Marketing ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ <*>‘The right product, in the right place, at the right time, and at the right price’
Implications of marketing Who are our existing / potential customers? What are their current / future needs? How can we satisfy these needs? Can we offer a product/ service that the customer would value? Can we communicate with our customers? Can we deliver a competitive product of service? Why should customers buy from us?
Sociocultural factors Demographics Distribution of income Social mobility Lifestyle changes Consumerism (HSE) Levels of education Others?
Five forces analysis Potential entrants Threat of entrantsSuppliers COMPETITIVE Buyers RIVALRY Bargaining Bargaining power power Threat of substitutes Substitutes Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4.
Five Forces Analysis: Key Questions and Implications• What are the key forces at work in the competitive environment?• Are there underlying forces driving competitive forces?• Will competitive forces change?• What are the strengths and weaknesses of competitors in relation to the competitive forces?• Can competitive strategy influence competitive forces (eg by building barriers to entry or reducing competitive rivalry)?
Integrating MarketingCommunication to Build Brand
Market Communication Marketing Communication: Inform Remind and Persuade Customers, directly or indirectly, about their brands [Wimbledon, DLF-IPL, Nike-Women] Marketing Communication contributes to brand: Creating Awareness [BSRM-Highway notifications, EBL] Linking strong favorable unique brand associating with memory [Meril beauty soap] Eliciting Positive Brand Judgment or feelings [AB Bank – Family Friend, Allianz-Security, Femicon]
MC effectiveness 1 2 3 Current Desired Brand Communications Brand Knowledge Knowledge I. What is your Current Brand Knowledge? Detailed Mental Map? II. What is your desired brand knowledge? III. How does the communication help it to move from 1 to 3
Information Processing Model Six steps to persuade a person Exposure: Hear the Communication Attention: Notice the Communication Comprehension: Understand the Message or Arguments Yielding: Respond favorably to the Message or Arguments Intentions: Plan to act in Desired Manner Behavior: Act in Desired MannerAll of the steps must be met for a consumer to be persuaded
Brand Positioning- Competition? Competitive Analysis: Resource (Blackberry vs. Apple) 2 Capability (Technology vs. Labor, Intel vs. Walmart) Future possible Action (Buyout vs. Promotion, MS vs. Coke) Nature of Competition (Oligopoly vs. Mkt., Chevron vs. Sony)
Core Brand Values Set of abstract concepts or phrases that characterize 5-10 most important dimensions of the mental map of a brand. Perceptual Mapping Coverage Perceptual Map Core Brand Values Brand Mantra
Brand Mantras A brand mantra is an articulation of the “heart and soul” of the brand. Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values. Nike Authentic Athletic Performance /Just do it Disney Fun Family Entertainment
Brand Names Awareness Pronunciation/Spelling (Aim, Bata, Tata, Jet Vs. Hyundai, IKEA) Pleasantness (Ramada, Nivea, Nirvana, Emmy) Familiarity (Mecca Cola, Boston Chicken, Swiss Chocolate) High Imagery (Newsweek, Body Shop, Sub-Way) Cultural Differences (Red Cross, Moon & Star)
New Products and Brand Extensions Current Markets Market Product Penetration DevelopmentCurrent Products New Products Market Development Diversification New Markets Ansoff’s Growth Share Matrix
New Product – Branding DecisionsWhen a Firm introduces a New Product, it has threemain choices as to how to Brand it A New Brand – individually chosen for the New Product An existing Brand Name applied in some way A combination of a New Brand with an Existing Brand
Brand Extensions An established brand name to introduce a new product [Ispahani Pure Snax] An existing brand that gives birth to a brand extension is referred to as the Parent Brand [Bata Apparels, Pocha Sandal] If a parent brand is associated with multiple products through brand extensions then it is called a Family Brand [Pran Juice, Milk, Chanachur, Mineral Water]
Types of Brand Extensions Line Extensions The parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. e.g. Lux Herbal It often involves a different flavor or ingredient variety, a different form or size, or a different application for the brand e.g. Ispahani Mirzapore Tea
Types of BrandExtensions Category Extensions The parent brand is used to enter a different product category from that currently served by the parent brand e.g.: Apex Pharma, Swiss Army Watch
Rebranding This can be defined as "a process of giving a product or an organization a new image, in order to make it more attractive and successful" (Collins English Dictionary). This is done to increase consumer loyalty, improve member professionalism, enter a new market trend, create a stronger voice in the industry, increase share holder value or to reenergize a company Generally many companies consider rebranding as a Cosmetic Work out.
Rebranding There are many reasons to re-brand: To keep up with the times and keep pace with changing consumer needs (e.g. services, accessibility, convenience, choice, fashion, technology). Because a brand has become old-fashioned and is in danger of stagnation or is already in a state of erosion. (AB Bank) Due to fierce competition or a fast-changing environment (PEPSI to Pepsi to pepsi) As a result of globalization (e.g. Lever Brothers to Lever to Unilever). As a result of mergers and acquisitions (e.g. GLAXO to GLAXOWELCOME to gsk). To decrease business development and operational costs, or a way of countering declining profitability or consumer confidence. To signal a change in direction, focus, attitude or strategy. Where there are complex product portfolios, considerable advertising and branding clutter, media proliferation and subsequent audience fragmentation.