Académique Documents
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LIST OF CONTENTS
SL NO CHAPTER NAME PAGE NUMBER
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UNIT-1
PRODUCT MANAGEMENT
PRODUCT
Product is the sum total of physical, economic, social and psychological benefits
offered to a market to satisfy a want or need.
The components of a Product which may be the selling points for that product are:
Physical Attributes
Psychological Benefits
BRAND
Brand Image
Guarantee/ Warranty
Service
Special Features
Product Levels
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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.
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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.
TYPES OF 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,
etc.
c. MRO supplies: Maintenance repairs & operating supplies gets used up
in facilitating the operation of the enterprises but do not become part of
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the finished product. Ex: Maintenance supplies include cleaning
compounds, paints, brooms & light bulbs. Bearing gears & filters are
examples for repairs. Operating supplies include office supplies such
as pen, ink, paper, etc.
d. Process materials: It is used in manufacturing of products may be
distinguishable in the final product like sheet metals, electric &
electronic circuits wiring, etc or indistinguishable like certain
ingredients used in pharmaceuticals & food products, etc.
e. Capital equipments & Investments: These include capital goods, land,
building & other companies. They are also known as foundation goods.
f. 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,
insurance, research, etc.
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, group &
subgroup within the industry & other relevant product particulars.
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. Women - body care products ; hair care products
Product Mix : is the entire range of products of a company. The product mix has four
main characteristics:
1. Width : No. of product lines in the company
2. Length: No. of product items in each product line
3. Depth: No. of Variants offered of each product item in the line.
4. Consistency: Products have similarity due to production or marketing aspects
1. Product Line addition or deletion: A firm may add or delete existing ones
or do both in the existing product lines.Ex: HUL decided to launch “Surf Ultra”,
“Rin”(Blue coloured), “Wheel”(Green coloured), & “Sunlight”(Yellow coloured
detergent)
2. Product abandonment: It refers to deletion of either an individual product or the
entire product line.Ex: Parle withdraw Bigbite & Bisca –a cup noodle from the
market.
3. Product modification: It is achieved by reformulation, redesign changing sizes &
adding or removing features.
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TWO MARKS
Eight Marks
Fifteen Marks
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UNIT -2
PRODUCT DEVELOPMENT
2. Production capacity: The ability of the plant & the personel to make design economic
& profitable.
5. Competitive Intensity: The competitor’s design has deeper bearing on the company
product designs.
8. Marketing mix: The marketing mix variables such as product, price, place, promotion
strategies influence the success of product design which has to be rightly understood
by a marketer & tap the market rightly with target customers.
“Product planning is the act of marketing out & supervising the search, screening,
development & commercialisation of new products; the modification of existing lines, & the
discontinuance of marginal or unprofitable items.”-Mr Karl H Tietjen
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.
To guarantee firm’s survival: Product planning that predicts the likely changes in
products, technologies, product ideas, inputs, etc which would help the firm to survive
for several years.
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 enhance profit: Product planning helps to enhance the short- term & long term
profitability through right investment on various product portfolios.
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.
Significantly modified product or product modification: Export opportunities
Innovative Product/Innovation: A product which is entirely original & new to the
market.
Types of Innovations:
Discontinuous Innovation: It introduces entirely new or very substantially different
products. 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.
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Continuous Innovations: It refers to incremental improvements to existing products
such as improvement in quality, addition of new features.
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, top management, R&D professional, customers,
sales force, dealers etc.
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.
Objective here is to:
1. 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, When and how? Usage
2. Testing for Target consumer reaction by asking them to offer their
comments on product attributes and expected benefits.
Step 4 : Business Analysis
Objective: Analyze the viability of product ideas from business viewpoint. It is a
combination of cost benefit and profitability analysis. Estimation is done on :
• Overall demand forecast / Estimation of market size
• Operational Costs: Production cost, marketing cost
• Financial projections: Sales, Profitability and BEP.
Step 5 : Product Development
Objective: Analyze the viability of product ideas from business viewpoint. It is a
combination of cost benefit and profitability analysis. Estimation is done on :
• Overall demand forecast / Estimation of market size
• Operational Costs: Production cost, marketing cost
• Financial projections: Sales, Profitability and BEP.
Step 6 : Test Marketing
Objective: Test the Product as real products in a small segment of target market under
controlled test market conditions. Test Marketing Is also known as Pre-Testing.
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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, and its reception by
consumer is observed, recorded and analysed.
Step 7 : Commercialization
Objective: To launch the product and monitor early delivery/ market response
Task Force
Venture teams
The better mouse trap no one wanted: These are products which have some
uniqueness or some superiority but which failed to generate enough demand.
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.
Technological dog products: These are products which fail to rise up to the
expectations of the customers.
Price crunch: New products also fail because of mismatch between price of the
product & value of the product as perceived by the customers.
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PRODUCT STRATEGY OVER THE LIFE CYCLE
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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.
2. Growth : Rate of increase in sales turnover is high.
Sales Volume are high despite increase in competition.
Profits increase at an accelerated rate. Manufacturing and distribution efficiency is
achieved. Product is well accepted by consumers and traders.
Effective Distribution and Advertising are key factors.
3. Maturity: Sales increase at decreasing rate.
Profits reduce as intense competition put pressure on prices and increases marketing
expenditure. Marketers need to stimulate demand and counter competition through
advertising and sales promotions. Additional expenditure is involved in product
modification/ improvement / broadening product line.
Overall Marketing effectiveness is the key factor.
4. Saturation : Stable Sales
Sales are mainly replacement sales. Prices fall rapidly and Profit margins are low.
Marketers fight for market share. Substantial improvements is critical for cost
efficiency.
5. Decline : Falling Sales
Product is becoming obsolete and getting gradually displaced by new innovation/
trends. Prices fall rapidly as there is excess supply and marketers want to liquidate
stock at the earliest and exit. 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. Time interval for each
stage varies from product to product. Some may remain in the stage of maturity
forever (salt). Marketers can alter the PLC through product improvements.
Implications:
PLC governs strategic marketing planning at all levels.
It also helps in formulation of pricing, promotion and distribution policies.
Customer Analysis
Cultural factor:
A) Culture: It refers to the set of attitudes, values, & beliefs associated with a
category of customers. Therefore, international marketers need to take into account
the diverse cultures across the world, while designing their strategies. Ex: In India,
McDonald’s has focused on innovative products & has changed its menu to suit the
tastes of local consumers. It launched India-specific items such as Mc Veggie burger,
Mc Aloo Tikki burger,Veg Pizza McPuff & Chicken McGrill burger.On the other
hand, it offers egg-less sandwich sauces to vegetarian customers, & vegetarian items
are prepared at a separate counter at its outlets.
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B) Subculture: Within a culture, there may be subcultures that contain similar habits,
attitudes & beliefs of a customer. 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.
Social class:
A) Upper class: This class consists of customers who possess large amount of wealth
& buy from exclusive branded stores.
B) Upper middle class: These customers are well – educated & hold good positions in
various organisations. They prefer goods appropriate to their social status. Ex: Malls
like Shopper’s Stop & Lifestyle cater to such customers.
C) Middle Class: These customers usually work at the middle & junior levels in
organisations .They want value for money. Advertisements of products like “Tide”
are targeted at such customers.
D) Lower Class: These customers are primarily blue collared workers with little or no
education. They have no savings.
Social Factors: It refers to family, friends & colleagues. They influence the buying
pattern of customers.
They are:
1) Primary reference group: This can be further divided into four categories:
a) Age & life cycle changes: Customers may be at different stages of their life
cycle based on whether they are single, married couples, couples with children, or
senior citizens. At each stage customer’s taste & preferences varies .Therefore,
marketers should keep in mind the stages in the life cycle of their customers. Ex:
LIC’s children’s plans & housing loans are targeted at young, married couples, 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. Ex: A top executive of an organisation would
purchase branded clothes & vice versa.
c) Life style: It depends upon the work life, social groups & interests of an
individual.
COMPETITOR ANALYSIS
CLASSES OF COMPETITORS:
Competitors can be classified into categories based on:
Generic competition: In this type of competition, companies compete for the same
disposable income of customers. Marketers compete to ensure that their products are
on the purchase list of customers with limited disposable incomes. Ex: Whirlpool
Corporation, manufacturer of various consumer durables.
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Form competition: A company competes with all other companies which offer similar
benefits to customers. Ex: ITC competes with all tobacco companies etc.
4. Objectives: Objectives form the basis of the planning process & state the end
results to be achieved by an organisation. They can be long term or short term &
they depend on environmental factors. For setting objectives, organisations can
adopt either a top-down or bottom-up approach. While setting objectives for an
organisation, competitor’s objectives also need to be considered.
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6. Reaction pattern: The types of reaction from competitors can be varied. The
competitors can be classified as slow reactors, selective competitors, tough
competitors & unpredictable competitors.
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. For example: A washing machine
can be differentiated based on its capacity( 3kg, 5kg,etc) or mode of loading clothes like front
loading, top loading, etc.
1) Tangible Products: can be based on form, design, features, quality, durability, size,
reparability, etc:
a) Product form: Differentiation in product form can be done based on its physical
attributes like size, shape, etc. The sum total of physical attributes is the product
form.
c) Features: The features of a product are the characteristics that allow it to perform
certain functions. Companies can achieve differentiation of products by adding or
removing certain features of a product. Marketing research can help in identifying
the features which customers are looking for in a product. Ex: Wagnor
d) Product quality: The quality of a product refers to the extent to which a product
matches customers’ expectations. If the characteristics are in keeping with the
customers’ expectations. It is perceived as a quality product.
f) Size of package: Variations in the size or weight of a product can also be utilised
by marketers in differentiation.
2) Intangible Products (Service): For intangible products, 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. Ex: amazon.com, bigbasket.com, etc
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b) Delivery: Companies can also use the speed & care in delivering the product as a basis for
differentiation. 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.
d) Guarantees: Guarantees relating to product functioning & after sales service can help the
companies gain a competitive advantage.
f) Customer training: Some companies provide training for customers or the employees of
customers with regard to the usage of product. Some companies also provide a toll free
number for online assistance to customers & also to provide information about new products
& technology.
g) Maintenance & repair: Many companies provide after sales services such as maintenance
& repairs for their products. By providing satisfactory after sales services, companies can
attract customers to make repeated purchases.
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.
Rooser Reeves explained that different brands of the same company should have unique
selling propositions. A USP can be any special attribute of a brand. Eg: Its quality, service,
price, value, safety provisions, customization, user friendliness, technology, etc.
A1 Ries & Jack Trout discussed various positioning strategies. Some of them are:
Getting into the mind of the consumer: It is easy for the first mover in the market.
Consumers tend to remember more of the features of a product that is new to the
market than of similar products introduced later.
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.To
maintain the leading position, market leaders need to position their products
intelligently in the consumers’ mind.Market leaders should adopt the strategy of
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introducing multiple brands to satisfy the changing needs of consumers.This would
cost the leader less than repositioning the existing brands in the market.
Positioning of a follower: When the company is not the first entrant in the market, it
can position its product based upon some unique feature which other marketers have
not already claimed as their USP.
TWO MARKS
Eight Marks
Fifteen Marks
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UNIT-3
Evaluating the market segments: While evaluating market segments, marketers should
consider the potential of segment & their ability to tap it. The evaluation of a particular
segment by marketers should be in accordance with the fulfilment of the organisational
objectives.
Selecting the market segment: A company need to evaluate the different market segments
before selecting particular segment. Targeting the right market segment is tough in the highly
competitive business environment. Marketers should select those segments with optimum
potential to cater to the target customers.
Single segment concentration: Targeting a single segment can benefit the marketer with high
sales as all his marketing efforts are concentrated on the segment. However, if the customers
of the segment stop patronizing the product for some reason, the marketer will face severe
losses. The marketer can serve a single segment successfully if improvisations are made to
the product in keeping with changes in tastes & preferences of customers.
Full market coverage: Some companies target the full market instead of concentrating on
segments. Ex: Hewlett Packard offers printers for all segments from home usage to heavy
duty colour printers.
Ethical choice of market targets: Marketers should not try to influence people to consume
products which are not good for them. Ex: It is unethical to encourage children to consume
high fat foods or to promote lotteries to poor people.
Segment interrelationships & super segments: Marketers can take the advantage of the
interrelationships between segments by targeting all the related segments as a super segment.
They should use the similarity in segments to increase sales.
Segment by segment invasion plans: Marketers can plan to invade one segment after another
so as to finally capture the super segment. This helps in not revealing the steps of
organisations to competitors.
Inter segment cooperation: With mutual cooperation & information sharing between the
various segments targeted by the marketer, developing marketing programs to serve
customers of each segment efficiently is possible.
SALES FORECAST
A sales forecast is an estimate of sales, in dollars or physical units, 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. A sales forecast may be for asingle product or for an entire
product line.
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.
1) Jury of executive opinion: There are two steps in this method: A) High ranking executives
estimate probable sales, & B) An average estimate is calculated.
The assumption is that the executives are well informed about the industry outlook & the
company’s market position, capabilities, & marketing program. All should support their
estimates with factual material & explain their rationales.
Companies using the jury of executive opinion method do so for one or more or four reasons:
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a) This is a quick & easy way to turn out a forecast.
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.
d) This method may be used when adequate sales & market statistics are missing, or when
these figures have not yet been put into the form required for more sophisticated forecasting
methods.
2) The Delphi technique: Researchers at the Rand corporation developed a technique for
predicting the future that is called the Delphi technique. The panel of experts responds to a
sequence of questionnaires in which the responses to one questionnaire are used to produce
the next questionnaire. Thus, information available to some & not to other experts is
disseminated to all, enabling all to base their final forecasts on all available information.
3) Poll of sales force opinion: It is also known as grass root approach, individual sales
personnel forecasts sales for their territories; then individual forecasts are combined &
modified, as management thinks necessary, to form the company sales forecast.This approach
appeals to practical sales managers because forecasting responsibility is assigned to those
who produce the results.
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, 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.
5) Time series analysis: This involves isolating & measuring four chief type of sales
variations such as long term trends, cyclical changes, seasonal variations & irregular
fluctuations. For most companies, time series analysis finds practical application mainly in
making long range forecasts. Prediction on a year to year basis, such as are necessary for an
operating sales forecast. Only where sales patterns are clearly defined & relatively stable
from year to year is time series analysis appropriately used for short term operating forecasts.
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INTERNATIONAL MARKETING:
7. Bridging gap between developed & developing nations: International marketing helps
in exchange of goods & services & helps in transfer of technical know-how & skills,
thereby accelerating the development of developing countries.
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8. Economic growth of developing countries & peace in the world: International
marketing is needed for quick economic growth of developed & developing countries.
It helps in transfer of technology & quick industrial development in developing
countries.
1. To bring countries closer for trading purpose & to encourage large scale free trade
among the countries of the world.
3. To establish trade relations among the nations & thereby to maintain cordial relations
among nations for maintaining world peace.
4. To facilitate & encourage social & cultural exchange among different countries of the
world.
5. To provide better life & welfare to people from different countries of the world. In
addition to provide assistance to countries facing natural calamities & other
emergency situations.
8. To encourage world export trade & toprovide benefits of the same to all participating
countries.
10. To keep international trade free & fair to all countries by avoiding trade barriers.
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. Companies may also set up sales offers in the
overseas markets instead of appointing middlemen as distributors.
Indirect exports: It is a process of exporting goods to foreign markets with the help of
a domestic intermediary.
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Licensing: It is a form of providing access to a patent or a trademark to some other
company by charging a fee or royalty. The licensee helps gain access to the
manufacturing process or trade secrets of the licensor. With this knowledge, the
licensee operates manufactures the product/ offers the service in the foreign country.
Licensing is also an easy way of entering new markets.
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. The
partnership may take place between companies belonging to the same industry or
different industries.
Second phase: Analysing market, product acceptability & customer perceptions form
the second phase of screening potential markets.
Third phase: It involves analysing factors such as barriers to entry, cost of exit,
number of competitors, availability of skilled labour, etc.
Fourth phase: This forms the last stage of forecasting market potential: It involves
ranking the potential markets depending upon profit potential, level of investments,
expected sales, etc.
TWO MARKS
EIGHT MARKS
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FIFTEEN MARKS
UNIT-4
BRAND MANAGEMENT
Functions of Brand
1)Functions of brand to consumers: from the customers’ perspective various functions of
brand are as follows:
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ii) Assihnment of Responsibility to product maker : Brand allows consumers to assign
responsibility to a particular manufacturer or distributor. Most important, brands take on
special meaning to customers.
iii) Risk Reducer :Brands can reduce the risks in product decisions. consumers may perceive
many different types of risks in buying and consuming a product:
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).
v)Promise, Bond, or Deal with Maker of Product: The relationship between a brand
and the consumer can be seen as a type of bond or deal. 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,
promotion and distribution programs, and actions. To the exent that consumers realize
advantages and benefits from purchasing the brand, and as long as they drive
satisfaction from product consumption, they are likely to continue to buy it.
vii) signal of Quality : Brands can also play a significant role in significant role in
signaling certain product characteristics to consumers. Researchers have classified
products and their associated attributes or benifits into three major categories:
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a) Search Goods: With search goods, products attributes can be
evaluated by visual inspection (e.g., the sturdiness, size, colour,style,weight and
ingredient composition of a product).
b) Experience Good: With experience goods,products attributes-
potentially equally important- cannot be assessed so easily by inspection, and actual
product trial and experience is necessary (e.g., as with durability, service
quality,safety, and ease of handling or use).
c) Credence Goods: with credence goods, products attributes may
be rarely learned (e.g., insurance coverage). Because of the difficulty in assessing
and interpreting products attributes and benefits with experience and credence
goods, brands may be particularly important signals of quality and other
characteristics to consumers for these types of products.
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. For a
typical fast Moving consumer goods (FMCG) company, the vast majority of its
corporate value is made-up of intagible assets and goodwill- net tangible assests
may be as little as 10 per cent of the total value. Moreover, as Much as 70 percent of
their intangible assets can be made-up of brands.
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Brand Perspectives
1) visual or verbal perspective: The visual and verbal aspect of
the brand serves important function of indentification and differentiation.
Symbols helps in brand recognition and brand recall while visual image leave
imprints in visual memory of the prospects even at the processing level. For
example, Stong communication between colour and brands helps prospects in
choosing or retrieving or re-calling brand name upon seeeing colours. Red
connects with colgate and coke, blue is tied to pepsi, yellow reminds one of
Kodak, and pink reminds one of Hutch.
2) Positioning perspective: Postitioning is creating a unique
position in the prospect’s mind to succeed in the over-communicated society. A
brand must create a positon in the prospect mind that sets it apart from the most
of the players in the category. The branch must own a word first. The role of
working is invariables in this context is to help, establish postion in the prospect
mind in a co-ordinated way. 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. It is the uniqueness
that keeps them ahead in the race. The branch is nothing more than a position
occupied in the perceptual space of the consumer.
3) This perspective is based on the
Value perspective:
value added by the brand in making the product more
satisfying. A brand is more than the sum of its
components/parts. It embodies for the purchases or use
additional attributes which might be considered by some to
intangible or still very real. Thus, a brand is commodity
augmented by added values making it more acceptable to
consumer. 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. (For ex:
Tide – isase behather safedi koyi nahi deta).
4) Brand Image Perspective: Object reality does not matter but what
matters is perception about the product. This perspective talks about the brand
image of product in the market. A brand is not what it is actually: it is rather
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what it is perceived at. Hence image building is a crucial task for Brand
Manager. It is the brand image that would steer the customer either towards the
brand or away from the brand. Image perspective lays stress on the symbolism
or imagery aspect of a brand. It is the imagery over and above the physical
product that make brand more relevant or meaningful to consumer. Brand-
image building is the effort to differentiate the brand psychologically rather than
physically.
TYPES OF BRANDS
ii) Middlemen’s Brand: Under this type of brand, manufacturer does not use
any brand for his product. Instead, distributors like wholesalers, retailers, etc.
sell the product under have own brand. Actually, this type of brand is not a
popular in our country because we do not have large distributors like U.S.A and
U.K etc.,
2) According to the Market Area: According to the market area, the brand may
be of the following five types:
i) Local Brand: When brands are used for local market, it is called local brand.
Under this type of brand, different brands are used in different markets.
ii) Provincial Brand: When one brand is used for a particular province or State
it is called provincial brand. Different brands are used in different States for the
same product.
iii) Regional Brand: Under this type of brand, manufacturer uses his brand
name only in a particular region. Different names for different regions are used.
Under this, the whole market is divided into different regions such as East,
West, North, South and Central regions, etc.
iv) National Brand: When manufacturer uses his product’s brand for selling his
product throughout the country, it is called national brand.
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.
i) Family brand: When the manufacturer uses a single brand for all his
products and in all market segments, it is known as family brand. For ex: all the
products of Bajaj Group are marketer with the brand name of Bajaj such as
bulbs, tube light, scooter, pin, toaster, table and ceiling fan, geyser, etc.,
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. For
ex: ‘Dalda’ is used for Vanaspati Ghee product line and ‘Super Surf’ for
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detergent powder line by the same manufacturer is the example of product line
brand.
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, it is called a fighting brand. For ex: ITC Ltd., has recently
introduced ‘Now’ brand cigarette.
ii) Competitive Brand: When the brand introduced in the market is almost
similar to those of competitors, such a brand is known as competitive brand.
For ex: Moti Soap, Nirma Soap, 555 Soap etc., are all having similar
characteristics.
The tabular difference between brand and the product are discussed below :
Brand Product
8.Brand is the trade name which is 8.O n the other hand product is
given to a product or service is called a merchandise-commodities offered for
brand .A brand often includes An sale-“good business depends on having
explicit logo,colour schemes,symbols good merchandise”;that store offers a
and sound which is developed to variety of products .
represent values,ideas,and even
personality.The key objective is to
create a relationship of trust.
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Image of a corporate or company: A brand is what it is because of the company that
makes it. Sometimes, brand image is influenced by the manufacturer’s name besides
the brand’s own personality.
Image of the user: Users are the association between a brand& the perceived
socioeconomic & personality characteristics of the stereotypical user of the brand.
Image of the product: The image is a result of the products performance. This in-turn
depends on is ingredients.
BRAND IDENTITY
Brand identity is the outward expression of the brand, including its name &
visual appearance.The brand’s identity is its fundamental means of consumer
recognition & symbolizes the brand’s differentiation from competitors.
6 It is enduring It is superficial
7 It is active It is passive
BRAND EQUITY
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Brand equity can be defined as the stored value built up in a brand for achieving
competitive advantage.
According to Aaker” Brand equity is a set of brand assets & liabilities linked to
a brand, 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”
Marketing mix: The proper use of marketing mix adds value in the brand
marketing. Promotion & personal relation increase brand equity.
Brand extension: To polish the brand, bring some new products &
services under the umbrella of same brand name. Ex: LG refrigerator &
mobile phones.
Customer Opinion: Always look for customer opinion because they know
the best & worst about the product. EX: Procter & Gamble ask for the
customer idea for their product through their customer portal.
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.
BRAND REJUVENATION
To recover & reposition brand in mind of consumer when it is not working
successfully is known as Brand rejuvenation or Brand Revitalisation.
1. Re-Invent the experience: The people who work for the brand are most important
& need to commit to the new organisational & brand refinement.
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2. Product/ service innovation: Innovation is also a key part of any brand
revitalisation strategy.Eg: Mc Donald’s McNuggets
3. Re-establishing the brand promise: Redefine the brand promise with a relevant,
dynamic experience that supports the new purpose & goals & gives the brand
action to get to its new experiential destination.
4. Re-building trusts: Brands that have been beaten down need to re-establish trust.
6. Expanding brand awareness: With a fading brand, often it is not the depth of
brand awareness that is a problem- consumers can still recognise or recall the
brand under certain circumstances.
7. New uses that revitalizes old brands: Mature brand manufactures are increasingly
researching & developing ways to market uses for their products.
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The reality is that although brands may be as important as ever to
consumers,brand management may be more difficult than ever.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,which
are
On the supply side, new competitors have emerged due to a number of factors,
such as the following:
2)Deregulation:Certain industries(e.g,telecommunications,financial
services,health care and transportation)have become deregulated leading to
increased competition from outside traditionally defined product market
boundaries.
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increase n the number of competitors in existing markets,threatening current
sources of revenue .
TWO MARKS
1. Define brand.
2. What is brandequity?
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The meaning of brand awareness is that consumer knows that brand exists in
the market. Brand image refers to the association that a particular brand has in
the consumer’s mind. These associations may be functional (nimboozs –
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‘Ekdum Desi Indian’, the refreshing drink) as well as emotional (Mountain Dew
– ‘Dar Ke Aage Jeet Hai’, the adventurous drink). Brand requires creation of
strong, favourable, and unique of brand image are evaluated by consumers
rationally or emotionally or both. 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
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9) Brands help consumers feel good about their purchases.
Brands have social benefits for consumers.
10) Brands improve consumer value (whether branding brings higher or
lower prices, it still ensures value for money).
12) Brands provide consumers with choice (competition implies a variety from
which consumers can make their individual selections to match their needs most
closely)
2)products that are marketed on a self service basis rely heavily on brand
appeal.
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8)Strong brands command a higher price points and higher margins
11)Brand strength is a lever for attracting the best employees and keeping
satisfied employees.
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,and other events
through advertising and sponsorship.
Disadvantages of Brand
1)Cost:If anyone wishes to create and maintain a strong brand presence,it can
involve a lot of design and marketing costs.A strong brand is memorable,nut
people still need to be exposed to it,this often requires a lot of advertising and
PR over a long period of time,which can be very costly.
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There are also costs involved with the creating of a brand image or logo (paying
for a designer,printing new letterfield/business cards,etc),and although most of
these are only one off costs,they are still relatively large for most small
businesses.
The exposure of the brand can be left to word of mouth,,this will save one’s
money,but will also greatly slow down the exposure the brand receives.
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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
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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,brand or organization.
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1)If the business actually needs to make its services or products to gain the
category of brands ,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 .It
makes the brand to gain popularity and streamline the processes of sales in a
well defined manner.
3)It will go a long way in helping to measure that real strength of the brand.This
can be considered as form of stock taking strategy.This mode will help to know
how farther the business has gone and where it exactly reach in the competitive
market .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.It is an effort to give all the products and brand beyond the present
state .It is an effort to give all the popularity which it thinks is good as choice
for making the brand to reach top position.
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 .Ofcourse ,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,it 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
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3)Competitor Attributes:What the other brands in the market offer through
features and benefits to consumers?
Some brands consistently score high on strength .They are all strong
brands.Strong brands have great equity and enjoy customer loyalty and
profits.Every manager wants to create a strong brand.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:
Define the optimal customer experience: Identify all contact points where customers
interact with the company.To create a holisticbrand experience, individual needs to
create a consistent & compelling experience at each of these touch points.
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Cultivate relationship with customers: Companies need to respond positively to
customers feedback & that will turn causual customers into loyal customers, loyal
customers into customer champions.
Strengthen the brand over time: Enhancing the level of customer brand relationship
will have a direct impact on the brand.Marketer must have a time bound plan to
improve the levels of relationship which the customers enjoy with the company/
brand.
CO-BRANDING
Co-Branding is the practice of using multiple brand names together on a single product or
service.The term can also refer to the display of multiple brand names or corporate logos on a
single website, so that people who visit the site see it as a joint enterprise.
PRE-REQUISITES OF CO-BRANDING
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. Manufacturers of perfumes and clothing are some of the
most common business users of classic celebrity endorsement techniques, such as television
ads and launch event appearances, in the marketing of their products.
Brand portfolio includes all types of brand viz. Brands & sub brands as well as
co-brads with other firms.
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2. 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.
1. What is co-branding?
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UNIT-6
Brand Hierarchy:
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2) Introduce higher or lower priced versions of the product: Price may
be inhibiting factor for some prospective customers. It may broaden the
market for the brand.
BRANDING STRATEGIES
1. Integrated branding: The retailer is involved in process beginning
from idea generation to branding the product. Here the retailer makes
the decision regarding what kind of product he wants.
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3. Line Branding: The line responds to the concern of offering one
coherent response under a single name by proposing many
complementary products.
Managing brand is nothing but an art of creating & sustaining the brand promise
to their customers. Branding makes customers committed to their business.
Managing the brand is a long term process, which suggests that the brand idea
needs to enter the systems of organisation rather than being the crusade of alone
individual. 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. Thus, 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.
TWO MARKS
EIGHT MARKS
FIFTEEN MARKS
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