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Product and Brand Management
   Product
        A product is anything that can be offered to a market for
        attention, acquisition, use or consumption that might satisfy
        a need or want including physical goods, services,
        experiences, events, persons, places, properties,
        organizations, information and ideas”

   Brand
        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 competitors
Product Levels (The Customer Value
Hierarchy )
Consumer Products and Industrial Products
    Consumer Products- These are products and services
    bought by final consumers for personal consumption
     Convenience Products- are consumer products and
      services that customers usually buy frequently, as soon as
      they feel the need for them and with a minimum of
      comparison and buying effort
       staples, impulse goods, emergency goods


       Shopping Products- are less frequently purchased
        consumer products and services that consumers compare
        carefully on suitability, quality, price and style. Here
        consumers spend much time and effort in gathering
        information and making comparisons
   Specialty Products- are consumer products and services
        with unique features and brand identification for which a
        significant group of buyers are willing to make a special
        purchase effort. They are more expensive than
        convenience products and are not purchased so frequently
        Unsought Products- are consumer products that the
        consumer either does not know or knows but does not
        normally think of buying
    Industrial Products- A product bought by individuals
    and organizations for further processing or for use in
    conducting a business like Materials and parts, Capital
    items, supplies etc
Product Mix (Product assortment/Product portfolio)

    Home & personal care                                                             Foods

Personal wash   Laundry      Hair care Deodorants   Color         Tea     Coffee     Foods     Ice-Cream
                                                      cosmetics


 lux            Surf excel   Sunsilk      Axe        Lakme        Brook        Bru    Kissan      Kwality-
                                                                        bond            Annapurna     walls
 lifebuoy         Rin         Clinic     Rexona                   Lipton
 liril             Wheel
 Dove
 Pears
 Rexona
   Product Mix (Product assortment)-is the set of all
    products and items a particular seller offers for sale. It
    consists of various product lines.
   Product line- A group of products within the product class
    that are closely related because they perform a similar
    function ,are sold to the same customer groups, are
    marketed through the same outlets or channels, or fall
    within given price ranges. It may be composed of different
    brands or individual brand that has been line extended
   Product class (product category)- A group of products
    having a certain functional coherence. Eg Financial
    Instruments
   Product-mix Width- It refers to how many different
    product lines the company carries.
   Product-mix length- It refers total number of items in its
    product lines
   Product-mix depth- It refers how many variants are
    offered of each product in the line.
    Line stretching-It occurs when a company lengthens
    its product line beyond its current range
New Product Adoption Process



Awareness
Awareness

   Interest
   Interest

     Evaluation
     Evaluation

              Trial
              Trial

               Adoption
               Adoption           Loyalty
Diffusion of Innovation
 The process by which the use of an innovation whether a product
  or service spreads through out a market group, over time and
  over various categories of adopters is known as diffusion of
  innovation. It helps marketers to understand
 The rate at which consumers are likely to adopt a new product or
  service
 It also helps the marketers to identify the potential customers
  for their new products and services and also predict their
  potential sales
Diffusion of Innovation Curve
   Innovators
        These are those buyers who want to be the first to have the new product
        or service. These buyers enjoy taking risks and are regarded as highly
        knowledgeable
 Early Adopters
        These are those buyers who generally do not like to take as much risk as innovators
        but instead wait and purchase the product after careful review and sometimes
        are also regarded as opinion leaders
 Early Majority
        This group differs from buyers in the first two categories. Its members do not
        like to take as much risk and hence tend to wait. When early majority customers
        enter the market the number of competitors in the market usually also has reached
        its peak, so these buyers have many different price and quality choices
   Late Majority
        It is a group of buyers who adopt a product or service when it has reached its
        full market potential. By the time the late majority enters the market, sales
        tend to level off or may be in decline
   Laggards
        These consumers like to avoid change and rely on traditional products until
        they are no longer available and even sometimes they may never adopt a
        certain product or service
   Brand Architecture How an organization structures and names
    the brands within its portfolio.
       Monolithic Brand - Here the corporate name is used on all
        products and services offered by the company. e.g. Mercedes,
        BMW, Sony, TATA, Apple
        Endorsed Brand - where all sub-brands are linked to the
        corporate brand by means of either a verbal or visual
        endorsement. It generally a product or service brand name that
        is supported by a Masterbrand - either dominantly e.g. Tesco
        Metro, Nestle Kit-Kat, Virgin, General Electric
        Freestanding Brand - the corporate brand operates merely as a
        holding company, and each product or service is individually
        branded for its target market. A brand name and identity used
        for a single product or service in a portfolio, which is unrelated
        to the names and identities of other products in the company's
        portfolio
    Co-branding- The use of two or more brand names in support of a
    new product, service or venture
    Masterbrand- A brand name that dominates all products or
    services in a range or across a business. Sometimes used with sub-
    brands, sometimes used with alpha or numeric signifiers. Audi,
    Nescafe and Lego, for example, are all used as master brands
    Power Branding- A strategy in which every product in a company's
    range has its own brand name which functions independently,
    unsupported by either the company's corporate brand or its other
    product brands. Power branding is a resource-intensive strategy,
    since each brand must be commercially promoted and legally
    protected. This strategy is used mainly by manufacturers of
    consumer goods. Lever's and Procter & Gamble's detergents are
    good examples of power brands
    Sub-brand- A product or service brand that had its own name and
    visual identity to differentiate it from the parent brand.
The Product Management Process
 ‘The product management process consists of
 generating, analyzing, organizing, planning,
 implementing and control of the firm’s existing
 and new products so as to satisfy the needs and
 wants of chosen customer segments while
 fulfilling organizational objectives’
 The Major elements include:
     Generation, analysis, organization, planning,
     implementation and control of products
     Products include both current and new products
     Customer satisfaction and customer delight
     Fulfillment of firm own objectives
The Product Planning System and Strategies
    Process of Product Planning
    1.    Determination of Corporate objectives, resources
         and constraints
    2.    Monitoring the current and anticipated environment
    3.    Situation analysis
    4.    Product/Market portfolio analysis and decision
    5.    Analysis and implementation of changes in the
         current product portfolio
    6.    Development of product and marketing programmes
    7.    Evaluation of alternative programmes
    8.    Organization for marketing action, implementation
         and control
   Situation analysis
       Product Performance Matrix- It consists of four
        parameters like Industry sales, company sales, Market
        share and profitability of a product. This matrix also
        helps to identify and analyze which products should be
        continued and nurtured and which product should be
        dropped
   Product/Market portfolio analysis and decision
       Ansoff matrix (Product/Market Matrix)-
           Penetration of existing products in existing market
           Entry into new markets with the current product
           Development of new products for entry into the current market
           Development of new product for entry into new market
   Boston Consulting Group (BCG) Approach
        The Boston Consulting Group is a consulting company
        which developed this growth-share matrix to evaluate
        the position of business units on the basis of market
        growth rate and relative market share
   General Electric Approach
        General Electric developed this model with the
        assistance of McKinsey & Company. This is an
        improvement over BCG Growth-share matrix. It focuses
        on two dimensions
           Industry Attractiveness
           Business strength
BCG Matrix
General Electric Approach
                                         Analyzing Current SBU’s:
                                         GE’s Strategic Business-Planning Grid

                                                             Business St rengt h
                                               St rong             Average         Weak
                                                                                   C
       I ndust ry At t ract iveness




                                        High
                                                A
                                      Medium
                                                         B                         D

                                        Low
NEW PRODUCT DEVELOPMENT
The Product Development Process


                               Concept testing
                                Concept testing
   Idea generation
    Idea generation           (Testing the new
                               (Testing the new         Product development
                                                         Product development
   (Development of
    (Development of          product idea among
                              product idea among     (Development of prototypes
                                                      (Development of prototypes
  new product ideas)
   new product ideas)         aaset of potential
                                 set of potential        and/or the product)
                                                          and/or the product)
                                  customers)
                                   customers)



  Evaluation of results
   Evaluation of results                                   Market testing
                                                            Market testing
                                Product launch
                                 Product launch
     (Analysis of the
      (Analysis of the                                   (Testing the actual
                                                          (Testing the actual
                                  (Full scale
                                   (Full scale
performance of the new
 performance of the new                                products in aafew test
                                                        products in few test
                             commercialization of
                              commercialization of
   product and making
    product and making                                        markets)
                                                               markets)
                                 the product)
                                  the product)
appropriate modifications
 appropriate modifications
 Concept testing
      Ideas with potential are developed further into concepts, which in
      this context refer to brief written descriptions of the product; its
      technology, working principles and forms ; and what customer needs
      it would satisfy. A concept might also include visual images of what
      the product would look like
 Product development
      A prototype is sometimes also developed, which is the first physical form
      or service description of a new product, still in a rough form, that has the
      same properties as a new product. The product prototypes are tested
      through,
          alpha testing- here the firm attempts to determine whether it
          satisfies the need for which it was intended. Rather than using
          potential customers, alpha tests occur in the firm’s R&D
          department
          beta testing- here it uses the potential consumers to examine
          the product prototype
   Market testing
        Premarket test- Here the firms conduct pre-tests before they
        actually bring a product or service to market to determine how
        many customers will try and then continue to use the product or
        service according to a small group of potential customers
        Test marketing- A method of determining the success potential of
        a new product, test marketing introduces the offering to a limited
        geographical area prior to national launch. It also uses all the
        elements of marketing mix
Commercialization or Launch
   Methods of Launching
       Immediate national Launch

       Rolling Launch- This is an alternate to national launch.
        In this method, the initial launch begins with two or
        three cities and increases its reach to other places
The Launch Cycle
    Pre- Launch preparation
     It consists of the activities before the point at which the
       product is officially offered for sale. These activities typically
       include marketing pre-announcements, building marketing
       capability, establishing service capability, promoting the new
       product via public relations and filling the distribution channel
       etc
    Announcement
     It is the second phase when the product is officially offered to
       the market with the announcement
    Beachhead
     In this third phase, efforts focus on achieving market awareness
       and generating an initial flow of sales
The Launch Cycle
   Early Growth
        This is the fourth stage of launch when usually sales
        grow as customer interest in the new product grows.
        If sales are not growing than few strategies are
        applied to create demand for the product
Launch Control Protocol
    It is a tool that is useful during pre-launch
    preparation. The launch protocol is used to
    monitor and control activities during the launch
        Identifying the problems that might occur during the
        product launch
        Develop plans to monitor and control these problems
Innovation
   Continuous Innovation
        It is built on an already established idea or product.
        The user will typically use the product in a similar
        fashion as he used it before, although it has been
        changed in some respects
   Dynamically Continuous Innovation
        This type of innovation revolves around either the
        creation of a new product or a radical change to an
        existing one
   Discontinuous/Disruptive Innovation
        This is a totally new product in the market, the
        product is new and unique and has not been seen by
        consumers before
Augmented Reality (AR) used for the launch Mahindra
XUV500 at Auto Expo in New Delhi
Key Elements of Brand Equity

                 Brand loyalty

                                    Brand awareness




 Brand Equity                        Perceived quality




                                    Brand associations
                Other proprietary
                  brand assets
Few Brand Strategy Decisions
   Line Extension
   Brand Extension
   Multi-branding
   New Brands
   Co-brands
Brand Extension
   Types of Brand Extensions
        Product form extension- It is a line extension like Amul
        Condensed Milk is a product for extension of Amul Milk
        Companion product- For example a toothpaste brand
        offering a toothbrush under the same brand name
        Extension in unrelated areas
        Umbrella branding
        Line Branding

                                      HUL




        Denim shaving     Denim
                                            Denim Soap   Denim Talc
           cream        After shave
Co-Branding /Dual Branding
   Here two or more well known brands are combined
    in an offer. It is a form of cooperation between
    two or more brands
        Ingredient co-branding- Here one of the combining
        brands advertises that it uses the other brand(s) as
        its ingredient like IBM or Compaq advertising that it
        uses the Intel Chip displaying ‘Intel Inside’
        Value and endorsement co-branding- It is the
        shared value creation and the strength of relationship
        like P&G’s tie up with National Association for Blind
        Multiple Sponsor co-branding- Where more than
        two brands combine for a specific cause like Citibank
        combining with IOCL and MTNL to be used to pay bills
        and in petrol pumps
Brand Identity
‘a unique set of brand associations that
 the brand strategist aspires to create
 or maintain. These associations
 represent what the brand stands for
 and imply a promise to customers’
Brand Identity Perspectives
   Brand as   a Product
   Brand as   an Organization
   Brand as   a Person
   Brand as   a Symbol
Message Design-Appeal

   Rational Appeals
   Emotional Appeals
        Positive Emotional Appeals- Love, affection, joy, pride, humour,
        prestige, status etc
        Negative Emotional Appeals- Fear (slice of death) ads, shame, guilt,
        embarrassment, rejection etc
    Morale Appeals
A camera captures a muddy and    way... if you let it." At the tip of the axe a tiny shoot is growing.
dry tree root and moves on...   ...to an old and rusted axe lying there. VO: "Life will always find a




                                 ‘Issued in public interest by vivid motions pictures’
Max New York Life Insurance




  The film opens with    On her way she asks the       After entering the house,
  a woman hurriedly      security guard, “sahab        she quickly starts her
  climbing up the        aaye?” to which he replies    kitchen chores and calls
  stairs to her house    “haan memsahab”               out for Sanju, her
                                                       husband




On getting no response, she calls on     Adding to her suspicion, the call is not
his mobile and starts looking for him    answered as she finds his phone
all over the house                       carelessly lying under a pillow
Finally she manages to find her husband at the terrace,
     but is startled to see him lying still on a rocking chair.

SS
oo
uu
rr
cc

     Very nervously she moves him and shouts with mixed
ee
::

     emotions of relief and fear to find him alright
TT
VV

A
A
d
d

II
nn
dd
xx
//
w
w
 w
 w
     Cut to a shot of an equally scared Sanju hugging his wife
ww
..
ii
BB
aa
nn
kk
LL
ii
vv
ee
..
cc
     “Musibatein bata ke nahin aati, isliye Max New York
o
m
 o
 m   Life ke life insurance plans. Life mein rahein hamesha
     taiyaar.”
The film opens on a father     The boy tells his father     Surprised at his ambition the
and son in their car waiting   that he will open a cycle    father asks him why he would do
for the signal to turn green   repair show when he          so
                               grows up




                                  This leads to our man
“Jis tarah aap sab petrol waste   thinking who in turn puts off ...Please. Kam se kam signal
kar rahe hain, future mein toh    the engine .“Khud hi sara
petrol bachega hi nahin.Tab toh                                 pe toh engine off keejiye.”
                                  petrol khatam karegein ya     (Save fuel yaani save money)
sab cycle hi chalayegein na?”     kuch apne bachchon ke liye
replies the son.                  bhi chhodegein?
Emotional Appeals

    Fair and Lovely- Beauty that empowers a woman
    to change her destiny
    Tanishq- Jewellery that wants to make you
    marry
    HDFC- Sar uthake jiyo
    Tata Tea- Har subah sirf utha mat. Jaago Re
    Haywards Soda- Haywards hai to honsla buland
    hai
    Tata Salt- Desh Ka Namak
    Mountain Dew- Kyonki darr ke aage jeet hai
    Raymond- The Complete Man
Brand Identity Levels

                        Central Identity (Inner
                         Central Identity (Inner
                                 Core)
                                  Core)




   Brand Identity
   Brand Identity
       Levels
        Levels


                             Outer Core
                             Outer Core
Brand Identity- Horlicks
   Inner Core
       Nutrition and Health
   Outer Core
       User- Anybody who needs nutrition and health by targeting
        various customer groups with varied product mix
       Extensions- Horlicks Junior, Mother’s Horlicks, Horlicks
        Biscuits etc
       Personality- Protecting, caring, supportive and concerned
       Heritage- The Company has been in the business of providing
        nourishment for decades
       Value Proposition- Helps you perform your role better in
        life. Good health and living
Brand Identity- Dettol
   Inner Core
       Protection against germs
   Outer Core
       User- children, young adults hygiene conscious etc
       Extensions- Dettol soap, Dettol handwash, Dettol shaving
        cream, Dettol hand sanitizer etc
       Personality- Reliable. Trustworthy and strong
       Heritage- The Company has been in the business of
        protecting against germs to keep healthy
       Value Proposition- Provides protection against possible
        harmful effects of germs and bacteria. Feeling of security
        and protection
The Six Stages of Brand Evolution
   Unbranded Goods
   Brand as Reference
        Here the brand moves on to create differentiation on unique
        functional benefits and it is given a name
   Brand as Personality
        Amidst the clutter of functional promise brands make
        emotional appeal
   Brand as Icon
   Brand as Company
   Brand as Policy
        At this stage brand evolves beyond the business concerns to
        identify with social, political and ethical issues
Brand Identity Prism
   Physical Facet/ Brand Physique
   Personality
   Culture
   Relationship
   Reflection/ Reflected Consumer
   Self Image/ Consumer Metalisation
STP
Segmenting


 The Art of Dividing a market into distinct groups
 of Buyers who might require separate Products
 and/or Marketing Mixes
Segmenting Procedure
   Survey Stage
   Analysis Stage
   Profiling Stage
Bases for segmentation
   Geographic
        Mc Donald's- McAloo Tikki Burger, Mc curry Pan, Times of
        India, Nilgiri Tea etc
   Demographic
       Age
       Gender
       Income
       Occupation
       Family size, Family life cycle
       Education
       Religion, Nationality
       Marital status
   Hero Honda Pleasure
   Set wet hair gel
Happy Holi
   Psychographic
       Values & Lifestyle
            Social Class, Health oriented, culture oriented, busy
            professional, active outdoor enthusiast, believers, strivers
            etc
       Personality
           Ambitious, introvert, extrovert etc
 Primary Motivation: Ideals, Achievement, and Self-Expression
      The concept of primary motivation explains consumer attitudes and
      anticipates behavior. VALS includes three primary motivations that
      matter for understanding consumer behavior: ideals, achievement,
      and self-expression. Consumers who are primarily motivated by ideals
      are guided by knowledge and principles. Consumers who are primarily
      motivated by achievement look for products and services that
      demonstrate success to their peers. Consumers who are primarily
      motivated by self-expression desire social or physical activity,
      variety, and risk
 Resources
      A person's tendency to consume goods and services extends beyond
      age, income, and education. Energy, self-confidence, intellectualism,
      novelty seeking, innovativeness, impulsiveness, leadership etc play a
      critical role. These psychological traits in conjunction with key
      demographics determine an individual's resources. Various levels of
      resources enhance or constrain a person's expression of his or her
      primary motivation
VALS Segmentation
   The four groups with higher resources
       Innovators
            Successful, sophisticated, active people with high self-esteem and
            often prefer niche oriented products and services
       Thinkers
            Mature, satisfied and reflective people who are motivated by
            ideals and who value knowledge and responsibility. They seek
            durability, functionality and value in products
       Achievers
            Successful, goal-oriented people who focus on career and family.
            They favor premium products that demonstrate success to their
            peers
       Experiencers
            Young, enthusiastic, impulsive people who seek variety and
            excitement. They spend a comparatively high proportion of income
            on fashion, entertainment and socialising
   Four groups with lower resources
       Believers
            Conservative, conventional and traditional people. They prefer
            familiar products and are loyal to establish brands
       Strivers
            Trendy and fun loving people who are resource constrained. They
            favor stylish products that emulate the purchases of those with
            greater material wealth
       Makers
           Practical, down-to-earth and self-sufficient people who like to
            work and seek products with a practical or functionality purpose
       Survivors
            Elderly, passive people who are concerned about change. They are
            normally loyal to their favorite brands
   Behavioral
       Purchase, use occasions
       Benefits
       User Status
           Non-user, ex-user, potential user, first time user, regular user
       Usage status
           light, medium and heavy user
       Product knowledge
       Loyalty status
            Hard Core Loyal- consumers who are loyal to only one brand all the
            time
            Soft Core Loyal/Split loyal- consumers who are loyal to two or
            three brands
            Shifting Loyal- consumers who shift loyalty from one brand to
            another
            Switchers- consumers who show no loyalty to any brand
       Attitude towards the product and Extent of involvement
Market Targeting

“The Act of Developing measures of Segment
 attractiveness and selecting one or more market
 segments to enter”
 “Process of evaluating each market segment’s
 attractiveness and selecting one or more segments to
 enter”
Evaluating/Analyzing the Market Segments
   Segment Size and Growth
   Segment Structural Attractiveness
     (Porter’s Five Forces Segment structural Attractiveness)
Five patterns of Target Market Selection

   Single Segment concentration
   Selective Specialization
   Market Specialization
        Here the firm concentrates on serving many needs of
        a particular customer group
   Product Specialization
        The firm makes a certain product that it sells to
        several different market segments
   Full Coverage
     Undifferentiated marketing
       Differentiated marketing
Determining how many segments to enter

 Undifferentiated marketing
     This involves ignoring any differences among consumers and
      suggests offering just one product or service to the entire
      market. This mass-marketing strategy focuses on what is
      common in the needs of consumers rather than what is
      different
 Differentiated marketing
   The marketer decides to enter several market segments, or niches
    and develop separate offers for each. For instance Maruti Udyog is
    producing cars for various segments. Coca-Cola and Pepsi are offering
    different versions of their soft drinks
   Concentrated marketing
    Here the company targets a segment and goes for a large market
     share. For example Recycled paper producers like Wizard India
     focuses on the market for Greeting cards or wedding cards etc
   Niche Marketing
     A Niche is a more narrowly defined customer group seeking
      a distinctive mix of benefits. Marketers usually identify
      niches by dividing a segment into subsegments
       The customers in the niche have a distinct set of needs
       They will pay a premium to a firm that best satisfies their
        needs
       Niches are fairly small and normally attract only few
           Ezee (liquid detergent for woolen clothes)
           Crack Cream (primarily targeted at women for prevention and
            treatment of cracked heels that develop due to inadequate
            protection and care)
           Himalaya Herbal Health care in ayurvedic products
           D’cold NATURAL (cough syrup for kids)
           Aastha (in India that targets on the basis of religion and
            spirituality)
           STAR Sports- (STAR Cricket for cricket lovers)
           Kellogg's Special K- (for women who are fitness conscious)
           Women’s Horlicks - ( New generation women balancing between
            family and career)
Himalaya Herbal Health care in ayurvedic products
A little girl is racked by a bout of coughing as   Just then her sympathising aunt asks, "Ghar
                                                   mein D'cold Syrup nahin hai kya? Is mein hai
her parents get ready to summon the doctor         doctor vaala tatv."




                                                     The girl is fully recovered and she celebrates
"D'cold Syrup mein hai doctor vaala tatv jispe       her birthday in style as she chimes with her
sabhi bharosa karte hain. Yaani chain ki
saans."
                                                     aunt, "Is mein hai Doctor vaala tatv."
Shot of a girl touching up    She is applying eye liner    ...hypnotize her, swinging in a
                              when suddenly a dude tries   chain. whispers, "Look into my
her make up in the campus     to                           eyes."




In a little while, the girl                                  Product window. Elle 18, the
                                 She snatches the chain from
                                                             cooling eye liner with a
finds him hypnotized             our spellbound fellow and   steady grip brush. Ellie 18,
instead .                        moves ahead as , "Look
                                 Look into my eyes           for eyes that hypnotize
Market Positioning

“Positioning is the act of designing the Company’s
 offer so that it occupies a distinct and valued
 place in the target customer’s mind”
Positioning by Corporate Identity
Positioning by Product benefit
Positioning by Product benefit
A lady admires an expensive pair of sandals. The
salesman takes...




... a closer look at her cracked heels as they settle
down to try it




The salesman shows a cheaper shoe but she insists on
the red pair. "Woh wala aapke budget mein nahi... ayga
madam", replies the man. MVO: "Afsoos, pairon ki
dararon se koi bhi aapke zindagi mein jaank sakta hai ."
Pesh hai Vaseline ka aviskari
ek do crack relief. Pehle liquid

saakht chamri nikale phir...




... cream dararon ko boar daale. Now, even at the jewelers
they don't refuse her
Positioning by Price Quality
Positioning by Life Style or Use Occasion
User-based Positioning
Competitive Positioning
Competitive Positioning
Competitive Positioning
Marketing Communications


“Marketing communications are the means by
 which firms attempt to inform, persuade &
 remind consumers directly or indirectly about
 the products and brands they sell”
Marketing Communications Mix
       (Promotions Mix)


                              4P’S



Product              Place           Promotion            Price


          Personal             Sales         Direct
      Advertising
           Selling           Promotion      Marketing


              Personal
                                         PR / Publicity
              Selling
INTEGRATED MARKETING COMMUNICATIONS

 “ A management concept that is designed to
  make all aspects of marketing communication
  work together as a unified force, rather than
  permitting each to work in isolation”
Budget Allocation


   Top-down approach
       The affordable method (all you can afford method)
        Arbitrary allocation
        Percentage of sales method
        Competitive parity method
   Build-up approach (bottom-up approach)
       Objective and task method
       The experimental approach
Advertising

  “ Any paid form of nonpersonal presentation and
  promotion of ideas, goods & services by an
  identified sponsor”

 The definition highlights the following features of advertising
 “ a paid form’ of presentation emphasises that advertising space or
  time must be purchased
 Its ‘non-personal’ nature emphasises the fact that it is not a direct
  presentation to one individual but to the masses
 ‘ Identified sponsor’ refers to the identification of the brand or the
   advertiser that is communicating
Advertising Objectives
   Informative advertising
   Persuasive advertising
   Reminder advertising
   Reinforcement advertising
The Five M’s of Advertising


  Mission       Money         Message        Media

   Setting
   Setting      Set the
                 Set the     Determine
                              Determine      Deciding
                                             Deciding
 Advertising
 Advertising   Advertising
               Advertising     the Key
                                the Key       which
                                               which
 Objectives
  Objectives     Budget
                  Budget     Advertising
                             Advertising   Advertising
                                            Advertising
                              Messages
                              Messages     Media to Use
                                           Media to Use



                                            Evaluating
                                             Evaluating
                                           the Results
                                            the Results
                             Measurement
                                                of
                                                 of
                                           Advertising
                                            Advertising
                                            Campaign
                                             Campaign
Media Planning and Strategy
   To whom do we advertise? (Target Audience)
   Where do we advertise? (Geographic Area)
   When do we advertise? (Scheduling)
   In which media should we advertise?

   Media Class- It is the generally category of message delivery system for
    carrying the ad message to a selected audience such as print media,
    broadcast media or outdoor media etc
   Media Vehicle- It is the specific message carrier within a medium such as
    Times of India, Zee etc
   Media Reach- It is a measure of the number of different audience
    members or households exposed at least once to a media schedule within
    given period of time. Here reach is also called OTC (opportunity to see)
   Media frequency- It is the average number of times that an individual or
    household is exposed to a message carrying media vehicle within the
    specified time period
   Media Scheduling- It is concerned with timing the insertion of ads in the
    selected media vehicles
   Media Impact
Media Scheduling

                      Continuity


                                         Flighting


         Pulsing

  Jan   Feb Mar   Apr May Jun   Jul   Aug Sep Oct Nov Dec
Pop-Outs ; Ads which popped on the screen occupying a quarter
of the screen
Action Replay ; Logos that come on when replay of the last
score or the last wicket
On Screen Logo ; Brand Logos that pops on the
screen while a match is on
Push Backs ; Brand Logo popping out during the match
Scroller ; It is normal scroll of the Ad
Paste-Up ; Brand logos that appears along with the score card
or graphs
Newspaper Advertising
   Display advertising- This is a form of advertising that, more
    often than not, contains graphic information, text, logos, images,
    illustrations etc. It is available in many different sizes and is
    spread throughout the newspaper
   Classified advertising- It is grouped under subheads
    classifying the product being marketed. (e.g. headings such as
    employment, automobiles, real estate etc)
   Special ads and inserts- These are usually ads by
    government or political parties sharing their achievements, giving
    notices, advocating an issue, promoting a candidate etc.
    Sometimes financial reports, initial public offering
    announcements etc are also published by organisations as special
    advertisements
    Paid circulation- The number of sold copies
   Pass-along readership
   Total audience or readership=readers per copy (total
    primary+ pass along readers) circulation

   Audit Bureau of circulation of India (ABC)
   Registrar of newspapers for India (RNI)
   The Indian newspaper society (INS)

    National Readership survey (NRS) & Indian Readership
    survey (IRS) by Media Research Users Council (MRUC)
Buying Newspaper space
    Rate units- column inches or column centimeters
    Standard Advertising Unit (SAU)- Square centimeter (sq cm)
    Rate card- Newspapers print their rates in a document called
    rate card that contains prices and descriptions for the various
    ad placement options
    Flat rates- standard advertising rates with no discounts
    Open rate- various types and levels of discounts based on
    frequency, volume, desire to sell last minute unused space etc
    Contract rates- these are lower than open rates and are
    offered to advertisers who plan to run a series of
    advertisements in a particular period usually one year and within
    a specific space purchase
Magazine
    Advertorial-(combination of advertisement and
    editorial)
    admazines – These magazines are published by the
    advertiser with the main objective of exclusively or
    selectively promoting their products. They may also
    carry editorial content. Airline inflight magazines
    featuring articles on destinations that the airline flies
    to, carrier’s ads and related editorial articles etc
    Magazine advertising units
     few columns
     half page (vertical half page, horizontal half page)
     full page
     quarter page
     spread (two full pages opposite each other)
     column inches or sq cm
     island position- surrounded by editorial matter
     bleed ads- where in advertisements can be
      extended beyond the normal margin of the page to
      the edge of the page
Out of Home Advertising
                          Panels
Bus shelter Display
Display Vans
Taxi top & trunk display
Flags


Motion display
Pillar sites in Airport
Pole Kiosks




Public utility                 Wall painting
Neon sign




Glow signs /
Signage boards
Minute Maid Pulpy Orange Inflatable    Bicycle kiosks




                              Human kiosks
Eco-friendly
outdoor advertising
Medium


AccuRide AdBikes
Mobitisements
Revolving Window
Balloon with built in Television
Lugcart
CashurDrive
Packaging and Labeling
   Package- as all the activities of designing and
    producing the container for a product. A package
    is the physical container or wrapping for a
    product
     Primary package
     Secondary package
     Shipping package
Functions of Packaging

   Promoting and selling the product
   Defining product identity
   Providing information
   Expressing benefits and features
   Ensuring safe use
 Mixed Bundling
   Sometimes multiple complementary items
    are bundled together in one package. Mixed
    bundling is the practice of packaging
    different products and services together
 Price bundling
   It occurs when two or more products are
    placed on sale for one package
   Blisterpack/bubble pack
       These are packages with preformed plastic molds
        surrounding individual items arranged on a backing
   Aseptic packaging
       It involves separately sterilizing the package and the
        food product, and filling and sealing the package in a
        sterile environment. Canning and bottling are
        examples of this method, which keeps food fresh for
        a particular time duration
   Cause packaging
       involves using packages to promote social and political
        causes. The issues on the packages may be totally
        unrelated to the products inside
label

A label is an information tag, wrapper, seal, or
imprinted message that is attached to a product or
its package. Its main function is to inform
customers about the product’s contents and give
directions for its use. It might contain a brand
name or information. So it is the written, printed
and graphic material on the package
   Statutory component
   Optional component
Branding through Advergaming

   Types of Advergaming
     Above the Line or custom Advergaming
       In this form of advergaming companies provide an interactive game
        in their website to attract customers and hope that they spend
        extra time on the website. The games developed by companies
        feature its products so as to increase awareness about the product
        among the potential customers
     Below the Line Advergaming
       In this type of promotion companies generally develop games
        related to their products and services and distribute these to their
        prospective clients
         For example KID (Kindle Imagine Develop) created a video game
        known as Pepsiman
     Through the Line Advergaming
       In this form of advergaming, URL hyperlinks are provided in the
        games in order to prompt the players to visit the website which
        contains advertisements
Product and brand management
Product and brand management
Product and brand management
Product and brand management
Product and brand management
Product and brand management

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Product and brand management

  • 1. Product and Brand Management
  • 2. Product  A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want including physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas”  Brand  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 competitors
  • 3. Product Levels (The Customer Value Hierarchy )
  • 4. Consumer Products and Industrial Products  Consumer Products- These are products and services bought by final consumers for personal consumption  Convenience Products- are consumer products and services that customers usually buy frequently, as soon as they feel the need for them and with a minimum of comparison and buying effort  staples, impulse goods, emergency goods  Shopping Products- are less frequently purchased consumer products and services that consumers compare carefully on suitability, quality, price and style. Here consumers spend much time and effort in gathering information and making comparisons
  • 5. Specialty Products- are consumer products and services with unique features and brand identification for which a significant group of buyers are willing to make a special purchase effort. They are more expensive than convenience products and are not purchased so frequently  Unsought Products- are consumer products that the consumer either does not know or knows but does not normally think of buying  Industrial Products- A product bought by individuals and organizations for further processing or for use in conducting a business like Materials and parts, Capital items, supplies etc
  • 6. Product Mix (Product assortment/Product portfolio) Home & personal care Foods Personal wash Laundry Hair care Deodorants Color Tea Coffee Foods Ice-Cream cosmetics lux Surf excel Sunsilk Axe Lakme Brook Bru Kissan Kwality- bond Annapurna walls lifebuoy Rin Clinic Rexona Lipton liril Wheel Dove Pears Rexona
  • 7. Product Mix (Product assortment)-is the set of all products and items a particular seller offers for sale. It consists of various product lines.  Product line- A group of products within the product class that are closely related because they perform a similar function ,are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges. It may be composed of different brands or individual brand that has been line extended  Product class (product category)- A group of products having a certain functional coherence. Eg Financial Instruments  Product-mix Width- It refers to how many different product lines the company carries.  Product-mix length- It refers total number of items in its product lines  Product-mix depth- It refers how many variants are offered of each product in the line.
  • 8. Line stretching-It occurs when a company lengthens its product line beyond its current range
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. New Product Adoption Process Awareness Awareness Interest Interest Evaluation Evaluation Trial Trial Adoption Adoption Loyalty
  • 15.
  • 16. Diffusion of Innovation The process by which the use of an innovation whether a product or service spreads through out a market group, over time and over various categories of adopters is known as diffusion of innovation. It helps marketers to understand  The rate at which consumers are likely to adopt a new product or service  It also helps the marketers to identify the potential customers for their new products and services and also predict their potential sales
  • 18. Innovators  These are those buyers who want to be the first to have the new product or service. These buyers enjoy taking risks and are regarded as highly knowledgeable  Early Adopters  These are those buyers who generally do not like to take as much risk as innovators but instead wait and purchase the product after careful review and sometimes are also regarded as opinion leaders  Early Majority  This group differs from buyers in the first two categories. Its members do not like to take as much risk and hence tend to wait. When early majority customers enter the market the number of competitors in the market usually also has reached its peak, so these buyers have many different price and quality choices  Late Majority  It is a group of buyers who adopt a product or service when it has reached its full market potential. By the time the late majority enters the market, sales tend to level off or may be in decline  Laggards  These consumers like to avoid change and rely on traditional products until they are no longer available and even sometimes they may never adopt a certain product or service
  • 19. Brand Architecture How an organization structures and names the brands within its portfolio.  Monolithic Brand - Here the corporate name is used on all products and services offered by the company. e.g. Mercedes, BMW, Sony, TATA, Apple  Endorsed Brand - where all sub-brands are linked to the corporate brand by means of either a verbal or visual endorsement. It generally a product or service brand name that is supported by a Masterbrand - either dominantly e.g. Tesco Metro, Nestle Kit-Kat, Virgin, General Electric  Freestanding Brand - the corporate brand operates merely as a holding company, and each product or service is individually branded for its target market. A brand name and identity used for a single product or service in a portfolio, which is unrelated to the names and identities of other products in the company's portfolio
  • 20. Co-branding- The use of two or more brand names in support of a new product, service or venture  Masterbrand- A brand name that dominates all products or services in a range or across a business. Sometimes used with sub- brands, sometimes used with alpha or numeric signifiers. Audi, Nescafe and Lego, for example, are all used as master brands  Power Branding- A strategy in which every product in a company's range has its own brand name which functions independently, unsupported by either the company's corporate brand or its other product brands. Power branding is a resource-intensive strategy, since each brand must be commercially promoted and legally protected. This strategy is used mainly by manufacturers of consumer goods. Lever's and Procter & Gamble's detergents are good examples of power brands  Sub-brand- A product or service brand that had its own name and visual identity to differentiate it from the parent brand.
  • 21. The Product Management Process  ‘The product management process consists of generating, analyzing, organizing, planning, implementing and control of the firm’s existing and new products so as to satisfy the needs and wants of chosen customer segments while fulfilling organizational objectives’  The Major elements include:  Generation, analysis, organization, planning, implementation and control of products  Products include both current and new products  Customer satisfaction and customer delight  Fulfillment of firm own objectives
  • 22. The Product Planning System and Strategies  Process of Product Planning 1. Determination of Corporate objectives, resources and constraints 2. Monitoring the current and anticipated environment 3. Situation analysis 4. Product/Market portfolio analysis and decision 5. Analysis and implementation of changes in the current product portfolio 6. Development of product and marketing programmes 7. Evaluation of alternative programmes 8. Organization for marketing action, implementation and control
  • 23. Situation analysis  Product Performance Matrix- It consists of four parameters like Industry sales, company sales, Market share and profitability of a product. This matrix also helps to identify and analyze which products should be continued and nurtured and which product should be dropped  Product/Market portfolio analysis and decision  Ansoff matrix (Product/Market Matrix)-  Penetration of existing products in existing market  Entry into new markets with the current product  Development of new products for entry into the current market  Development of new product for entry into new market
  • 24.
  • 25. Boston Consulting Group (BCG) Approach  The Boston Consulting Group is a consulting company which developed this growth-share matrix to evaluate the position of business units on the basis of market growth rate and relative market share  General Electric Approach  General Electric developed this model with the assistance of McKinsey & Company. This is an improvement over BCG Growth-share matrix. It focuses on two dimensions  Industry Attractiveness  Business strength
  • 27. General Electric Approach Analyzing Current SBU’s: GE’s Strategic Business-Planning Grid Business St rengt h St rong Average Weak C I ndust ry At t ract iveness High A Medium B D Low
  • 28.
  • 29.
  • 30.
  • 32. The Product Development Process Concept testing Concept testing Idea generation Idea generation (Testing the new (Testing the new Product development Product development (Development of (Development of product idea among product idea among (Development of prototypes (Development of prototypes new product ideas) new product ideas) aaset of potential set of potential and/or the product) and/or the product) customers) customers) Evaluation of results Evaluation of results Market testing Market testing Product launch Product launch (Analysis of the (Analysis of the (Testing the actual (Testing the actual (Full scale (Full scale performance of the new performance of the new products in aafew test products in few test commercialization of commercialization of product and making product and making markets) markets) the product) the product) appropriate modifications appropriate modifications
  • 33.  Concept testing  Ideas with potential are developed further into concepts, which in this context refer to brief written descriptions of the product; its technology, working principles and forms ; and what customer needs it would satisfy. A concept might also include visual images of what the product would look like  Product development  A prototype is sometimes also developed, which is the first physical form or service description of a new product, still in a rough form, that has the same properties as a new product. The product prototypes are tested through,  alpha testing- here the firm attempts to determine whether it satisfies the need for which it was intended. Rather than using potential customers, alpha tests occur in the firm’s R&D department  beta testing- here it uses the potential consumers to examine the product prototype
  • 34. Market testing  Premarket test- Here the firms conduct pre-tests before they actually bring a product or service to market to determine how many customers will try and then continue to use the product or service according to a small group of potential customers  Test marketing- A method of determining the success potential of a new product, test marketing introduces the offering to a limited geographical area prior to national launch. It also uses all the elements of marketing mix
  • 35. Commercialization or Launch  Methods of Launching  Immediate national Launch  Rolling Launch- This is an alternate to national launch. In this method, the initial launch begins with two or three cities and increases its reach to other places
  • 36. The Launch Cycle  Pre- Launch preparation  It consists of the activities before the point at which the product is officially offered for sale. These activities typically include marketing pre-announcements, building marketing capability, establishing service capability, promoting the new product via public relations and filling the distribution channel etc  Announcement  It is the second phase when the product is officially offered to the market with the announcement  Beachhead  In this third phase, efforts focus on achieving market awareness and generating an initial flow of sales
  • 37. The Launch Cycle  Early Growth  This is the fourth stage of launch when usually sales grow as customer interest in the new product grows. If sales are not growing than few strategies are applied to create demand for the product
  • 38.
  • 39. Launch Control Protocol  It is a tool that is useful during pre-launch preparation. The launch protocol is used to monitor and control activities during the launch  Identifying the problems that might occur during the product launch  Develop plans to monitor and control these problems
  • 40. Innovation  Continuous Innovation  It is built on an already established idea or product. The user will typically use the product in a similar fashion as he used it before, although it has been changed in some respects  Dynamically Continuous Innovation  This type of innovation revolves around either the creation of a new product or a radical change to an existing one  Discontinuous/Disruptive Innovation  This is a totally new product in the market, the product is new and unique and has not been seen by consumers before
  • 41. Augmented Reality (AR) used for the launch Mahindra XUV500 at Auto Expo in New Delhi
  • 42.
  • 43.
  • 44. Key Elements of Brand Equity Brand loyalty Brand awareness Brand Equity Perceived quality Brand associations Other proprietary brand assets
  • 45. Few Brand Strategy Decisions  Line Extension  Brand Extension  Multi-branding  New Brands  Co-brands
  • 46. Brand Extension  Types of Brand Extensions  Product form extension- It is a line extension like Amul Condensed Milk is a product for extension of Amul Milk  Companion product- For example a toothpaste brand offering a toothbrush under the same brand name  Extension in unrelated areas  Umbrella branding  Line Branding HUL Denim shaving Denim Denim Soap Denim Talc cream After shave
  • 47. Co-Branding /Dual Branding  Here two or more well known brands are combined in an offer. It is a form of cooperation between two or more brands  Ingredient co-branding- Here one of the combining brands advertises that it uses the other brand(s) as its ingredient like IBM or Compaq advertising that it uses the Intel Chip displaying ‘Intel Inside’  Value and endorsement co-branding- It is the shared value creation and the strength of relationship like P&G’s tie up with National Association for Blind  Multiple Sponsor co-branding- Where more than two brands combine for a specific cause like Citibank combining with IOCL and MTNL to be used to pay bills and in petrol pumps
  • 48. Brand Identity ‘a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers’
  • 49. Brand Identity Perspectives  Brand as a Product  Brand as an Organization  Brand as a Person  Brand as a Symbol
  • 50. Message Design-Appeal  Rational Appeals  Emotional Appeals  Positive Emotional Appeals- Love, affection, joy, pride, humour, prestige, status etc  Negative Emotional Appeals- Fear (slice of death) ads, shame, guilt, embarrassment, rejection etc  Morale Appeals
  • 51.
  • 52.
  • 53.
  • 54.
  • 55. A camera captures a muddy and way... if you let it." At the tip of the axe a tiny shoot is growing. dry tree root and moves on... ...to an old and rusted axe lying there. VO: "Life will always find a ‘Issued in public interest by vivid motions pictures’
  • 56. Max New York Life Insurance The film opens with On her way she asks the After entering the house, a woman hurriedly security guard, “sahab she quickly starts her climbing up the aaye?” to which he replies kitchen chores and calls stairs to her house “haan memsahab” out for Sanju, her husband On getting no response, she calls on Adding to her suspicion, the call is not his mobile and starts looking for him answered as she finds his phone all over the house carelessly lying under a pillow
  • 57. Finally she manages to find her husband at the terrace, but is startled to see him lying still on a rocking chair. SS oo uu rr cc Very nervously she moves him and shouts with mixed ee :: emotions of relief and fear to find him alright TT VV A A d d II nn dd xx // w w w w Cut to a shot of an equally scared Sanju hugging his wife ww .. ii BB aa nn kk LL ii vv ee .. cc “Musibatein bata ke nahin aati, isliye Max New York o m o m Life ke life insurance plans. Life mein rahein hamesha taiyaar.”
  • 58. The film opens on a father The boy tells his father Surprised at his ambition the and son in their car waiting that he will open a cycle father asks him why he would do for the signal to turn green repair show when he so grows up This leads to our man “Jis tarah aap sab petrol waste thinking who in turn puts off ...Please. Kam se kam signal kar rahe hain, future mein toh the engine .“Khud hi sara petrol bachega hi nahin.Tab toh pe toh engine off keejiye.” petrol khatam karegein ya (Save fuel yaani save money) sab cycle hi chalayegein na?” kuch apne bachchon ke liye replies the son. bhi chhodegein?
  • 59.
  • 60.
  • 61.
  • 62.
  • 63. Emotional Appeals  Fair and Lovely- Beauty that empowers a woman to change her destiny  Tanishq- Jewellery that wants to make you marry  HDFC- Sar uthake jiyo  Tata Tea- Har subah sirf utha mat. Jaago Re  Haywards Soda- Haywards hai to honsla buland hai  Tata Salt- Desh Ka Namak  Mountain Dew- Kyonki darr ke aage jeet hai  Raymond- The Complete Man
  • 64. Brand Identity Levels Central Identity (Inner Central Identity (Inner Core) Core) Brand Identity Brand Identity Levels Levels Outer Core Outer Core
  • 65.
  • 66. Brand Identity- Horlicks  Inner Core  Nutrition and Health  Outer Core  User- Anybody who needs nutrition and health by targeting various customer groups with varied product mix  Extensions- Horlicks Junior, Mother’s Horlicks, Horlicks Biscuits etc  Personality- Protecting, caring, supportive and concerned  Heritage- The Company has been in the business of providing nourishment for decades  Value Proposition- Helps you perform your role better in life. Good health and living
  • 67. Brand Identity- Dettol  Inner Core  Protection against germs  Outer Core  User- children, young adults hygiene conscious etc  Extensions- Dettol soap, Dettol handwash, Dettol shaving cream, Dettol hand sanitizer etc  Personality- Reliable. Trustworthy and strong  Heritage- The Company has been in the business of protecting against germs to keep healthy  Value Proposition- Provides protection against possible harmful effects of germs and bacteria. Feeling of security and protection
  • 68. The Six Stages of Brand Evolution  Unbranded Goods  Brand as Reference  Here the brand moves on to create differentiation on unique functional benefits and it is given a name  Brand as Personality  Amidst the clutter of functional promise brands make emotional appeal  Brand as Icon  Brand as Company  Brand as Policy  At this stage brand evolves beyond the business concerns to identify with social, political and ethical issues
  • 69.
  • 70. Brand Identity Prism  Physical Facet/ Brand Physique  Personality  Culture  Relationship  Reflection/ Reflected Consumer  Self Image/ Consumer Metalisation
  • 71. STP
  • 72. Segmenting The Art of Dividing a market into distinct groups of Buyers who might require separate Products and/or Marketing Mixes
  • 73. Segmenting Procedure  Survey Stage  Analysis Stage  Profiling Stage
  • 74. Bases for segmentation  Geographic  Mc Donald's- McAloo Tikki Burger, Mc curry Pan, Times of India, Nilgiri Tea etc  Demographic  Age  Gender  Income  Occupation  Family size, Family life cycle  Education  Religion, Nationality  Marital status
  • 75.
  • 76.
  • 77. Hero Honda Pleasure  Set wet hair gel
  • 78.
  • 79.
  • 81.
  • 82.
  • 83. Psychographic  Values & Lifestyle  Social Class, Health oriented, culture oriented, busy professional, active outdoor enthusiast, believers, strivers etc  Personality  Ambitious, introvert, extrovert etc
  • 84.
  • 85.  Primary Motivation: Ideals, Achievement, and Self-Expression  The concept of primary motivation explains consumer attitudes and anticipates behavior. VALS includes three primary motivations that matter for understanding consumer behavior: ideals, achievement, and self-expression. Consumers who are primarily motivated by ideals are guided by knowledge and principles. Consumers who are primarily motivated by achievement look for products and services that demonstrate success to their peers. Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk  Resources  A person's tendency to consume goods and services extends beyond age, income, and education. Energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership etc play a critical role. These psychological traits in conjunction with key demographics determine an individual's resources. Various levels of resources enhance or constrain a person's expression of his or her primary motivation
  • 86. VALS Segmentation  The four groups with higher resources  Innovators  Successful, sophisticated, active people with high self-esteem and often prefer niche oriented products and services  Thinkers  Mature, satisfied and reflective people who are motivated by ideals and who value knowledge and responsibility. They seek durability, functionality and value in products  Achievers  Successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers  Experiencers  Young, enthusiastic, impulsive people who seek variety and excitement. They spend a comparatively high proportion of income on fashion, entertainment and socialising
  • 87. Four groups with lower resources  Believers  Conservative, conventional and traditional people. They prefer familiar products and are loyal to establish brands  Strivers  Trendy and fun loving people who are resource constrained. They favor stylish products that emulate the purchases of those with greater material wealth  Makers  Practical, down-to-earth and self-sufficient people who like to work and seek products with a practical or functionality purpose  Survivors  Elderly, passive people who are concerned about change. They are normally loyal to their favorite brands
  • 88.
  • 89.
  • 90.
  • 91.
  • 92. Behavioral  Purchase, use occasions  Benefits  User Status  Non-user, ex-user, potential user, first time user, regular user  Usage status  light, medium and heavy user  Product knowledge  Loyalty status  Hard Core Loyal- consumers who are loyal to only one brand all the time  Soft Core Loyal/Split loyal- consumers who are loyal to two or three brands  Shifting Loyal- consumers who shift loyalty from one brand to another  Switchers- consumers who show no loyalty to any brand  Attitude towards the product and Extent of involvement
  • 93.
  • 94.
  • 95.
  • 96. Market Targeting “The Act of Developing measures of Segment attractiveness and selecting one or more market segments to enter” “Process of evaluating each market segment’s attractiveness and selecting one or more segments to enter”
  • 97. Evaluating/Analyzing the Market Segments  Segment Size and Growth  Segment Structural Attractiveness  (Porter’s Five Forces Segment structural Attractiveness)
  • 98. Five patterns of Target Market Selection  Single Segment concentration  Selective Specialization  Market Specialization  Here the firm concentrates on serving many needs of a particular customer group  Product Specialization  The firm makes a certain product that it sells to several different market segments  Full Coverage  Undifferentiated marketing  Differentiated marketing
  • 99. Determining how many segments to enter  Undifferentiated marketing  This involves ignoring any differences among consumers and suggests offering just one product or service to the entire market. This mass-marketing strategy focuses on what is common in the needs of consumers rather than what is different  Differentiated marketing  The marketer decides to enter several market segments, or niches and develop separate offers for each. For instance Maruti Udyog is producing cars for various segments. Coca-Cola and Pepsi are offering different versions of their soft drinks  Concentrated marketing Here the company targets a segment and goes for a large market share. For example Recycled paper producers like Wizard India focuses on the market for Greeting cards or wedding cards etc
  • 100. Niche Marketing  A Niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment into subsegments  The customers in the niche have a distinct set of needs  They will pay a premium to a firm that best satisfies their needs  Niches are fairly small and normally attract only few  Ezee (liquid detergent for woolen clothes)  Crack Cream (primarily targeted at women for prevention and treatment of cracked heels that develop due to inadequate protection and care)  Himalaya Herbal Health care in ayurvedic products  D’cold NATURAL (cough syrup for kids)  Aastha (in India that targets on the basis of religion and spirituality)  STAR Sports- (STAR Cricket for cricket lovers)  Kellogg's Special K- (for women who are fitness conscious)  Women’s Horlicks - ( New generation women balancing between family and career)
  • 101. Himalaya Herbal Health care in ayurvedic products
  • 102. A little girl is racked by a bout of coughing as Just then her sympathising aunt asks, "Ghar mein D'cold Syrup nahin hai kya? Is mein hai her parents get ready to summon the doctor doctor vaala tatv." The girl is fully recovered and she celebrates "D'cold Syrup mein hai doctor vaala tatv jispe her birthday in style as she chimes with her sabhi bharosa karte hain. Yaani chain ki saans." aunt, "Is mein hai Doctor vaala tatv."
  • 103.
  • 104. Shot of a girl touching up She is applying eye liner ...hypnotize her, swinging in a when suddenly a dude tries chain. whispers, "Look into my her make up in the campus to eyes." In a little while, the girl Product window. Elle 18, the She snatches the chain from cooling eye liner with a finds him hypnotized our spellbound fellow and steady grip brush. Ellie 18, instead . moves ahead as , "Look Look into my eyes for eyes that hypnotize
  • 105.
  • 106. Market Positioning “Positioning is the act of designing the Company’s offer so that it occupies a distinct and valued place in the target customer’s mind”
  • 110. A lady admires an expensive pair of sandals. The salesman takes... ... a closer look at her cracked heels as they settle down to try it The salesman shows a cheaper shoe but she insists on the red pair. "Woh wala aapke budget mein nahi... ayga madam", replies the man. MVO: "Afsoos, pairon ki dararon se koi bhi aapke zindagi mein jaank sakta hai ."
  • 111. Pesh hai Vaseline ka aviskari ek do crack relief. Pehle liquid saakht chamri nikale phir... ... cream dararon ko boar daale. Now, even at the jewelers they don't refuse her
  • 112.
  • 114. Positioning by Life Style or Use Occasion
  • 115.
  • 116.
  • 121. Marketing Communications “Marketing communications are the means by which firms attempt to inform, persuade & remind consumers directly or indirectly about the products and brands they sell”
  • 122. Marketing Communications Mix (Promotions Mix) 4P’S Product Place Promotion Price Personal Sales Direct Advertising Selling Promotion Marketing Personal PR / Publicity Selling
  • 123. INTEGRATED MARKETING COMMUNICATIONS “ A management concept that is designed to make all aspects of marketing communication work together as a unified force, rather than permitting each to work in isolation”
  • 124. Budget Allocation  Top-down approach  The affordable method (all you can afford method)  Arbitrary allocation  Percentage of sales method  Competitive parity method  Build-up approach (bottom-up approach)  Objective and task method  The experimental approach
  • 125. Advertising “ Any paid form of nonpersonal presentation and promotion of ideas, goods & services by an identified sponsor” The definition highlights the following features of advertising  “ a paid form’ of presentation emphasises that advertising space or time must be purchased  Its ‘non-personal’ nature emphasises the fact that it is not a direct presentation to one individual but to the masses  ‘ Identified sponsor’ refers to the identification of the brand or the advertiser that is communicating
  • 126. Advertising Objectives  Informative advertising  Persuasive advertising  Reminder advertising  Reinforcement advertising
  • 127. The Five M’s of Advertising Mission Money Message Media Setting Setting Set the Set the Determine Determine Deciding Deciding Advertising Advertising Advertising Advertising the Key the Key which which Objectives Objectives Budget Budget Advertising Advertising Advertising Advertising Messages Messages Media to Use Media to Use Evaluating Evaluating the Results the Results Measurement of of Advertising Advertising Campaign Campaign
  • 128. Media Planning and Strategy  To whom do we advertise? (Target Audience)  Where do we advertise? (Geographic Area)  When do we advertise? (Scheduling)  In which media should we advertise?  Media Class- It is the generally category of message delivery system for carrying the ad message to a selected audience such as print media, broadcast media or outdoor media etc  Media Vehicle- It is the specific message carrier within a medium such as Times of India, Zee etc  Media Reach- It is a measure of the number of different audience members or households exposed at least once to a media schedule within given period of time. Here reach is also called OTC (opportunity to see)  Media frequency- It is the average number of times that an individual or household is exposed to a message carrying media vehicle within the specified time period  Media Scheduling- It is concerned with timing the insertion of ads in the selected media vehicles  Media Impact
  • 129. Media Scheduling Continuity Flighting Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
  • 130. Pop-Outs ; Ads which popped on the screen occupying a quarter of the screen
  • 131. Action Replay ; Logos that come on when replay of the last score or the last wicket
  • 132. On Screen Logo ; Brand Logos that pops on the screen while a match is on
  • 133. Push Backs ; Brand Logo popping out during the match
  • 134. Scroller ; It is normal scroll of the Ad
  • 135. Paste-Up ; Brand logos that appears along with the score card or graphs
  • 136. Newspaper Advertising  Display advertising- This is a form of advertising that, more often than not, contains graphic information, text, logos, images, illustrations etc. It is available in many different sizes and is spread throughout the newspaper  Classified advertising- It is grouped under subheads classifying the product being marketed. (e.g. headings such as employment, automobiles, real estate etc)  Special ads and inserts- These are usually ads by government or political parties sharing their achievements, giving notices, advocating an issue, promoting a candidate etc. Sometimes financial reports, initial public offering announcements etc are also published by organisations as special advertisements
  • 137. Paid circulation- The number of sold copies  Pass-along readership  Total audience or readership=readers per copy (total primary+ pass along readers) circulation  Audit Bureau of circulation of India (ABC)  Registrar of newspapers for India (RNI)  The Indian newspaper society (INS)  National Readership survey (NRS) & Indian Readership survey (IRS) by Media Research Users Council (MRUC)
  • 138. Buying Newspaper space  Rate units- column inches or column centimeters  Standard Advertising Unit (SAU)- Square centimeter (sq cm)  Rate card- Newspapers print their rates in a document called rate card that contains prices and descriptions for the various ad placement options  Flat rates- standard advertising rates with no discounts  Open rate- various types and levels of discounts based on frequency, volume, desire to sell last minute unused space etc  Contract rates- these are lower than open rates and are offered to advertisers who plan to run a series of advertisements in a particular period usually one year and within a specific space purchase
  • 139.
  • 140. Magazine  Advertorial-(combination of advertisement and editorial)  admazines – These magazines are published by the advertiser with the main objective of exclusively or selectively promoting their products. They may also carry editorial content. Airline inflight magazines featuring articles on destinations that the airline flies to, carrier’s ads and related editorial articles etc
  • 141. Magazine advertising units  few columns  half page (vertical half page, horizontal half page)  full page  quarter page  spread (two full pages opposite each other)  column inches or sq cm  island position- surrounded by editorial matter  bleed ads- where in advertisements can be extended beyond the normal margin of the page to the edge of the page
  • 142.
  • 143. Out of Home Advertising Panels
  • 145.
  • 147. Taxi top & trunk display
  • 148.
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  • 150.
  • 151.
  • 153. Pillar sites in Airport
  • 154. Pole Kiosks Public utility Wall painting
  • 155. Neon sign Glow signs / Signage boards
  • 156. Minute Maid Pulpy Orange Inflatable Bicycle kiosks Human kiosks
  • 159.
  • 161. Balloon with built in Television
  • 164.
  • 165. Packaging and Labeling  Package- as all the activities of designing and producing the container for a product. A package is the physical container or wrapping for a product  Primary package  Secondary package  Shipping package
  • 166. Functions of Packaging  Promoting and selling the product  Defining product identity  Providing information  Expressing benefits and features  Ensuring safe use
  • 167.  Mixed Bundling  Sometimes multiple complementary items are bundled together in one package. Mixed bundling is the practice of packaging different products and services together  Price bundling  It occurs when two or more products are placed on sale for one package
  • 168. Blisterpack/bubble pack  These are packages with preformed plastic molds surrounding individual items arranged on a backing  Aseptic packaging  It involves separately sterilizing the package and the food product, and filling and sealing the package in a sterile environment. Canning and bottling are examples of this method, which keeps food fresh for a particular time duration  Cause packaging  involves using packages to promote social and political causes. The issues on the packages may be totally unrelated to the products inside
  • 169.
  • 170.
  • 171. label A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. Its main function is to inform customers about the product’s contents and give directions for its use. It might contain a brand name or information. So it is the written, printed and graphic material on the package  Statutory component  Optional component
  • 172.
  • 173.
  • 174.
  • 175. Branding through Advergaming  Types of Advergaming  Above the Line or custom Advergaming  In this form of advergaming companies provide an interactive game in their website to attract customers and hope that they spend extra time on the website. The games developed by companies feature its products so as to increase awareness about the product among the potential customers  Below the Line Advergaming  In this type of promotion companies generally develop games related to their products and services and distribute these to their prospective clients For example KID (Kindle Imagine Develop) created a video game known as Pepsiman  Through the Line Advergaming  In this form of advergaming, URL hyperlinks are provided in the games in order to prompt the players to visit the website which contains advertisements

Notas del editor

  1. The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. This slide shows the three scheduling methods available to the media planner: Continuity – continuous pattern of advertising; every day, every week, or every month Flighting – intermittent periods of advertising and no advertising Pulsing – combination of the first two; continuity is maintained but at certain periods advertising is increased. A continuity schedule can be appropriate with food products, household products and products consumed on an ongoing basis. A flighting schedule is well suited to seasonal or other products that are consumed mostly during certain time periods. A pulsing schedule may be used for products that have little sales variation from period to period, but might see some increase in certain times such as cold beverages in the hot summer months.