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What is a Brand?
What is a Brand?
NAME
SIGN
SYMBOL/LOGO
COMBINATION
Branding
Strategies
Branding Strategies
Brand Extension
• Existing brand name for new product category
• Maggie
Line Extension
• Same brand name same product category
• Cinthol• Lays
Multiple Branding
• Introduce new brand in existing product category
• HUL – Lux, Liril & Lifebuoy
New Brands
• Launches new product in new category
• Timex
Strategies
Branding Strategies
Brand Extension Line Extension Multiple
Branding New Brands
•?
Strategies
PRODUCT LIFE CYCLE
Time
Sales
0
0.5
1
1.5
2
2.5
0 1 2 3 4 5 6
Introduction
Growth
Maturity
Decline
MARKETING STRATEGIES – INTRODUCTION STAGE
Rapid Skimming
Rapid Penetration
Slow Skimming Slow Penetration
High Low
PricePr
omoti
on
High
Low
High Low
High
Low
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
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
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
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
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
Strategies – Maturity stage
Strategies Maturity stage
Market Modification
Product Modification
Marketing Mix
modification
Marketing Strategies - Maturity
Non-users
New Users
Enter new market segments
More usage
New usage
Market Modification
Product Modification
Quality Improvement
• Increasing functional performance
• Durability, reliability, speed, taste etc.
• PLUS launch
Feature improvement
• Adding new features
• Size, weight, materials, accessories e
• Expand the products versatility, safety, convenience
Style Improvement
• Increasing products aesthetic appeals
• Style competition
• Packaging – Color, restyle the package
BCG MATRIX
Macro environment/Exter
nal environment
Economic
Political/Legal
Technological
Socio-Cultural
Global
Demographic
Elements of Macro environment
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
PESTLE ANALYSIS
PESTLE
Economic
Socio-Cultural
Technological
Legal
Environmental
Political
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
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
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
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
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
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
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
MICRO ENVIRONMENT
MICROENV .
Competitors
Organization
Market
Suppliers
Intermediaries
Consumers/Customers
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
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
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
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
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
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
NEW PRODUCT DEVELOPMENT PROCESS
COMMERCILIZATION
TEST MARKETING
PRODUCT DEVELOPMENT & TESTING
BUSINESS ANALYSIS
MARKETING STRATEGY
CONCEPT DEVELOPMENT & TESTING
IDEA SCREENING
IDEA GENERATION
IDEA GENERATION
IDEA GENERATION SOURCES
CUSTOMERS
EMPLOYEES COMPETITORS
CHANNEL MEMBERS
Types Of Buyer Behavior
Complex Buying
Behavior
Variety Seeking Buying Behavior
Dissonance Reducing Buying
Behavior
Habitual Buying Behavior
Significant Differences Between Brands
Few Differences Between Brands
High Involvement
Low Involvement
BUYER BEHAVIOUR MODEL
Problem/Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behavior
INFORMATION SEARCH
Personal• Family• Friends• Neighbors• Acquaintances
Commercial• Advertising• Sales Person• Dealers• Displays
Public• Mass Media• Research
Organizations
Experiential• Past
Experiences• Free Trials
Sources of Information
SALES PROMOTION
Sales Promotions
Contests
Prizes
DemosFrequent shopper
Coupons
SEGMENTATIOIN VARIABLES
SEGMENTATION
VARIABLES
GEOGRAPHICDEMOGRAPHICPSYCHOGRAPHIC
BEHAVIORAL
SEGMENTATION
GEOGRAPHIC
• NATION• REGION• STATES• DISTRICTS• CITY• RURAL• SEMI-URBAN
DEMOGRAPHIC
• AGE• FAMILY SIZE• GENDER• INCOME• OCCUPATION• EDUCATION• SOCIO
ECONOMIC
PSYCHOGRAPHIC
• LIFESTYLE• PERSONALITY• VALUES
BEHAVIORAL
• OCCASSIONS• BENEFITS• USER STATUS• USAGE RATE• LOYALTY
STATUS• READINESS
STAGE• ATTITUDE
SEGMENTATION VARIABLES
GEOGRAPHIC SEGMENTATION
DEMOGRAPHIC SEGMENTATION
PSYCHOGRAPHIC SEGMENTATION
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 STAGE
UNAWARE, AWARE, INFORMED, INTERESTED, DESIRED, INTENDING TO BUY
ATTITUDE ENTHUSIASTIC, POSITIVE, NEGATIVE, HOSTILE
TARGET MARKETING STRATEGIES
TARGET MARKETING STRATEGIES
FULL MARKET
COVERAGE
SINGLE SEGMENT STARTEGY
MULTI-SEGMENT
STRATEGIES
TARGET MARKETING STRATEGIES
FULL MARKET
UNDIFFERENTIATED
DIFFERENTIATED
SINGLE SEGMENT
SINGLE SEGMENT FOCUS
MULTI SEGMENT
SELECTIVE SPECIALIZATION
PRODUCT SPECIALIZATION
MARKET SPECIALIZATION
DIFFERENTIATION STRATEGY
DIFFERENTIATION
STRATEGY
PRODUCT DIFFERENTIATION
SERVICE DIFFERENTIATION
PERSONNEL DIFFERENTIATIONCHANNEL
DIFFERENTIATIONIMAGE DIFFERENTIATION
COMPETITIVE FRAME OF REFERENCE
POINTS OF DIFFERENCE POINTS OF PARITY
Category
Points of
Parity
Competitive Points of Parity
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.
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
POSITIONING ERRORS
POSITIONING ERRORS
UNDER POSITIONING
OVER POSITIONING
CONFUSED POSITIONINGDOUBTFUL
POSITIONING
TYPES OF RETAILERS
RETAILERS CLASSIFICATI
ON
OWNERSHIP
EXTENT OF PRODUCT
LINESSERVICES
NON-STORE BASED
RETAILING - OWNERSHIP
OWNERSHIP
INDEPENDENT RETAILERS
CHAIN RETAILERSHIP
LEASED DEPARTMENT
RETAILING – PRODUCT LINES
EXTENT OF
PRODUCT LINE
SPECIALITY STORES
DEPARTMENT STORES
DISCOUNT STORESSUPER MARKETSHYPER MARKETS
NON-STORE BASED RETAILING
NON STORE BASED
DIRECT SELLING
DIRECT MARKETIN
GAUTOMATIC VENDING
FACTORS – ORGANIZATIONAL BUYING
BUYING FACTORS
ENVIRONMENTAL FACTORS
ORGANIZATIONAL FACTORSSOCIAL FACTORS
PERSONAL FACTORS
PRODUCT LINE DECISIONS
LINE DECISIONS
PRODUCT LINE
LENGTH
PRODUCT LINE MODERNIZATIO
NLINE
PRUNING
PRODUCT LINE LENGTH
LINE STRETCHING LINE FILLING
BRAND EQUITY
BRAND EQUITY
DETERMINANTS
BRAND LOYALTY
BRAND AWARENESS
PERCEIVED QUALITY
EMOTIONALRATIONAL
ASSOCIATIONSPATENTS