In our last lecture we covered
Definition of BRAND (Brand is name, term, sign symbol or design or a
combination of these that identifies the maker or seller of product or
service).
Brand equity, brand name selection and brand sponsor were discussed
Let us move to next topic i.e. BRAND STRATEGY.
BRAND STRATEGY
A COMPANY HAS FOUR OPTIONS TO DECIDE ON BRAND STRATEGY
1: LINE EXTENSION – introduction of additional items in a given product
category under the same brand name -
2: BRAND EXTENSION – using a successful brand name to launch a new or
modified product in a new category
3: MULTIBRANDS - same category with new or additional brands -
4: NEW BRANDS – new brand for new product category
FOUR BRAND STRATEGIES
PRODUCT CATEGORY
Existing New
Line Brand
Existing
Extension Extension
BRAND NAME
New Multibrands New Brands
PACKAGING
Packaging is activity of designing and producing the container or
wrapper for a product
Primary Packaging
Secondary Packaging
Shipping Package
Labeling
PACKAGING CONCEPT
Purpose of packaging
1: Protection
2: Dispensing
3: Advertising etc.
Decisions regarding specific elements like
size, shape, material, color, text and brand mark
Childproof packaging
Temper proof packaging
Environmental concerns
Packaging reduction/going green/aseptic packaging
LABELING
Label includes simple tag to complex graphic printed on the package
Identifies the brand or product
Promote the sale of the product – attractive design etc.
Manufactured by…..
Usage instructions
Where was the product manufactured
MRP – Maximum retail price
Legality
Price
Manufacturing/expiry date
Ingredients
Nutritional information
PRODUCT SUPPORT SERVICES
Periodic Consumer Survey
Users data,
Internet services
PRODUCT LINE DECISIONS
A group of products that are closely related because they
functions in a similar manner, are sold to the same customer groups,
are marketed through the same types of outlets or fall within given
price ranges.
Product line length
Product line stretching, upward, downward or both ways
(This is by bigger companies to plug competitors entry)
PRODUCT MIX DECISIONS
Product mix or product assortment consists of all the product lines
and items that a particular seller offers for sale.
Width – No. of different product lines – HPC, food, cosmetics
Length – total number of items within product lines
Depth – version offered in each product
Consistency – how close various products lines are
SERVICE MARKETING
SERVICE is an activity or benefit that one party can offer to another
that is essentially tangible and does not result in the ownership of
anything.
Nature and Characteristics of a Service
INTANGIBILITY: services cannot be seen, tasted, felt, heard or
smelled before the purchase
INSEPARABILITY: cannot be separated from their provider
VARIBILITY: quality of services depends on who provides them and
when, where and how
PERISHABILITY: cannot be stored for later sale or use
MARKETING STRATEGIES FOR SERVICE FIRMS
The Service-Profit Chain
Internal service quality---satisfied and productive service
employees---greater service value---satisfied and loyal
customers---healthy service profits and growth
INTERNAL MARKETING – marketing by a service firm to train and
effectively motive its customer-contact employees and all the
supporting serviced people to work as a team to provide customer
satisfaction.
INTERACTIVE MARKETING – marketing by a service firm that
recognizes that perceived service quality depends heavily on the
quality of buyer-seller interaction
MANAGING SERVICE DIFFERENTIATION
Innovative features
Customer-contact officials
Symbols and branding
MANAGING SERVICE QUALITY
Service quality hard to define
Empower front line employees
Watch service performance closely
Communicate concerns about service quality to employees
MANAGING SERVICE PRODUCTIVITY
Better training facilities to staff members
Power of technology
Web site
Do not over stress technology
NEW PRODUCT DEVELOPMENT
Innovation is the name of the game
NEW PRODUCT DEVELOPMENT: The development of original
products, products improvement, products modification and new
brands through the firms own R&D efforts.
Failure rate : 80% of packaged consumer goods and 30% of industrial
goods
Survival rate : 40% products survive for more than five years
But companies must develop new products to survive
PROCESS OF NEW PRODUCT DEVELOPMENT
1: Idea Generation
2: Idea Screening : Screening new ideas in order to spot good
ideas and drop poor ones at initial stage.
3: Product Concept : A detailed version of the new product
idea stated in meaningful consumer terms
4: Concept Testing : Testing new product concepts with a group
of target consumers to find out if the
concepts have strong consumer appeal
5: Marketing Strategy Development: Designing an initial
marketing strategy for a new product
based on the product concept.
New Product Development --- contd.
6: Business Analysis: Review of the sales, costs and profit projection
for a new product to find out whether these
factors satisfy the company’s objectives
7: Product Development: Developing the product concept into a
physical product in order to ensure that the
product idea can be turned into a workable
product.
8: Test Marketing: The stage of new product development in which
the product and marketing program are tested
in more realistic market settings.
Standard Test Markets
Controlled Test Markets
Simulated Test Markets
9: Commercialization: Introducing a new product into the market
PRODUCT LIFE CYCLE STRATEGIES
The course of a product’s sale and profits over its lifetime.
Five stages (1) Product Development (2) Introduction
(3) Growth (4) Maturity
(5) Decline
Take off stage - between introduction and growth stages
PLC for (a) Style (b) Fashion and © Fads
INTRODUCTION STAGE: The product is distributed and made
available for sale
GROWTH STAGE: The product’s sales start climbing quickly
MATURITY STAGE: Sales growth slows or levels off
DECLINE STAGE: Product’s sales decline
Revive the product, (at which stage?) relaunch with new features
or withdraw the product…..
