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Brand: A brand identifies the product with the seller .

A name, term, sign, symbol, or design, or a combination of them which is intended to identify
the goods or services of one seller or a group of sellers and to differentiate them from those of

Brand extension is a part of brand management to diversify and leveraging the existing brand
by entering into new product category by new product development. Positive images and
strengths of existing brand / parent brand are leveraged to bring another success story for new
product. Brand extension is increasingly used by companies as a part of strategy for product
developments. It is viewed as one of means to attain integrated brand architecture. The use of
same brand on existing product (parent brand) for a new product in different category
(extension brand) increases rate of new acceptance and purchase intention to consumer. The
strategy maintains efficiencies on advertising and promotion expenditures yet still can create
new market segment. Company is not in position to allocate marketing expenses at the same
level as spent by the parent brand, yet may gain similar level of success. A strong reputation
of parent brand can minimize risk of new product launch by taking advantages on consumers’
knowledge and experiences of the established brand.

Entire processes of new product developments take significant hours and efforts to bring
about a success. Particularly for some type of products having short term product life cycle, a
marketing strategy that leads to a shortcut of achievement is a preference for a marketing
program. Instead of working up from a zero point, one would start from an established
Ground-base. From marketing view, brand extension strategy is a solid base and perceived
for a main choice to continue the legacy of a successful parent brand. Also, it optimizes
economic scale of company’s intellectual property. However, brand extension strategy is not
a risk-free and does not fully secure the results. It poses some risks since the brand
associations of the parent brand must be appropriately transferred and linked to the new
product. The failure of associating brand to new product can negatively affect not only to the
new product, but also does affect the parent brand. The image and financial figures of parent
brand may be endangered due to the failure of strategy implementation.

E.g. 1: Not many companies can be compared to Virgin group in doing A-Z of brand
extension. Virgin Group flies high with brand extension. By simply attaching name of
“Virgin” in every product they market, Virgin rolls out so diverse categories. Virgin
decisions to take this approach are tightly tied to the founder and CEO of the group, Richard
Branson. With one single brand (Virgin), Branson and team have introduced and promoted so
diverse product categories, from cola drink to wedding service and further to budget airline.
A few were not running as planned, yet not so few can contribute cash inflows to the
company. Founded in 1970s as a mail order record company, Virgin has now more than 200
individual companies with total $5 billion in turnover. Recipe spread by Branson on taking
his company grown so rapidly is by a simple answer: brand extension. It is the strategy to
bring new products and services in market faster than ever. For Virgin, one mistake of
product can dilute entire brand portfolio.
E.g. 2: Before deciding to launch a new product with completely different from parent brand,
Yamaha had developed sound reputation in manufacturing musical instruments. Perception to
Yamaha musical instruments referred to engineering quality and precision. The two value
creation were successfully transferred to new product and as the result, Yamaha is now one of
the world’s largest manufacturer of motor cycles under Yamaha Motor Company.
2. Critically evaluate the use of Secondary data sources in marketing research:
Secondary data are data that were collected by persons or agencies for purposes other than
solving the problem at hand. They are one of the cheapest and easiest means of access to
Hence, the first thing a researcher should do is search for secondary data available on the
topic. The amount of secondary data available is overwhelming, and researchers have to
locate and utilize the data that are relevant to their research. Most search procedures follow a
distinctive pattern, which begins with the most available and least costly sources. Almost all
information systems initially are based on routinely collected internal data, and expand
through the inclusion of data from published and standardized sources.

Marketing research is a critical part of such a marketing intelligence system; it helps to

improve management decision making by providing relevant, accurate, and timely (RAT)
information. Every decision poses unique needs for information, and relevant strategies can
be developed based on the information gathered through marketing research in action. Too
often, marketing research is considered narrowly as the gathering and analyzing of data for
someone else to use. Firms can achieve and sustain a competitive advantage through the
creative use of market information. Hence, marketing research is defined as information input
to decisions, not simply the evaluation of decisions that have been made. Market research
alone, however, does not guarantee success; the intelligent use of market research is the key
to business achievement. A competitive edge is more the result of how information is used
than of who does or does not have the information.

Marketing decisions involve issues that range from fundamental shifts in the positioning of a
business or the decision to enter a new market to narrow tactical questions of how best to
stock a grocery shelf. The context for these decisions is the market planning process, which
proceeds sequentially through four stages; situation analysis, strategy development,
marketing program development, and implementation. This is a never-ending process, so the
evaluation of past strategic decisions serves as an input to the situation assessment . . . During
each stage, marketing research makes a major contribution to clarifying and resolving issues
and then choosing among decision alternatives.

Secondary data can be used by marketing researchers in many ways.

1. Secondary data may provide enough information to resolve the problem being investigated.
2. Secondary data can be a valuable source of new ideas that can be explored later through
primary research.
3. Examining available secondary data is a requirement to collecting primary data. It helps to
define the problem and formulate hypotheses about its solution.
4. Secondary data is of use in the collection of primary data. Examining the methodology and
techniques employed by other investigators in similar studies may be useful in planning the
present one.
5. Secondary data also helps to define the population, select the sample in primary
information collection, and define the parameters of primary research.
6. Secondary data can also serve as a reference base against which to compare the validity or
accuracy of primary data. It may also be of value in establishing classifications that are
compatible with past studies so that trends may be more readily analyzed.
The most significant benefits secondary data offer a researcher are savings in cost and time.
Secondary data research involves just spending a few days in the library extracting the data
and reporting them. This should involve very little time, effort, and money compared to
primary research. Even if the data are bought from another source, it will turn out to be
cheaper than collecting primary data, because the cost of data collection is shared by all those
using the data.
Secondary data are particularly useful in evaluating country or market environments, whether
in making initial market-entry decisions or in attempting to assess future trends and
developments. They thus form an integral form of the international marketing research
process. More specifically, three major uses of secondary data are in:
1. Selecting countries or markets that merit in-depth investigation
2. Making an initial estimate of demand potential in a given country or a set of countries
3. Monitoring environmental changes

Secondary data can be used systematically to screen market potential, risks, and likely costs
of operating in different countries throughout the world. Two types of generalized procedures
are used. The first procedure classifies countries on two dimensions: the degree of
demographic and economic mobility, and the country's domestic stability and cohesion. The
second procedure calculates multiple factor indices for different countries. For example,
Business International publishes information each year on three indices showing (1) market
growth, (2) market intensity, and (3) market size, for countries in Western and Eastern
Europe, the Middle East, Latin America, Asia, Africa, and Australia. Customized models,
which are geared to specific company objectives and industry characteristic, can also be
developed using secondary data.
A third use of secondary data in an international context is to monitor environmental changes.
Monitoring environmental changes requires surveillance of a number of key indicators. These
should be carefully selected and tailored to the specific product or range of products with
which management is concerned. Two types of indicators are required. The first monitors the
general health and growth of a country and its economy and society; the second, those of a
specific industry or product market. A variety of procedures can be used to analyze the
impact of environmental factors on world trends or industrial countries, and on product
markets, as well as the implications for market growth and appropriate marketing strategies.

Two major problems are associated with secondary data in international marketing
research: the accuracy of the data and the comparability of data obtained from
different countries.
1. Different sources often report different values for the same macroeconomic factor,
such as gross national product, per-capita income, or the number of television sets in
use. This casts some doubt on the accuracy of the data. This may be due to different
definitions followed for each of those statistics in different countries. The accuracy of
data also varies from one country to another. Data from highly industrialized nations
are likely to have a higher level of accuracy than data from developing countries,
because of the difference in the sophistication of the procedures adopted. The level of
literacy in a country also plays a role in the accuracy of the macroeconomic data
collected in that country.
2. Business statistics and income data vary from country to country because different
countries have different tax structures and different levels of taxation. Hence, it may
not be useful to compare these statistics across countries. Population censuses may
not only be inaccurate, they also may vary in frequency and the year in which they
were collected. Although in United States they are collected once every 10 years, in
Bolivia there was a 25-year gap between two censuses. So most population figures are
based on estimates of growth that may not be accurate and comparable. Measurement
units are not necessarily equivalent from country to country. For example, in
Germany the expense incurred on buying a television would be classified as
entertainment expense, whereas in the United States it would be classified as furniture

3. Critically examine the role that people can play in helping an Orgn. to gain n develop
competitive advantage?

A competitive advantage exists when the firm is able to deliver the same benefits as
competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of
competing products (differentiation advantage). Thus, a competitive advantage enables the
firm to create superior value for its customers and superior profits for itself.
Most companies believe that human resource rather than financial or technological resources
can offer a competitive advantage. But can it provide a sustained competitive advantage, or
will competitors be able to imitate what has been achieved or buy in the same skills and
capabilities from the external labour market, making any competitive advantages purely short
term? Commitment, trust and pride appear to be sustaining ongoing change at the
organisation and provide a platform for the organisation to increase its turnover and
profitability. Commitment, pride and trust would take the organisation years of focus, skill
and senior management commitment to nurture this kind of culture.
Competitive advantage can best be achieved by seeking improvement in the management of
people, in other words, through better utilisation of human resources.
From the standpoint of researchers interested in competitive advantage, the resource based
view of the firm provides a framework for examining the rule of human resources in
competitive success and forces us to think more clearly about the quality of the workforce
skills at various levels and the quality of the motivation climate created by strategic human
resource management.
In today’s fast-paced economy competition is an issue of services and products. Much
attention has been directed to a better service and the best product and how this can be
achieved through utilising the human resources. Understanding sources of competitive
advantage has become a major area of research. If management trust their workers and give
them challenging assignments, workers in return will respond with high motivation, high
commitment and high performance. Success does not depend primarily on the size of the
budget or the products supporting technologies. It really depends on employee’s attitudes,
competencies and skills; their ability to generate commitment and trust, communicate
aspirations and work in complex relationships. Now we know one of the sources of
competitive advantage which is the employees, then what do we have to do to achieve
competitive advantage through them?

The employees of the organisations have claimed the following points play the most
important roles in improving their performance and long term loyalty which both lead to a
great competitive advantage.
1. High job security (if the jobs disappear through Economic,Technical, Social and
Political changes then the employer will offer alternative employment or at least help the
employee to find another one)
2. High wages
3. Good communication and strong respect for individuals.
4. Personal development such as training.
5. Reward and social relationship.
6. Performance reviewing and setting goals and objectives.
7. Job description
8. Good manager with a good qualification and vision.
9. Involvement in the selection process.

For more details:


4. Marketing Mix:

The marketing mix is the combination of techniques used to market a brand. The
techniques are often called the Ps.
Originally there were four Ps:
Product (or service): what you sell, and the variety or range of products you sell. This
includes the quality (how good it is), branding (see Units 16–18), and reputation (the opinion
the consumers have) of the product. For a service, support for the client after the purchase is
important. For example, travel insurance is often sold with access to a telephone helpline in
case of emergency.
Price: how much the product or service costs.
Place: where you sell the product or service. This means the location of your shop, or
outlet, or the accessibility of your service – how easy it is to access.
Promotion: how you tell consumers about the product or service. The promotional mix is
a blend of the promotional tools used to communicate about the product or service – for
example, TV advertising.

For example, a company like Kellogg's is constantly developing new breakfast cereals - the
product element is the new product itself, getting the price right involves examining
customer perceptions and rival products as well as costs of manufacture, promotion involves
engaging in a range of promotional activities e.g. competitions, product tasting etc, and place
involves using the best possible channels of distribution such as leading supermarket chains.
The product is the central point on which marketing energy must focus. Finding out how to
make the product, setting up the production line, providing the finance and manufacturing the
product are not the responsibility of the marketing function. However, it is concerned with
what the product means to the customer. Marketing therefore plays a key role in determining
such aspects as:

• The appearance of the product - in line with the requirements of the market

• The function of the product - products must address the needs of customers as identified
through market research.

Today some marketers talk about an additional four Ps:

People: how your staff (or employees), are different from those in a competitor’s organization
and how your clients are different from your competitor’s clients.
Physical presence: how your shop or website looks.
Process: how your product is built and delivered, or how your service is sold, delivered and
Physical evidence: how your service becomes tangible. For example, tickets, policies and
brochures create something the customers can touch and hold.

Customer relationship marketing:


5. Rebranding of products and services:

Rebranding is the creation of a new name, term, symbol, design or a combination of them
for an established brand with the intention of developing a differentiated (new) position in the
mind of stakeholders and competitors.

This may involve radical changes to the brand's logo, brand name, image, marketing strategy,
and advertising themes. These changes are typically aimed at the repositioning of the
brand/company, sometimes in an attempt to distance itself from certain negative connotations
of the previous branding, or to move the brand upmarket. However the main reason for a re-
brand is to communicate a new message for a company, something that has evolved, or the
new board of directors wish to communicate.

Rebranding can be applied to new products, mature products, or even products still in
development. The process can occur intentionally through a deliberate change in strategy or
occur unintentionally from unplanned, emergent situations, such as a “corporate
restructuring," "union busting," or "bankruptcy."

Corporate Rebranding: Rebranding has become something of a fad in the last decade, with
some companies rebranding several times. The rebranding of Philip Morris to Altria was
done to help the company shed its negative image. Other rebrandings, such as the British Post
Office's attempt to rebrand itself as Consignia, have proved such a failure that millions more
had to be spent going back to square one.

In a study of 165 cases of rebranding, Muzellec and Lambkin (2006) found that whether a
rebranding follows from corporate strategy (e.g. M&A) or constitutes the actual marketing
strategy (change the corporate reputation); it aims at enhancing, regaining, transferring and/or
recreating the corporate brand equity.

According to Sinclair, business the world over acknowledges the value of brands. “Brands, it
seems, alongside ownership of copyright and trademarks, computer software and specialist
know-how, are now at the heart of the intangible value investors place on companies.” As
such, companies in the 21st century may find it necessary to relook their brand in terms of its
relevancy to consumers and the changing marketplace. Successful rebranding projects can
yield a brand better off than before.

Due to the tremendous impact that renaming and rebranding a company can have, it is critical
to take the client through the process with great sensitivity and care. The new company
identity and brand should also be launched in a subtle and methodical manner in order to
avoid alienating old customers, while aiming to attract new business prospects. There is no
magic formula, however, there is a methodical process which involves careful strategy,
memorable visuals and personal interactions, all of which must speak in unison for a
customer to place full trust and invest their emotions in what is on offer.

Marketing develops the awareness and associations in consumer memory so that customers
know (and are constantly reminded) which brands best serve their needs. Once in a lead
position, it is marketing, consistent product or service quality, sensible pricing and effective
distribution that will keep the brand ahead of the pack and provide value to its owners.

Product Rebranding: As for product offerings, when they are marketed separately to several
target markets this is called market segmentation. When part of market segmentation strategy
involves offering significantly different products in each market, this is called product
differentiation. This market segmentation/product differentiation process can be thought of as
a form of rebranding. What distinguishes it from other forms of rebranding is that the process
does not entail the elimination of the original brand image. Dexxa computer mice are
rebranded Logitech devices sold at a lower price by Logitech in the low-end market segment
without undercutting their mid-range products. Rebranding in this manner allows one set of
engineering and QA to be used to create multiple products with minimal modifications and
additional expense.

Following a merger or acquisition, companies usually rebrand newly acquired products to

keep them consistent with an existing product line. For example, when Symantec acquired
Quarterdeck in November 1998, Symantec chose to rename CleanSweep to Norton
CleanSweep. Later on, the company chose to reposition its entire product line by grouping
products into a bundle known as Norton SystemWorks. Symantec is not the only software
company to reposition and rebrand its products. Much of Microsoft's product line consists of
rebranded products, including MS-DOS, FoxPro and Visio. Another example is the rebrands
of GeForce 8-series GPU into 9-series by nVidia. The reverse can also happen, as when
AlliedSignal acquired Honeywell, Southern Railroad of Long Island acquired Long Island
Rail Road, and Chemical Bank acquired Chase Manhattan Bank. In such cases the acquiring
company rebrands itself with the acquired name.

Another form of product rebranding is the sale of a product manufactured by another

company under a new name. An original design manufacturer is a company which
manufactures a product which is eventually branded by another firm for sale. This is often the
case with international trade. A product is manufactured in a place with lower operating
costs, and sold under a local brand name.

6. Segmentation of a mass consumer market:

Segmentation involves identifying homogeneous buying behaviour within a segment (and
heterogeneous buying between segments) such that each segment can be considered as a
target for a distinct marketing mix.

Criteria for segmentation

To help with this process, potential segments should satisfy a number of criteria. The four
main and nine sub-criteria are:

1. Typifying the segments:

Identification. Differentiation of segment from other segments.
Measurability. Identification of segments in terms of differences in individual and household
characteristics or other ‘measurable’ characteristics should be possible.
The segmentation process is generally regarded as consisting of three stages; segmentation,
targeting, and positioning.
Segmentation variables:
The first stage of the segmentation process involves the selection of suitable variables for
grouping customers. These are also referred to as base variables or the segmentation basis.
There is rarely one best way of segmenting a market and more than one variable can be used.
There are a number of segmentation variables that can be used for consumer and business-to-
business markets.
Segmentation analysis:
Research plays an important role in segmentation as segmentation analysis requires a range
of data form a wide variety of sources on markets, customers’ attitudes, motives and
behaviour as well as competitor information.
Targeting is the next step in the sequential process and involves a business making choices
about segment(s) on which resources are to be focused. There are three major targeting
strategies: undifferentiated, concentrated, and differentiated. During this process the business
must balance its resources and capabilities against the attractiveness of different segments.
Positioning follows on logically from the segmentation and targeting stages. Customer
perceptions are central to the product position especially in relation to the competition’s
offering. The product or service has to satisfy key customer requirements and this has to be
clearly communicated to customers. A tool that helps marketers understand customer
perceptions of their brand is perceptual mapping and a simple 7- step approach can be used to
develop a clear positioning strategy. However, a number of positioning problems can arise.