1. What is a Brand?

2. What is a Brand?
NAME
SIGN
SYMBOL/LOGO
COMBINATION

3. Branding
Strategies

4. Branding Strategies
Strategies
Brand Multiple
Extension
Line Extension
Branding New Brands
• Existing • Same brand • Introduce • Launches
brand name name same new brand in new product
for new product existing in new
product category product category
category • Cinthol category • Timex
• Maggie • Lays • HUL –
Lux, Liril &
Lifebuoy

5. Branding Strategies
Strategies
Brand Multiple
Extension
Line Extension
Branding New Brands
•?

6. PRODUCT LIFE CYCLE
2.5
Sales 2 Maturity
1.5 Decline
Growth
1
0.5
Introduction
0
Time
0 1 2 3 4 5 6

7. MARKETING STRATEGIES – INTRODUCTION STAGE
Price
High
High Low
Low
High
High Rapid Rapid
Skimming Penetration
Promotion
Low Slow Slow
Skimming Penetration
Low

8. Rapid Skimming
 Launching product at high price & high promotion
 Strategy makes sense – Large part of the potential
market is unaware of the product
 Awareness – Eager to have & pay the asking price
 Company faces potential competition
 Build brand preference

9. Slow Skimming
 Launching product at high price & low promotion
 Strategy makes sense – Market is limited in size &
aware of the product
 Buyers are willing to pay high price
 Potential competition is imminent

10. Rapid Penetration
 Launching product at low price & spending heavily
on promotion
 Strategy makes sense – Market is large & unaware
of the product
 Buyers are price sensitive
 Company faces strong potential competition
 Unit manufacturing costs fall - Company's scale of
production & accumulated manufacturing experience

11. Slow Penetration
 Launching product at low price & low level of
promotion
 Strategy makes sense – Market is large & market is
aware of the product
 Buyers are price sensitive
 Some potential competition

12. Marketing Strategies - Growth
 Improves product quality & adds new product
features & improved styling
 Adds new product models & flanker products
 Enters new market segments
 Increases the distribution coverage & enters new
distribution channels
 Shifts from product awareness advertising to
product preference advertising
 Lowers price to attract the next layer of price
sensitive buyers

13. Strategies – Maturity stage
Product
Modification
Marketing
Market
Mix
Modification
modification
Strategies
Maturity
stage

14. Marketing Strategies - Maturity
Market Modification
 Non-users
 New Users
 Enter new market segments
 More usage
 New usage

15. Product Modification
Quality Feature Style
Improvement improvement Improvement
• Increasing • Adding new • Increasing
functional features products
performance • Size, weight, aesthetic
• Durability, rel materials, appeals
iability, spee accessories e • Style
d, taste etc. • Expand the competition
• PLUS launch products • Packaging –
versatility, Color, restyle
safety, the package
convenience

16. ElementsBCG MATRIX
of Macro environment
Economic
Demographic Political/Legal
Macro
environment/
External
environment
Global Technological
Socio-Cultural

17. PESTLE ANALYSIS
 Term pestle analysis is used to describe a
framework for analysis of macro environment
 PESTLE analysis involves identifying the
- Political
- Economic
- Socio-Cultural
- Technological
- Legal
- Environmental
Their influences on an organization

18. PESTLE ANALYSIS
Economic
Socio-
Political
Cultural
PESTLE
Environm Technolo
ental gical
Legal

19. PESTLE ANALYSIS
 PESTLE analysis is simple to understand & quick to
implement
 Advantage of PESTLE tool: Encourages
management - Proactive & structured thinking
 Provides a way of scanning the environmental
influences that have affected or are likely to affect
- An organization
- Policy
 PESTLE analysis is an increasingly used &
recognized term replacing the traditional framework

20. POLITICAL FACTORS
 How & to what extent a govt. intervenes - Economy
& activities of Corporate
 May also include the goods & services – Govt.
wants to provide
 Political stability
 Government policies
 Political principles & ideologies
 Political pressure groups influence & limit
organizations

21. ECONOMIC FACTORS
 Major impact - business operates & take decisions
 Strength of consumer spending/Purchasing power
 Current income, savings, debt & credit availability
 Exchange rates, inflation, money supply, credit flow
 Per-capita income, growth rates
 Economic situations & Trends
 Marketers – Careful attention to trends affecting
purchasing power
 Strong impact on business-Companies whose
products-geared to high income & price sensitive

22. SOCIAL FACTORS
 Social factors affect the demand for a company
products & how that company operates
 Lifestyle trends
 Consumer buying patterns
 Ethnic/Religious factors
 Values, attitude & aspirations
 Belief, values & norms of a society determine how
individuals & organizations should be interrelated
 Consists of factors related to human relationships
 Impact of social attitudes & cultural values

23. TECHNOLOGICAL FACTORS
 Technology can act as both - Opportunity/Threat
 Opportunity - Adopting technological innovations
 Threat - Not able to adopt to owns advantage
 Technological factors - determine barriers to entry
 Innovation potential
 Technology access, licensing & patents
 Intellectual property rights & copyrights
 Maturity of technology
 Risk & uncertainty of technological developments

24. LEGAL FACTORS
 Three main purposes
1. To protect companies from unfair competition
2. To protect consumers from unfair business
3. To protect the interest of the society
 Marketers must have good knowledge of major laws
protecting competition, consumers & society
 E.g.; In India -Green dot/Red hot, M.R.P
 Factors affect how a company operates its cost’s &
the demand for its products

25. ENVIRONMENTAL FACTORS
 The deterioration of the natural environment is a
major global concern
 There is a great concern about green house gases
 Depletion of ozone layer
 New regulations hit certain industries very hard
 Auto industry has to introduce expensive emission
control systems (Euro II norms)
 Ecological/Environmental issues
 Environmental hazards
 Energy consumption & waste disposal

26. MICRO ENVIRONMENT
Competitors
Consumers/
Organization
Customers
MICRO
ENV .
Intermediaries Market
Suppliers

27. CONSUMER/CUSTOMERS
 Customers - Pay money - acquire company’s product
 Product’s may be in both forms – Products/Services
 Organization can’t survive without customers
 Customer may or may not be a consumer
 Consumer – Ultimately consumes the product
 Marketer has to closely monitor & analyze changes in
consumer taste & preferences
 Who are the customers/Consumers
 What benefits they are looking for
 What are their buying patterns

28. COMPETITORS
 Other business entities that compete for resources
as well as markets
 Competition shapes business
 Marketer – Study the competitive scenario
 Who are the competitors?
 What are their strategy & business objective?
 Who are the most aggressive/powerful competitors
 Competition may be direct or indirect
 Direct competition is between organizations which
are in same business activity

29. ORGANIZATION
 Individuals occupying different positions or working
in different capacities in organizations
 Owners: They are individuals, share holder groups
or organizations who have a major stake in Orgaztn.
 Board of directors/Governing body
- Found in companies found under Companies act
1956
- BOD are elected by shareholders
 Employees: People who actually do the work & are
the major force within an organization

30. MARKET
 Market is a wider term than customers
 Marketer study the market - Actual & potential size
 Growth prospects & attractiveness
 Cost structure of the market
 Price sensitivity of the market
 Technological structure of the market
 Existing distribution system of the market
 Maturity level of the market
 Possibility of market segmentation & differentiation

31. SUPPLIERS
 Suppliers form an important component of the micro
environment
 Suppliers provide – Raw materials, equipment,
services
 Organizations - major decisions on outsourcing or in
house production – Supplier environment
 Make or buy option
 Suppliers with bargaining power affect the cost
structure
 Companies have to rely on many suppliers

32. INTERMEDIARIES
 Wholesalers, Retailers & dealers establish an
important link between the org. & customers
 Availability of intermediaries
 Effect of direct dealings with the customers
 Cost-push effect of intermediaries
 Intermediaries can be considered as the major
determining force in the business
 Intermediaries can exert a considerable influence
on the business organizations

33. NEW PRODUCT DEVELOPMENT PROCESS
IDEA GENERATION
IDEA SCREENING
CONCEPT DEVELOPMENT & TESTING
MARKETING STRATEGY
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT & TESTING
TEST MARKETING
COMMERCILIZATION

34. IDEA GENERATION
EMPLOYEES COMPETITORS
CHANNEL
CUSTOMERS
MEMBERS
IDEA
GENERATION
SOURCES

35. Types Of Buyer Behavior
High Low
Involvement Involvement
Significant
Differences Complex Variety Seeking
Between Brands Buying Buying
Behavior Behavior
Few Differences Dissonance
Habitual
Between Brands Reducing
Buying
Buying
Behavior
Behavior

36. BUYER BEHAVIOUR MODEL
Problem/Need Information Evaluation of
Recognition Search Alternatives
Post Purchase Purchase
Behavior Decision

37. INFORMATION SEARCH
Sources of Information
Personal Commercial Public Experiential
• Family • Advertising • Mass Media • Past
• Friends • Sales Person • Research Experiences
• Neighbors • Dealers Organizations • Free Trials
• Acquaintances • Displays

38. SALES PROMOTION
Contests
Coupons Prizes
Sales
Promotions
Frequent
Demos
shopper

39. SEGMENTATIOIN VARIABLES
DEMOGRAPHIC PSYCHOGRAPHIC
GEOGRAPHIC BEHAVIORAL
SEGMENTATION
VARIABLES

40. SEGMENTATION
SEGMENTATION VARIABLES
GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIORAL
• NATION • AGE • LIFESTYLE • OCCASSIONS
• REGION • FAMILY SIZE • PERSONALITY • BENEFITS
• STATES • GENDER • VALUES • USER STATUS
• DISTRICTS • INCOME • USAGE RATE
• CITY • OCCUPATION • LOYALTY
• RURAL • EDUCATION STATUS
• SEMI-URBAN • SOCIO • READINESS
ECONOMIC STAGE
• ATTITUDE

41. GEOGRAPHIC SEGMENTATION
Dividing the market in to different geographic units
Nations, States, Districts, Cities
Company can operate in
One, Few geographic areas or in all
Example Times of India publishes local editions
Hyderabad Times, Bombay Times

42. DEMOGRAPHIC SEGMENTATION
Market is divided on the basis of variables such as
Age, Gender, Income, Family Size, Occupation, Religion, Social
Effective segmentation
Taste, Preferences are based on these attributes
Consumers are influenced by socio-economic & lifestyle
Geo-demographic segmentation

43. PSYCHOGRAPHIC SEGMENTATION
Life style
Income, Social group – Working women
Personality
Extroversion, Masculinity, aggression, Adventurous
Values
Core values, Belief system – Consumer attitude & behavior

44. BEHAVIORAL
BEHAVIORAL KEY DIMENSIONS
OCCASSIONS REGULAR, SPECIAL (Cadburys, Archie's)
BENEFITS QUALITY, SERVICE, ECONOMY, SPEED
USER STATUS NONUSER, EXUSER,POTENTIAL USER, FIRST TIME
USER, REGULAR USER
USAGE RATE LIGHT, MEDIUM, HEAVY
(Aviation Frequent Fliers)
LOYALTY STATUS HARD CORE, SPLIT, SHIFTING, SWITCHERS
READINESS UNAWARE, AWARE, INFORMED, INTERESTED,
STAGE DESIRED, INTENDING TO BUY
ATTITUDE ENTHUSIASTIC, POSITIVE, NEGATIVE, HOSTILE

45. TARGET MARKETING STRATEGIES

46. TARGET MARKETING STRATEGIES
FULL MARKET SINGLE MULTI
SEGMENT SEGMENT
SINGLE SEGMENT SELECTIVE
UNDIFFERENTIATED SPECIALIZATION
FOCUS
DIFFERENTIATED PRODUCT
SPECIALIZATION
MARKET
SPECIALIZATION

47. DIFFERENTIATION STRATEGY
PERSONNEL
DIFFERENTIATION
SERVICE CHANNEL
DIFFERENTIATION DIFFERENTIATION
PRODUCT DIFFERENTIATION IMAGE
DIFFERENTIATION STRATEGY DIFFERENTIATION

48. COMPETITIVE FRAME OF REFERENCE

49. POINT OF DIFFERENCE
 Attributes/Benefits consumer strongly associate
 Believe – Do not exist in competitive brands
 Associations that make point of difference
 Based on any type of benefits/Attributes
 Examples – Savlon, Anchor, Promise etc.

50. POINT OF PARITY
 Associations - are not necessarily unique to brand
 Shared with other brands
 Association are of two types
 Category points of parity
 Associations consumers think are essential
 Category points of association may change
 Technological advances, Legal changes
 Competitive points of parity are associations
designed to negate competitive points of difference

51. POSITIONING ERRORS

52. TYPES OF RETAILERS

53. RETAILING - OWNERSHIP
CHAIN
RETAILERSHIP
INDEPENDENT LEASED
RETAILERS DEPARTMENT
OWNERSHIP

54. RETAILING – PRODUCT LINES
DISCOUNT
STORES
DEPARTMENT SUPER
STORES MARKETS
SPECIALITY EXTENT OF HYPER
STORES PRODUCT LINE MARKETS

55. NON-STORE BASED RETAILING

56. FACTORS – ORGANIZATIONAL BUYING
ORGANIZATIONAL
SOCIAL FACTORS
FACTORS
ENVIRONMENTAL PERSONAL
FACTORS FACTORS
BUYING
FACTORS

57. PRODUCT LINE DECISIONS

58. PRODUCT LINE LENGTH

59. BRAND EQUITY
PERCEIVED
QUALITY
EMOTIONAL
BRAND
AWARENESS RATIONAL
ASSOCIATIONS
BRAND BRAND EQUITY PATENTS
LOYALTY DETERMINANTS