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  • 1. International School of Business and Media Marketing Management II Marketing Management II Assignment Submitted to: Submitted by: Prof. Sanjay Kumar Aditi Gadia Sec- A 14006 TABLE OF CONTENTS
  • 2. International School of Business and Media Marketing Management II Q1. Can people/celebrities be branded? ..................................................................................7 Why do you think Sachin Tendulkar is a brand?...................................................................7 Ans- Yes, people/celebrities can be branded. Celebrities like MS Dhoni , aishwarya Rai, Amitabh Bachchan, Shah Rukh Khan, Sachin Tendulkar and many more are big brands in themselves. .............................................................................................................................7 Sachin Tendulkar is a big brand. Across 24 years, Tendulkar is estimated to have endorsed over 50 brands including Coca-Cola, Pepsi. Tendulkar is an icon whose value cannot be measured in currency. He is an embodiment of values which will continue to inspire young and old for many years to come. As he advertises Boost it brings the image of Sachin while consuming Boost. Because a brand needs a globally known face who can advertise it, the fan followings, reputation and authentication of the Celebrity helps the brand to make a image in the mind of the people. .................................................................7 Draw brand associations (at least 30 associations) for a brand called “Sachin Tendulkar”. ...............................................................................................................................7 Ans. Brands like:........................................................................................................................7 Coca Cola...................................................................................................................................7 Adidas.........................................................................................................................................7 Future Group.............................................................................................................................7 Toshiba........................................................................................................................................7 Aviva India.................................................................................................................................7 SAR Group.................................................................................................................................7 HDFC Bank...............................................................................................................................7 Insurance Agency......................................................................................................................7 Canon..........................................................................................................................................7 Johnny Walker .........................................................................................................................7 BMW..........................................................................................................................................7 Chavanprash...............................................................................................................................7 State Bank Of India..................................................................................................................7 Bank Of Maharashtra................................................................................................................7 MRF.............................................................................................................................................7 Mercedes Benz............................................................................................................................7 Ferrari.........................................................................................................................................7 Ceat Tyres...................................................................................................................................7 Ashok Leyland............................................................................................................................7 Sony.............................................................................................................................................7 Videocon......................................................................................................................................7 Asian Paints................................................................................................................................8 Raymond's...................................................................................................................................8 2
  • 3. International School of Business and Media Marketing Management II Sahara India...............................................................................................................................8 What are key strategies for conceptualizing and executing brand extensions? How brand associations help in brand extensions?.....................................................................................8 Ans. Brand extension is using the leverage of a well known brand name in one category to launch a...................................................................................................................................8 new product in a different category..........................................................................................8 List out brand extension options for the brand Sachin Tendulkar. Provide sound rationale for your stated brand extension. ..............................................................................8 Ans. When a brand is being considered for line or brand extension, the groups of brand associations and their strengths may play an important role in how the extensions are evaluated.....................................................................................................................................8 Brand association strength may be extremely useful in extending the brand within the same product class, but to another segment of consumers using line extension. If consumers already have strong product class related associations, it may be more efficient and effective for the firm to consider line extensions. .............................................8 Acti life.......................................................................................................................................8 fuel...............................................................................................................................................8 octane...........................................................................................................................................8 smart chip....................................................................................................................................8 Boost Glucose..............................................................................................................................8 Emani...........................................................................................................................................8 Nutritional Health Drinks.........................................................................................................8 Glucon D......................................................................................................................................8 Navratna......................................................................................................................................8 Zydus...........................................................................................................................................8 How could you reposition the brand Sachin Tendulkar? How will you revitalize the brand? ........................................................................................................................................8 Draw brand value chain, depicting all the four brand value stages & three multipliers. Using Brand value Chain, map out the sources of brand equity of Sachin Tendulkar and outcomes of brand equity for the brand - Sachin Tendulkar. .............................................8 Ans. Sachin Tendulkar is the top favorites of brands. He has successfully sold their fans products ranging from colas to cars. Now that Sachin has retired from cricket, will his position be affected? ..................................................................................................................9 Sachin’s brand equity will get seriously hurt post his retirement because he has not done much to reinvent his brand You cannot expect a youth-driven cola brand to approach Sachin, but his credibility makes him an ideal face for a brand looking for someone whose name stands for security. So unlike his predecessors, Sachin will continue to have brands. So while there will be a slight dip, it cannot be a complete full stop. The enigma 3
  • 4. International School of Business and Media Marketing Management II of Sachin Tendulkar is enduring, so it’s not something that will suddenly go invisible.” He is still a strong player declares Anirban and adds, “His dependable stock makes him worthy of more mature and serious brands in the banking and finance sector that spell security. He would be a safe bet and an asset when it comes to high-luxury brands, banking, realty, etc.....................................................................................................................9 .........................................................................................................................................9 Q2. What is brand positioning? What are different ways of brand positioning? ............10 Ans- Brand Positioning is defined as the way by which the marketers attempt to create a distinct impression about that particular brand in the consumer’s mind..........................10 There are different ways of brand positioning which are listed below-..............................10 1. Positioning by product attribute.........................................................................................10 2. Positioning by product price...............................................................................................10 3. Positioning by product user.................................................................................................10 4. Positioning by product category.........................................................................................10 5. Positioning by culture..........................................................................................................10 ...................................................................................................................................................11 Q3. What is brand equity? Pick your favorite brand and discuss its brand equity using the CBBE – Customer Based Brand Equity Model. ............................................................11 Ans- Brand equity is the added value endowed on product and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share and profitability the brand commands........................................11 My favorite brand is Parx. So according to the CBBE model the variables are-.............11 Brand Salience- Whenever I have to buy any outfits, the first name come to my mind is always Parx...............................................................................................................................11 Brand Performance- In terms of brand performance Parx performs brilliantly. It offers the varieties in shirts, t-shirts and maintains the product quality that exactly meets my needs..........................................................................................................................................11 Brand Judgments- They do focus on consumer’s personal opinions and evaluations. For that they maintain a database called “keep in touch” in their website and they are also connected by facebook, twitter as well...................................................................................11 Brand Feelings- It is customer’s emotional responses and reactions with respect to the brand. As mentioned earlier it is my top of the mind recall brand. ...................................11 Q4. How do you do Ingredient branding? Illustrate using an example. ...........................12 Ans.- Ingredient Branding is a marketing strategy where a component or an ingredient of a product or service is pulled into the spotlight and given its own identity. We can do ingredient branding by different ways like-..........................................................................12 4
  • 5. International School of Business and Media Marketing Management II Ans.- 1. Tata Nano was positioned as logical upgrade for a family of four with a two wheeler. This concept did not gel as every such household had an aspiration to move to something better and not necessarily cheaper.......................................................................13 2.The Tata Nano became somewhat symbolic as a modern 'people's car', often being compared to the likes of the Ford Model T and the original Volkswagen Beetle..............13 3. At the launch in Delhi, guests entered through a big specially crafted entry walkway to the main launch setup that set the tone with imagery reflective of the new positioning. On one side they were flanked by an Alto Milestone Wall with embedded projection screens playing projections talking of the Alto Life, while on the other side four zones amplified the Alto experience - Let's Go Adventure, Let's Go Music, Let's Go Social and Let's Go Movies - done with lifestyle vignettes, live props, mock-ups and models...........................13 ...................................................................................................................................................13 ..............................................................................................................................................13 ....................................................................................................................13 Q6. How does an exclusive brand such as Louis Vuitton grow and stay fresh while retaining its cachet? Is the counterfeiting of Louis Vuitton always a negative? Are there any circumstances where it can be seen as having some positive aspects?.........................13 Ans. Line Extension..................................................................................................................29 Category Extension..................................................................................................................29 I.CommercialLaundry..................................................................................................31 Q24. What is line pruning and Line filling? What is line stretching? Explain using an example. ....................................................................................................................................32 Increasing the number of products within an existing product range with similar products that have additional or different features. When a business already has a well established brand, it can use line stretching to expand its product line and help increase its market share without having to develop substantially new products. Toyota is generally a company that produces durable (questionable) and low-price cars. The way Toyota is product line stretching is by creating a new higher end brand, Lexus. This model has increased Toyota's sales and allowed them access to different markets. Also, they are able to access new customers who are looking for a higher end trustworthy car. Lastly, Toyota has been able to scare-off competitors and improve their reputation.....................................................................32 The birth of brand is achieved with publicity, not advertising because a new brand must be capable of generating publicity in media but they won’t have a chance in marketplace. Starbucks doesn’t spend much on advertising but they have a equity in marketplace and same is the case with Wallmart. .............................................................................................35 Q28. What is brand extension? What are the advantages and disadvantages of brand extension? What are the factors needs to be taken care of before executing brand extension....................................................................................................................................36 Ans.- Co-creation is a form of marketing strategy or business strategy that emphasizes the generation and ongoing realization of mutual firm-customer value. It views markets 5
  • 6. International School of Business and Media Marketing Management II as forums for firms and active customers to share, combine and renew each other's resources and capabilities to create value through new forms of interaction, service and learning mechanisms. It differs from the traditional active firm – passive consumer market construct of the past....................................................................................................37 Crowd sourcing is using collective intelligence gathered from the public and using that information to complete business-related tasks. These tasks are normally completed by the company or a third-party service provider, but through crowd sourcing the public assists in the completion of these tasks. Companies are often attracted to crowd sourcing because it expands their talent pool and is often free. Crowd sourcing also allows a company to gain insight into their customers and what they desire...................................37 Examples of Crowd sourcing product or services are:.........................................................37 Protection.................................................................................................................................43 Containment.............................................................................................................................43 Size and Quantity.....................................................................................................................43 Marketing .................................................................................................................................43 Security......................................................................................................................................44 6
  • 7. International School of Business and Media Marketing Management II Q1. Can people/celebrities be branded? Why do you think Sachin Tendulkar is a brand? Ans- Yes, people/celebrities can be branded. Celebrities like MS Dhoni , aishwarya Rai, Amitabh Bachchan, Shah Rukh Khan, Sachin Tendulkar and many more are big brands in themselves. Sachin Tendulkar is a big brand. Across 24 years, Tendulkar is estimated to have endorsed over 50 brands including Coca-Cola, Pepsi. Tendulkar is an icon whose value cannot be measured in currency. He is an embodiment of values which will continue to inspire young and old for many years to come. As he advertises Boost it brings the image of Sachin while consuming Boost. Because a brand needs a globally known face who can advertise it, the fan followings, reputation and authentication of the Celebrity helps the brand to make a image in the mind of the people. Draw brand associations (at least 30 associations) for a brand called “Sachin Tendulkar”. Ans. Brands like: Coca Cola Adidas Future Group Toshiba Aviva India SAR Group HDFC Bank Insurance Agency Canon Johnny Walker BMW Chavanprash State Bank Of India Bank Of Maharashtra MRF Mercedes Benz Ferrari Ceat Tyres Ashok Leyland Sony Videocon 7
  • 8. International School of Business and Media Marketing Management II Asian Paints Raymond's Sahara India What are key strategies for conceptualizing and executing brand extensions? How brand associations help in brand extensions? Ans. Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category. • It is a new product. • It should use a well known brand. • The brand should have leverage with customers of the new category. List out brand extension options for the brand Sachin Tendulkar. Provide sound rationale for your stated brand extension. Ans. When a brand is being considered for line or brand extension, the groups of brand associations and their strengths may play an important role in how the extensions are evaluated. Brand association strength may be extremely useful in extending the brand within the same product class, but to another segment of consumers using line extension. If consumers already have strong product class related associations, it may be more efficient and effective for the firm to consider line extensions. Acti life fuel octane smart chip Boost Glucose Emani Nutritional Health Drinks Glucon D Navratna Zydus How could you reposition the brand Sachin Tendulkar? How will you revitalize the brand? Draw brand value chain, depicting all the four brand value stages & three multipliers. Using Brand value Chain, map out the sources of brand equity of Sachin Tendulkar and outcomes of brand equity for the brand - Sachin Tendulkar. 8
  • 9. International School of Business and Media Marketing Management II Ans. Sachin Tendulkar is the top favorites of brands. He has successfully sold their fans products ranging from colas to cars. Now that Sachin has retired from cricket, will his position be affected? Sachin’s brand equity will get seriously hurt post his retirement because he has not done much to reinvent his brand You cannot expect a youth-driven cola brand to approach Sachin, but his credibility makes him an ideal face for a brand looking for someone whose name stands for security. So unlike his predecessors, Sachin will continue to have brands. So while there will be a slight dip, it cannot be a complete full stop. The enigma of Sachin Tendulkar is enduring, so it’s not something that will suddenly go invisible.” He is still a strong player declares Anirban and adds, “His dependable stock makes him worthy of more mature and serious brands in the banking and finance sector that spell security. He would be a safe bet and an asset when it comes to high-luxury brands, banking, realty, etc. 9
  • 10. International School of Business and Media Marketing Management II Q2. What is brand positioning? What are different ways of brand positioning? Ans- Brand Positioning is defined as the way by which the marketers attempt to create a distinct impression about that particular brand in the consumer’s mind. There are different ways of brand positioning which are listed below1. Positioning by product attribute. 2. Positioning by product price. 3. Positioning by product user. 4. Positioning by product category. 5. Positioning by culture. 6. Positioning by competition. 10
  • 11. International School of Business and Media Marketing Management II Q3. What is brand equity? Pick your favorite brand and discuss its brand equity using the CBBE – Customer Based Brand Equity Model. Ans- Brand equity is the added value endowed on product and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share and profitability the brand commands. My favorite brand is Parx. So according to the CBBE model the variables areBrand Salience- Whenever I have to buy any outfits, the first name come to my mind is always Parx. Brand Performance- In terms of brand performance Parx performs brilliantly. It offers the varieties in shirts, t-shirts and maintains the product quality that exactly meets my needs. Brand Judgments- They do focus on consumer’s personal opinions and evaluations. For that they maintain a database called “keep in touch” in their website and they are also connected by facebook, twitter as well. Brand Feelings- It is customer’s emotional responses and reactions with respect to the brand. As mentioned earlier it is my top of the mind recall brand. 11
  • 12. International School of Business and Media Marketing Management II Q4. How do you do Ingredient branding? Illustrate using an example. Ans.- Ingredient Branding is a marketing strategy where a component or an ingredient of a product or service is pulled into the spotlight and given its own identity. We can do ingredient branding by different ways like1. Positioning by product attribute - Colgate (salt) 2. Positioning by product price – Big Bazaar. 3. Positioning by product user – TVS Scooty Pep (why should boys have all the fun) 4. Positioning by product category – Colas 5. Positioning by culture – Tata Salt (Desh ka namak) 6. Positioning by competition - Avis : (We are No. 2. We try harder). 12
  • 13. International School of Business and Media Marketing Management II Q5. Low-cost, compact cars are losing sheen in India as customers switch to premium hatchback and compact sedans over smaller entry-level cars that have long been the bread and butter of Asia's third-largest automotive market. The annual sales data also shows that bigger cars have not just increased their presence in the top-10 selling models, their sales have also jumped. Identify positioning strategies for low cost cars in India. Ans.- 1. Tata Nano was positioned as logical upgrade for a family of four with a two wheeler. This concept did not gel as every such household had an aspiration to move to something better and not necessarily cheaper. 2.The Tata Nano became somewhat symbolic as a modern 'people's car', often being compared to the likes of the Ford Model T and the original Volkswagen Beetle. 3. At the launch in Delhi, guests entered through a big specially crafted entry walkway to the main launch setup that set the tone with imagery reflective of the new positioning. On one side they were flanked by an Alto Milestone Wall with embedded projection screens playing projections talking of the Alto Life, while on the other side four zones amplified the Alto experience - Let's Go Adventure, Let's Go Music, Let's Go Social and Let's Go Movies - done with lifestyle vignettes, live props, mock-ups and models. Q6. How does an exclusive brand such as Louis Vuitton grow and stay fresh while retaining its cachet? Is the counterfeiting of Louis Vuitton always a negative? Are there any circumstances where it can be seen as having some positive aspects? 13
  • 14. International School of Business and Media Marketing Management II Ans.- The resilience of the mighty brands like Louis Vuitton, Gucci and Hermes are focused on their heritage and tradition without alienating themselves of trends and interim demands of the demanding clients. They do offer high fashion but the most successful brands know the importance of diversity and this is where they put their money on. Companies like Dior and Chanel are notable for their uncompromisingly beautiful clothing but has set forward to take over the accessories business, something that Louis Vuitton, Hermes and Gucci has dominated in the last century or so. The companies put their money in exploring licenses for fragrances, labeling different lifestyle items from dog collars, bikes, to make up and skin care. Let’s face it; a $75 foundation from Dior is a lot more enticing than a $$5000 blouse. Nonetheless, both are incredibly impeccable. They did it simply: this is where tried and tested comes into the picture. A brand that has not much to prove anymore when it comes to consistency and craftsmanship will definitely be the epitome of standards for the rest. With incredible publicity and marketing mechanisms, luxury brands are able to play the mass consumer game by offering desire in a more forgivable price from makeup, skin care, shoes, and bags and then maybe, when you reached that pinnacle of success, be able to wear a nice Chanel suit while holding a Hermes Kelly. Luxury companies are aspirational and that is why the ladder always goes up in the battle of prominence in fashion and lifestyle market. Q7. What is straddle positioning? 14
  • 15. International School of Business and Media Marketing Management II Ans. - An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date. Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly, but is unsure as to which direction. The stock price must move significantly if the investor is to make a profit. 15
  • 16. International School of Business and Media Marketing Management II Q8. What are brand mantras? Illustrate brand mantras of Apple, Samsung, and Disney. Ans.- A brand mantra is an articulation of the heart and soul of the brand. These are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values. It must clearly delineate what the brand is supposed to represent. These are typically designed to capture the brand’s point of difference, i.e., what is unique about the brand. Brand Mantra of Apple- Think Different. Brand Mantra of SamsungBrand Mantra of Disney- Fun Family Entertainment. 16
  • 17. International School of Business and Media Marketing Management II Q9. Which brand do you think have is successful in creating emotional branding? What are some of the challenges and risks associated with being the market leader in so many categories? With social media becoming increasingly important and fewer people watching traditional commercials on television, what does P&G need to do to maintain its strong brand images? Plot P&G on CBBE Model. Ans. - Kellogg’s is one of the brands in creating successful emotional branding. The challenges are as followings: 1. Disruptive technologies. The proliferation of new technologies – from social media and mobile apps to in-store digital experiences and mobile payments – represents a set of obstacles for which senior marketers are ill prepared. 2. Globally connected consumers. A new class of consumers, adept with and empowered by affordable ubiquitous technology, has changed the marketing rules. According to the research of Forbes 82% of senior marketers feel that interconnected consumers have broken down the barriers between global and local marketing. Global marketing’s core challenge has been to deliver relevant messages to the local market, but in an age where assets designed for one country are rapidly shared around the world, the challenge is to give global consumers a delicate balance of local, regional and global campaigns – simultaneously. 3. Localization revisited. Coping with the diversity of “global consumers” that also have strong regional subcultures is regarded as a challenge by 75% of senior marketers. Add to this the growing tensions between local and global roles and authority within the organization – challenging for 82% of senior marketers – and what becomes clear is the need for organizational design and digital platforms that allow for a multi-channel, multi-disciplinary mindset across the organization. 4. Multi-channel misses. A full 37% of senior marketers don’t believe that their marketing activities are fully integrated across digital and traditional channels. The opportunity to grow revenues from multi-channel consumers requires investments in digital experiences that are too large for a single market, but which must provide flexibility for localization. The bottom line is that senior marketers need to adopt the “global mindset” that will let them displace strong organizational silos, specialized partners and a reliance on traditional single-channel campaigns in order to realize the benefits of cross-channel experiences. 5. Organizational structures. Too often, the three executive branches of CMO, CEO and CTO claim an overlapping interest in the area of digital experience, leading to a failure to organize efficiently for the new global marketing environment. 17
  • 18. International School of Business and Media Marketing Management II Q10. How do organizations build brand equity? Illustrate how Red Bull created brand equity. 18
  • 19. International School of Business and Media Marketing Management II Ans.- Building a strong brand, according to the Customer-Based Brand Equity Model, can be thought of in terms of a sequential series of steps, where each step is contingent upon successfully achieving the previous step. All steps involve accomplishing certain objectives with customers – both existing and potential customers. The first step is to ensure identification of the brand with customers and an association of the brand in customers’ minds with a specific product class or customer need. The second step is to firmly establish the totality of brand meaning in the minds of customers – i.e., by strategically linking a host of tangible and intangible brand associations. The third step is to elicit the proper customer responses to this brand identity and brand meaning. The fourth and final step is to convert brand response to create an intense, active loyalty relationship between customers and the brand. These four steps represent a set of fundamental questions that customers invariably ask about brands – at least implicitly if not even explicitly – as follows (with corresponding brand steps in parentheses). 1) Who are you? (Brand Identity) 2) What are you? (Brand Meaning) 3) What about you? What do I think or feel about you? (Brand Responses) 4) What about you and customer? What kind of association and how much of a connection would they like to have with you? (Brand Relationships) Red Bull mainly created its brand equity by following ways1. Logo & symbol 2. Character 3. Slogans- “Gives you wings” 4. Packaging- single package, a slender silver-and-blue 250 ml can. The small can, which originated in Japan, signaled to consumers that the contents were different from and stronger than traditional soft drinks. 5. Flavor- Red Bull's flavor was intended to communicate the product's value as a functional energy drink. It was sweet and carbonated like a cola, but also had what some consumers described as a "medicinal" taste. The strong taste indicated to consumers that the product was more than mere refreshment. 6. Adaptability Q11. Brands are not built by advertising alone. Ans.- Advertising was much more relevant in the past when the mass media was limited to only one or two TV stations, few radio stations, a couple of national newspapers and the occasional billboard. Limited leisure time pursuits meant consumers spent a lot of time interfacing with the 19
  • 20. International School of Business and Media Marketing Management II mass media. Finally, there was little competition so high product or service standards were unimportant. With frequency and timing, mass media advertising generated enough ‘awareness’ to justify the budget. With limited competition and consumers who were willing to accept low standards or didn’t know any better, such awareness could result in sales and for some, it was enough to build a brand. Using advertising to build a brand is ineffective unfortunately; using advertising to build a brand will not work anymore. Mass media has disintegrated into niches or communities. Consumers have been carpet bombed by so many messages – up to 3,000 a day and for so long, that they have learned to block most of those messages. The favored reaction of advertising agencies to declining responses and lack of effectiveness is to increase frequency but this doesn’t help. But this doesn’t mean that advertising is no longer important. Advertising is, and will probably always be, important to branding. But its role has changed. Advertising can no longer be a tactical initiative to reach as many consumers as possible to get the name out there Advertising must do more than try to create awareness. Advertising must work to ensure consumers adopt offerings into their lives. Adoption enables an offering to be seen as the best option. But this adoption also needs organizational excellence and the ability to match offerings to client requirements for value. Advertising cannot be expected to do this on its own. And it is wrong of advertising agencies to give the impression it can but it is also wrong of business owners to expect advertising agencies to be solely responsible because advertising is not a silver bullet. Q12. What are different ways to leverage secondary associations? Ans.- Different means by which we can create secondary brand knowledge by linking the brand to the following: 1 Companies. Branding strategies are an important determinant of the strength of association from the brand to the company and any other existing brands. 20
  • 21. International School of Business and Media Marketing Management II 2 Countries Or Other Geographic Areas. Besides the company that makes the product, the country or geographic location from which it originates may also become linked to the brand and generate secondary associations. 3 Channel Of Distribution. 4 Co-Branding. An existing brand can also leverage associations by linking itself to other brands from the same or different company. Co-branding—also called brand bundling or brand alliances—occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion. 5 Licensing. Licensing creates contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands to market their own brands for some fixed fee. 6 Celebrity Endorsement (Spokesperson). 7 Sporting, Cultural, Or Other Events. 8 Third-Party Sources. 21
  • 22. International School of Business and Media Marketing Management II Q13. What is internal branding? How will you do internal branding at ISB&M, Pune? Ans.- Internal branding consists of activities and processes that help inform and inspire employees about brands. Holistic marketers must go even further and train and encourage distributors and dealers to serve their customers well. Poorly trained dealers can ruin the best efforts to build a strong image. Internal Branding can be done here by three ways1. By choosing the right moment- Turning points are ideal opportunities to capture employee’s attention and imagination. So here we can advertise through our website and brochure about the learning scope and specially about the good placement record of ISB&M. 2. Linking internal and external marketing – Internal and external messages must match. We can advertise our placement records and learning opportunities not only to show our internal strength but also to convey that we are among the top B-schools in India. 3. By bringing the brand alive – Internal communication should be informative and energizing. This means that by participating in different events with top b-schools and winning them we can do that. This will motivate the students and can be advertised by which we can bring our brand alive. 22
  • 23. International School of Business and Media Marketing Management II Q14. How brand building is done through brand communities? How Harley Davidson’s HOG community helped in brand building? Ans.- A brand community is a specialized community of consumers and employees whose identification and activities focus around the brand. Brand building can be done through brand communities by these ways1. A consciousness of kind or sense of felt connection to the brand, company, product or the community members. 2. Shared rituals, stories and traditions that help to convey the meaning of community. 3. A shared moral responsibility or duty to both the community as a whole and individual community members. Harley Davidson developed a strong brand community in the form of an owner’s club, called Harley Owners Group (H.O.G). It sponsors bike rallies, charity rides and other motorcycle events and now numbers 1 million members in over 1200 chapters. H.O.G benefits include a magazine called Hog Tales, a touring handbook, emergency road service, a specially designed insurance program, theft reward service, discount hotel rates and a Fly & Ride program enabling members to rent Harleys on vacation. The company also maintains an extensive website devoted to H.O.G with information about club chapters, and a special members only section. 23
  • 24. International School of Business and Media Marketing Management II Q15. Explain brand value chain using one of the following brands Apple, Google, Nokia, Wal-Mart, IBM. Ans.- The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the way marketing activities create brand value. Below is explained the brand value chain of Google. 24
  • 25. International School of Business and Media Marketing Management II Q16. Why do supermarkets put candy, gum, and magazines at the front of the retail store? Ans. - Retailers from several channels gathered to discuss the challenges and opportunities at the front end checkout during a recent Progressive Grocer roundtable. The front end checkstand is a key factor in a shopper’s overall view of a store, and more often than not, a consumer’s experience in this area determines whether she’ll make a return visit. As a result, retailers see it as an opportunity to leave shoppers with a positive last impression of the store. It's the last thing the customer sees. If it's well stocked, then they'll pull more on impulse. Keeping the racks filled is key in this area because the shopper is on his or her way out the door, the purchase is driven by desire, and if the product is not available, the shopper will not pursue it. This is the reason supermarkets put candy, gum and magazines at the front of the retail store. 25
  • 26. International School of Business and Media Marketing Management II Q17. Elaborate the differences amongst a fashion, a fad, and a staple product using product life cycle curve. Ans. - A fashion is currently accepted or popular style in a given field. Fashions pass through four stages: distinctiveness, emulation, mass fashion and decline. The length of a fashion life cycle is hard to predict. One view is that fashions end because they represent a purchase compromise, and consumers soon start looking in the missing attributes. A staple product is a basic and distinctive mode of expression appearing in a field of human endeavor. A staple product appears in home, clothing and art. It can last for generations and go in and out of vogue. 26
  • 27. International School of Business and Media Marketing Management II Q18. Write down the various characteristics shown by a product in all the four stages of product life cycle. Ans.- The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage. Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets. 27
  • 28. International School of Business and Media Marketing Management II Q19. What are first and second moment of truths? Give a scenario where the salesman might make a sale but lose the customer? What are service encounters? What are three different types of encounters? What are consumer touch points? Ans.- The first moment is the initial engagement with the product, and this is something that visual appearance and packaging are critical to determining whether a consumer makes a purchase. The second moment of truth that will determine if the consumer is fully engaged to the product and the brand. The application experience, or when the consumer actually uses that product, is what defines this moment—whether the consumer has a positive or negative experience. Exercising a full range of senses, consumers are experiencing, judging and confirming the initial purchase. And if the product passes this second moment of truth, the consumer will be motivated to use the product and enjoy its full benefits. Service encounter is when the customer interacts with the service or product for the first time. It has 3 different P's than the product and they are: • People • Process • Physical Evidence There are three types of service encounters which areRemote Encounter: Encounter can occur without any direct human contact is called as Remote Encounters. Such as, when a customer interacts with a bank through the ATM system, or with a mail-order service through automated dial-in ordering. Phone Encounters:- In many organizations, the most frequent type of encounter between a customer and the firm occurs over the telephone is called as phone encounter. Face-to-Face Encounters: A third type of encounter is the one that occurs between an employee and a customer in direct contact is called as Face-to-Face Encounter. In a hotel, face–to–face encounters occur between customers and maintenance personnel, receptionist, bellboy, food and beverage servers and others. Consumer Touch point is the interface of a product, a service or a brand with customers, noncustomers, employees and other stakeholders – before, during and after a transaction, respectively. This applies for business-to-business as well as business-to-consumer markets. 28
  • 29. International School of Business and Media Marketing Management II Q22. What are line extension and category extension? Explain using an example. Ans. Line Extension Line extension refers to the expansion of an existing product line. For instance, a soft drink manufacturer might introduce a "Diet" or "Cherry" variety to its cola line, while a toy manufacturer might introduce new characters or accessories in its line of action figures. In short, line extension adds variety to its existing product for the sake of reaching a more diverse customer base and enticing existing customers with new options. Category Extension Brand extension refers to the expansion of the brand itself into new territories or markets. For instance, if a soft drink manufacturer unveils a line of juices or bottled water products under its company name, this would constitute an example of brand extension. The brand, or company, is an established name, and so the name alone can serve to drive customers to try new products completely unrelated to the older product lines. 29
  • 30. International School of Business and Media Marketing Management II Q23. . What is product portfolio? Illustrate the product portfolio of one of these companies Asian Paints , 3M, CEAT, LG, P&G ,, Apple Ans. A product portfolio is comprised of all the products which an organization has. A product portfolio may comprise of different categories of products, different product lines and finally the individual product itself. Management is needed on all the three levels of a product portfolio. You need managers for managing individual products, managing product lines and finally the top level management which manages the complete portfolio. Lets look at an organization from a macro angle. An organization is comprised of a number of different departments, all focused towards one goal – the betterment of the organization. In the same manner, your product portfolio should be such that each and every product in the portfolio is focused towards one goal – Bringing the organization on top by optimally using the resources available. As an organization is comprised of different products, it becomes difficult to manage all of them. Thus there needs to be a hierarchy. This is where product portfolio management steps in. Let’s consider LG. Their products are – 1. For consumer – A. Mobile phones B. TV/Audio/Videos C. Home Appliances D. Air Conditioners E. IT Products F. LG Smart World 2. For business – A. Commercial TV(i) Interactive Full (ii) Interactive Ready (iii) Commercial Plus & Basic (iv) Hospital (v) CTV Accessories B. Digital Signage – (i) Mainstream Display (ii) Special Display (iii) Supersign (iv) EzSign TV (v) Media Player & Software 30
  • 31. International School of Business and Media C. D. E. F. G. H. Marketing Management II (vi) DS Accessories VCS – (i) Room Type (ii) Desktop Type Commercial Air Conditioner Solar Power Home Network – Security Components – (i) Motors (ii) Linear Compressor (iii) Reciprocating Compressor (iv) Aircon Compressor I.CommercialLaundry. 31
  • 32. International School of Business and Media Marketing Management II Q24. What is line pruning and Line filling? What is line stretching? Explain using an example. Ans.- Product line filling is the addition of further items to the current line of products that a company is dealing in. Eg.Maruti Suzuki had launched Alto in the year 2000 which was a product between two other models of Maruti- Maruti 800 and Maruti Zen. Basically , it was an effort on part of the company to fill the gap that existed in the market segment by introducing this new model ALTO . On the other hand, product line pruning is the removal of the unprofitable products from the product line. Eg. Toyota Kirloskar phasing out their model Qualis, when it was not adding any value to the product line as such. Increasing the number of products within an existing product range with similar products that have additional or different features. When a business already has a well established brand, it can use line stretching to expand its product line and help increase its market share without having to develop substantially new products. Toyota is generally a company that produces durable (questionable) and low-price cars. The way Toyota is product line stretching is by creating a new higher end brand, Lexus. This model has increased Toyota's sales and allowed them access to different markets. Also, they are able to access new customers who are looking for a higher end trustworthy car. Lastly, Toyota has been able to scare-off competitors and improve their reputation. 32
  • 33. International School of Business and Media Marketing Management II Q25. Positioning is not what you do to the product, but what you do to the mind of the prospect. Ans.- Products are made in the factory, but brands are created in the mind. Al Ries & Jack trout You are a brand consultant to fortune 500 companies of the world. You have been approached by Bill & Melinda Gates Foundation to consult them on opening a chain of schools in India. As a brand consultant your first task is to draft three positioning statements for the proposed school. You have to identify three positioning statements as well as elaborate the positioning concepts. Walter Landor 33
  • 34. International School of Business and Media Marketing Management II Q26. How would you demystify the above statement to your brother with definition and examples? Ans.- You are pursuing a management programme at one of India’s leading Business Schools in Pune. Top of that you have been a voracious reader of Economic Times right from your secondary school days. Your brother wants to follow in your footsteps and aspires to pursue his management programme from your Business School. No wonder he started reading Economic Times for his preparation. He once called you to seek your help in understanding the following statement which he read in today’s Business of Brands section of Economic Times. “Brands trump commodities.” How would you demystify the above statement to your brother with definition and examples? In the marketplace, you have either a one-of-a-kind brand or a one-is-as-good-as-any-other commodity. When it comes to creating a marketing success story, there’s no question that brands fare better because: Brands are products defined by and chosen for their unique distinguishing attributes. People buy brands because they relate to and trust their distinctions and promises. Consumers are willing to spend extra time and money in order to obtain the brands they believe in. Commodities are products that are easy to substitute and hard to differentiate. Commodities are purchased simply because they serve a purpose. Oil, coffee beans, wheat flour, and milk are all commodities. Consumers buy commodities because they meet minimum standards and are available when and where they’re needed and at the lowest price. 34
  • 35. International School of Business and Media Marketing Management II Q 27. What is your interpretation of this law of marketing? Ans. - Professor Al Ries & Jack Trout in their bestselling book on 22 immutable laws of marketing have stated “The birth of a brand is achieved with publicity, not advertising.” The birth of brand is achieved with publicity, not advertising because a new brand must be capable of generating publicity in media but they won’t have a chance in marketplace. Starbucks doesn’t spend much on advertising but they have a equity in marketplace and same is the case with Wallmart. 35
  • 36. International School of Business and Media Marketing Management II Q28. What is brand extension? What are the advantages and disadvantages of brand extension? What are the factors needs to be taken care of before executing brand extension. Ans- Brand extension is marketing strategy in which a marketer launches a new product with well-developed brand using the same brand name. Brand use this strategy to increase visibility and leverage equity. An existing brand that develops brand extension is known as parent brand. For example, Nike dealt only with shoes but now it has variety of products like watches, caps, jackets and so on. While there can be significant benefits in brand extension with significant failures in brand extension. With every advantage there is disadvantage. The advantages of brand extension: 1. 2. 3. 4. 5. It increases brand image. Cost of developing new brand is reduced. Consumers can now seek for variety There are packaging and labeling efficiencies. The expense of introductory and follow up marketing programs is reduced The disadvantages of brand extension: 1. Brand extension may get loss of reliability, if it is extended too far. 2. There can be chances of damaging the image of the brand by the new product. 3. If the brand extension has no advantage over competing brands then it may lead to failure. 36
  • 37. International School of Business and Media Marketing Management II Q29. What is co-creation? What is crowd sourcing? Share any 5 examples of crowd sourcing products or services. Ans.- Co-creation is a form of marketing strategy or business strategy that emphasizes the generation and ongoing realization of mutual firm-customer value. It views markets as forums for firms and active customers to share, combine and renew each other's resources and capabilities to create value through new forms of interaction, service and learning mechanisms. It differs from the traditional active firm – passive consumer market construct of the past. Crowd sourcing is using collective intelligence gathered from the public and using that information to complete business-related tasks. These tasks are normally completed by the company or a third-party service provider, but through crowd sourcing the public assists in the completion of these tasks. Companies are often attracted to crowd sourcing because it expands their talent pool and is often free. Crowd sourcing also allows a company to gain insight into their customers and what they desire. Examples of Crowd sourcing product or services are: 1. TripAdvisor – relies on the opinions and reviews of its members to provide information to people interested in a flight, trip or vacation. With over 40 million reviews, it has become the first port of call for many travellers. 2. Catwalk Genius – based in Ireland, Catwalk Genius is a crowd funding fashion site. People buy a small share of a collection enabling struggling designers to showcase their work. Each share costs £10 and when 5,000 have been sold the designer is commissioned to create a collection. Those who bought shares are then given a proportion of the profits from the collection based on the number of shares they purchased. 3. Apple – world class net promoter scores and brand advocacy, but many people will have limited interaction with the company. Much of the product information and support required is found in forums where people share their knowledge. For example, Googling “iPhone 3GS frozen” returns a multitude of answers (including YouTube videos), only one of which is from the official Apple support site. 4. Walkers Crisps “Do us a flavour” campaign – Walkers brand regard was eroding and competition was increasing. Through their “Do us a flavour” campaign they handed over creation of their next crisp flavour to the public. 37
  • 38. International School of Business and Media Marketing Management II They launched 6 of the flavours suggested and asked people to vote for their favourite. They generated over 1.2 million flavour suggestions and 1 million votes, with Builder’s Breakfast being the winning flavour. The winner received £50k and 1% of future sales. Sales increased by 14%. 5. Starbucks – an ideas forum where customers are invited to share, vote, discuss and see – “You know better than anyone else what you want from Starbucks. So tell us. What’s your Starbucks Idea? Revolutionary or simple – we want to hear it. Share your ideas, tell us what you think of other people’s ideas and join the discussion. We’re here, and we’re ready to make ideas happen. Let’s get started.” 38
  • 39. International School of Business and Media Marketing Management II Q30. What are product categories? Mention the product categories you might come across when you visit Big Bazaar, Westside, and Shoppers Stop. Ans.- A product category is a way to organize products in your store by the type of products you sell. For example, if you sell electronic products then your categories might be computers, televisions, projectors, speakers and cell phones. If you however only sell one type of product from your store, such as t-shirts, then your categories might be v-neck, sweaters and hoodies. Categories are one of many ways that visitors to your store can find the products they want to buy. Other ways include: • • • • • Shopping by brand Shopping by price Searching Looking at related products Looking at popular/top selling products Big bazaar: Food Bazaar: All food items, pulses, grains, fruits, vegetables. Apparel : For Ladies, Men’s, Kids for all season. Western, ethnic, casuals & formals. Appliances: All kitchen appliances like Mixer Grander, Toaster, Microwave, Juicer. GM-Home: Entire range of kitchen need, Utensils, Plastic-wear, Home-linen. GM-Fashion: Accessories, Luggage, Gift items and many more. Westside : The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts Shoppers Stop: Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Q31. What are me-too products? Illustrate using an example. What are generic product categories? 39
  • 40. International School of Business and Media Marketing Management II Ans.- A product that is very similar to products manufactured by other companies and already on the market. For example, a toy manufacturer observes the immense popularity of a competitor's product and decides to produce its own version that is virtually identical. The generic product-market includes a broad group of products that satisfy a general, yet similar, need. The starting point in determining product-market boundaries is to identify the particular need or want that a group of products satisfy. Since people with a similar need may not satisfy the need in the same manner, generic product-markets are often heterogeneous, containing different end-user groups and several types of related products. The product-type product-market includes all brands of a particular product type. The product type is a product category or product classification that offers a specific set of benefits intended to satisfy a customer's need or want in a specific way. Differences in the products within a product-type product-market may exist, creating product-variants. 40
  • 41. International School of Business and Media Marketing Management II Q32. Taking the example of service offering in a hotel, explain product hierarchy levels. How does this information help product planners? Ans. - Core Benefit: • Fundamental service/benefit that customer is really buying. • Marketers must see themselves as benefit providers. • Example: Hotel Guest – Buys rest/sleep. - Basic Product: • At the second level, marketer has to turn a core benefit into a basic product. • Example: Hotel room includes bed/bathroom/table/chair/closet/towels. Expected Product: • At the third level, marketer prepares an expected product. • Expected product is a set of attributes & conditions that buyers normally expect&agree to when they buy the product. • Example: Hotel Guest expects: o Clean Bed. o Fresh Towels. o Working Lights. o Quiet Room. Augmented Product: At the 4th level marketer prepares an augmented product that meets customer’s desires beyond expectations. Example: Hotel provides: CCTV. Fresh flowers. Toiletry kit. Room service. Multi cuisine dining. In a competitive mkt, competition usually takes place at the product augmentation level. Augmented benefits may become expected benefits in a competitive market. Potential Product: encompasses future augmentation Possible evolution of product is analysed& provided by marketers to obtain customer’s delight. 41
  • 42. International School of Business and Media Marketing Management II Example: Hotel provides: Fresh fruit. Stocked Refrigerator. Personal Valet. Successful marketers add benefits to not only retain customers but to surprise & delight them. For this normal expectations are exceeded. 42
  • 43. International School of Business and Media Marketing Management II Q33. “Packaging - the activities of designing and producing the container or wrapper for a product”. What are other benefits of packaging? Ans.- Packaging plays an important role as a medium in the marketing mix, in promotion campaigns, as a pricing criterion, in defining the character of new products, as a setter of trends and as an instrument to create brand identity and shelf impact in all product groups. The findings of many other research projects are supplemented by the survey carried out by IRI (Information Resources Inc.), which provides information about this subject from extensive, indepth interviews and POS polls, specifically including the issue of multisensory appeal, which is a particular trend. It also presents new arguments and evidence confirming a central conviction held by the packaging industry: that the shopper appreciates and in fact explicitly wants to receive stimulation for the buying decision he is making when standing in front of the supermarket shelf, often even preferring this to other forms of communication. He is keen to be informed and inspired, tempted and pampered by surprising and persuasive functions and emotions. Protection o The basic benefit of packaging is the protection of goods to be sold. It prevents damage during transport and storage from the elements, vibration and compression through a physical layer of protection Information o Packaging can provide information to a consumer regarding the product contents. This information may be promotional, factual or mandated by consumer law. Containment o Products that contain multiple items use packaging to keep all items contained prior to purchase. Product containment also allows a product to be sold in larger quantities. Size and Quantity o Packaging can control the size and quantity of a product. Portion control helps control inventory, create product consistency and can help regulate prices. Marketing 43
  • 44. International School of Business and Media Marketing Management II o Packaging is the front line of marketing. Through design and marketing communications, packages can help sell a product and differentiate it from similar products. The packaging can also help promote product branding. o Product security can be provided through packaging. Packing can make items tamper-resistant, can help reduce theft and can help prevent harm from dangerous products. Security 44
  • 45. International School of Business and Media Marketing Management II Q34. What are the roles played by labeling? Ans. - Labeling gives necessary information to the customers about the products. The customers can get knowledge about the quality and features of product without tasting the product. They can recognize standard and grade of the product. Label provides information about the price, quantity, quality etc. of the product, due to which the customers buy the product without doubt and hesitation. They compare the product with the same nature products of other firms on the basis of the information provided on the label. Label becomes helpful to sellers to sell out the product. It protects the customers from malpractices of the middlemen. Labeling is very important element affecting sales and distribution process of a product, which provides clear information about the grade, quantity, price, brand name, features etc. to the customers. In marketing, the importance and necessity of labeling of a product can be mentioned as follows: 1. Labeling identifies the product Label helps to identify the product and brand. It popularizes the product and its brand name. 2. Labeling grades the product Label helps to express grade of the product. For example, wheat can be express with the grades such as 1, 2, 3, 4. Label becomes useful to grade any product according to its quality. 3. Labeling describes the product Label gives introduction of the product, describes and expresses its grade. Information and instructions about- who manufactured the product, when and where it was manufactured, how many ingredients have been used in it, how to use the product, how to keep the product safe, etc. are given on the label. This becomes helpful to the customers. 4. Labeling promotes the product Label helps to promote the product. Customers' attention is drawn by attractive and fascinating graphs, figures or marks. This motivates the customers to buy the product. Label plays and important role in sales and distribution as it makes the customers take buying decision. 5. Labeling protects the customers Label protects the customers. As maximum selling price, quantity, quality etc. are mentioned on the label, the customers are protected from the possible malpractice of middlemen. 6. Captures Attention - Labels serve to capture the attention of shoppers. The use of catchy words may cause strolling customers to stop and evaluate the product. 7.Offers First Impression - The label is likely to be the first thing a new customer sees and thus offers their first impression of the product. 8.Provides Information - The label provides customers with product information to aid their purchase decision or help improve the customer’s experience when using the product (e.g., recipes). 45
  • 46. International School of Business and Media Marketing Management II 9.Aids Purchasing - Labels generally include a universal product codes (UPC) and, in some cases, radio frequency identification (RFID) tags, that make it easy for resellers, such as retailers, to checkout customers and manage inventory. 10.Addresses Needs in Global Markets - For companies serving international markets or diverse cultures within a single country, bilingual or multilingual labels may be needed. 11.Meets Legal Requirements - In some countries many products, including food and pharmaceuticals, are required by law to contain certain labels such as listing ingredients, providing nutritional information or including usage warning information. 46
  • 47. International School of Business and Media Marketing Management II Q35. What are product line length, breadth & width? What objectives are met by following these product strategies? Ans.-Product Line Length The product line length shows the number of different products in a product line. A long product line has lots of different products in it and a short product line has a small number of different products. The product manager's job is to work out how many products to include in the product line. If there are too many product types in a product line, they will begin to compete with each other, increase costs unnecessarily and even confuse customers. If the product line is too short it will limit customer choice and send customers to competitors with a greater selection of products. Product Line Depth Some of the product types in a product line may be split again into groups, the product line depth shows how many subgroups the product line contains. For example Samsung have split their mobile phones into the following product lines touch screens, slider/folders, QWERTY keyboards and bar phones. Each of these product lines can be further split into subgroups at the time of writing this article Samsung had 7 slider mobile phones and 32 touch screen mobile phones, 32 is a deep product line. Product Line Stretching Product line stretching occurs when a business adds new product to the product line and the new product types are of a higher or lower quality than existing products in the product line. If the new product types are cheaper or of a lower quality it is known as a downward stretch. If the new product types are more expensive or of a higher quality it is known as an upward stretch. Supermarkets often stretch product lines by offering value, standard and premium versions of their own brand products. Product stretching enables firms to fill any Gaps they have identified in the market. 47
  • 48. International School of Business and Media Marketing Management II Q36. Explain the following Intangibility, Heterogeneity, Perishability, Simultaneous production and consumption. Ans. - Intangibility- Fundamentally, services differ from manufacturing with respect to intangibility. Because services are experiences rather than objects, they cannot be touched, tasted or felt as in the case of objects. Heterogeneity- The second differential aspects of services is the high degree of heterogeneity associated with them. Since the experiential element is dominant in a service, it is likely that no two services are exactly alike. The differences are attributed to the differences in the service receivers, the service providers, and other parameters of the service delivery system. Perishability- Services are perishable. This implies that they cannot be inventoried. Thirty minutes of a doctor’s consulting expertise today cannot be stored for future use, reused, or returned in a future period. Simultaneous Production and Consumption- More often, services occur in the presence of customer, who may also be involved at the time the service is produced for his/her consumption. This holds for education, entertainment, travel, tourism, and hotel services as well. 48