Session 14 MG 220 MBA - 7 Oct 10


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Session 14
MG 220 Marketing Management
MBA 10

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Session 14 MG 220 MBA - 7 Oct 10

  1. 1. Part 4: Building Strong Brands<br />> Managing Brand Equity<br />> Devising a Branding Strategy<br />> Developing & Communicating a Positioning Strategy<br />> Differentiation Strategies<br />> Product Life-Cycle Marketing Strategies: Review<br />> Quiz 4 (Part 3: Chap 7 & 8)<br />Class Presentation | Session 14 | 7 Oct 2010<br />
  2. 2. Managing Brand EquityBrand Reinforcement | Brand Revitalization | Brand Crisis<br />Brand Reinforcement<br />A brand needs to be managed like an asset that its value doesn’t depreciate<br />Reinforcing brand requires that marketing program consistently convey the meaning of brand to consumers in terms of:<br />What product brand represents<br />How the brand makes these products superior and<br />Which strong, favorable associations should continue to exist in consumers’ minds<br />Consistency is these efforts is crucial to long-term success of a brand<br />Brand Revitalization<br />Consumers preferences change<br />Brands need to continuously cope up and revitalize when require to meet new preferences and trends<br />List of options exist from “reverting back to basics” to “reinvention” – both extremes of a continuum<br />Harley Davidson example<br />Brand Crisis<br />Marketers must understand inevitability of crisis at some point<br />Swiftness is a key: Longer it takes for a firm to respond to brand crisis, more negative impressions will form<br />MG 220 Marketing Management<br />2<br />
  3. 3. Developing & Communicating a Positioning Strategy<br />All marketing strategy revolves around Segmentation, Targeting and Positioning<br />What is Positioning?<br />Act of designing company’s offering and image to occupy a distinctive place in mind of a target market<br />Positioning is not what you do to a product rather<br />Positioning is what you do to mind of a prospect<br />Deciding on Positioning requires deciding on:<br />Competitive Frame of Reference<br />Points of Parity and Points of Difference<br />Identifying them<br />Establishing<br />Choosing<br />Creating<br />MG 220 Marketing Management<br />3<br />
  4. 4. Developing & Communicating a Positioning Strategy<br />Competitive Frame of Reference<br />Determining where the brand belongs<br />Starting Point is to establish Category Membership<br />Category Membership is products or sets of products which a brand competes and which function as close substitutes<br />Case in Point: Mobilink (Indigo)<br />Defining competitive Frame of reference<br />MG 220 Marketing Management<br />4<br />
  5. 5. Developing & Communicating a Positioning Strategy<br />Points of Parity & Points of Difference<br />POP – associations that may not be unique to a brand and may be shared with other brands<br />POD – attributes or benefits consumers strongly associate with a brand and believe them to be unique<br />Through PODs brands establish their own position<br />Through POPs brands counter other brands PODs<br />For POPs, brand may not be considered exactly equal but if consumers think that it does well enough, it becomes a POP<br />Key to positioning is not much about PODs but about POPs! <br />Case in Point: Mobilink (Indigo)<br />POD<br />Largest network?<br />Customer care?<br /> POP<br />Better signals | low(est) rates?<br />MG 220 Marketing Management<br />5<br />
  6. 6. Developing & Communicating a Positioning Strategy<br />Establishing Category Membership<br />Brands may be required to establish category membership for their brand<br />To tell consumers that they are part of a certain category<br />They may be associated with a category they are not part of<br />3 main ways to communicate brand’s category membership<br />Announcing category benefits<br />Comparing to exemplars<br />Relying on product descriptor <br />Case in Point: Mobilink (Indigo)<br />Coming to Pakistani Telecom scene<br /> Existing players: PTCL (landline) | Paktel/Instaphone (AMPS-cellular)<br />Mobilink is offering GSM. Shouldn’t be confused with instaphone or Paktel’s AMPS<br />MG 220 Marketing Management<br />6<br />
  7. 7. Developing & Communicating a Positioning Strategy<br />Choosing POPs and PODs<br />Three key consumer desirability criteria for PODs<br />Relevance<br />Distinctiveness<br />Believability<br />Three key deliverability criteria for PODs<br />Feasibility<br />Communicability<br />Sustainability<br />Creating POPs and PODs<br />Negative correlation among different attributes (low price vs high quality)<br />Consumers want to maximize all attributes<br />Options to address negative correlation<br />Present separately<br />Leverage equity of another entity<br />Redefine relationship<br />Case in Point: Mobilink (Indigo)<br /> What it can use as POPs and PODs<br />MG 220 Marketing Management<br />7<br />
  8. 8. Differentiation Strategies<br />Four different differentiation strategies<br />Product Differentiation<br />Product form, features, reliability, durability etc<br />Positioning as “best quality” – taking a position on Quality<br />Positioning on quality has benefits like premium price, repeat purchases etc.<br />Personnel Differentiation<br />Talented resources | Quality training to staff results in superior services<br />Channel Differentiation<br />Achieving competitive advantage through channel’s strengths<br />Image Differentiation<br />Concept of creating a strong image for brand and positioning it carefully to achieve differentiation<br />Difference of Identity (how company position itself) and image (how consumers receive it)<br />Case in Point: Mobilink (Indigo)<br /> Product Differentiation: Largest family (network)<br /> Personnel Differentiation: Customer Services campaign<br /> Channel Differentiation?<br /> Image Differentiation (top-notch, classy lifestyle of Indigo users: Shan/ZQ campaign)<br />MG 220 Marketing Management<br />8<br />
  9. 9. Product Lifecycle StrategiesOverall Review<br />A general discussion on PLC – Product Life Cycle<br />Key assumptions/assertions for PLC concept<br />Products have limited life<br />Product sales/profits pass through different stages and have different challenges, opportunities in every case<br />Profits rise and fall in every stage<br />Different marketing, financial, manufacturing, purchasing strategies are required for different stages<br />STAGES IN PLC<br />Introduction<br />Growth<br />Maturity<br />Decline<br />MG 220 Marketing Management<br />9<br />
  10. 10. Product Lifecycle StrategiesOverall Review<br />Different patterns that exist for PLCs<br />Growth-slump-maturity pattern<br />After introduction phase, a slump comes and it matures<br />Common for general-use products like kitchen appliances<br />Cycle-Recycle pattern<br />Product is launched. After sometime its sales start declining<br />Given another push<br />Scalloped pattern<br />Product is introduced<br />Sales keep getting higher may be because of new usages found<br />MG 220 Marketing Management<br />10<br />
  11. 11. Product Lifecycle StrategiesOverall Review<br />Style, Fashion and Fad Lifecycles<br />Style is a basic and distinctive mode of expression appearing in a field of human endeavor<br />Style can last for generations<br />And go in or out of vogue<br />Fashion is currently accepted popular style in a given field<br />Passes through four stages: Distinctiveness, Emulation, Mass Fashion and decline<br />Fad are fashions that quickly come in public view, adopted with great zeal, peak early and then decline very fast<br />They generally do not survive because they do not satisfy a strong need<br />MG 220 Marketing Management<br />11<br />
  12. 12. Part 4: Building Strong Brands<br />> Product Life-Cycle Marketing Strategies<br />> Market Evolution<br />> Competitive forces<br />> Identifying Competitors<br />> Analyzing Competitors<br />> Competitive Strategies for Market Leaders<br />> Other Competitive Strategies<br />> Balancing Customer & Competitive Orientations<br />.<br />Class Presentation | Session 15 | 11 Oct 2010<br />