What is a Brand?

What is a Brand?

NAME

SIGN

SYMBOL/LOGO

COMBINATION

Branding

Strategies

Branding Strategies

Brand Extension

• Existing brand name for new product category

• Maggie

Line Extension

• Same brand name same product category

• Cinthol• Lays

Multiple Branding

• Introduce new brand in existing product category

• HUL – Lux, Liril & Lifebuoy

New Brands

• Launches new product in new category

• Timex

Strategies

Branding Strategies

Brand Extension Line Extension Multiple

Branding New Brands

•?

Strategies

PRODUCT LIFE CYCLE

Time

Sales

0

0.5

1

1.5

2

2.5

0 1 2 3 4 5 6

Introduction

Growth

Maturity

Decline

MARKETING STRATEGIES – INTRODUCTION STAGE

Rapid Skimming

Rapid Penetration

Slow Skimming Slow Penetration

High Low

PricePr

omoti

on

High

Low

High Low

High

Low

Rapid Skimming Launching product at high price & high promotion

Strategy makes sense – Large part of the potential market is unaware of the product

Awareness – Eager to have & pay the asking price

Company faces potential competition

Build brand preference

Slow Skimming Launching product at high price & low promotion

Strategy makes sense – Market is limited in size & aware of the product

Buyers are willing to pay high price

Potential competition is imminent

Rapid Penetration Launching product at low price & spending heavily on promotion

Strategy makes sense – Market is large & unaware of the product

Buyers are price sensitive

Company faces strong potential competition

Unit manufacturing costs fall - Company's scale of production & accumulated manufacturing experience

Slow Penetration Launching product at low price & low level of promotion

Strategy makes sense – Market is large & market is aware of the product

Buyers are price sensitive

Some potential competition

Marketing Strategies - Growth

Improves product quality & adds new product features & improved styling

Adds new product models & flanker products

Enters new market segments

Increases the distribution coverage & enters new distribution channels

Shifts from product awareness advertising to product preference advertising

Lowers price to attract the next layer of price sensitive buyers

Strategies – Maturity stage

Strategies Maturity stage

Market Modification

Product Modification

Marketing Mix

modification

Marketing Strategies - Maturity

Non-users

New Users

Enter new market segments

More usage

New usage

Market Modification

Product Modification

Quality Improvement

• Increasing functional performance

• Durability, reliability, speed, taste etc.

• PLUS launch

Feature improvement

• Adding new features

• Size, weight, materials, accessories e

• Expand the products versatility, safety, convenience

Style Improvement

• Increasing products aesthetic appeals

• Style competition

• Packaging – Color, restyle the package

BCG MATRIX

Macro environment/Exter

nal environment

Economic

Political/Legal

Technological

Socio-Cultural

Global

Demographic

Elements of Macro environment

PESTLE ANALYSIS Term pestle analysis is used to describe a framework for analysis of macro environment

PESTLE analysis involves identifying the

- Political

- Economic

- Socio-Cultural

- Technological

- Legal

- Environmental

Their influences on an organization

PESTLE ANALYSIS

PESTLE

Economic

Socio-Cultural

Technological

Legal

Environmental

Political

PESTLE ANALYSIS PESTLE analysis is simple to understand & quick to implement

Advantage of PESTLE tool: Encourages management - Proactive & structured thinking

Provides a way of scanning the environmental influences that have affected or are likely to affect

- An organization

-Policy

PESTLE analysis is an increasingly used & recognized term replacing the traditional framework

POLITICAL FACTORS How & to what extent a govt. intervenes - Economy & activities of Corporate

May also include the goods & services – Govt. wants to provide

Political stability

Government policies

Political principles & ideologies

Political pressure groups influence & limit organizations

ECONOMIC FACTORS Major impact - business operates & take decisions

Strength of consumer spending/Purchasing power

Current income, savings, debt & credit availability

Exchange rates, inflation, money supply, credit flow

Per-capita income, growth rates

Economic situations & Trends

Marketers – Careful attention to trends affecting purchasing power

Strong impact on business-Companies whose products-geared to high income & price sensitive

SOCIAL FACTORS Social factors affect the demand for a company products & how that company operates

Lifestyle trends

Consumer buying patterns

Ethnic/Religious factors

Values, attitude & aspirations

Belief, values & norms of a society determine how individuals & organizations should be interrelated

Consists of factors related to human relationships

Impact of social attitudes & cultural values

TECHNOLOGICAL FACTORS Technology can act as both - Opportunity/Threat

Opportunity - Adopting technological innovations

Threat - Not able to adopt to owns advantage

Technological factors - determine barriers to entry

Innovation potential

Technology access, licensing & patents

Intellectual property rights & copyrights

Maturity of technology

Risk & uncertainty of technological developments

LEGAL FACTORS Three main purposes

1. To protect companies from unfair competition

2. To protect consumers from unfair business

3. To protect the interest of the society

Marketers must have good knowledge of major laws protecting competition, consumers & society

E.g.; In India -Green dot/Red hot, M.R.P

Factors affect how a company operates its cost’s & the demand for its products

ENVIRONMENTAL FACTORS The deterioration of the natural environment is a major global concern

There is a great concern about green house gases

Depletion of ozone layer

New regulations hit certain industries very hard

Auto industry has to introduce expensive emission control systems (Euro II norms)

Ecological/Environmental issues

Environmental hazards

Energy consumption & waste disposal

MICRO ENVIRONMENT

MICROENV .

Competitors

Organization

Market

Suppliers

Intermediaries

Consumers/Customers

CONSUMER/CUSTOMERS Customers - Pay money - acquire company’s product

Product’s may be in both forms – Products/Services

Organization can’t survive without customers

Customer may or may not be a consumer

Consumer – Ultimately consumes the product

Marketer has to closely monitor & analyze changes in consumer taste & preferences

Who are the customers/Consumers

What benefits they are looking for

What are their buying patterns

COMPETITORS Other business entities that compete for resources as well as markets

Competition shapes business

Marketer – Study the competitive scenario

Who are the competitors?

What are their strategy & business objective?

Who are the most aggressive/powerful competitors

Competition may be direct or indirect

Direct competition is between organizations which are in same business activity

ORGANIZATION Individuals occupying different positions or working in different capacities in organizations

Owners: They are individuals, share holder groups or organizations who have a major stake in Orgaztn.

Board of directors/Governing body

-Found in companies found under Companies act 1956

-BOD are elected by shareholders

Employees: People who actually do the work & are the major force within an organization

MARKET Market is a wider term than customers

Marketer study the market - Actual & potential size

Growth prospects & attractiveness

Cost structure of the market

Price sensitivity of the market

Technological structure of the market

Existing distribution system of the market

Maturity level of the market

Possibility of market segmentation & differentiation

SUPPLIERS Suppliers form an important component of the micro environment

Suppliers provide – Raw materials, equipment, services

Organizations - major decisions on outsourcing or in house production – Supplier environment

Make or buy option

Suppliers with bargaining power affect the cost structure

Companies have to rely on many suppliers

INTERMEDIARIES Wholesalers, Retailers & dealers establish an important link between the org. & customers

Availability of intermediaries

Effect of direct dealings with the customers

Cost-push effect of intermediaries

Intermediaries can be considered as the major determining force in the business

Intermediaries can exert a considerable influence on the business organizations

NEW PRODUCT DEVELOPMENT PROCESS

COMMERCILIZATION

TEST MARKETING

PRODUCT DEVELOPMENT & TESTING

BUSINESS ANALYSIS

MARKETING STRATEGY

CONCEPT DEVELOPMENT & TESTING

IDEA SCREENING

IDEA GENERATION

IDEA GENERATION

IDEA GENERATION SOURCES

CUSTOMERS

EMPLOYEES COMPETITORS

CHANNEL MEMBERS

Types Of Buyer Behavior

Complex Buying

Behavior

Variety Seeking Buying Behavior

Dissonance Reducing Buying

Behavior

Habitual Buying Behavior

Significant Differences Between Brands

Few Differences Between Brands

High Involvement

Low Involvement

BUYER BEHAVIOUR MODEL

Problem/Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behavior

INFORMATION SEARCH

Personal• Family• Friends• Neighbors• Acquaintances

Commercial• Advertising• Sales Person• Dealers• Displays

Public• Mass Media• Research

Organizations

Experiential• Past

Experiences• Free Trials

Sources of Information

SALES PROMOTION

Sales Promotions

Contests

Prizes

DemosFrequent shopper

Coupons

SEGMENTATIOIN VARIABLES

SEGMENTATION

VARIABLES

GEOGRAPHICDEMOGRAPHICPSYCHOGRAPHIC

BEHAVIORAL

SEGMENTATION

GEOGRAPHIC

• NATION• REGION• STATES• DISTRICTS• CITY• RURAL• SEMI-URBAN

DEMOGRAPHIC

• AGE• FAMILY SIZE• GENDER• INCOME• OCCUPATION• EDUCATION• SOCIO

ECONOMIC

PSYCHOGRAPHIC

• LIFESTYLE• PERSONALITY• VALUES

BEHAVIORAL

• OCCASSIONS• BENEFITS• USER STATUS• USAGE RATE• LOYALTY

STATUS• READINESS

STAGE• ATTITUDE

SEGMENTATION VARIABLES

GEOGRAPHIC SEGMENTATION

DEMOGRAPHIC SEGMENTATION

PSYCHOGRAPHIC SEGMENTATION

BEHAVIORAL

BEHAVIORAL

KEY DIMENSIONS

OCCASSIONS REGULAR, SPECIAL (Cadburys, Archie's)

BENEFITS QUALITY, SERVICE, ECONOMY, SPEED

USER STATUS NONUSER, EXUSER,POTENTIAL USER, FIRST TIME USER, REGULAR USER

USAGE RATE LIGHT, MEDIUM, HEAVY (Aviation Frequent Fliers)

LOYALTY STATUS HARD CORE, SPLIT, SHIFTING, SWITCHERS

READINESS STAGE

UNAWARE, AWARE, INFORMED, INTERESTED, DESIRED, INTENDING TO BUY

ATTITUDE ENTHUSIASTIC, POSITIVE, NEGATIVE, HOSTILE

TARGET MARKETING STRATEGIES

TARGET MARKETING STRATEGIES

FULL MARKET

COVERAGE

SINGLE SEGMENT STARTEGY

MULTI-SEGMENT

STRATEGIES

TARGET MARKETING STRATEGIES

FULL MARKET

UNDIFFERENTIATED

DIFFERENTIATED

SINGLE SEGMENT

SINGLE SEGMENT FOCUS

MULTI SEGMENT

SELECTIVE SPECIALIZATION

PRODUCT SPECIALIZATION

MARKET SPECIALIZATION

DIFFERENTIATION STRATEGY

DIFFERENTIATION

STRATEGY

PRODUCT DIFFERENTIATION

SERVICE DIFFERENTIATION

PERSONNEL DIFFERENTIATIONCHANNEL

DIFFERENTIATIONIMAGE DIFFERENTIATION

COMPETITIVE FRAME OF REFERENCE

POINTS OF DIFFERENCE POINTS OF PARITY

Category

Points of

Parity

Competitive Points of Parity

POINT OF DIFFERENCE Attributes/Benefits consumer strongly associate

Believe – Do not exist in competitive brands

Associations that make point of difference

Based on any type of benefits/Attributes

Examples – Savlon, Anchor, Promise etc.

POINT OF PARITY Associations - are not necessarily unique to brand

Shared with other brands

Association are of two types

Category points of parity

Associations consumers think are essential

Category points of association may change

Technological advances, Legal changes

Competitive points of parity are associations designed to negate competitive points of difference

POSITIONING ERRORS

POSITIONING ERRORS

UNDER POSITIONING

OVER POSITIONING

CONFUSED POSITIONINGDOUBTFUL

POSITIONING

TYPES OF RETAILERS

RETAILERS CLASSIFICATI

ON

OWNERSHIP

EXTENT OF PRODUCT

LINESSERVICES

NON-STORE BASED

RETAILING - OWNERSHIP

OWNERSHIP

INDEPENDENT RETAILERS

CHAIN RETAILERSHIP

LEASED DEPARTMENT

RETAILING – PRODUCT LINES

EXTENT OF

PRODUCT LINE

SPECIALITY STORES

DEPARTMENT STORES

DISCOUNT STORESSUPER MARKETSHYPER MARKETS

NON-STORE BASED RETAILING

NON STORE BASED

DIRECT SELLING

DIRECT MARKETIN

GAUTOMATIC VENDING

FACTORS – ORGANIZATIONAL BUYING

BUYING FACTORS

ENVIRONMENTAL FACTORS

ORGANIZATIONAL FACTORSSOCIAL FACTORS

PERSONAL FACTORS

PRODUCT LINE DECISIONS

LINE DECISIONS

PRODUCT LINE

LENGTH

PRODUCT LINE MODERNIZATIO

NLINE

PRUNING

PRODUCT LINE LENGTH

LINE STRETCHING LINE FILLING

BRAND EQUITY

BRAND EQUITY

DETERMINANTS

BRAND LOYALTY

BRAND AWARENESS

PERCEIVED QUALITY

EMOTIONALRATIONAL

ASSOCIATIONSPATENTS