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Marketing Basics : ReviewMarketing Basics : Review

Needs

Markets Products

Market Opportunities

Identifying your Market

Buyer Behaviour

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Needs lead to a MarketNeeds lead to a Market

Consumers have needs

Goods & Services which fulfill some function

Have utility for the consumer

Needs backed by willingness to pay = Demand

Sum total of all demand = Market

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Basic definition of a MarketBasic definition of a Market

A market is a group of potential customers withsimilar needs , who are willing to exchange

something of value ( usually money ) , with sellers

offering various ways of meeting those needs.

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Market Offerings (products) can be :Market Offerings (products) can be :

Goods Pen / OHP

Services Coaching / Railway

Information Encyclopedias / YPs / India Today

Ideas Better Living thru Art of Living Events Rock Show / Trade Show

Experiences Adventure Sports / EsselWorld

Property Real or Financial

Places Tourists / Businesses / New Colonization

People Movie Stars / Musicians / Artistes

Organizations Brand Building

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Determining your MarketDetermining your Market

What : Type of Offering : Product / Service Whom For : Type of Customer

What For : Type of Needs (of the customer)

Where : Geographic Availability

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Summary of Buyer BehaviourSummary of Buyer Behaviour

Q. What do customers buy ?

A. Customers buy solutions to their problem.

Q. Do customers buy on the basis of price ?

A. No ! Customers buy Value ( for money ).

Q. What does value mean ?A. Sum Total of all benefits being received

as perceived by that customer.

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Broad Learning ObjectivesBroad Learning Objectives

Understanding Brands : What / Why / When

Process of Creation & Launching

Process of Managing & Extending Brands

Globalization of Brands

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Branding BasicsBranding Basics

Originally : Brand was a mark burnt onto

skin by using a hot iron . !!

Modern Branding has come a long way .

Some connectivity with that process remains .

Mark = Recall

Skin = Mind

Hot iron = Marketing & Positioning Strategies .

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The need for a brand .The need for a brand .

High degree of competition / me-too products

Some kind of uniqueness is required Desperate need for differentiation

Branding makes you unique

Branding is => Differentiation Code => Human DNA

Personal DNA is unique , so is Branding !

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Common Ways of Differentiating .Common Ways of Differentiating .

Thru Almost anything with value / appeal

Product design / communication / selling /

/ Distribution / service / suppliers / HRM , etc.

eg Virgin Atlantic Massage-on-Board - Facility

eg Nike Just do it Attitudeeg HLL Best distribution network Reach => Ease

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Excz 1 : Brand Related RecallExcz 1 : Brand Related Recall

Visualize / Recall the following Brands

Note what exactly do you recall

Could be Visual / Audio / Attribute / Belief

Dettol / Dove

Hero Honda / Kinetic Honda ICICI Bank / SBI

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Brand DefinedBrand Defined

Use of a name , term , symbol , design or

a combination of all or any of these

to clearly identify a product / business

and thereby differentiate it in the market.

Brands , of course , are more than that !

Essentially , a set of promises explicitly or

implicitly being made by the firm. Brands over a period , become a set of

associations in the mind of the consumer.

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What really is Branding ?What really is Branding ?

Process of acquiring enduring emotional

association of a consumer with a

particular company or product & its

lasting impression.

Objective is to identify , create & then

exploit , any sustainable competitive

advantage.

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The Ultimate Brand .AnalogyThe Ultimate Brand .Analogy

The Brand most of us are proud to possess

The Brand most of us may never give up.

The Brand, to many of us ,worth dying for

YOUR FAMILY

YOUR NATION

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Branding DefinedBranding Defined

Branding is a marketing based business

strategy & philosophy , supporting the

very reason for existence(raison detre)

of the product , service or enterprise ,

with a clear focus on consistent differentiation

in the marketplace , thereby building long-term

value in the minds of consumers.

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What should branding deliver?What should branding deliver?

Branding has to be a source of Value

For the Customer a w a for the Enterprise

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What should branding deliver?What should branding deliver?

For the Customer , some simple benefits :

Ease of Identification

Ease of Purchasing

Consistent Quality

Sense of Satisfaction

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What should branding deliver?What should branding deliver?

For the Company , several benefits :

Unique Identity for the Co / Product

Core behind the Product & Promotion Mix

Differentiation for the Product /s

Pull for the Product /s

Entry barrier for Competition

Long Term Relationship with the Consumer

Resultant Annuity Stream

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Branding Successes C SBranding Successes C S -- 11

Did not exist as a Brand till 1990

Yet , dominated its product-category

No tradition of branding in the industry Crushed powerful rivals regularly

Does not always make the Best-in-Class product

Yet , Charges 30%- 40% more than rivals very often

Consumers insist on it , Customers fear it !

INTEL

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Consumers & BrandsConsumers & Brands The InterconnectThe Interconnect

Consumers have varying levels of Brand Familiarity

Level of BF is a key influencer in consumer choices

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5 Levels of Brand Familiarity5 Levels of Brand Familiarity

Brand Rejection : Buying postponed till image changeover.

Brand Non-Recogn : Final Consumers?Middlemen do: School NBs

Brand Recogn : Consumers ability to recall : Unaided / Aided

Brand Preference : Target Consumer chooses over competg brand

Brand Insistence : Existing Customers insist on having it.

Reaching L5 is every brand managers dream.

Is Possible only with enduring relationships.

(Which is what brands really attempt)