Kristu Jyoti College of Management & Technology

Changanacherry
Department of Management Studies

Module 2

CBCS B.B.A. PROGRAMME THIRD SEMESTER

Marketing Management

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 MODULE 2
MARKETING MIX

Marketing mix is a popular usage in the study of marketing. The basic components of
marketing mix are product, price, place and promotion. It is also known as 4 p‟s of marketing.
The marketing strategies of a firm revolve around these four elements. The varying mix of these
four ingredients of influences the demand for a product and customer satisfaction. A firm has
to prepare a mix of right product, right price, right place and right promotion to attain success
in marketing.

According to Philip Kotler, “Marketing mix is the set of marketing tools that the firm uses to
pursue its marketing objectives in the target market”

FEATURES OF MARKETING MIX

1. It is a combination/integration of four important marketing variables such as product,

price, place and promotion. These four variables depend on each other.
2. It is a tool adopted by the firm to achieve marketing targets in terms of sales, profit and
consumer satisfaction.
3. The mixture or composition of the four elements is not rigid. It be altered on the basis of the
changes in the target market.
4. Periodical adjustments and modifications in the marketing mix are necessary to improve
customer satisfaction and thereby attain the desired goals of the firm.
5. Marketing mix aims at giving maximum satisfaction to the customers. The objective of
marketing mix is to give the customers the right product at the right price, in the right place
through right promotional measures.

FACTORS INFLUENCING MARKETING MIX

1. Availability of funds:
The financial resource owned by a firm is an important factor which governs the marketing
which governs the marketing mix of that firm. If the firm is in a position to spend more money
in product research, design, physical distribution sales promotion then it can formulate a
strong mixture of 4 P‟s.
2. Requirements of the target market:
The needs of the customers strongly influence the proportion of four basic ingredients of
marketing. For example, if the customers are rational and well informed about all the available
products in the market, then there is no use in spending more money on advertisements and
other sales promotion methods.
3. Size of the market:
The proportion of the marketing mix varies on the basis of the size of the target market. For
example, a firm has to spend more money on distribution and promotion when the size of the
market is big.
4. Competition:
The marketing mix formulated by the competitors strongly influences the marketing mix of a
firm. Firms use marketing mix as a response to actions of competitors in the market.

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5. Technology:
Drastic changes have occurred in the marketing mix adopted by the companies in the modern
world. Development of science and technology is the major reason behind these revolutionary
changes. Most firms now use hi-tech methods of production, distribution and promotion.

PRODUCT

Product means anything that is manufactured by labour or effort. The term „product‟
originated from the union of the Latin words „pro‟ which means forward‟ and „ducere‟
which means, to lead‟. So the literarily meaning of the term product to lead forward‟ or
tiring forth‟. In marketing, the term product means a commodity or service
manufactured to the needs of consumers. Product is something which has the
capacity to fulfill the needs of people. It is the medium through which a firm enters a
market. There are four important aspects which determine the want satisfying
capacity of a product;

1. Desirability:
It refers to the appeal or attraction of a product. A product must be one which is
desired by the consumers.

2. Purpose:
It means the usefulness of a product or the reason for using a product. For example, a
detergent is used for washing clothes.

3. Usability:
It implies the performance of a product. A product must one that can be used
comfortably by the user.

4. User Experience:
The product must give a positive feeling, happiness and satisfaction to the person who
uses it. Product is an umbrella term which includes goods, services, information,
events (stage shows, artistic performances, sports events etc), properties (real estates,
financial instruments etc.) and experiences (amusement parks, water parks etc. A
product is a collection of tangible and intangible features offered by a seller to a buyer.

DEFINITIONS:

According to Philip Kotler, “a product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need. It includes
physical objectives, services, persons, places, organisations and ideas”.

According to W. Anderson, “a product should be considered as a bundle of utilities

consisting of various product features and accompanying services”.

FEATURES OF A PRODUCT

1. It is something which has the capacity to fulfill the needs of people.

2. A product can be a physical good or service.
3. It is a collection of tangible and intangible features by a seller to a buyer.

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4. It can satisfy both commercial and personal needs.
5. It is the subject and the object of all marketing activities.

PRODUCT DECISION AREAS

1. Product line- It refers to the collection of products to be offered to the customers,
2. Style, shape, design, colour, quality and other physical features of a product.
3. Packaging and labeling of a product.
4. Branding and trade mark given to a product.
5. Product servicing and channel of distribution.
6. Product pricing.
7. Guarantees and warranties of the product.

PRODUCT MIX

Product mix is refers to a group w products manufactured or traded by the firm to strengthen
its presence in the market, increase its market share and increase the sales turnover for more
profitability. It is defined as the overall products offered by a firm to its customers.

According to Philip Kotler, “product mix is the set of all product lines and items that a
particular seller offers for sale to buyers”.

Product is an umbrella term which includes goods, services events (stage shows, artistic
performances, sports events properties (real estates, financial instruments etc.) and
experiences (amusement parks, water parks etc.). A product is a collection of tangible and
intangible features offered by a seller to a buyer.
According to Philip Kotler, “a product is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need. It includes physical
objectives, services, persons, places, organisations and ideas”.

FEATURES OF PRODUCT MIX

I. It is something which has the capacity to fulfill the needs of people.

2. A product can be a physical good or service.
3. It is a collection of tangible and intangible features offered by a seller to a buyer.
4. It can satisfy both commercial and personal needs.
5. It is the subject and the object of all marketing activities.

Differences between Product and Service

Product
The term product is used to refer tangible
commodities or goods.
When a person purchases a product he
can physically see (examine) and touch it.
If a product is not available in the market,
customers can use substitute products.
For example tea for coffee, powder for
milk etc.
Service
It means intangible goods
A buyer cannot see a service can feel or
experience it.
There are no substitutes for services.
Services are highly customized and
tailored to specific needs of the
customers. For example only doctors can
provide the service required by a patient

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It can be preserved and stored for future
use.
A buyer can examine the quality of a
product before making the purchase.
It cannot be stored. When a student
misses the class of a teacher, he cannot
regain class.
Quality can be understood only after
getting the service. No prior examination
is in the case of service.

TYPES OF PRODUCT

1. Industrial Products:
products are products that are sold by one business to another. These are items
purchased by business enterprises for using in the production of other goods, in the
operation of a business, or for resale to other consumers. For machinery, components,
equipments, tools, raw materials etc.

2. Consumer Products:
Consumer, products are those products that are bought by the ultimate consumers for
personal, family, household and other non-business purposes. These are items
purchased by consumer for their daily use. For example food items clothes,
toothpastes, soaps, vegetables, fruits etc, Consumer Products can be classified into;

a) Fast Moving Consumer Products (FMCGs):

These are products which are sold quickly and at relatively low price. Examples of
FMCGs include soaps, toothpastes, pen, soft drinks, chocolates etc.
b) Consumer Durables:
Consumer durables are goods that are not quickly wear out or destroyed by use. They
are also known as durable goods or hard goods. Consumer durables are further
divided into;
i) White Goods (White Wares): Major household appliances and heavy
consumer durables come under this category. For example, air conditioners,
refrigerators, washing machines etc.
ii) Brown Goods: Light electronic durables come under this category. For
example, TV, computers, DVD players, mobile phones etc.
iii) Soft Goods: Goods made from soft materials are referred to as soft goods.
These products are soft in touch. Mostly textile products come under category.
Examples are fabrics, dress items, window curtains etc.

c) Perishable Goods:
These goods are subject to decay and spoilage within a short period. They deteriorate
in quality over time. For butter, meat, fish, vegetables, ice cream etc.

d) Convenience Goods:

Goods which are easily available to consumers without extra effort are convenience
goods. Mostly, convenience comes under the category of non-durable goods. For fast
foods, cigarettes, chocolates, pen etc.

e) Shopping Consumer Goods:

In shopping consumer goods, consumer makes a lot of selection and comparison

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based on various factors such as brand, style, comfort etc, before buying a product.
They are costlier than convenience goods and are durable in shopping consumer goods
shops are usually set up busy shopping areas to attract customer attention. For
example, jewellery shops, textiles, footwears etc.

g) Non – Sought/Unsought Consumer Goods:

or services which are available in the market but tamers are not really interested in buying
them are called .on-sought goods. These products are purchased not out of desire but due to
certain compulsions. For example, medicines, coffins etc.

PRODUCT MIX

Product mix is refers to a group of products manufactured or traced by the firm to strengthen
its presence in the market, increase its market share and increase the sales turnover for more
profitability. It is defined as the overall products offered by a firm to its customers.

According to Philip Kotler, “product mix is the set of all product lines items that a particular
seller offers for sale to buyers”.

According W.J. Stanton, “product mix is the full list of all products offered for sale by a
company”.

PRODUCT LINE

A product mix consists of both product lines and individual products. A product line is a group
of products within the product x that are closely related to each other. It is a set of related
products marketed by a firm. Product is an individual unit within the product that can be
separated from other product units in the product line on the basis of size, price, appearance,
features, benefits and quality.
According to Philip Kotler, “product item is a distinct unit that is distinguishable by size, price,
appearance or some other attribute”.
For example, all the courses of study offered by a college constitute a product mix; courses
offered by a particular department of the college refer to a product line and a particular course
of a department is a product.

A product line is a group of products that are closely related, either because they perform in
the same manner or sold to the same customer group or follow the same distribution channels
or fall under a specified price range. For example, cosmetic items in a shop like skin-care
creams, lotions, powders, perfumes, lipsticks, nail polish, eyebrow pencils etc.

PRODUCT MIX STRATEGIES

According to W.J.Stanton, the important product mix strategies are;

1. Expansion of product mix.
2. Contraction of product mix .
3. Alteration of existing products.
4. Development of new uses for existing products.
5. Trading –up and trading-down.
6. Product differentiation.

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1. Expansion of Product Mix/Product Diversification:
A firm may decide to expand its existing mix by increasing the number of lines or the depth
with in the lines. The new lines added may be related or unrelated to the existing mix. The firm
may also increase the number of items in its product mix. Many companies start their
marketing efforts with a single product. But as when the sales volume, increases it finds
opportunities to add more products and product lines. Expansion of product mix or product
diversification occurs in this situation. Diversification helps firms to develop new sources of
revenue by adding more products or expanding the product mix. For example, „Milma‟ of
Kerala Co-operative Milk Marketing Federation (KCMMF) diversified/expanded its product
offerings from packaged milk to ice creams, curd, ghee, butter, beverages (milk drinks and
mango drinks), sweets (peda and cream roll) and cattle feed.

2. Contraction of Product Mix/Product Simplification:

Another product strategy is slimming down (reducing) the existing product mix either by
eliminating a line or by simplifying the variety products within a line. It is like a shift from fat
and long lines to thin and short lines. It is adopted to eliminate low-profit products to get more
profit from fewer products. For example, Bajaj Scooters from their product line to concentrate

more on the profitable market segment of bikes.

3. Alteration of Existing Products:

In spite of developing a complete new product, a firm takes the effort to alter or modify the
existing products. Firms adopting this strategy usually are of the view that improving an
established (existing) product is more profitable and less risky than developing a new product.
For example, Hindustan Motors modified the style and appeal of Ambassador Cars several
times without going for the production of a new car.

4. Development of New Uses for Existing Products:

This strategy requires firms to find new uses for an existing product. For example, Dettol India
markets its brand „Dettol Antiseptic Liquid‟ as a versatile product which has many uses for
protecting the family from germs. The company claims that the product can be used as first-
aid in wounded (injured) areas, germ-free bath, after shave lotion, cleaning floors and washing
laundry.

5. Trading-Up and Trading-Down:

Trading-up means, adding a higher priced prestigious product to the existing line of lower
priced products. Through this strategy, the company expects that the prestige of the new
product will help to increase the sale of its existing lower priced products. For example, Maruti
Suzuki India Ltd. Added high priced luxury (prestigious) cars Swift DZire‟, „SX4‟ and Kizashi‟ to
its existing line of cars. There are two options before a firm which adopts a trading-up strategy.

1) Promoting the older, lower-priced product for the bulk of the sales volume
(Maruti follows this option) or
2) Promoting the new product and expect it to gain a major sales volume.

Trading-down is the opposite of trading-up. In trading down, a firm adds a lower priced
product to its existing line of prestigious products. While following this strategy, the firm
expects that consumers who cannot afford to purchase the existing high priced prestigious

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products can purchase the newly added low priced product. For Chevrolet India added low
priced cars like „Chevrolet Spark‟ and „Chevrolet Beat‟ to its existing lines of luxury cars. (Now
they are not in India)

6. Product Differentiation:
Product differentiation is the process of differentiate a product to a product as against the
products of competitors. The ultimate objective of differentiation is to make the brand more
attractive to a particular target market. This involves differentiating the product from other
similar products in the market as well as other related products in a product line of the firm.
For example, Close up and Pepsodent brands of Hindustan Unilever Ltd. Offers a variety of
differentiated (different colors and flavours) toothpastes.

PRODUCT LIFE CYCLE (PLC)

The Product Life Cycle which is simply referred to as PLC is a concept for analyzing the
different stages in the life of a product. This concept observes and compares the life of a
product with the life of living beings. For example, a living being takes birth and grows through
the youth stage to become an adult. From the adult stage, it becomes (old) and declines both
physically and mentally, after which it dies. A product also passes through almost similar
stages in its life in a market situation. It has a birth, growth and death. Different stages in the
life of a product can be identified by critically analyzing the sales and revenue generated by
that product. The PLC concept four distinct phases in the life of a product from its beginning
to end. Phases or stages in the life of a product are as follows;

1. Introduction

This is the commercialisation or launching stage of a new product or service, This stage is
charecterised by intense marketing efforts of firm to promote the newly introduced product in
the target market. Consumers purchase the new product on a trial (test) basis. The important
features of this stage are as follows;
1) High cost of production and market operations
2) Intense promotional measures
3) Low sales
4) Low demand
5) Low profit
6) Customers are to be encouraged to buy the product
7) Customers do not have adequate knowledge about the product
8) Low or no competition

2. Growth:
After the introduction of a product in the market, consumers get the awareness and knowledge
about the product as a result of the intense promotional measures adopted by the firm. More
consumers start to- buy and use the new product. This is the beginning of the growth stage of
a product. As a result, sales of the product gradually increase and competition also develops.
Products become more profitable during this stage. The following are the important features
growth stage of a product;

1) Reduction in cost as a result of increased production

2) Increase in sales volume

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3)Increase in profit
4) Increase in demand
5) Increase in customer awareness and knowledge
6) Increase in competition
7) Stable price

3. Maturity:

Market attains saturation during this phase. At this stage, the sales reach its maximum sales
reach its maximum point and maintain a steady state. There is no way to grow further. The
product has penetrated the market fully. Some firms leave the market at the completion of the
maturity phase due to low profit margins. Firms try product expansion, contraction, alteration
and differentiation during this phase to survive in the market. Price wars and intense
competition are the highlights of this stage. The important features of maturity stage are as
follows;
1) Low cost because of large scale production
2) Sales volume reaches the maximum limit and attains market saturation
3) Intense competition
4) Reduced price as a result of intense competition

4. Decline:
This stage is characterised by Continuous decline in sales volume. Cut throat competition
taxes over the lion share of the market of the product. Economic and production conditions
become unfavorable. Decline usually occurs as a result of innovative products or a change in
consumer tastes. Profits can be improved by reducing marketing and other expenses. Heavy
decline in sales volume, price and profitability are the important features of decline stage.

ADVANTAGES OF PLC

1. By charting the time, sales, and profits firms can clearly understand the different
stages in the life of their products.
2. PLC model gives marketers the ability to formulate adequate larketing strategies and
execute these strategies at the right time.

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3. It helps firms to study past sales and forecast future sales progression.
4. By combining the elements of time and sales volume the PLC helps firms to eliminate idle
(inactive) products.
5. It is highly useful in developing new products and improving existing products.

LIMITATIONS OF PLC

1. There is no clear evidence to support the existence of a growth, maturity and decline
of products. PLC is only an assumption (hypothesis).
2. It is not easy to clearly determine the various stages after introduction to the end of a
product.
3. PLC reads only the variations in sales and profit of a product its introduction but does not
analyse the causes of such variations.
4. It assumes that all products finally reach a decline stage after passing through growth and
maturity stages. But this is not applicable in the case of many products.
For example, medicines. No stages of growth, maturity and decline can be observed in the
case of medicinal products.
5. It only considers the relationship between sales and time and ignores other major factors
such as costs, price, competition and market conditions affecting the sales of a product.

PRODUCT LIFE CYCLE MANAGEMENT (PLCM)

PLCM deals with the strategies adopted by a firm to manage the product in the target market
as the product passes through various stages of its life cycle. The firm has to formulate
suitable marketing mix for introduction, growth, maturity and decline stages of a product.

INTRODUCTION PHASE

1) Product
Quality specifications and standards are maintained. Trademarks obtained and the firm
attempts to establish a brand.
2) Pricing
Low penetration price to gain more market or high skim price to recover the initial cost.

3) Distribution
The firm tries to reach selective customers.
4) Promotion
The aim of promotion is to create awareness among the customers about the product.

GROWTH PHASE
1) Product
Quality is improved. Extra benefits and services are provided to the customers.
2) Pricing
The firm tries to maintain a stable price for the product.
3.Distribution
The firm expands the distribution network to reach more customers as the demand for the
product increases.
4) Promotion

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The Firm incurs heavy expenditure on promotion to reach the entire target market.

MATURITY PHASE
1) Product
Firms try product expansion, contraction, alteration or differentiation to maintain or increase
sales volume.
2) Pricing
Firms try to lower price to beat competition.
3) Distribution
Firms adopt mass distribution and incentives are offered to encourage customers to buy the
product.
4) Promotion
Firms focus on product differentiation as against the product of competitors.

DECLINE PHASE
1) Product
Firms introduce new product or make complete revival of the existing product, brand, or
packing.
2) Pricing
Firms make high cut in prices to boost sales.
3. Distribution
Firms adopt strategies to continue the delivery of products to the loyal customers.
4) Promotion
Firms reduce considerably the amount of promotion expenses.

The important strategies during the decline phase are;

a) The firm may withdraw its product from the target market or
b) Sell the product to another firm which is willing to continue the marketing of the product or
c) Innovation (new product) or complete revival of the product.

BRANDING

Consumers choose products they want not only on the basis of product features and benefits
but also on the basis of the name of brand. A brand name helps them to differentiate a product
from other similar products in the market. The American Marketing Association defines a
brand as „a name, term, sign, symbol or design, or a
combination of them intended to identify the goods and services of one seller or group of sellers
and to differentiate them from those of other sellers”.

Branding is referred to as a process of creating a name and image for a product in the minds of
the consumers advertisements and other product promotion measures. It to establish a
significant and differentiated position for the product in the target market that so as to attract
and retain customers.

OBJECTIVES OF BRANDING
1. To help consumers to remember the product.
2. To deliver the product message clearly.
3. To reach the targeted customers emotionally (For example, consumers have emotional

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 attachments with brands like Tata, Godrej, etc.)
4. To make consumers loyal to the product. When people have a experience with a memorable
brand, they are more purchase that product again than competing brands.
5. To increase the familiarity of the product in the target market.
6. To give a premium image for the product in the market. Premium helps firms to charge high
price (For example, Bata‟ foot wears, Louis Philippe‟ shirts).

7. To easily expand the product line. Well established brands help to introduce new products
in the market.
8. To reduce the expenses of marketing, People will search, find and purchase established
brands. Company is not required to spend more on advertisements and sales promotion.

NEED AND IMPORTANCE OF BRANDING

1. A systematic brand strategy helps a firm to attain a distinct position in a market. It clearly
tells customers in what way the firm is different from its organization competitors.
2. A strategically developed brand strengthens the firm in all respects. Firms offering good
brands can easily acquire the monetary and human resources it wants from different
sources.
3. A clear brand strategy empowers employees by reducing ambiguity and emphasizing on
better brand outcome.
4. The identity generated by branding helps firms to communicate its internal and external
stakeholders over phone, internet and other means of communication. (The brand name is
enough for communication).

BRANDING STRATEGIES (TYPES OF BRANDS)

Branding strategies refer to the plan of actions aimed at the branding of the products of a firm.
Branding allows a product to achieve exclusivity and differentiation and effective brand
strategies help a firm to excel in a competitive market. The following, are some of the important
branding strategies followed by companies.

1. Family Branding (Family Brand/Umbrella Brand)

The concept of this strategy is „One brand many products‟. The strategy fixes a particular
brand name for several related products. Branding does not mean that the entire product mix
of the company should go under single brand name. A company may use different brand
names for different product lines. Family branding is as Umbrella branding‟. Family branding
strategy focuses on promotion of the entire set of products offered by a firm under a name and
not the promotion of a particular product, For example, Lakme products, Godrej, Johnson &
Johnson etc.

2. Corporate Branding:
This strategy builds brand identity by using the company name the products offered. For
example IBM computers, Philips brands. The strategy uses the corporate brand equity to
create distinct place for the products in the market.

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3. Individual Branding (Individual Brand)
This strategy is also known as individual product branding or multi branding. It gives a unique
brand name for each product in a product line. The advantage of this strategy is that each
product in a product line. The advantage of this strategy is that each product in a product line
gets a unique image and identity. For example, Hindustan Unilever products. Rin, „Sunlight‟,
„Surf excel‟, Vim‟ etc. are the different products offered in different brand names by the HUL
Company.

4. Combination Branding (Combination Brand)

This strategy uses both corporate name as well as the product‟s name. For example, Microsoft
Network (MSN), Microsoft Excel, Word etc.

CHARACTERISTICS OF A GOOD BRAND

1. The name should be easy to read and understand.

2. It should be easy to pronounce.
3. It should be suitable for the features of the product.
4. It should be easy to memorise.
5. It should be unique (entirely different from other brands).
6. It should be one that describes the quality, features and superiority of the product.
7. It should be one that meets the legal stipulations of the country.

ADVANTAGES OF BRANDING

Advantages to the Producers/Companies

1. It acts a tool which helps firms to create a unique image for their products in the
minds of the customers.
2. A strong brand name helps companies to reduce their product promotion expenses.
3. Branding allows companies to easily introduce new products and expand their
product lines. Customers of a brand will be more likely to purchase new products
from the company.
4. Branded products increases the sales volume and market share
5. Branding helps a firm to clearly differentiate its products from that of the
competitors.
6. A company having branded products is usually considered as more reliable and
trustworthy than an unbranded business.

Advantages to the Dealers

1. Dealers need not take heavy efforts in selling a branded product.
2. Branded products give loyal and regular customers to a dealer.
3.Customer complaints are low in the case of branded goods and so the dealers can run
their business smoothly.
4.Branded dealers enjoy a competitive advantage over the competitors. For example, a
customer who prefer Hawkins‟ Pressure Cooker or „Preethi‟ Mixer Grinder will only
approach the respective dealers.
5. By keeping branded products, a dealer can also promote and increase the sale of

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 other products in his store. For example, a footwear shop dealing in „Bata‟ products can
invite the attention of the customers to the unbranded items in the store.

Advantages to the Consumers

1. Branded goods usually maintain top quality and offer more benefits to the consumers
compared to unbranded goods.
2. Firms offering branded products usually follow a wide distribution network so as to make
the products readily available in major retail outlets in the market. As a result, the
customers need not have to face any difficulty in purchasing the products.
3. A branded product is available at a uniform price throughout the whole market. This avoids
customer exploitation in terms of excessive pricing by the dealers.

DISADVANTAGES OF BRANDING

1.Higher Prices
customers have to pay high prices for branded products compared to unbranded products. The
higher price is explained by the additional production costs and marketing expenditures
incurred by the supplier in developing and supporting the brand.
2. Higher Costs
Companies have to incur heavy promotional expenses and follow strict quality control
measures to differentiate branded products from unbranded products.
3. Low Profit Margin
Branded goods give low profit margin to the dealers. When the customers are highly loyal to a
brand, the firm enjoys a supremacy over the dealers and they will be forced to deal at a profit
margin decided by the firm.
4. Brand Monopoly
Branding may lead to brand monopoly which is not a desirable situation in a market. A
monopoly brand can exercise control over the demand for the products. It can also charge
undue price for the product.

BRAND EQUITY

Brand equity means the marketing outcomes that accumulate to a product as a result of its
brand name against the outcomes if the same product did not have the brand name. It is the
sum total of values, assets and liabilities generated by a branded product over a period of time.
It is referred to as the additional amount of money consumers are willing to pay for a brand
compared to other brands.
Companies can create brand equity for their products by making them memorable, easily
recognizable and superior in quality and reliability.
Brand equity is important if a firm wants to expand its product line. If the existing brand‟s
equity is positive, then company can add new product with the existing, successful brand
expecting a favourable response from the customers.
If the existing brand‟s equity is positive, then company can add new response from the
customers.

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 KEY ELEMENTS OF BRAND EQUITY

1. Brand Loyalty:
It is a measure of the attachment that a customer has to a brand. It reflects how likely a
customer will be to switch to another brand, especially when that brand makes a change,
either in price or in product features.
2. Brand Awareness:
Consumers will repeatedly buy a familiar brand because they are comfortable with the brand.
A recognized brand will be more likely selected than an unknown brand. Brand equity is
evaluated on the basis of the degree of the consumer awareness about a brand.
3. Perceived Quality:
It is the opinion of a consumer about a brand‟s capacity to meet his expectations or satisfy his
needs. Perceived quality will directly influence purchase decisions and brand loyalty.
4. Brand Association:
It is the degree to which a particular brand is associated with the general product category in
the mind of the consumer .Usually consumers ask for a product by the specific brand name
rather than general name. For example, a consumer asking Ujala for Liquid blue.

5. Other Proprietary Brand Assets:

These assets can take several forms. For example, a trademark will protect brand equity from
competitors who might want to confuse customers by using a similar name, symbol, logo or
package, A patent can prevent copying or imitation of the brand.

BRAND LOYALTY

Brand loyalty explains a consumer‟s devotion to a particular brand and the tendency to
repurchase a brand. The loyalty of customer towards a particular brand is well exhibited by
repeated buying of a product or service, or other positive behaviours such as word of mouth
promotion. It is the degree of faithfulness of consumers to a particular brand, demonstrated by
way of repeated purchases, irrespective of brand, demonstrated by way of repeated purchases,
irrespective of the marketing pressures exerted by the competing brands.

According to Philip Kotler, there are four patterns of brand loyalty;

1. Hard-Core Loyals: Consumers who buy the brand all the time.
2. Split Loyals: Consumers who are loyal to two or three brands.
3. Shifting Loyals: Consumers who move from one brand to another
4. Switchers: Consumers who have no loyalty to any brand.

PACKAGING

Packaging plays a significant role in modern marketing. It helps consumers decide whether to
buy a product or not. All the marketing efforts are waste, if the package fails to attract the
attention of the customers. Package means a box, wrapper or case used for packing products.
Packaging is the application of scientific knowledge, artistic talents and technology to cover the
products so as to preserve them for distribution, storage, sale, and use.

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FUNCTIONS OF PACKAGING

1. Physical Protection:
Physical protection aims at protection from damage or contamination by micro-organisms and
air, moisture and toxins. Protection from climatic changes, high temperatures, rain etc.

2. Containment:
Small objects are usually grouped together in one package for reasons of efficiency. For
example, a single box of 100 pens requires less physical handling than 100 single pencils.
3. Information:
Packing offers information on product usage, recycle, or disposal methods on the package or
label. For example package of medicines gives information regarding usage.
4. Promotion:
The packaging can be designed in such a manner as to encourage potential buyers to
purchase the product. Design is very important in influencing customer choice of one product
over another.
5. Security
Better and safe packing can reduce security risks during transportation. Packages can be
designed to resist loss of goods by theft.
6. Convenience
Packages can have features which add convenience in distribution, storage, handling, display,
opening, closing and sale.

CHARACTERISTICS OF A GOOD PACKAGE

According to I.B. Steel, an effective packaging must possess the following characteristics;

1. It must attract attention.

2. It must tell the product story (Brand, brand name, ingredients, usage, price etc.).
3. It must build confidence.
4. It must look clean and sanitary.
5. It must be convenient to handle, to carry out of the store and to use.
6. It must look like good value.
7. It must look like a fast seller.
8. It must deserve a preferred display.
9. It must minimize the clerk‟s time.
10. It must be convenient to stock and display.
11. It must prevent spoilage during the selling period.
12. It must resist soiling.

LABELLING

A label gives the consumer the necessary information about the product he desires to buy. It
includes the names of the brand, name and address of the manufacturer, date of production,
date of expiry quantity, ingredients, usage instructions and price. A label is a piece of paper,
cloth, metal, or other material affixed to a container or package. Labels have many uses such
as product identification, name tags, advertising, bar codes, warnings, and other
communication.

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 FUNCTIONS OF LABELLING

1. It clearly specifies the product brand and therefore identification of a product is easy.
2. It exhibits the standard and other special features of the product which are advertised.
3. It gives clear instructions to the consumer as to the proper use of a product.
4. It clearly shows the price of a brand which helps to avoid undue price variations caused by
the intermediaries.
5. It gives information regarding the quantity/weight of the product.
6. It gives the customer the contact of the manufacturer.

TYPES OF LABELS

1. Brand Label
It shows the name of the brand, logo etc.
2.Price Label
Price label shows the Maximum Retail Price of the product.
3. Barcode Label
A bar code label shows a series of parallel black bars and white spaces, in varying widths.
Different combinations of the bars and Daces represent numbers. Each combination bars and
spaces is a code gives the price of a brand when decoded with the help of a barcode reader.
4. Quantity label
Quantity label shows the quantity/weight of the product. For example, net weight, no. of
pieces etc.
5. Descriptive Label
Descriptive label gives Information about product use, ingredients and other features.
6. Address Label
Address label gives information about the manufacturer.
7. Date Label
Date label shows the date of manufacturing and the date of expiry.
8. Warning Label
It informs the customer about the risk associated with the use of the product. For example,
„smoking is injurious to health.

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