 3. Profit is low or non existent as Expenses are high on production. Products are bought on trial basis.It is useful when consumer knowledge about the product is low. Product’s Sales Volume and Revenue follow a typical pattern of five phase cycle: 1.  Slow skimming: Marketers use this strategy when the product is not new to the market & there is no threat of competition. Saturation : Stable Sales 5. Sales revenue begins to grow. a marketer may adopt any of the following strategies during the introduction stage:  Rapid skimming: Companies may price their products very high & also promote the products at a higher level.PRODUCT STRATEGY OVER THE LIFE CYCLE Product Life Cycle PLC is an attempt to recognize distinct stages in the sales history of the product. Producers offer their products at a higher price & the products are supported by a limited promotional budget.

Cost control is undertaken to generate profits: Through reduced distribution network and No promotional expenses Conclusion: Many products do not follow the life cycle given above. Marketers fight for market share. Implications: PLC governs strategic marketing planning at all levels. Overall Marketing effectiveness is the key factor. promotion and distribution policies. Substantial improvements is critical for cost efficiency. Ex: In India. Sales Volume are high despite increase in competition. Time interval for each stage varies from product to product. Profits reduce as intense competition put pressure on prices and increases marketing expenditure. Some may remain in the stage of maturity forever (salt). Prices fall rapidly as there is excess supply and marketers want to liquidate stock at the earliest and exit.On the other hand. Marketers can alter the PLC through product improvements. Product is well accepted by consumers and traders. Manufacturing and distribution efficiency is achieved. Growth : Rate of increase in sales turnover is high. It also helps in formulation of pricing. Marketers need to stimulate demand and counter competition through advertising and sales promotions. while designing their strategies. & beliefs associated with a category of customers. It launched India-specific items such as Mc Veggie burger.  Slow penetration: Marketers may offer the product at lower prices & the product is supported by a limited promotional budget.The strategy is adopted when the product is well known to consumers & when the market is very large in size. Saturation : Stable Sales Sales are mainly replacement sales. Profits increase at an accelerated rate. international marketers need to take into account the diverse cultures across the world.  Effective Distribution and Advertising are key factors. Mc Aloo Tikki burger. McDonald’s has focused on innovative products & has changed its menu to suit the tastes of local consumers. 13 . values. Therefore. it offers egg-less sandwich sauces to vegetarian customers. 4. Decline : Falling Sales Product is becoming obsolete and getting gradually displaced by new innovation/ trends. Additional expenditure is involved in product modification/ improvement / broadening product line. Customer Analysis Factors influencing customer analysis are as follows:  Cultural factor: A) Culture: It refers to the set of attitudes. 2. Maturity: Sales increase at decreasing rate.Veg Pizza McPuff & Chicken McGrill burger. 3. 5. Prices fall rapidly and Profit margins are low. & vegetarian items are prepared at a separate counter at its outlets.

 Social Factors: It refers to family. attitudes & beliefs of a unions or professional associations. They influence the buying pattern of customers. They have no savings. B) Subculture: Within a culture. there may be subcultures that contain similar habits. A) Reference Groups: There are two types of reference groups: They are: 1) Primary reference group: This can be further divided into four categories: a) Membership reference group: Individual customers hold membership to certain groups where they frequently interact with other members of the group.They want value for money.  Social class: A) Upper class: This class consists of customers who possess large amount of wealth & buy from exclusive branded stores. 2) Secondary reference group: These may be religious groups. They prefer goods appropriate to their social status. C) Middle Class: These customers usually work at the middle & junior levels in organisations . b) Aspiration reference group: An individual customer wants to be part of that group & tries to incorporate the attitudes of those customers.Ex: Max New York life Insurance distributed its products in rural areas through grama sahayaks like teachers & social workers who were opinion leaders in villages. d) Avoidance group: an Individual neither holds membership to a particular group nor likes the values & beliefs of the group. 14 .Each of these groups has opinion leaders who influence the buying behaviour of its members. Advertisements of products like “Tide” are targeted at such customers. friends & colleagues. B) Upper middle class: These customers are well – educated & hold good positions in various organisations. the individual does not want to copy the actions of the group. c) Disclaimant reference group: Although an individual is a member of a particular group. Marketing mix needs to be altered according to the requirements of subcultures of various customers. Ex: A sari manufacturer may like to advertise his kancheepuram silk sarees more in Chennai than in Delhi. due to cultural preferences of varied customers. D) Lower Class: These customers are primarily blue collared workers with little or no education. Ex: Malls like Shopper’s Stop & Lifestyle cater to such customers.

Ex: A commercial on television shows a man putting his baby to sleep. Ex: Individual’s opinion may differ with regard to services in a particular saloon. Marketers should aim at neutralising negative attitudes & alter their product mix to suit the needs & preferences of customers. c) Life style: It depends upon the work life. marketers should keep in mind the stages in the life cycle of their customers. couples with children. but having food in branded restaurants is a want. B) Family: Family members influence the buying decisions of each customer’s . Marketers compete to ensure that their products are on the purchase list of customers with limited disposable incomes. needs should be distinguished from wants. Ex: Whirlpool Corporation. it was later repositioned as a drink for the whole family. However. while pension plans are targeted at the older generation. b) Occupation & Income: Occupation & income have a bearing on the buying behaviour of an individual customer. e) Perceptions: It is a process by which customers understand certain stimuli & convert them into their thoughts.Therefore. COMPETITOR ANALYSIS CLASSES OF COMPETITORS: Competitors can be classified into categories based on:  Generic competition: In this type of competition. Ex: Hunger is a need. d) Motivation: Fulfillment of one need leads to the other needs.  Personal Factors: These refers as follows: a) Age & life cycle changes: Customers may be at different stages of their life cycle based on whether they are single. Therefore. f) Beliefs & attitudes: An individual customer’s thought about a particular product reflects his belief. Ex: Although Coke was positioned as a drink for youngsters when it entered the Indian market. manufacturer of various consumer durables. 15 . social groups & interests of an individual. married couples. based on their experiences at the saloon. Ex: LIC’s children’s plans & housing loans are targeted at young. marketers should create wants in customers & inculcate in them. the desire to fulfil these wants. married couples. At each stage customer’s taste & preferences varies . or senior citizens. Ex: A top executive of an organisation would purchase branded clothes & vice versa. companies compete for the same disposable income of customers.

16 .  Brand competition: A company competes with companies offering products to the same segments of market. 2. 3. generic strategy. Identifying competition: Identifying competitors can be done based on the products & services of a company. lack of management capabilities. Ex: ITC competes with all tobacco companies etc. Ex: Maggi Noodlescompetes with companies manufacturing only noodles. Firms operating in the same market segments need to develop distinguishing strategies to gain an edge over other competing firms. which give a comparative advantage to the firm in the marketplace. competitor’s objectives also need to be considered. organisations can adopt either a top-down or bottom-up approach. For setting objectives. focus strategy. They can be long term or short term & they depend on environmental factors. etc. differentiation strategy.  Industry competition: A company competes with similar products manufactured by other companies. Ex: Maruti Suzuki competes with Hyundai. In order to withdraw competition. Being aware of new entrants into the industry is essential while identifying competition. Further changes in the operating environment need to be monitored by the companies to grab opportunities. Technological breakthrough can severely affect the competitiveness of a firm. 5. Strategies such as cost leadership strategy. Analysing competition: Competition should be analysed based on different criteria. This may lead to mobile users stop purchasing watches in the future. Strategies: Efficiency in framing strategies helps a company to stay ahead in the competition. Objectives: Objectives form the basis of the planning process & state the end results to be achieved by an organisation. PROCESS OF COMPETITOR ANALYSIS 1. Some of the sources of strength are technical superiority. Form competition: A company competes with all other companies which offer similar benefits to customers. etc. brand value in the market & good distribution network. For example: Watch companies are facing competition from mobile phones as more & more people are using them as timekeepers. skills of personnel. firms should monitor the strategies of competitors continuously & should formulate counter strategies to deal with competition. For Example: The innovation of USB technology caused a loss in market for CD’s & Floppy disk. While setting objectives for an organisation. Strengths & weaknesses: Strengths are the distinctive competencies of a firm. A weakness could be limitation of financial resources. 4. poor marketing skills.

etc 17 . design. f) Size of package: Variations in the size or weight of a product can also be utilised by marketers in differentiation. quality. selective competitors. 2) Intangible Products (Service): For intangible products. c) Features: The features of a product are the characteristics that allow it to perform certain functions. etc. However. which reflect the functionality/usefulness of the product. Reaction pattern: The types of reaction from competitors can be varied. For example: A washing machine can be differentiated based on its capacity( shape. PRODUCT DIFFERENTIATION Marketers find it tough to make a decision about product differentiation when there are many features of a product which can be used for differentiation. reparability. tough competitors & unpredictable competitors. b) Design: Customers prefer product designs. it can be done through as follows: a) Ordering ease: The ease with which consumers can order products they want can be a differentiating factor used by players in the market. when a company wants to differentiate its product by design. etc: a) Product form: Differentiation in product form can be done based on its physical attributes like size. the durability of a product varies with its nature & use. 6. e) Durability: Customers are prepared to pay a premium if a product is durable.etc) or mode of loading clothes like front loading. The sum total of physical attributes is the product form. The competitors can be classified as slow reactors. etc. They are: 1) Tangible Products: can be based on form. Product differentiation can be broadly categorized into two. It is perceived as a quality If the characteristics are in keeping with the customers’ expectations. top loading. customers will not be willing to pay a premium for its durability. bigbasket. Ex: amazon. durability. Marketing research can help in identifying the features which customers are looking for in a product. it should come up with innovative designs on a regular basis. size. Ex: Wagnor d) Product quality: The quality of a product refers to the extent to which a product matches customers’ expectations. Differentiation of a product design can be in the form of functionality or looks. 5kg. Companies can achieve differentiation of products by adding or removing certain features of a product. Therefore. If the technology used in the product gets quickly outdated. features.

To maintain the leading position. technology. g) Maintenance & repair: Many companies provide after sales services such as maintenance & repairs for their products. d) Guarantees: Guarantees relating to product functioning & after sales service can help the companies gain a competitive advantage. Some of them are:  Getting into the mind of the consumer: It is easy for the first mover in the market. value. safety provisions. POSITIONING Product positioning is done in such a way as to project that the product of a company is different from that of competitors & even different from the other products of the company. user friendliness. A1 Ries & Jack Trout discussed various positioning strategies. c) Installation: It can be another basis for differentiation. Rooser Reeves explained that different brands of the same company should have unique selling propositions. companies can attract customers to make repeated purchases. service. Some companies also provide a toll free number for online assistance to customers & also to provide information about new products & technology. price. especially in industrial markets where heavy equipments is purchased. Eg: Its quality.b) Delivery: Companies can also use the speed & care in delivering the product as a basis for differentiation.  Positioning of a leader: Some companies may be leaders in a market because they are the first or early entrants in the market rather than due to their marketing strategies. f) Customer training: Some companies provide training for customers or the employees of customers with regard to the usage of product. Consumers tend to remember more of the features of a product that is new to the market than of similar products introduced later. By providing satisfactory after sales services. e) Financial arrangement: Some organisations have a tie-up with financial institutions to provide loans for customers to purchase products through easy instalments. especially when a new technology is introduced.Ease of installation can also help the company in capturing the market.Market leaders should adopt the strategy of 18 . Ex: Domino’s Pizza claims to deliver pizzas within the fastest time possible & even has a money back guarantee in case of failure to deliver the product within the specified time. A USP can be any special attribute of a brand. customization. etc. market leaders need to position their products intelligently in the consumers’ mind. Employees of a company are sent to install the equipment at the client site.

Pepper fry. TWO MARKS 1. Explain the reasons to failure of NPD. What is product differentiation? Eight Marks 1. 19 . introducing multiple brands to satisfy the changing needs of consumers.  Power of name: Positioning of a product is easy when it has a suitable name. 2. Explain the product positioning strategies.etc suggest the utility of the product & have greater recall value among customers. 3. Fifteen Marks 1. Explain the factors influencing design of a product. Explain the process of competitor analysis. What is competitor analysis? 2.For example. Explain the new product development process. What is customer analysis? 3.This would cost the leader less than repositioning the existing brands in the market. it can position its product based upon some unique feature which other marketers have not already claimed as their USP.  Positioning of a follower: When the company is not the first entrant in the market. names like Kinder Joy. 2. What is product positioning? 4.

The company develops products to fulfil the needs of a few selected segments. other segments can compensate for the overall profits of the organisation. Single segment concentration: Targeting a single segment can benefit the marketer with high sales as all his marketing efforts are concentrated on the segment. The marketer can serve a single segment successfully if improvisations are made to the product in keeping with changes in tastes & preferences of customers. marketers should consider the potential of segment & their ability to tap it. it is called selective specialisation. Ex: Unilever Ltd has different detergent brands like Wheel & Surf Excel. 20 . UNIT-3 MARKET POTENTIAL & SALES FORECASTING Target market selection process: Evaluating the market segments: While evaluating market segments. However. Targeting the right market segment is tough in the highly competitive business environment. the marketer will face severe losses. Marketers should select those segments with optimum potential to cater to the target customers. if the customers of the segment stop patronizing the product for some reason. The evaluation of a particular segment by marketers should be in accordance with the fulfilment of the organisational objectives. each of which targets people of different income levels. Even if one segment becomes unattractive. Selecting the market segment: A company need to evaluate the different market segments before selecting particular segment. thereby minimizing the risk of depending on a single segment. Selective specialisations: When a company selects a few market segments to operate in instead of a single segment.

The assumption is that the executives are well informed about the industry outlook & the company’s market position. This helps in not revealing the steps of organisations to competitors. & B) An average estimate is calculated. in a future period under a particular marketing program & an assumed set of economic & other factors outside the unit for which the forecast is made. SALES FORECASTING METHODS A sales forecasting method is a procedure for estimating how much of a given product or product line can be sold if a given marketing program is implemented. it can replace the existing product in the market. Full market coverage: Some companies target the full market instead of concentrating on segments. Ex: It is unethical to encourage children to consume high fat foods or to promote lotteries to poor people. in dollars or physical units. & marketing program. Segment interrelationships & super segments: Marketers can take the advantage of the interrelationships between segments by targeting all the related segments as a super segment. Segment by segment invasion plans: Marketers can plan to invade one segment after another so as to finally capture the super segment. Ethical choice of market targets: Marketers should not try to influence people to consume products which are not good for them. All should support their estimates with factual material & explain their rationales. developing marketing programs to serve customers of each segment efficiently is possible. capabilities. If a competing firm develops a breakthrough. They should use the similarity in segments to increase sales. Ex: Hewlett Packard offers printers for all segments from home usage to heavy duty colour printers. Market specialisation: It is different from product specialisation in that involves concentrating on a customer group & catering to different needs. However. there is a risk involved in product specialisation. Companies using the jury of executive opinion method do so for one or more or four reasons: 21 . Inter segment cooperation: With mutual cooperation & information sharing between the various segments targeted by the marketer.Product specialisation: Specialising in the manufacture of a single product category & supplying it successfully to different segments of the market earns a company a good reputation. SALES FORECAST A sales forecast is an estimate of sales. A sales forecast may be for asingle product or for an entire product line. 1) Jury of executive opinion: There are two steps in this method: A) High ranking executives estimate probable sales.

information available to some & not to other experts is disseminated to all. * Derive sales forecast from these estimates. with the heaviest weight placed on the most recent data. or the forecast may be made by adding a set percentage to last year’s sales or to a moving average of the sales figures for several past years. The panel of experts responds to a sequence of questionnaires in which the responses to one questionnaire are used to produce the next questionnaire. cyclical changes. Only where sales patterns are clearly defined & relatively stable from year to year is time series analysis appropriately used for short term operating forecasts. seasonal variations & irregular fluctuations. b) This is a way to pool the experience & judgement of well-informed people. enabling all to base their final forecasts on all available information. Thus. c) This may be the only feasible approach if the company is so young that it has not yet accumulated the experience to use other forecasting methods. Prediction on a year to year basis. 22 . or when these figures have not yet been put into the form required for more sophisticated forecasting methods. 7) Regression analysis: The three major steps in forecasting sales are: * Identify variables causally related to company sales * Determine or estimate the values of these variables related to sales.a) This is a quick & easy way to turn out a forecast. individual sales personnel forecasts sales for their territories. 5) Time series analysis: This involves isolating & measuring four chief type of sales variations such as long term trends. time series analysis finds practical application mainly in making long range forecasts. such as are necessary for an operating sales forecast. 6) Exponential smoothing: It is a type of moving average that represents a weighted sum of all past numbers in a time series. then individual forecasts are combined & modified.This approach appeals to practical sales managers because forecasting responsibility is assigned to those who produce the results. d) This method may be used when adequate sales & market statistics are missing. 3) Poll of sales force opinion: It is also known as grass root approach. 4) Projection of past sales: The simplest is to set the sales forecast for the coming year at the same figure as the current year’s actual sales. to form the company sales forecast. 2) The Delphi technique: Researchers at the Rand corporation developed a technique for predicting the future that is called the Delphi technique. as management thinks necessary. For most companies.

thereby accelerating the development of developing countries. International marketing is required for economic integration among the countries of the world. Bridging gap between developed & developing nations: International marketing helps in exchange of goods & services & helps in transfer of technical know-how & skills. Due to geographical & other factors. the global resources can be used fully at the global level. goods & services to create exchanges that satisfy individual & organisational objectives. Increasing needs & better standard of living: International marketing is needed to fulfil the increasing needs of consumers for production & improved products & for providing good standard of living to the people. Every country can produce certain commodities with low production cost because of some favourable factors. There is international interdependence due to which every country has to import certain goods & export goods. which it is not in a position to produce. promotion & distribution of ideas. Need of developing closer economic & cultural cooperation: International marketing is needed for developing closer economic & cultural cooperation between different countries. 2.” International marketing is defined as exchange of goods & services between different national markets involving buyers & sellers. 23 . Exchange of goods on the basis of comparative cost is beneficial to all countries. Problem of surplus production & scarce production in some countries: International marketing is needed because of surplus production in some countries & scarce production in some other countries. 4. Due to natural & other economic factors. 7. pricing. 3. no country can produce all its requirements. NEED FOR INTERNATIONAL MARKETING 1. a country can import the goods. 6. No uniform geographic & climatic conditions: There is no uniformity of geographic & climatic conditions in all countries. No uniform production cost: International marketing is needed because the production cost in all countries is not same. International interdependence of countries & growing world population: Self sufficiency in all respects is not attained by any country in the world. Thus. A country does not have the capacity to produce all the goods required by it. 5. in order to pay for imports.INTERNATIONAL MARKETING: According to the American Marketing Association “International marketing is the multinational process of planning & executing the conception.

To provide assistance to developing countries in their economic & industrial growth & thereby to remove gap between the developed & developing countries. 24 . To ensure optimum utilisation of resources ( including surplus production) at global level. 8. METHODS OF ENTERING A NEW MARKET The following are some of the popular ways of entering international markets:  Direct exports: Companies may sell their products in foreign markets with the help of middlemen situated in these markets. To keep international trade free & fair to all countries by avoiding trade barriers. 10. To provide better life & welfare to people from different countries of the world. To encourage world export trade & toprovide benefits of the same to all participating countries. To facilitate & encourage social & cultural exchange among different countries of the world. 8. 6. To bring integration of economies of different countries & thereby to facilitate the process of globalisation of trade. OBJECTIVES OF INTERNATIONAL MARKETING 1. It helps in transfer of technology & quick industrial development in developing countries. 5. 2. 9.  Indirect exports: It is a process of exporting goods to foreign markets with the help of a domestic intermediary. To establish trade relations among the nations & thereby to maintain cordial relations among nations for maintaining world peace. 4. To bring countries closer for trading purpose & to encourage large scale free trade among the countries of the world. 3. Economic growth of developing countries & peace in the world: International marketing is needed for quick economic growth of developed & developing countries. In addition to provide assistance to countries facing natural calamities & other emergency situations. To offer the benefits of comparative cost advantage to all countries participating in international marketing. Companies may also set up sales offers in the overseas markets instead of appointing middlemen as distributors. 7.

The licensee helps gain access to the manufacturing process or trade secrets of the licensor. the licensee operates manufactures the product/ offers the service in the foreign country.  Second phase: Analysing market.  Joint venture: The Company desiring to foray into a foreign market enters into a partnership or joint venture with a company existing in that country. The partner may be a majority or minority stakeholder in the newly formed joint venture. FORECASTING/ EVALUATING OF TARGET MARKET POTENTIAL:  First phase: It involves analysing the macro environmental factors of different markets such as the political. etc. What is sales forecast? 4. it might attempt to enter new markets by exporting the product. Licensing is also an easy way of entering new markets.When the company’s product reaches the maturity stage in the domestic market. etc. The partnership may take place between companies belonging to the same industry or different industries. availability of skilled labour. Explain the needs of international marketing. legal. product acceptability & customer perceptions form the second phase of screening potential markets. Explain the methods of entering new market. cost of exit.  Licensing: It is a form of providing access to a patent or a trademark to some other company by charging a fee or royalty. expected sales. 2. With this knowledge. number of competitors. What is sales potential? EIGHT MARKS 1. level of investments.  Fourth phase: This forms the last stage of forecasting market potential: It involves ranking the potential markets depending upon profit potential. What is market segmentation? 3. TWO MARKS 1. 25 . What is international marketing? 2.  Third phase: It involves analysing factors such as barriers to entry.  Internationalization process: The process of internationalisation refers to the entry modes & timing strategies of a company. geographic & economic environment.

fonts . or symbols. UNIT-4 BRAND MANAGEMENT Meaning And Definition of Brand in Marketing. A brand typically includes a name. Explain the target market selection process.symbol. 26 . Explain the methods of sales forecasting. or a combination of them is intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors”. sign.FIFTEEN MARKS 1. or design. a brand is the symbolc embodiment of all the information connected with a product of service.term. 2. and other visual elements such as images. logo. Functions of Brand 1)Functions of brand to consumers: from the customers’ perspective various functions of brand are as follows: i) Identification of source of product: Brands identify the source or maker of a product. “Brand is a name. colour aschemes. According to American Marketing Association.

c) Financial Risk: The product is not worth the price paid. b) Physical Risk: The product poses a threat to the physical well- being or health of the user or others.the type of person they are or wouldlike to be. brands can be a very important risk-handling device. To the exent that consumers realize advantages and benefits from purchasing the brand. they are likely to continue to buy it. especially in business-to-business settings where these risks can sometimes have quite profound implications. especially those brands with which consumers have favourable past experiences. Consumer offer their trust and loyalty with the implict understsnding that the brand will behave in certain ways and provide them utility through consistent product pereformance and appropriate pricing. iv) Search cost Reducer: Brands allow consumers to lower search costs for products both internally( in terms of how much they have to think) and externally (in terms of how much they hav to look around). d) Social Risk: The product results in embarrassment from others. allowing consumers to project their self-image. brands take on special meaning to customers. consumers may perceive many different types of risks in buying and consuming a product: a) Functional Risk: The product does not perform up to expectations. Consuming such products is a means by which consumers can communicate to others. iii) Risk Reducer :Brands can reduce the risks in product decisions. and as long as they drive satisfaction from product consumption.ii) Assihnment of Responsibility to product maker : Brand allows consumers to assign responsibility to a particular manufacturer or distributor. vi)Symbolic Device: Brands can serve as symbolic devices.or even to themselves.Certain brands are associated with being used by certain types of people and thus reflect different values or traits. and actions. promotion and distribution programs. Thus. v)Promise. Most important. Researchers have classified products and their associated attributes or benifits into three major categories: 27 . e) Physchological Risk: The product affects the mental well- being of the user. Although there are a number of different means by which consumers cope is to buy well-known brands. f) Time Risk: The failufre of the product results in anopportunity cost of finding another satisfactory product. Bond. vii) signal of Quality : Brands can also play a significant role in significant role in signaling certain product characteristics to consumers. or Deal with Maker of Product: The relationship between a brand and the consumer can be seen as a type of bond or deal.

cannot be assessed so easily by inspection. as Much as 70 percent of their intangible assets can be made-up of brands. 2) Functions of Brand to firms: From the firm’s perspective various functions of brand are as follows: i) Mean of identification to simplify Handling or Trancing : Fundamentally. lasting impressions in the minds of individuals and organisations from years of marketing activity and product experience may not be so easily reproduced. and actual product trial and experience is necessary (e. products attributes can be evaluated by visual inspection (e. giving legal title to the brand owner. vi) Source of Financial Returns: Much of the recent interest in brands from senior management has been a result of these bottom-line financial considerations.g. and ease of handling or use). A brand can retain intellectual property rights. products attributes may be rarely learned (e. c) Credence Goods: with credence goods. iii)Signal of quality Level to satisfied customers: Brands can signal a certain level of quality so that satisfied buyers can easily choose the product again.brands help to organise inventory and accounting records. ii) Means of legally protecting unique Features: A brand also offers the firm legal protection for unique features or aspects of the products. v) Source of competitive Advantage: Although manufacturing processes and product designs may be easily duplicated.a) Search Goods: With search goods. they serve an identification purpose to simplify product handling or tracing for the firm.. as with durability. size.weight and ingredient composition of a product). This brand loyalty provides predictability and security of demand for the firm and cretes barriers of entry that make it difficult for other firms to enter the market.. iv) Means of Endowing products with Unique Associations: Investments in the brand can endow a product with unique associations and meanings thst differentiate it from other products.g. For a typical fast Moving consumer goods (FMCG) service quality.g. insurance coverage).net tangible assests may be as little as 10 per cent of the total value. brands may be particularly important signals of quality and other characteristics to consumers for these types of products. Moreover. the the vast majority of its corporate value is made-up of intagible assets and goodwill. 28 . colour.products attributes- potentially equally important. Operationally.. b) Experience Good: With experience goods. Because of the difficulty in assessing and interpreting products attributes and benefits with experience and credence goods.

The branch must own a word first. Stong communication between colour and brands helps prospects in choosing or retrieving or re-calling brand name upon seeeing colours. It is the uniqueness that keeps them ahead in the race. A brand is not what it is actually: it is rather 29 . blue is tied to pepsi. Symbols helps in brand recognition and brand recall while visual image leave imprints in visual memory of the prospects even at the processing level. It embodies for the purchases or use additional attributes which might be considered by some to intangible or still very real. There are two types of values that brand offer: i) Function/performance value: It refers to performance aspect of the brand that is what it does at the functional level. 2) Positioning perspective: Postitioning is creating a unique position in the prospect’s mind to succeed in the over-communicated society. yellow reminds one of Kodak. Companies state more about the customers and less about the brand. Red connects with colgate and coke. This perspective talks about the brand image of product in the market. establish postion in the prospect mind in a co-ordinated way. Thus. The role of working is invariables in this context is to help. A brand must create a positon in the prospect mind that sets it apart from the most of the players in the category. and pink reminds one of Hutch. (For ex: Tide – isase behather safedi koyi nahi deta). For ex: In the soap category: “Liril” is positioned as the freshness soap where “Dove” is positioned as not only the soap but the moisturising base and also “Detol” is an anti-septic soap. 3) This perspective is based on the Value perspective: value added by the brand in making the product more satisfying. Brand Perspectives 1) visual or verbal perspective: The visual and verbal aspect of the brand serves important function of indentification and differentiation. ii) Expressive value: It reflects the customer side of brand. For example. A brand is more than the sum of its components/parts. (For ex: Raymonds-the complete man). 4) Brand Image Perspective: Object reality does not matter but what matters is perception about the product. The branch is nothing more than a position occupied in the perceptual space of the consumer. a brand is commodity augmented by added values making it more acceptable to consumer.

Thus. The human psychological make-up could be visualized to be consisting of senses. it is known as manufacturer’s brand. It is visualization of a brand as a person. For ex: Fair & Lovely (Feminine). emotional. Scooty (Feminine).” 6) Personality Perspective: Defining a brand in terms of human being. 5) Perceptual Appeal Perspective: This approach views the buyer from the consumer behavior perspective. It is the imagery over and above the physical product that make brand more relevant or meaningful to consumer. It is the brand image that would steer the customer either towards the brand or away from the brand. Use of 30 . and Bike (Masculine). friendly. and appeal to the emotions. a brand may be rational. TYPES OF BRANDS 1) According to Ownership: On the basis of ownership. Brand- image building is the effort to differentiate the brand psychologically rather than physically. It is proposed that “there are three sorts of appeal. an appeal to the reason. brand may of two types: i) Manufacturer’s Branch: When brand is named after the name of the manufacturer of the product. Fair & Handsome(Masculine). Consumer perceives personality traits in brands. Certain trades of the brand ambassador would get associated with that brand. emotional satisfaction. Markets often use celebrities to create brand personality accordingly. Image perspective lays stress on the symbolism or imagery aspect of a brand. Brands are embedded with personality. Hence image building is a crucial task for Brand Manager. sophisticated. The brand may be perceived as masculine. The fundamental assumption in governing the personality perspective is that a brand could be made to have personality characteristics which would attract customers in the target market. sensory. or a combination of that. A brand could be combining their appeals in a judicial manner.what it is perceived at. they are all interrelated and each brand has a different blend of the three – an appeal to the senses. dependable young. Either company gives these traits to the brand or customer give those traits by experience. and utilitarian and economic value depending upon the consumer.

South and Central regions. Different names for different regions are used. ii) Provincial Brand: When one brand is used for a particular province or State it is called provincial brand. the whole market is divided into different regions such as East. Under this. geyser. pin. different brands are used in different markets. manufacturer does not use any brand for his product.. v) International Brand: When the same brand is used for selling the product in all the countries of the World it is called International brand. this type of brand is not a popular in our country because we do not have large distributors like U. West. is an example of manufacturer’s brand. it is called local brand. table and ceiling fan.K etc. etc. the brand may be of the following five types: i) Local Brand: When brands are used for local market. Different brands are used in different States for the same product. etc. iii) Regional Brand: Under this type of brand. Transistor.Philips on all the products of Philip’s Company like Philips Radio. Actually. distributors like wholesalers. 3) According to the Number of Products: A brand may be of the following three types on the basis of number of products: i) Family brand: When the manufacturer uses a single brand for all his products and in all market segments. etc. For ex: ‘Dalda’ is used for Vanaspati Ghee product line and ‘Super Surf’ for 31 . Under this type of brand. Bulbs.V. tube light. sell the product under have own brand. ii) Middlemen’s Brand: Under this type of brand.A and U. iv) National Brand: When manufacturer uses his product’s brand for selling his product throughout the country. manufacturer uses his brand name only in a particular region. etc. North.. retailers. toaster. scooter.. Philips T.S. it is called national brand. Instead. For ex: all the products of Bajaj Group are marketer with the brand name of Bajaj such as bulbs. 2) According to the Market Area: According to the market area. ii) Product Line Brand: When the business or industrial houses use different brand names for their different product lines it is called product line brand. it is known as family brand.

A product is physical.”Product” is whatever company is selling in the market to generate revenue(using its face value).detergent powder line by the same manufacturer is the example of product line brand. Rexona etc.A brand is a symbolic manifestation 4.nano) associated iith the brand (e.A brand is emotional. Nirma Soap. are all having similar characteristics.etc.A product emotional need for recognisition and fulfils a functional /physical need. For ex: ITC Ltd.. such a brand is known as competitive brand. ii) Competitive Brand: When the brand introduced in the market is almost similar to those of competitors. 3. For ex: Moti Soap.It satisfies an 1. association with particular set 2.Product is anything that can be of all the information connected with a offered to the market that may satisfy the need . Lux.want and demand of a certain 32 . for ex: Lifeboy.brand represents a “general promise 3. it is called a fighting brand. has recently introduced ‘Now’ brand cigarette.”for products offering(e. Lux Supreme. 4) According to Use: Under this category.”Brand” is the face of the company 2.g-ipod. brand may be of two types i) Fighting Brand: When there is very tough competition in the market and the producer wants to introduce a new product which has quite a different characteristic from that of competitors brand and which gives as impression of such a difference. 555 Soap etc. For ex: toilet soaps produced by the Hindustan Lever Limited bear different brands for the different products is the same product line. iii)Individual Brand: When individual product is market different brand names for the product.. The tabular difference between brand and the product are discussed below : Brand Product 1.product represents a specific of quality. produced by the same manufacturer.g apple) 4..ease of use. is called individual brand.

Coca.and offered by an organisation to satisfy an organisation carries-out in order to the needs .individual or market 5.colour.want and demand of a create either an image of the company certain individual or market.A brand is always how an 5. soft drinks BRAND IMAGE DIMENSIONS Brand image has three dimensions.and comparison with the brand .goal(brand taglines).Fries.There are as follows: 33 .image or idea which 7.A brand often includes An sale-“good business depends on having explicit logo. 6.products is the goods or service we associate with certain product or which we need and desire in services .product or services .Product refers to goods/services symbol.It .company.O n the other hand product is given to a product or service is called a merchandise-commodities offered for brand .and even is the way we see.that store offers a and sound which is developed to variety of products .Pepsi.and Cola.A product is always something that object.feel.Brand refers to the set of company’s 6.colour schemes. 7.The key objective is to create a relationship of helps us expect something frm he to differ service/product frm that of the product/service itself competitors and to gve/or not to give preference to certain product 8. in the mind of prospective users/buyers.ideas.The size and shape of a brand is comes into being and enters the defined by its constitutuents. represent values.Brand is the trade name which is 8.symbols good merchandise”.It is created .such as a product is perceived exists objectively . 9. For Example:McDonald’s.brand is a name. Hamburger. 9. marketplace.For example.

According to Aaker & Joachimsthalersss” Brand identity is a set of associations. it defines anew standard of brand existence. BRAND IDENTITY Brand identity is the outward expression of the brand. 3. the brand strategist seeks to create or maintain.  Image of the product: The image is a result of the products performance. & that it is stable. 6. including its name & visual appearance.  Image of the user: Users are the association between a brand& the perceived socioeconomic & personality characteristics of the stereotypical user of the brand. 4. To deal with the problem of marketing similarities: When a brand is created. This in-turn depends on is ingredients. 2. To convey that the business is established: A logo & professionally printed materials show that the business is committed to the customer. It also makes the business look like it has been around for some time.  Image of a corporate or company: A brand is what it is because of the company that makes it. Sometimes. To attract more customers: Some customers look for a well defined company & brand would be one of their criteria in making a purchasing decision. 34 .The brand’s identity is its fundamental means of consumer recognition & symbolizes the brand’s differentiation from competitors. & can go a long way towards making the business appear credible. To deal with the problem of communication: Brand proliferation has helped to identify the need for brand identity is explained by the problem of communication. To create differentiation: The concept of brand identity provides the tool to define the difference. To increase credibility: A logo of a brand makes the business look experienced & professional.” NEED FOR BRAND IDENTITY 1. brand image is influenced by the manufacturer’s name besides the brand’s own personality. 5.

a brand can help to explain exactly what it is that the business do by offering a visual reference. To describe an unusual line of business: If the business is non traditional. 8. To be more memorable: Brand helps the customers to identify the particular product easily in the market. 7. BRAND EQUITY 35 . Brand Identity versus Brand Image Sl Brand Identity Brand Image No 1 It develops from the source or the company It is perceived by the consumer 2 Brand message is tied together in terms of Brand message is untied brand identity by consumer in the form of brand image 3 The general meaning of brand identity is The general meaning of “Who yoy really are?” brand image “How market perceives you?” 4 Its nature is that it is substance oriented or Its nature is that it is strategic appearance oriented or tactical 5 It symbolizes firm’s identity It symbolizes perception of consumers 6 It is enduring It is superficial 7 It is active It is passive 8 It is total promise that a company makes to It is total consumer’s consumers perception about the brand.

EX: Procter & Gamble ask for the customer idea for their product through their customer portal. Ex: LG refrigerator & mobile phones.Brand equity can be defined as the stored value built up in a brand for achieving competitive advantage. Promotion & personal relation increase brand equity.  Brand extension: To polish the brand. 36 . BRAND REJUVENATION To recover & reposition brand in mind of consumer when it is not working successfully is known as Brand rejuvenation or Brand Revitalisation. bring some new products & services under the umbrella of same brand name. Re-Invent the experience: The people who work for the brand are most important & need to commit to the new organisational & brand refinement. its name & symbol add to or subtract from the value provided by a product or service to a firm &/or to that firm’s customers” SOURCES OF BRAND EQUITY  Market Research: Introducing brand in the market needs quantities or qualitatiuve research to get familiar with the trends & different attributes.  Quality: New product must incorporate quality ingredient because first impression is the last impression. If the customers are satisfied with the quality of your product then customers will suggest other people to go for this product by sharing good thoughts.  Protecting the brand equity: The brand name can be established & compete among the competitors brand only if the quality match the perception of the customer. According to Aaker” Brand equity is a set of brand assets & liabilities linked to a brand.  Customer Opinion: Always look for customer opinion because they know the best & worst about the product. Methods for Brand Rejuvenation 1.  Marketing mix: The proper use of marketing mix adds value in the brand marketing.

A brand is therefore a product.acquisition.want.1.s important to contrast a brand and a product.and demand of a ceratin individual or market . Re-building trusts: Brands that have been beaten down need to re-establish trust.but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need.etc in the brand. 6.use. 2.13 Brands versus products It.a product is anything that can be offered to a market for attention. favourability.consumers can still recognise or recall the brand under certain circumstances. 8. 4. Branding Challenges and Oppurtunities 37 ..These differences may be rational and tangible-related to product performance of the brand-or more symbolic.a well regarded marketing academic.or comsumption that might satisfy a need or want. Leadership: It needs the courage & perspective of strong leaders. 5. 1. often it is not the depth of brand awareness that is a problem.Products is more than just a material object . New uses that revitalizes old brands: Mature brand manufactures are increasingly researching & developing ways to market uses for their products.Eg: Mc Donald’s McNuggets 3. 7.It is also an inclusive package of benefits or satisfactions that the consumer or buyer may achieve upon purchase or usage. dynamic experience that supports the new purpose & goals & gives the brand action to get to its new experiential destination.product is anything that can be offered to the market that may satisfy the need.emotional intangible-related to what the brand represents.According to Phillip Kotler . Expanding brand awareness: With a fading brand. Re-establishing the brand promise: Redefine the brand promise with a relevant. Product/ service innovation: Innovation is also a key part of any brand revitalisation strategy.It is also called as goods or services. In marketing. Improving brand image: Anew marketing program may be necessary to improve the strength.

which are 1.brand Proliferation:Another important change in the branding environment is the proliferation of new brands and products .the price of network TV advertising in the United states has far outspaced the rate of inflation but without accompanying increases 38 .Crest gel (1981).Crest for Kids(1987).a brand name may now be identified with a number of different products of varying degress of similarity .promotion an other communication alternatives.Although there has been growing recognisition of the value of brands a number of development have occurred in recent years that have significantly complicated marketing practices and pose challenges for brand managers with due oppurtunities.Coca cola now comes in diet.and the gap is growing 2.With so many brands having introduced extensions there are few single(or”mono”)product brands the part spurred by the rise in line and brand extensions .procter and gamble’s original crest toothpasteintroduced in 1955.A well developed media market has resulted in increased attention paid to the marketing actions and motivations of companies .Consumer information and support exists in the form of consumer guides(eg-Consumer reports).brand management may be more difficult than ever.The reality is that although brands may be as important as ever to consumers.Crest Multicare and Crest multicare Advanced Cleaning.Saavy customers:Increasingly.such as Crest mint(1967).First.the cost of network tv hs risen dramatically in many countries.and so on.Consulting firm brand keys conduct annual survey and has found that customer expectations of what they want frm brands are on average 13% higher than what they think brands will deliver for them.caffeine-free and cherry flavoured forms.Crest tartar Control (1985).consumers and businesses have become more experienced with marketing and more knowledge about how it works.AdvANCED Fformula crest(1980).As a result .has been joined by a series of line extensions over the years.since the mid 1970s.Crest neat squeeze(1991) and in the last few years Crest whitening.complicating the marketing decisions that have to be made 3)Media Fragmentation: An important change in the marketing environment Is the erosion or fragmentation of traditional advertising media and the emergence of interactive and non-traditional media .For a no of reasons marketers have become disenchanted with traditional advertising media especially network television.

such as the following: 1)Brand extension:Many companies have taken their existing brands and launched products with the same name into new categories . of the product life cycle .Fourth.VCRs and accessories such as TiVo-and the resulting zipping.telecommunications. 3)Globalization:Although firms have embraced globalization as a means to open new markets and potential sources of revenue.sports and event audience size.commercial breaks on network TV have become more cluttered as advertisers increasingly have decided to advertise with 15second spots rather than traditional 30 or 60-second spots. consumption for many products and services has flattened and hit the maturity stage.the increase in remote control .grazing and channel surfing.on parking meters and in other location and product placement in the popular vernacular-has further reduced TV advertising effectiveness For these and other reasons. On the supply side.Many of these brands provide formidable services.Second.Both demand -side and supply side factors have contributed to the increase in competitive intensity.Third the growth of independent stations and cable channels has resulted in a dramatic erosion of the network share of audience (from 91% in 1975 to under 60% by 2000).it has also resulted in an 39 care and transportation)have become deregulated leading to increased competition from outside traditionally defined product market boundaries.g.electronic advertising.In its place .the percentage of the communications budget devoted to advertising has shrunk over the years . or even the decline stage. new competitors have emerged due to a number of factors. On the demand side. sales growth for brands can only be achieved at the expense of competing brands by taking away some of their market share. 4)Increased Competition:One reason marketers have been forced to use so many financial incentives or discounts is that the marketplace has become more billboards in transit vehicles.marketers and spending more on non traditional forms of communication such as interactive . 2)Deregulation:Certain industries(e. as a result.

These different organizational pressures may encourage quick-fix solutions with perhaps adverse long run consequences. 5)Increased costs:At the same time that competition is increasing.Their chief marketing weapon is price.threatening current sources of revenue .As a result.making it difficult to match the investment and level of support that brands were able to receive in previous years. What is brandequity? 3.Retailers have gained power and often dicate what happens within the store.marketers often find themselves responsible for meeting ambitious short term profit targets because of financial market pressures and senior management imperatives.Product trial.increase n the number of competitors in existing markets.C Nielsen and NPD have been jointly maintaining a database of trial and repeat trends for the average consumer products.g cutting advertising expenditures).the cost of introducing a new product or supporting an existing product has increased rapidly . Define brand. TWO MARKS 1.and they have introduced and pushed their own brands and demanded greater compensation from trade promotions to stock and display national brands. 4)Low-priced Competitors: Market penetration of generics.or low priced”clones” imitating product leaders has increased on a worldwide basis.but had dropped below 10% by the 1990s.Stock analysts value strong and consistent earnings reports as an indication of the long term financial health of a managers may find themleves in the dilemma of having to make decisions with short term benefits but long term costs(e. What is brand image? 40 . 2.A. What is brand Identity? 4.defined as a household buying a particular consumer packaged goods product atleast once during its introductory year.private labels.was around 15% in the latter half of the 1970s.Moreover many of these same managers have experienced rapid job turnover and promotions and may not anticipate being in their current posiyions for very long. 6)Greater Accountability:finally.

and brand association. The meaning of brand awareness is that consumer knows that brand exists in the market. These associations may be functional (nimboozs – 41 . What is brand rejuvenation? EIGHT MARKS 1. FIFTEEN MARKS 1. Distinguish between brand image & brand identity. 2. Write a note on Brand rejuvenation. These factors together from brand knowledge. Write a note on branding challenges & oppoetunities UNIT-5 BRAND LEVERAGING AND BRAND PERFORMANCE BRAND KNOWLEDGE The brand knowledge is the combination of several factors like brand awareness. Explain the branding challenges & opportunities. 5. 2. Brand awareness serves as the base for brand knowledge. Brand image refers to the association that a particular brand has in the consumer’s mind. brand image.

8) Brands simplifying consumer problem-solving and information processing. Panado tablets will be the same at all pharmacies. and unique of brand image are evaluated by consumers rationally or emotionally or both. 6) Brands simplify the purchasing transaction because consumers are familiar with the trademarks. the adventurous drink). favourable. 2) The assure consumers of a uniform quality standard that can always be relief on. Brand requires creation of strong. 42 . 7) Brands can serve as a warning against repeat purchases if the first purchase and use of the product proved disappointing. 4) Brands give consumer greater freedom of choice in where they buy the product. the refreshing drink) as well as emotional (Mountain Dew – ‘Dar Ke Aage Jeet Hai’. Now the ultimate attachment a brand loyalty of consumer depends on the evaluation part. The more positive and attainable these evaluations will be the more attachment and brand loyalty will be at the side of of consumers and vise versa Advantages of Brands to Consumers 1) Brands facilitate the identification of products at the point of purchase.‘Ekdum Desi Indian’. 3) Brands offer a measure of protection to consumers because they usually identify the manufacturer or supplier. 5) Brands lead to improved products due to competition and continual product differentiation. For example.

43 . Brands have social benefits for consumers.price competition can never be eliminated completely 7)Brand trademark facilitate product diversification is certain respects. 3)Products and particularly the brands have to be pre-sold through advertising.g. 10) Brands improve consumer value (whether branding brings higher or lower prices.A new product item can e.such as product diffrentiation. 4)Branding can help the manufacturer or middlemen to influence is/her market share 5)branding hampers price comparisons between competing products beacuase products are no longer equal in all respects 6)Brands facilitate the use of non-price competitive strategies. 9) Brands help consumers feel good about their purchases. it still ensures value for money). 11) Brands insure consumer risks (brands provide ‘insurance’ satisfaction And quality assurance standards) 12) Brands provide consumers with choice (competition implies a variety from which consumers can make their individual selections to match their needs most closely) Advantages of Brands to Firms 1)The brand often forms the cornerstone of the marketing communication and merchandising decisions and the whole product image is structure around the brand name 2)products that are marketed on a self service basis rely heavily on brand added with greater ease to a known product line as compared with one that has trademark.of that the consumer will recognize and select those products on retailers shelves.

4)Branded products are fit for the use for which they are advertised(consumers do not buy brands for sale of buying but to solve a problem or to meet a need 0 5)Brands subsidize consumer usage of media and sporting arts.horizontal diffrentiation. 44 .nut people still need to be exposed to it.A strong brand is memorable. 3)Brands provide reliability and thus re-assurance (the brand/consumer relationship provides re-assurance that the manufacturer will look after the consumer’s best interest since It is also in interest of any manufacturer who intends to build the brand over the longer term).valued and sustainable point of difference 10)Strong brands offer internal focus and clarity within an organisation.Branding offers assortments of added values-both in terms of services and psychologically.and other events through advertising and sponsorship.vertical diffrentiation(consumers want goods of the best qualiity they can afford and they would like choices of different level of qualiity to suit different need and situation). 2)Brands require and thus create. Advantages of Brands in functional Areas 1)Brnads require and thus create . 11)Brand strength is a lever for attracting the best employees and keeping satisfied employees. Disadvantages of Brand 1)Cost:If anyone wishes to create and maintain a strong brand presence.this often requires a lot of advertising and PR over a long period of time. 12)Brands promote competition (consumers gain from brands competing strongly for their patronage).which can be very can involve a lot of design and marketing costs.8)Strong brands command a higher price points and higher margins 9)Strong Brands embody a clear.

and part of that image is about what products or services individual sell..just one product and he/she wants to sell another product.If individual are known for selling. 4)Timescale:The process of creating a brand will usually take a long period of time .it can limit the ability to sell other products.they are still relatively large for most small businesses.will individual be able to do so effectively ? If individual sell compueters. 2)Impersonal:One of the main problems with many branded businesses is that they lose their personal image.printing new letterfield/business cards.etc).etc).vehicles.and although most of these are only one off costs.As well as creating a brand and updating the signs and equipment(e. It is commonly shown that people need to see an advertisement atleast three times before they absorb it.would the brand name be suitable for selling vaccum cleaners?If your brand is focused too strongly on one product. ELEMENTS OF BRAND MANAGEMENT Elements of brand management include following points to study: 45 .and poorly designed branding could give customers the impression that the business is losing its personal touch. 3)Fixed image:Every brand has a certain image to potential customers.the ability to deal on a personal basis with customers is one of the biggest advantages small business have.g- stationery.There are also costs involved with the creating of a brand image or logo (paying for a designer.which means individual will need to advertise and promote the brand for a considerable amount of time before it will become well known.this will save one’s money. The exposure of the brand can be left to word of mouth.but will also greatly slow down the exposure the brand needs to expose it to the potential customers.

It means assigning human personality traits/characteristics to a brand so as to achieve differentiation.Brand should be associated with something positive so that the customers relate your brand to being knowledge measures are sometimes called “customer mind-set”measures because they capture how the brand is perceived in the customers mind.It signifies what the brand presently stands for . 46 .1)Brand equity: Brand equity refers to the marketing efforts and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name 2)Brand knowledge:Brand knowledge refers too the knowledge that a consumer has over the brand.It can be defined as a unique bundle of associations within the minds of target customers.packaging etc.Brand associations are the attributes of brand which come into consumers mind when the brand is talked about. 4)Brand image:Brand image is the current view of the customers about a brand. 3)Brand identity:A visible element of brand (such as colours. 8)Brand personality:Brand personality is the way a brand speaks and and symbol)that together identifies and distinguishes the brand in the customers mind is termed as brand identity.e-its employees)as well as through advertising.These characteristics signify brand behavior through both individuals representing the brand(i.It is a set of beliefs held about 5)Brand Building :Brand building means enhancing a brands equity directly through advertising campaigns and indirectly through promotions such as cause championing or event sponsorship 6)Brand Awareness:Brand awareness means the extent to which a brand associated with a particular product is documented by potential and existing customers either positively or negatively 7)Brand association:brand association is anything which is deep seated in customer’s mind about the brand .logotype.

Positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the target market’s mind.from promotional literature.which is commonly seen in marketing .”Brand positioning is a part of brand identity and value proposition that is to be actively communicated to the target audience and that demonstrate an advantage over competing brands”.Translating the marketing strategy into tactical integrated communications both online and offline.Positioning is the art of creating a distinct image for a product in the minds of the applications and packaging to sponsorship collateral.It is the single feature that sets the service apart from the competitors For example kingfisher stands for youth and excitement . According to Aaker .employee mail. Meaning and defitionof Brand Positioning Positioning is a platform for the brand .It represents brand in full flight.This definition can be considered as right one . 10)Brand Communication:Brand communications is all about realizing the brands potential in the marketplace.The concept of brands has become very famous amongst people and they require the product or services of a renowned brand .Positioning is a concept.websites.brand or organization.9)Brand positioning-Brand positioning means the process by which marketers try to create an image or identity in the minds of their target market for it product.The perceived differentiation takes care of the competitive angle and the value aspect takes are of customer motivation.the essence of brand positioning is achievement of valued distinction/differentiation in a consumers mind.The need for brand positioning can be explained with the help of following points : 47 . Need for Brand Positioning Brand positioning in simple words means to position the brand or some important products of the company to make it more presentable and known to the customers.

Ofcourse .This will really make the products to get under the exclusiveness category and it is a great thing to make the brand or product a renowned name in any industry or market 3)It will go a long way in helping to measure that real strength of the brand.This mode will help to know how farther the business has gone and where it exactly reach in the competitive market .it needs to make them accessible to people in such way that they start recognizing the brand name by the products or services it offers .A proper understanding of present position business will go a long way in helping it on the steps to take for moving its products and brand beyond the present state.This can be considered as form of stock taking strategy.It is an effort to give all the popularity which it thinks is good as choice for making the brand to reach top will be able to keep the brand in a position where it will rarely be affected by the impending disaster of strong opposition and competition Factors Affecting Brand Positioning 1)Brand Attributes:What the brand delivers through features and benefits to consumers? 2)Consumer Expectations:What consumers expect to receive from the brand ? 48 .1)If the business actually needs to make its services or products to gain the category of brands .the business will be accosted with strong competition as there is rarely any niche that does not require the right means to market and with the proper identification and implementation of brand postion. 2)It can also be taken as refurbishing or re-branding of the product in such a way that will make it dirrent and uniquely defined than all other products of the sam kind .It is an effort to give all the products and brand beyond the present state .It makes the brand to gain popularity and streamline the processes of sales in a well defined manner. 4)Brand positioning will also help the business to sufficiently judge the way customers judge its products in comparison with other very competitive brands available with the same products or services .

They are all strong brands. 2) Stay Relevant:With time.Make sure price is based on how customers view the product as a whole.the good value for money solution.does the brand offer the cheap solution.high-price tag solution.3)Competitor Attributes:What the other brands in the market offer through features and benefits to consumers? 4)price:Price is an easily quantifiable factor against competitors.Strong brands have great equity and enjoy customer loyalty and profits.The brand must be an excellent provider of these benefits.EX:.etc) Characteristics of Strong Brands Some brands consistently score high on strength .what do top brands have in common which can provide a benchmark against which a brand can be measured?There are ten attribute shared by top brands: 1) Deliver Excellent Customer Benefits:The brands tangible and intangible components must be combined to create value or benefits that customers desire.Charging too high or too low a price may not be appropriate .e. 49 .Walmart’s “Everyday Low Prices”  Establish a customer value proposition: Customer value proposition is the natural outcome of the brand identity.Ex: Customers think of Wal-Mart as place to get great bargains.Brand identity sets the customer expectations.  Define the optimal customer experience: Identify all contact points where customers interact with the company. 5)Consumer Perception :The perceived quality and value of your brand in consumers minds(i. 3)Pricing is based on perception of value:Price is an important brand attribute.A brand’s tangible and intangible components need to be fine –tuned to stay relevant.the high end.customers change.To create a holisticbrand experience. STEPS OF BRAND BUILDING  Clearly articulate the brand identity: Brand identity means what the brand means to the customer.Every manager wants to create a strong brand. individual needs to create a consistent & compelling experience at each of these touch points.

 Brands are compatible with each other. 50 . loyal customers into customer champions. Brands & sub brands as well as co-brads with other firms.  There is a symbolic relationship between the two brands.  Both brands should have identical personality characteristics. in the marketing of their products. Strategic Brands: A strategic brand or a mega brand is a currently dominating brand that represents a meaningful future level of sales & profit. TYPES OF BRANDS IN PORTFOLIO 1.  Cultivate relationship with customers: Companies need to respond positively to customers feedback & that will turn causual customers into loyal customers.The term can also refer to the display of multiple brand names or corporate logos on a single website. Manufacturers of perfumes and clothing are some of the most common business users of classic celebrity endorsement techniques.  Strengthen the brand over time: Enhancing the level of customer brand relationship will have a direct impact on the brand. PRE-REQUISITES OF CO-BRANDING  Both brands are easy to identify based on their product or trademark.Marketer must have a time bound plan to improve the levels of relationship which the customers enjoy with the company/ brand. so that people who visit the site see it as a joint enterprise. CO-BRANDING Co-Branding is the practice of using multiple brand names together on a single product or service. CELEBRITY ENDORSEMENT A form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service. such as television ads and launch event appearances. BRAND PORTFOLIO MANAGEMENT Brand portfolio includes all types of brand viz.

2. 3. 51 . 3. changing & maintain a brand image. Explain the steps of brand building. Explain the steps of brand building. What is brand positioning? 3. Silver Bullet: It is a brand or sub brand that positively influences the image of another brand. What is co-branding? 2. Cash cow brand: It do not require any investment because it has a significant loyal customer base. Explain the sources of brand equity FIFTEEN MARKS 1. Linchpin Brands: A linchpin brand unlike strategic brand not necessarily represents a meaningful future level of sales & profit but it is a leverage point of a major business area. Write a note on co-branding. TWO MARKS 1. It can be powerful force in creating. What is brand portfolio? EIGHT MARKS 1. 2. It is to generate marginal resources that can be invested in other brands. 4.

2. TYPES OF BRAND EXTENSIONS: Brand extensions are of two types: 1. BRAND EXTENSION APPROACHES 1) Enhance the existing product with additional features & benefits: The enhancement might include new features &/ or performance improvements. UNIT-6 DESIGNING & SUSTAINING BRANDING STRATEGIES Brand Hierarchy: Brand Extension: Brand extension is the application of a brand beyond its initial range of products or outside of its category. Unrelated extension: Brand may be extended into unrelated product categories. 52 . A.Ex: Honda was the brand synonymous with motorcycles but later they diversified into automobiles. Ex: Dettol soap launching a dettol hand wash. These changes can be based on a customer needs assessment or a competitive matching strategy.This becomes possible when the brand image & attributes have contributed to a perception with the consumer where the brand & not the product is the decision driver. Category related extension: It is the other name of variant. B. Image related extension: Brands are extended on the basis of image of its parent brand. Related extensions: A new product is launched with similarities of parent product.Ex: Dove oily soap launching dove dry.

Integrated branding: The retailer is involved in process beginning from idea generation to branding the product. 8) Responding to competitive product actions: In a competitive market place. This practice is referred to as bundling. Independent branding: Retailer simply procures from the supplier at the lowest possible cost & the entire branding investment is his own. It may broaden the market for the brand. This approach typically delivers lower volumes-a niche market-but higher prices. BRANDING STRATEGIES 1. Here the retailer makes the decision regarding what kind of product he wants. specific market sector identified by some special. 5) Introduce Niche products: A niche market is a small. 53 . 6) Introduce private label products :a private label sale is the practice of licensing the product . 2. 3) Extend the product range: Extending the range of an existing product-line allows building on the reputation & success of the existing brand to sell more products through the same sales channels.The retailer is like the owner of the brand & holds complete responsibility for its performance. to other companies to sell under their own brands . 2) Introduce higher or lower priced versions of the product: Price may be inhibiting factor for some prospective customers. 4) Segment the market with product variants: This strategy is based on the refinement of existing products to meet the different requirements of distinct market standard or modified form. 7) Building additional products or services from third parties: An existing product can be sold in combination with additional products or services from a third party.rather than under the companies brand name. a strategy of matching or responding to the actions of competitors is sometimes necessary. common characteristic.

5. 3. MANAGING BRAND OVERTIME Managing brand is nothing but an art of creating & sustaining the brand promise to their customers. EIGHT MARKS 1. Line Branding: The line responds to the concern of offering one coherent response under a single name by proposing many complementary products. 4. Managing the brand is a long term process. Thus. Endorsement Branding: It makes the product brand name more significant & corporate brand name is related to lesser status. Range Branding: It bestow a single brand name & promote through a single promise a range of products belonging to the same area of competence. which suggests that the brand idea needs to enter the systems of organisation rather than being the crusade of alone individual. Explain the branding strategy. What is brand extension? 2. 6. the importance of brand workshops & champions in sustaining the brand & the responsibility of individuals to use the brand is in their day to day work. Umbrella Branding: It is a parent brand that appears on a number of products that may each have separate brand images. TWO MARKS 1. 54 . Explain the branding strategies in today’s world. Branding makes customers committed to their business. Explain the brand extension approaches. While the commitment & enthusiasm of certain people will be fundamental to the initial embedding there is no guarantee that those individuals will have the same jobs or responsibilities in the future. Give the meaning of managing brand over time. FIFTEEN MARKS 1. 2.