Product & brand management


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Product & brand management

  1. 2. Course Objective <ul><li>To develop an understanding of the basic branding principles and their exposure to classic and contemporary branding applications. </li></ul><ul><li>To make the students aware about the role of brands, the concept of brand equity, and the advantages of creating strong brands. </li></ul><ul><li>To increase the understanding of the important issues in planning, implementing, and evaluating brand strategies </li></ul><ul><li>To acquaint the students with the appropriate concepts, theories, models and other tools to make better brand decisions. </li></ul><ul><li>To understand the latest developments and cultivate an understanding of the adjustments to be made in branding strategies over time and geographic boundaries to maximize brand equity </li></ul>
  2. 3. Text Books <ul><li>Product Management by Lehman & Winer, 4 th Edition, Tata McGraw Hill Publishing Pvt Ltd. </li></ul><ul><li>Strategic Brand Management by Kevin Lane Keller, 3 rd Edition, Pearson Education India Limited </li></ul>
  3. 4. Responsibilities of Product Manager <ul><li>Product Planning </li></ul><ul><ul><li>Analysis of market </li></ul></ul><ul><ul><li>Customer </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>External Environment </li></ul></ul><ul><ul><li>Deciding objectives & strategies </li></ul></ul><ul><li>Coordination with other departments </li></ul>
  4. 5. A Product Manager’s Potential Interactions Designers Researchers Premium suppliers Premium screening Store testing Sampling Couponing Advertis-ing agency Packaging Promotion services Product manager Suppliers Trade Suppliers Trade Research suppliers Suppliers Agency media department Company media department Media sales reps Sales Media Purchasing Publicity Legal Fiscal Market research Manufactur-ing and distribution Research and development
  5. 6. Product Vs. General Marketing Product Management General Marketing Scope of Responsibility Narrow Broad Nature of decision making Tactical Strategic Time Horizon Short run Long Run
  6. 7. Marketing Organization <ul><li>Organizing by Product </li></ul><ul><li>Organizing by market </li></ul><ul><li>Organizing by function </li></ul>
  7. 8. Product-Focused Structure Head of company/division Corporate communications Finance Marketing Manufacturing Manager of product A Manager of product C Manager of product B Marketing Research Support Product management
  8. 9. Evaluation of Product Focused Structure <ul><li>Easier to assess work-unit performance </li></ul><ul><li>Decision-making is faster </li></ul><ul><li>Duplication of activities </li></ul>Advantages Disadvantages
  9. 10. Market-Focused Organization Head of the company/division Manufacturing Marketing Corporate communications Finance Manager, market B Manager, market A Manager, market C
  10. 11. Evaluation of Market Focused Structure <ul><li>Focuses on customer needs </li></ul><ul><li>Products and services tailored to customer needs </li></ul><ul><li>Duplication of resources </li></ul><ul><li>Difficult to coordinate across departments </li></ul><ul><li>Focuses on customer needs </li></ul><ul><li>Products and services tailored to customer needs </li></ul><ul><li>Duplication of resources </li></ul><ul><li>Difficult to coordinate across departments </li></ul>Advantages Disadvantages
  11. 12. Marketing Organization: Regional Bell Operating Company Assistant vice president, consumer marketing Product management Operations and sales Customer billing Revenue and market forecasting Assistant vice president, business marketing Marketing planning and product development Product management Operations Directory products Assistant vice president, interindustry marketing Carrier marketing Operator services Vice president, marketing
  12. 13. Functionally-Focused Organization Head of the company/division Manufacturing Marketing Corporate communications Finance Advertising Product marketing Sales promotion Marketing research
  13. 14. Evaluation of Functionally Focused Structure <ul><li>Work done by highly skilled specialists </li></ul><ul><li>Lowers costs through reduced duplication </li></ul><ul><li>May lead to slower decision making </li></ul><ul><li>Produces managers with narrow experiences </li></ul>Advantages Disadvantages
  14. 15. Skills of Product Managers <ul><ul><li>Background, desirable but not essential </li></ul></ul><ul><ul><li>Negotiation Skills </li></ul></ul><ul><ul><li>Teamwork </li></ul></ul><ul><ul><li>Communication Skills </li></ul></ul><ul><ul><li>Analytical Skills </li></ul></ul>
  15. 16. Changes Affecting Product Management <ul><li>The Web </li></ul><ul><li>Data explosion </li></ul><ul><li>Increased emphasis of brands </li></ul><ul><li>Changes in the balance of market power </li></ul><ul><li>Increased importance of customer retention programs </li></ul><ul><li>Increased global competition </li></ul>
  17. 18. <ul><li>Product category defines set of competitors against which one most often competes on a daily basis. </li></ul>
  18. 19. Category Attractiveness Factors <ul><li>Aggregate Market Factors </li></ul><ul><li>Category Factors </li></ul><ul><li>Environmental Factors </li></ul>
  19. 20. Aggregate Category Factors <ul><li>Category size </li></ul><ul><li>Category growth </li></ul><ul><li>Stage in product life cycle </li></ul><ul><li>Sales cyclicity </li></ul><ul><li>Seasonality </li></ul><ul><li>Profits </li></ul>
  20. 21. Attractiveness of Market Variables
  21. 22. Category Attractiveness over the Product Life Cycle Stage of product life cycle Category size Category growth Category attractiveness Introduction Small Low Low Growth Moderate High High Maturity Large Low Low/high Decline Moderate Negative Low Sales Time
  22. 23. Category Factors <ul><li>Threat of new entrants </li></ul><ul><li>Bargaining power of buyers </li></ul><ul><li>Bargaining power of suppliers </li></ul><ul><li>Current category rivalry </li></ul><ul><li>Pressure from substitutes </li></ul><ul><li>Category capacity </li></ul>
  23. 24. Threat of new entrants <ul><li>Can be managed by creating high entry barriers like: </li></ul><ul><ul><li>Economies of scale </li></ul></ul><ul><ul><li>Product differentiation </li></ul></ul><ul><ul><li>Capital requirements </li></ul></ul><ul><ul><li>cost </li></ul></ul><ul><ul><li>Distribution </li></ul></ul>
  24. 25. Buyer Bargaining Power is High When: <ul><li>Product bought is a large percentage of the buyer’s cost. </li></ul><ul><li>Product bought is undifferentiated. </li></ul><ul><li>Buyers earn low profits. </li></ul><ul><li>Buyer has full information. </li></ul><ul><li>Substitutes exist for the seller’s product or service. </li></ul><ul><li>Buyers have formed a union </li></ul>
  25. 26. Supplier Bargaining Power is High When: <ul><li>Suppliers are highly concentrated, that is, dominated by a few firms. (OPEC) </li></ul><ul><li>There is no substitute for the product supplied. (Petrol) </li></ul><ul><li>Supplier has differentiated its product or built in switching costs. (Providing raw materials that are not provided by any other) </li></ul><ul><li>Supply is limited. </li></ul>
  26. 27. Major Characteristic of Categories Exhibiting Intensive Rivalries <ul><li>Many or balanced competitors </li></ul><ul><li>Slow growth </li></ul><ul><li>High fixed costs </li></ul><ul><li>Lack of product differentiation </li></ul><ul><li>Personal rivalries </li></ul>
  27. 28. Pressure from substitutes <ul><li>As the substitutes are more, category is lesser attractive and as they are less, it is more. </li></ul>
  28. 29. Category capacity <ul><li>If category unused capacity is high, bargaining power of buyers are more. </li></ul>
  29. 30. Impact of Category Factors on Attractiveness
  30. 31. Environmental Factors <ul><li>Technological </li></ul><ul><li>Political </li></ul><ul><li>Economic </li></ul><ul><li>Regulatory </li></ul><ul><li>Social </li></ul>