This document discusses concepts related to product management and marketing organization structures. It provides an overview of course objectives focused on branding principles and strategies. It also describes the responsibilities of a product manager and their potential interactions. Additionally, it evaluates the advantages and disadvantages of different marketing organization structures like product-focused, market-focused, and functionally-focused. Key factors that affect category attractiveness are also outlined.

2. Course Objective To develop an understanding of the basic branding principles and their exposure to classic and contemporary branding applications. To make the students aware about the role of brands, the concept of brand equity, and the advantages of creating strong brands. To increase the understanding of the important issues in planning, implementing, and evaluating brand strategies To acquaint the students with the appropriate concepts, theories, models and other tools to make better brand decisions. 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

3. Text Books Product Management by Lehman & Winer, 4 th Edition, Tata McGraw Hill Publishing Pvt Ltd. Strategic Brand Management by Kevin Lane Keller, 3 rd Edition, Pearson Education India Limited

4. Responsibilities of Product Manager Product Planning Analysis of market Customer Competitors External Environment Deciding objectives & strategies Coordination with other departments

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

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

7. Marketing Organization Organizing by Product Organizing by market Organizing by function

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

9. Evaluation of Product Focused Structure Easier to assess work-unit performance Decision-making is faster Duplication of activities Advantages Disadvantages

10. Market-Focused Organization Head of the company/division Manufacturing Marketing Corporate communications Finance Manager, market B Manager, market A Manager, market C

11. Evaluation of Market Focused Structure Focuses on customer needs Products and services tailored to customer needs Duplication of resources Difficult to coordinate across departments Focuses on customer needs Products and services tailored to customer needs Duplication of resources Difficult to coordinate across departments Advantages Disadvantages

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

13. Functionally-Focused Organization Head of the company/division Manufacturing Marketing Corporate communications Finance Advertising Product marketing Sales promotion Marketing research

14. Evaluation of Functionally Focused Structure Work done by highly skilled specialists Lowers costs through reduced duplication May lead to slower decision making Produces managers with narrow experiences Advantages Disadvantages

15. Skills of Product Managers Background, desirable but not essential Negotiation Skills Teamwork Communication Skills Analytical Skills

16. Changes Affecting Product Management The Web Data explosion Increased emphasis of brands Changes in the balance of market power Increased importance of customer retention programs Increased global competition

17. * CATEGORY ATTRACTIVENESS ANALYSIS

18. Product category defines set of competitors against which one most often competes on a daily basis.

19. Category Attractiveness Factors Aggregate Market Factors Category Factors Environmental Factors

20. Aggregate Category Factors Category size Category growth Stage in product life cycle Sales cyclicity Seasonality Profits

21. Attractiveness of Market Variables

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

23. Category Factors Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Current category rivalry Pressure from substitutes Category capacity

24. Threat of new entrants Can be managed by creating high entry barriers like: Economies of scale Product differentiation Capital requirements cost Distribution

25. Buyer Bargaining Power is High When: Product bought is a large percentage of the buyer’s cost. Product bought is undifferentiated. Buyers earn low profits. Buyer has full information. Substitutes exist for the seller’s product or service. Buyers have formed a union

26. Supplier Bargaining Power is High When: Suppliers are highly concentrated, that is, dominated by a few firms. (OPEC) There is no substitute for the product supplied. (Petrol) Supplier has differentiated its product or built in switching costs. (Providing raw materials that are not provided by any other) Supply is limited.

27. Major Characteristic of Categories Exhibiting Intensive Rivalries Many or balanced competitors Slow growth High fixed costs Lack of product differentiation Personal rivalries

28. Pressure from substitutes As the substitutes are more, category is lesser attractive and as they are less, it is more.

29. Category capacity If category unused capacity is high, bargaining power of buyers are more.

30. Impact of Category Factors on Attractiveness

31. Environmental Factors Technological Political Economic Regulatory Social