A product is any offering by a company to a
market that serves to satisfy customer needs and
wants.
 It can be an object,...
Most new product development is an improvement
on existing products
 Less than 10% of new products are totally new
concep...
The success rate of new products is very low –
less than 5%. ‘You have to kiss a lot of frogs to
find a prince.”
 Product...
Idea generation
 Idea screening
 Concept development and testing
 Concept testing
 Conjoint analysis – to find out the...
The most customer appealing offer is not always
the most profitable to make
 Estimate on costs, sales volumes,pricing and...
Test markets
 Test periods
 What information to gather?
 What action to take?

When? (Timing)
 Where? (Which geographical markets)
 To whom? (Target markets)
 How? (Introductory Marketing strategy)
...
Customer value hierarchy
 Core benefit
 Basic product
 Expected product
 Augmented product
 Potential product


When you exceed customer expectations
Need
 Product family
 Product class
 Product Line
 Product type
 Brand
 Item

Durable
 Non – durable
 Services

Convenience goods
 Shopping goods
 Specialty goods
 Unsought goods

Materials and Parts
- raw materials
- manufactured materials and parts
 Capital items
 Supplies and business services

The assortment of products that a company
offers to a market
 Width – how many different product lines?
 Length – the nu...
Product rationalization
 Market rationalization
 Product line length
too long – when profits increase by dropping a
prod...
A name becomes a brand when consumers
associate it with a set of tangible and intangible
benefits that they obtain from th...
When a commodity becomes a brand, it is said to
have equity.
 The premium a brand can command in the market
 The differe...
Attributes
 Benefits
 Values
 Culture
 Personality
 Users

Customer will change brands for price reasons
 Customer is satisfied. No reason to change.
 Customer is satisfied and wo...
Reduced marketing costs
 Trade leverage
 Can charge a higher price
 Can easily launch brand extensions
 Can take some ...
Brand Equity needs to be nourished and
replenished. We must not flog the brand for equity
to be diluted or dissipated
 St...
Easy for the seller to track down problems and
process orders
 Provide legal protection of unique product
features
 Bran...


Consumers buy from a set of acceptable/
preferred brands
Products from different categories under one
brand
 Dangerous to the brand if the principal brand fails
 Sometimes the c...
Product benefits
 Product qualities
 Easy to pronounce
 Should be distinctive
 Should not have poor meanings in other
...
Line extension – existing brand name extended to
new sizes in the existing product category
 Brand extension – brand name...


This may be required after a few years to face
new competition and changing customer
preferences
Includes the activities of designing and producing
the container for a product
 Packaging is done at three levels
- prima...
Self service
 Consumer affluence
 Company and brand image
 innovation

Packaging concepts
 Technical specifications
 Engineering tests
 Visual tests
 Dealer tests
 Consumer tests
 Packagi...
Identification
 Grade classification
 Description of product
 Manufacturer identity
 Date of mfg., batch no.
 Instruc...


Labels need to change with time or packaging
changes to give it a contemporary and fresh look
Product and brand management
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Product and brand management

  1. 1. A product is any offering by a company to a market that serves to satisfy customer needs and wants.  It can be an object, service, idea,etc. 
  2. 2. Most new product development is an improvement on existing products  Less than 10% of new products are totally new concepts. 
  3. 3. The success rate of new products is very low – less than 5%. ‘You have to kiss a lot of frogs to find a prince.”  Product obsolescence is rapid with improvements in technology  Shorter PLCs 
  4. 4. Idea generation  Idea screening  Concept development and testing  Concept testing  Conjoint analysis – to find out the best valued attributes by consumers 
  5. 5. The most customer appealing offer is not always the most profitable to make  Estimate on costs, sales volumes,pricing and profit levels are made to find out the optimal price – volume mix.  Breakeven and paybacks  Discounted cash flow projections 
  6. 6. Test markets  Test periods  What information to gather?  What action to take? 
  7. 7. When? (Timing)  Where? (Which geographical markets)  To whom? (Target markets)  How? (Introductory Marketing strategy) 
  8. 8. Customer value hierarchy  Core benefit  Basic product  Expected product  Augmented product  Potential product
  9. 9.  When you exceed customer expectations
  10. 10. Need  Product family  Product class  Product Line  Product type  Brand  Item 
  11. 11. Durable  Non – durable  Services 
  12. 12. Convenience goods  Shopping goods  Specialty goods  Unsought goods 
  13. 13. Materials and Parts - raw materials - manufactured materials and parts  Capital items  Supplies and business services 
  14. 14. The assortment of products that a company offers to a market  Width – how many different product lines?  Length – the number of items in the product mix  Depth – The no. of variants offered in a product line  Consistency – how closely the product lines are related in usage 
  15. 15. Product rationalization  Market rationalization  Product line length too long – when profits increase by dropping a product in the line too short – when profits increase by adding products to the product line  Line pruning – capacity restrictions to decide 
  16. 16. A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service  It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers 
  17. 17. When a commodity becomes a brand, it is said to have equity.  The premium a brand can command in the market  The difference between the perceived value and the intrinsic value 
  18. 18. Attributes  Benefits  Values  Culture  Personality  Users 
  19. 19. Customer will change brands for price reasons  Customer is satisfied. No reason to change.  Customer is satisfied and would take pains to get the brand  Customer values the brand and sees it as a friend  Customer is devoted to the brand 
  20. 20. Reduced marketing costs  Trade leverage  Can charge a higher price  Can easily launch brand extensions  Can take some price competition 
  21. 21. Brand Equity needs to be nourished and replenished. We must not flog the brand for equity to be diluted or dissipated  Store brands 
  22. 22. Easy for the seller to track down problems and process orders  Provide legal protection of unique product features  Branding gives an opportunity to attract loyal and profitable set of customers  It helps to give a product category at different segments, having separate bundle of benefits  It helps build corporate image  It minimises harm to company reputation if the brand fails 
  23. 23.  Consumers buy from a set of acceptable/ preferred brands
  24. 24. Products from different categories under one brand  Dangerous to the brand if the principal brand fails  Sometimes the company name is prefixed to the brand. In such cases the company name gives it legitimacy. The product name individualises it. 
  25. 25. Product benefits  Product qualities  Easy to pronounce  Should be distinctive  Should not have poor meanings in other languages and countries 
  26. 26. Line extension – existing brand name extended to new sizes in the existing product category  Brand extension – brand name extended to new product categories  Multibrands – new brands in the same product category  New brands – new product in a different product category  Cobrands –brands bearing two or more well known brand names 
  27. 27.  This may be required after a few years to face new competition and changing customer preferences
  28. 28. Includes the activities of designing and producing the container for a product  Packaging is done at three levels - primary - secondary - shipping 
  29. 29. Self service  Consumer affluence  Company and brand image  innovation 
  30. 30. Packaging concepts  Technical specifications  Engineering tests  Visual tests  Dealer tests  Consumer tests  Packaging innovations  Environmental considerations 
  31. 31. Identification  Grade classification  Description of product  Manufacturer identity  Date of mfg., batch no.  Instructions for use  Promotion 
  32. 32.  Labels need to change with time or packaging changes to give it a contemporary and fresh look
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