PRODUCT AND BRAND MANAGEMENT

Course Content

1. Introduction to Product management.

2. Role and operation of Product management in Marketing.

3. Product analysis: Category / Competitor / Customer / Demand.

4. New Product Development Process and Role of Product Mangers.

5. Brand vs. Product, Brand Elements.

6. Brand Extension / Brand Relationship Spectrum.

7. Brand Identity.

8. Brand Equity.

9. Brand Building Strategies.

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TOPIC- 1

INTRODUCTION TO PRODUCT MANAGEMENT

Product

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. In general usage, product may refer to a single item or unit, a group of equivalent products, a grouping of goods or services, or an industrial classification for the goods or services.

Product Management

Product Management is an organizational lifecycle function within a company dealing with the planning or marketing of a product or products at all stages of the product lifecycle.

Product management (inbound focused) and product marketing (outbound focused) are different yet complementary efforts with the objective of maximizing sales revenues, market share, and profit margins. The role of product management spans many activities from strategic to tactical and varies based on the organizational structure of the company. Product management can be a function separate on its own or a member of marketing or engineering.

While involved with the entire product lifecycle, product management's main focus is on driving new product development. According to the Product Development and Management Association (PDMA), superior and differentiated new products - ones that deliver unique benefits and superior value to the customer - is the number one driver of success and product profitability.

Aspects of Product Management

Depending on the company size and history, product management has a variety of functions and roles. Sometimes there is a product manager, and sometimes the role of product manager is held by others. Frequently there is Profit and Loss (P&L) responsibility as a key metric for evaluating product manager performance. In some companies, the product management function is the hub of many other activities around the product. In others, it is one of many things that need to happen to bring a product to market.

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Product planning

1. Defining new products 2. Gathering market requirements 3. Building product roadmaps, particularly Technology roadmaps 4. Product Life Cycle considerations 5. Product differentiation

Product marketing

Product positioning and outbound messaging Promoting the product externally with press, customers, and partners Bringing new products to market Monitoring the competition

Changes affecting Product Management

The web The data explosion The increased emphasis on the brands Changes in the balance of market power Increased importance of customer retention programs Increased global competition

Product Life Cycle

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Product Life Cycle Management is the succession of strategies used by management as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.

The product life cycle goes through many phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas product lifecycle management (PLM) has more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view.

To say that a product has a life cycle is to assert four things:

1) Products have a limited life

2) Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller

3) Profits rise and fall at different stages of product life cycle

4) Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.

The different stages in a product life cycle are:

1. Market Introduction Stage

costs are high slow sales volumes to start little or no competition - competitive manufacturers watch for

acceptance/segment growth losses demand has to be created customers have to be prompted to try the product makes no money at this stage

2. Growth stage

costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in establishing market increased competition leads to price decreases

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3. Mature stage

Costs are lowered as a result of production volumes increasing and experience curve effects

sales volume peaks and market saturation is reached increase in competitors entering the market prices tend to drop due to the proliferation of competing products brand differentiation and feature diversification is emphasized to maintain or

increase market share Industrial profits go down

4. Saturation and Decline stage

costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than

increased sales

Problems with Product Life Cycle.

In reality, very few products follow such a prescriptive cycle. The length of each stage varies enormously. The decisions of marketers can change the stage, for example from maturity to decline by price-cutting. Not all products go through each stage. Some go from introduction to decline. It is not easy to tell which stage the product is in. Remember that PLC is like all other tools. Use it to inform your gut feeling.

Product Differentiation

In marketing, Product Differentiation (also known simply as "differentiation") is the process of distinguishing the differences of a product or offering from others, to make it

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more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings.

Differentiation Strategy

Definition

“Differentiation is a competitive business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firm's products and services” -CharlesW.L.Hill,Gareth R.Jone

Differentiation is a source of competitive advantage. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of your product and create a sense of value. The term unique selling proposition refers to advertising to communicate a product's differentiation.

In economics, successful product differentiation leads to monopolistic competition and is inconsistent with the conditions for perfect competition, which include the requirement that the products of competing firms should be perfect substitutes.

The brand differences are usually minor; they can be merely a difference in packaging or an advertising theme. The physical product need not change, but it could. Differentiation is due to buyers perceiving a difference; hence causes of differentiation may be functional aspects of the product or service, how it is distributed and marketed, or who buys it. The major sources of product differentiation are as follows.

Differences in quality which are usually accompanied by differences in price Differences in functional features or design Ignorance of buyers regarding the essential characteristics and qualities of goods

they are purchasing Sales promotion activities of sellers and, in particular, advertising Differences in availability (e.g. timing and location).

The objective of differentiation is to develop a position that potential customers see as unique.

The Three Elements of Product Differentiation

1. Convenience (or timing)

2. Customization.

3. Cost Recovery

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Convenience: People don't want to wait these days. In order to differentiate your product from your competitors', consider how you can deliver your goods and services precisely when they are needed. Often, this means being faster than your competitor.

Customization: Customization is an element of product differentiation that cannot be over-emphasized. The more you know about your customers' needs — and the better you do in serving those needs to your customers' satisfaction — the stronger your competitive position will be in the market. Service-based businesses are particularly capable of customization. (When I order those drapes, I don't want just any old size or pattern. They need to fit perfectly to my windows, and I want them in the style and color pattern that goes best in my house.)

Cost Recovery: Cost recovery does not mean paying the cheapest price. It does mean gaining the highest advantage per dollar spent. Often, in fact, it makes more sense to spend a little more to obtain a product or service that most closely aligns with your needs and brings satisfaction. Too frequently, "I got it cheap" is the consolation prize when you end up with something that really does not properly serve your needs.

The following differentiation types are commonly found

Differentiation based on ingredients

TTK group launched its Prestige range of non-stick frying pans. Balsara’s Promise toothpaste with clove oil which acts as herbal remedy for tooth

and gum pains.

Differentiation through additional features

Godrej with its 300 ltrs and 390 ltrs refrigerators targeting high lifestyle people. Whirlpool refrigerators with ‘Sixth Sense Technology’.

Differentiation by packaging

Brylcream in handy tube. Kissan ketchup in a squeezy plastic bottle. Hit for cockroaches with sleek nozzle for hidden areas

Differentiation by design Kinetic Honda with electronic ignition, to avoid kick-start.

Differentiation by positioning Dominos Pizza with their ‘30 minutes home delivery or free’ concept. Maggi with their ‘2 minutes noodles’.

Differentiation based on Opportunities in the External Environment

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Trends: Firms can provide a differentiated product to satisfy the needs of customers who are responding to trends. eg Integreted mp3 players in Sunglasses.

Government Policy: Changes in government policy provide many opportunities for firms to develop differentiated products. Tax incentives by the Indian government helped the introduction of the new electric car Reva.

Social Causes: Social causes can create demand for differentiated products that help people further their cause of choice.

Economic Conditions: Economic condition creates opportunities for product differentiation .It can cater to either the premium or the low-end market depending on the state of economy. Like Nokia has launched a variety of economic handsets for rural India. HUL has also come up with many affordable products for the bottom of the pyramid.

TOPIC-2

ROLE AND OPERATION OF PRODUCT MANAGEMENT IN MARKETING

Marketing:

Marketing is an essential management function needed to create a demand for your product.The following are the primary functions in marketing planning –

a. to understand the needs and desires of present and potential customers ,b. to select and develop products that would best satisfy those customers

within the limits of your resources ,c. to develop a program to tell your customers about the benefits of your

product ,&d. to ensure that your product gets to your customer.

Marketing Mix:

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Marketing Mix

PRICE PLACE

PROMOTIONPRODUCT

PRODUCT: A Product is designed to satisfy consumer needs. Product strategy includes decisions about its uses, quality, features, brand name, style , packaging, guarantees, design and options.

Classification of the types of products

A. Convenience products: These are consumer products that the customer buys very frequently, without much deliberation. They are low priced of low value and are widely available at many outlets. They may be further subdivided as:

Staple Products: Items like milk, bread, butter etc. which the family consumesregularly. Once in the beginning the decision is programmed and it is usuallycarried on without change.

Convenience products

Staple Impulse Emergency

Shopping products

Speciality Unsought

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Impulse Products: Purchase of these is unplanned and impulsive. Usuallywhen the consumer is buying other products, he buys these spontaneously fore.g. Magazines, toffees and chocolates. Usually these products are locatedwhere they can be easily noticed.

Emergency products: Purchase of these products is done in an emergency as aresult of urgent and compelling needs. Often a consumer pays more for these.For example while traveling if someone has forgotten his toothbrush orshaving kit; he will buy it at the available price.

B. Shopping products: These are less frequently purchased and the customer carefullychecks suitability, quality, price and style. He spends much more time and effort in gathering information and making comparisons. E.g. furniture, clothing and used cars.

Specialty products: These are consumer goods with unique characteristics / brand identification for which a significant group of buyers is willing to make a special purchase effort. For example, Mitsubishi Lancer, Ray ban glasses.

Unsought product: These are products that potential buyers do not know exist or do not yet want .For example Life Insurance, a Lawyers services in contesting a Will.

The above product decisions are very important to ensure the sale of products. A product has both tangible and intangible components. While buying a product, the customer does not merely look for the physical product, but a bundle of satisfaction. Thus the impact that any product has upon a buyer goes well beyond its obvious characteristics. There is a psychological dimension to all customer purchases; what a customer thinks about a product is influenced by far more than the product itself. For example, the buyer of an air conditioner is not purchasing cooling machine only. He looks for attractive color and design, durability, low noise, quick cooling, etc. These influencing factors must be considered by the small firms to meet the requirements of different kinds of customers.

PRICE

It is the amount you charge from your customers for your product and also the policies on discounts, allowances, credit terms, payment periods, transit payments, etc.

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The pricing policies mainly followed by the small firms are:a. Competitive pricing: This method is used when the market is highly competitive andthe product is not differentiated significantly from the competitor’s products.

b. Skimming-the-cream pricing: Under this pricing policy, higher prices are charged during the initial stages of the introduction of a new product. The aim is to recover the initial investment quickly. This policy is quite effective when the demand for a product is likely to be more inelastic with respect to price in its early stages; to segment the market into segments that differ in price elasticity of demand and to restrict the demand to a level, which a firm can easily meet.

c. Penetration pricing: Under this policy, prices are fixed below the competitive level to obtain a larger share of the market. Penetration pricing is likely to be more successful when the product has a highly elastic demand; the production is carried out on a large scale to achieve low cost of production per unit; and there is strong competition in the market.

PROMOTIONIt is informing and persuading your target market of the value of your product by using various promotional tools such as advertising, publicity, personal selling, etc.

PLACE Placing your product means providing it at the right place at the right time.

Thus, success or failure of a product very much depends on the marketing mix used by the company.

Four main reasons for the success of a product:

1. Use of an effective marketing approach.2. Have a unique product.3. Technical competence.4. Competitive pricing.

Seven main reasons for the failure of a Product :

Price

Competitive Skimming Penetration

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1. Misunderstanding the market.2. Product quality.3. Lack of marketing efforts.4. Poor planning.5. Competition.6. Failure to adopt.7. Lack of technical competence.

Marketing Plan

A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period.

Marketing planning has become a major activity in most firms. It can be divided into two general parts: the situation analysis, which analyses the background of the market for the product and the objectives, strategy , and programs based on the background analysis that direct the product managers action .

The Planning Process

In general, the planning process works as follows:* Planning [ analysis, objectives & strategy ]* Implementing* Evaluating

Steps in the Planning Process

1. Update historical data.2. Collect current data.3. Data analysis.4. Develop objectives, strategies & action program.5. Develop pro forma financial statements.6. Negotiate.7. Measure progress.8. Audit.

Marketing Environment

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Luck comes to those who are prepared .In marketing, being in the right place at the right time means being in tune with your marketing environment .This environment consists of major social forces that you cannot control, but which affect your company’s ability to operate effectively and profitably. One needs to take advantage of the opportunities and avoid threats.The following are the major environmental forces that affect the marketing environment.

Demographics Technology Culture Economy Politics

Market Segmentation

In past, it was a standard practice of many business houses to produce their product massively , advertise and glut the market .As competition intensified, profit levels declined and the firms recognized that they cannot sell everything to everyone. Thus, the concept of subdividing the market started gaining more and more importance.The objective of segmentation is to structure the services and the firm to be responsive to the submarket’s needs.

Segmentation can be done in any of the following ways:

1. Geographies2. Demographics3. Household4. Psychographics5. Purchase behavior6. Type of user

Market Positioning

Having determined which segments exist, one must decide which segment to serve and how to position your product to distinguish it from the ones of the competitors. The purpose is to establish a distinctive image of your product in your customer’s mind. Positioning should be done on the basis of your abilities to provide benefits that are distinct from your competitors.E.g. A soft drink company should provide a zero calorie fruit drink among other soft drink providers.

Market Research

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Areas to research: Who is your market? What products do they buy? When do they buy? Who is involved in the purchase decision? Where is your market? Where should you sell your product? Why does your market buy your product?

Data for research purpose can be collected through two major sources:

DATA COLLECTION

PRIMARY DATA SECONDARY DATA

Sales records Government Sales representatives Trade associations Questionnaires Research organisations Group survey Libraries Telephone survey Marketing firms Expert opinion Consultants Test market Colleges Mail order catalogue Universities Trade shows Direct mail

TOPIC-3

PRODUCT ANALYSIS

Everyday we use thousands of different products, from telephones to bikes and drinks cans to washing machines. But have you ever thought about how they work or the way they are made?

Every product is designed in a particular way - product analysis enables us to understand the important materials, processing, economic and aesthetic decisions which are required before any product can be manufactured. An understanding of these decisions can help us in designing and making for ourselves.

Getting started

The first task in product analysis is to become familiar with the product! What does it do? How does it do it? What does it look like? All these questions, and more, need to be asked before a product can be analyzed. As well as considering the obvious mechanical (and possibly electrical) requirements, it is also important to consider the ergonomics,

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how the design has been made user-friendly and any marketing issues - these all have an impact on the later design decisions.

Let's take the example of a bike:

What is the function of a bicycle? How does the function depend on the type of bike (e.g. racing, or about-town, or

child's bike)? How is it made to be easily maintained? What should it cost? What should it look like (colors, etc.)? How has it been made comfortable to ride? How do the mechanical bits work and interact?

If you do this exercise for various products, you will very quickly discover something interesting.

Systems and components

There are two main types of product - those that only have one component (e.g. a spatula) and those that have many components (e.g. a bike). Products with lots of components we call systems. For example:

Product Components

Bike Frame, wheels, pedals, forks, etc.

Drill Case, chuck, drill bit, motor, etc.

Multi-gym Seat, weights, frame, wire, handles, etc.

In product analysis, we start by considering the whole system. But, to understand why various materials and processes are used, we usually need to 'pull it apart' and think about each component as well. We can now analyze the function in more detail and draft a design specification.

Some important design questions

To build a design specification, consider questions like the following:

What are the requirements on each part (electrical, mechanical, aesthetic, ergonomic, etc)?

What is the function of each component, and how do they work? What is each part made of and why?

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How many of each part are going to be made? What manufacturing methods were used to make each part and why ? Are there alternative materials or designs in use and can you propose

improvements?

These are only general questions, to act as a guide - you will need to think of the appropriate questions for the products and components you have to analyze. For a drinks container, a design specification would look something like:

provide a leak free environment for storing liquid comply with food standards and protect the liquid from health hazards for fizzy drinks, withstand internal pressurization and prevent escape of bubbles provide an aesthetically pleasing view or image of the product if possible create a brand identity be easy to open be easy to store and transport be cheap to produce for volumes of 10,000+

Once we have a specification, the next stage in the process is to understand how the materials are chosen.

Choosing the right materials

Given the specification of the requirements on each part, we can identify the material properties which will be important - for example:

Requirement Material Property

must conduct electricity electrical conductivity

must support loads without breaking strength

cannot be too expensive cost per kg

One way of selecting the best materials would be to look up values for the important properties in tables. But this is time-consuming, and a designer may miss materials which they simply forgot to consider. A better way is to plot 2 material properties on a graph, so that no materials are overlooked - this kind of graph is called a materials selection chart (these are covered in another part of the tutorial).Once the materials have been chosen, the next step is normally to think about the processing options.

Choosing the right process

It is all very well to choose the perfect material, but somehow we have to make something out of it as well! An important part of understanding a product is to consider how it was made - in other words what manufacturing processes were used and why. There are 2 important stages to selecting a suitable process:

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Technical performance: can we make this product with the material and can we make it well?

Economics: if we can make it, can we make it cheaply enough?

Process selection can be quite an involved problem - we deal with one way of approaching it in another part of the tutorial.

So, now we know why the product is designed a particular way, why particular materials are used and why the particular manufacturing processes have been chosen. Is there anything else to know?

CONCLUSION

Product analysis can seem to follow a fixed pattern:

1. Think about the design from an ergonomic and functional viewpoint. 2. Decide on the materials to fulfill the performance requirements. 3. Choose a suitable process that is also economic.

CATEGORY ANALYSIS

For either new or existing products, product managers must ask whether the category of interest is sufficiently attractive to warrant new or continued investment. An essential component of the marketing planning process is an analysis of a product’s potential to achieve a desired level of return on the company’s investment. An analysis of this type not only assesses the financial opportunities but also provides ideas about how to complete better given structural characteristics of the category.

Aggregate Category Factors

CATEGORY SIZE CATEGORY GROWTH STAGE IN PRODUCT LIFE CYCLE SALES CYCLICITY SEOSONALITY PROFITS

Category Factors

Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Current category rivalry

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Pressure from substitutes Category capacity

Environment factors

Technological Political Economic Regulatory Social

COMPETITOR ANALYSIS

Concerning the difficulties of the product manager’s job, competitor analysis has received more attention in recent years. In slow growth markets, sales growth must come from the competitors. With shorter product life cycles, product managers must recoup investments in a shorter period of time. Technology available to the managers makes collecting and disseminating information within the organization easier as well as quicker. Product managers face a high level of turbulence from increased foreign competition, changing technology and rates of innovation. The manager of competitor intelligence has become an important figure in many multinational corporations.

Competitor Analysis System

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SECONDARY DATA

PRIMARY DATA

Who are they?What are their product’s features?What do they want?What is their current strategy?

Who has the competitive product advantage?

What are they going to do?

Sources of Information

1. Primary sources2. Secondary sources3. Other sources

4. Ethically questionable sources

Primary sources

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Primary data

Bankers

Employees Suppliers

Customers

Consultants Sales force

Secondary sources:

Product managers should always begin a competitor analysis with a search of secondary sources of information. Secondary sources are generally less expensive and easier to obtain than primary data and often cover most of the questions we need to ask about competitors. Following are the major sources of secondary information:

Internal sources Local news papers Annual reports Patent filings Press Government Electronic databases News releases Trade associations Promotional literature Internet Trade press Consultants Customer communications 10K statement

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Other sources:

Help – wanted ads Trade shows Plant tours Reverse engineering Monitoring test markets Hiring key employees

Ethically questionable sources:

Aerial reconnaissance Buying / stealing trash Bribing printers Running phony want ads Snooping on aero planes

Assessing competitors’ current objectives

A critical step in a competitor analysis is to assess what the current objectives are for the major competitor products. An assessment of current objectives provides valuable information concerning the intended aggressiveness of the competitors in the market in the future. It also provides a context for assessing the capabilities of the competitors.

Assessing competitors’ current strategies

The second stage in competitor analysis is to determine how competitors are attempting to achieve their objectives. This question is addressed by examining their past and current marketing strategies.

Marketing strategy

At product level, a marketing strategy can be thought of in terms of three major components:

1. Target market selection2. Core strategy (positioning and differential advantage)3. Implementation (supporting marketing mix)

Assessing a competitors’ will

Even the strongest competitor can be overcome if it is not committed to the market. Similarly, a weak competitor can cause massive damage if it is fanatically committed. At the same time it is crucial to assess a competitors’ strength of will or commitment. This requires going beyond objectives to assess the intensity with which they approach the

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task. In assessing the likelihood that a competitor will continue the fight, one should assess the following factors:

1. How crucial is the product to the firm?2. How visible is the commitment to the market?3. How aggressive are the managers?

Predicting future strategies

The next step is to know what is our competitors likely to do in future.We are particularly interested in their likely strategies over the subsequent planning horizon, usually a year. However, the competition does not come right out and indicate what strategies they will pursue. In that case, subjective estimates can be based on the information previously collected and analyzed. This can also be done in many other ways like Role playing, etc.

CUSTOMER ANALYSIS

Since business runs on revenue and revenue comes from customers, it is critical to understand them. Customers, not products are the ultimate source of operating income. All companies are becoming customer-centric and a large number of them have created the position of customer insights managers or the equivalent to assemble and disseminate the customers’ “voice” throughout the organization. By customers we mean not only current customers of a given product but also both customers of competitors and potential customers. The focus is on understanding customers. What We Need To Know About Customers??

Who buys and uses the product? What customers buy and how they use it? Where customers buy? When customers buy? How customers choose? Why they prefer a product? How they respond to marketing programs? Will they buy it in future too?

Segmentation

Each customer is unique to some degree. As a consequence, mass marketing is typically inefficient. Since it is time consuming and not very profitable to develop a separate strategy for each customer, some grouping of customers into segments is very useful. Some categories have so few customers that each can be treated as a separate segment and analyzed separately. In addition, there is a trend towards mass customization or one

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to one marketing which focuses on marketing products and services to individuals rather than to segments.E.g. Levis custom tailored jeans for women. Desirable criteria for segments

The following six criteria provide a useful standard for evaluation:1. Sizable2. Identifiable3. Reachable4. Respond differently5. Coherent6. Stable

Methods for market segmentation

1. Cluster analysis2. Tabular analysis3. Regression analysis4. Latent class analysis

ILLUSTRATION

ENERGY BARSWho are the customers?

Hard core athletes Dieters Health conscious Nutrition seeking families, etc

DEMAND ANALYSIS

Demand

Definition

The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price. The demand curve is usually downward sloping, since consumers will want to buy more as price decreases. Demand for a good or service is determined by many different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be completely unrelated to price, or nearly infinite at a given price. Along with supply, demand is one of the two key determinants of the market price.

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In economics, demand is the desire to own something and the ability to pay for it. The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time. Demand is also defined elsewhere as a measure of preferences that is weighted by income.In economics, the law of demand is an economic law that states that consumers buy more of a good when its price decreases and less when its price increases.

There are certain goods which do not follow this law. These include Veblen and Giffen goods.

Demand schedule

In microeconomic theory, demand is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time.

The demand schedule, depicted graphically as the demand curve, represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the goods.

Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves.

The main determinants of individual demand are: the price of the good, level of income, personal tastes, the population (number of people), the government policies, the price of substitute goods, and the price of complementary goods.

The shape of the aggregate demand curve can be convex or concave, possibly depending on income distribution. In fact, an aggregate demand function cannot be derived except under restrictive and unrealistic assumptions.

As described above, the demand curve is generally downward sloping. There may be rare examples of goods that have upward sloping demand curves. Two different hypothetical types of goods with upward-sloping demand curves are a Giffen good (an inferior, but staple, good) and a Veblen good (a good made more fashionable by a higher price).

Similar to the supply curve, movements along it are also named expansions and contractions. A move downward on the demand curve is called an expansion of demand, since the willingness and ability of consumers to buy a given good has increased, in tandem with a fall in its price. Conversely, a move up the demand curve is called a contraction of demand, since consumers are less willing and able to purchase quantities of the product in question

Thus a product manager needs to take care about all these factors to be able to do a successful demand analysis.

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TOPIC-4

NEW PRODUCT DEVELOPMENT PROCESS

Each year thousands of new products are introduced in national and international markets. Most of them are not very new. Some are slightly new products which consist of minor variations on existing products through changing ingredients, adding features, or the “me too” entrants. These products are the types generally introduced by the existing product managers and account for substantial sales and profits and hence are very important. The production process involved may be quite sophisticated. New products can be introduced either for offensive or defensive purposes. Offensive is to gain market share whereas defensive is to match the competitors.

Product stages

1. Idea generation2. Concept development3. Feasibility screening4. Concept testing5. Product development6. Product testing7. Market testing8. Go-No go decision

Product Modifications

“Continuous quality improvement”Phrases like these point towards modifying the product. Such modification can be of three types:

1. Clearly better2. Different3. Inferior

Line Extensions

Introducing additional product variants that use the existing brand name is known as “Line extension”. It is a popular way to capitalize on the original brand’s equity. Many products are actually product families with a number of close relatives designed to appeal to various segments.

Getting Ideas For New Products

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IDEAS

Customer analysis

Category analysis

Brain storming

Active search

Competitor analysis

Ideas for product modifications and extensions come from many sources, both proactive and reactive. Sources that rely on active efforts of the company utilize many aspects of the situation analysis:

Testing New Products

1. Concept testing 2. Product testing3. Market tests

Forecasting

Forecasting sales is always difficult. However, at least for frequently purchased consumer products, some fairly widely used procedures have been developed. It is possible to simply wait and see at what levels sales stabilize. Unfortunately, this takes a fairly long period and hence a lot of money. What is really desired is an early warning system that forecasts the eventual sales level of a new product before it is attained. Four basic factors are the keys to eventual sales:

1. Awareness.2. The eventual proportion of consumers who try the product.3. The proportion of triers who remain with the brand.

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4. The usage rate of the product category among eventual users.

Brand Extensions

It means extending brands beyond their original category. Nowadays this trend is becoming increasingly popular. This decision is riskier and beyond the control of a manager as it is likely to influence the original brand too.

Really New Products

Really new products are different. They

1. Create or expand a new category2. Are new to customers3. Need proper channels of distribution4. Create a need for infrastructure, software, advertising, etc.

Getting ideas for Really New Products

Ideas for such products can come through following sources:1. Asking dissatisfied customers.2. Asking nonrepresentative customers.3. Involving customers as co-developers.4. Listening to the scientists.5. Scanning the literature.

Evaluating Really New Products

Really new products take a long time from conception to development and from initial development to mass sales. Hence, one needs to have a lot of patience, which is hard to find. Such products can be evaluated in the following ways:

1. Relative advantage2. Compatibility3. Risk4. Complexity5. Communicability6. Trialability

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ROLE OF PRODUCT MANAGERS

It is to oversee all aspects of a product line and deliver superior customer satisfaction. A recent national survey of product manager showed that a significant proportion of product managers spent much of their time in responding to sales force requests and expediting products through other departments but wished that they could spend less time on those activities.

TYPES OF PRODUCT MANAGERS

1. Consumer product managers2. Business product managers3. Global product managers

A Product Manager has to perform broadly three kinds of duties:

1. Day-to-Day duties

Maintain a product fact book Motivate the sales force Collect marketing information Act as a liaison between sales, manufacturing, research & development, etc. Control the budget Achieve sales targets

2. Short- term duties

Participate in annual marketing plan Work with advertising agencies Coordinate trade shows Initiate regulatory acceptance Participate in new product development team Predict and manage competitors actions Modify products Recommend for line extension Eliminate a product

3. Long-term duties

Create a long-term competitive strategy for a product Identify new product opportunities Recommend for product introduction, modification, enhancement, etc.

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A product manager researches, selects, develops, and places a company's products.A product manager considers numerous factors such as target demographic, the products offered by the competition, and how well the product fits in with the company's business model. Generally, a product manager manages one or more tangible products. However, the term may be used to describe a person who manages intangible products, such as music, information, and services.A product manager's role in tangible goods industries is similar to a program director's role in service industries.

Diverse interpretations regarding the role of the product manager are the norm. The product manager title is often used in many ways to describe drastically different duties and responsibilities. Even within the high-tech industry where product management is better defined, the product manager's job description varies widely among companies. This is due to tradition and intuitive interpretations by different individuals.In the financial services industry (banking, insurance etc.), product managers manage products (for example, credit card portfolios), their profit and loss, and also determine the business development strategy.In some companies, the product manager also acts as a:

Product marketing manager — may perform all outbound marketing activities Project manager — may perform all activities related to schedule and resource

management Program manager — may perform activities related to schedule, resource, and

cross-functional execution

TOPIC-5

BRAND V/S PRODUCT

Brand

Meaning 

A Brand is a distinctive name, symbol, design, logo, or a package assigned to a particular product which distinguishes it from the other products of the same category.

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

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The objectives that a good brand will achieve include:

Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact.

Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot.

A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without.

Product

Meaning

A Product is anything, which is offered to the market to satisfy a want or need. In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Products can be classified as tangible or intangible. A tangible product is any physical product that can be touched like a computer, automobile, etc. An intangible product is a non-physical product like an insurance policy.

Comparison

1. Brands personify the products: for Brands define a products quality. However, if the customers do not know about the brands, they would remain unsung heroes. As the saying goes in Hindi, “who sees a peacock that dances in the forest.” the brand names must reach the customers not once but repeatedly in order to be of value creating awareness, interest & desire to buy.

2. Brands make presale of the products a reality: The moment the prospective customer sees an advertisement of the product with its brand

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prominently displayed, it brings the salient features and product benefits to customer’s minds. The task of the sales person thus becomes easier.

3. Brands are intangible: The products are tangible but brands are not. Only their impact on the customers could be felt.

4. Not all products have a brand name attached: A few products are just locally manufactured and sold to people of the lower strata of the society. Such products may also make huge profits like those of the branded ones. On the contrary, sometimes even a branded product may incur huge losses.

5. Prejudice : Many people are prejudiced that only branded products are of good and consistent quality. Therefore, to attract higher number of customers, a product needs a brand name.

6. Brands name may replace the product name : Sometimes a company introduces its product to its customers so effectively that the brand name replaces the product name. E.g. The brand name Dalda is used for buying a vegetable ghee.

7. A Brand is a protector: A brand name protects the customer and the producer from the competitors who would attempt to provide products that appear to be identical.

8. A Brand exists in the minds of a consumer: A product does not exist in our minds the way brands do. A product is just what the manufacturer makes. It comes off the production line with features and functions but with no relationship to the consumers. e.g. Brands like Lakme, Revlon, Ponds, etc always remain in the minds of a woman.

9. A product transforms into a Brand: Once a product acquires a distinctive name, symbol, design, packaging, advertising, etc, it transforms into a Brand on its own.

Brand Elements

The most important elements of brands are as follows:

Brand name

Certain factors must be considered before selecting a brand name;

Distinguish a product from other brands. Memorable & easy to pronounce. Easy to say & spell. Should allude to the products uses, benefits, characteristics, etc. No negative references. Evoke positive mental image. Evoke positive emotional reaction. Simple but unique. Translate well in other languages too. (Renault)

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Examples: Kodak, Surf, Tide, etc

Brand position

A product can be positioned based on 2 main platforms:

The Consumer and The Competitor.

When the positioning is on the basis of CONSUMER, the campaigns and messages are

always targeted to the consumer himself (the user of the product)

Peter England always campaigns their product concentrating on the consumer,

the user of its product.

Louis Philip also concentrates on this kind of campaigns. 

The other kind of positioning is on basis of COMPETITION. These campaigns are

targeted towards competing with other players in the market.

Dettol television commercials always concentrate on advertisements, which show

that this product would give you more protection, then the others .(Savlon)

A number of positioning strategies might be employed in developing a promotional

program. The 7 such strategies are discussed below:

1. Positioning By Product Attributes And Benefits

Associating a product with an attribute, a product feature or a consumer feature.

Sometimes a product can be positioned in terms of two or more attributes simultaneously.

The price/ quality attribute dimension is commonly used for positioning the products.

A common approach is setting the brand apart from competitors on the basis of the

specific characteristics or benefits offered. Sometimes a product may be positioned on

more than one product benefit. Marketers attempt to identify salient attributes (those that

are important to consumers and are the basis for making a purchase decision)

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Ariel offers a specific benefit of cleaning even the dirtiest of clothes because of

the micro cleaning system in the product.

Colgate offers benefits of preventing cavity and fresh breath.

Promise, Balsara’s toothpaste, could break Colgate’s stronghold by being the first

to claim that it contained clove, which differentiated it from the leader.

Nirma offered the benefit of low price over Hindustan Lever’s Surf to become a

success.

Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its

competitors. This strategy helped it to get 60% of the Indian automobile market.

2. Positioning By Price/ Quality

Marketers often use price/ quality characteristics to position their brands. One way they

do it is with ads that reflect the image of a high-quality brand where cost, while not

irrelevant, is considered secondary to the quality benefits derived from using the brand.

Premium brands positioned at the high end of the market use this approach to positioning.

Another way to use price/ quality characteristics for positioning is to focus on the quality

or value offered by the brand at a very competitive price. Although price is an important

consideration, the product quality must be comparable to, or even better than, competing

brands for the positioning strategy to be effective.

Parle Bisleri – “Bada Bisleri, same price” ad campaign.

Chota Munch

Maggi small Rs 5/ pack

3. Positioning By Use or Application

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Another way is to communicate a specific image or position for a brand is to associate it

with a specific use or application.

Surf Excel is positioned as stain remover ‘Surf Excel hai naa!!!’

Clinic All Clear – “Dare to wear Black”.

4. Positioning By Product Class

Often the competition for a particular product comes from outside the product class. For

example, airlines know that while they compete with other airlines, trains and buses are

also viable alternatives. Manufacturers of music CDs must compete with the cassettes

industry. The product is positioned against others that, while not exactly the same,

provide the same class of benefits.

Air Arabia providing the same aircraft and seat comfort and extremely low fares.

5. Positioning By Product User

Positioning a product by associating it with a particular user or group of users is yet

another approach.

In the Garnier light,Mens’ fairness cream Ad, the persona of the user of the

product, John Abraham is been positioned.

6. Positioning By Competitor

Competitors may be as important to positioning strategy as a firm’s own product or

services. In today’s market, an effective positioning strategy for a product or brand may

focus on specific competitors. This approach is similar to positioning by product class,

although in this case the competition is within the same product category.

Onida was positioned against the giants in the television industry through this

strategy, ONIDA colour TV was launched with the message that all others were

clones and only Onida was the leader. “Neighbour’s Envy, Owners Pride”.

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7. Positioning By Cultural Symbols

An additional positioning strategy where in the cultural symbols are used to differentiate

the brands. Examples would be Humara Bajaj, Tata Tea, Ronald McDonald. Each of

these symbols has successfully differentiated the product it represents from competitors.

Brand promise

The one most important thing that the brand promises to deliver to its customers- Every time!

What customers and partners should expect from every interaction? How should customers feel as branded customers?

Brand personality

Brand personality is the way a brand speaks and behaves. It means assigning human personality traits/characteristics to a brand to achieve differentiation. These characteristics signify brand behaviour through both individuals representing the brand (i.e. it’s employees) as well as through advertising, packaging, etc. When brand image or brand identity is expressed in terms of human traits, it is called brand personality.

Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd.

Infosys represents uniqueness, value, and intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a personality who embodies these personality traits or distinct personality traits.

Shahrukh Khan and Airtel John Abraham and Castrol Aiswarya Rai Bacchan and Lux

Brand personality is the result of all the consumer’s experiences with the brand. It is unique and long lasting.Brand personality must be differentiated from brand image, in sense that, while brand image denote the tangible (physical and functional) benefits and attributes of a brand, brand personality indicates emotional associations of the brand. If brand image is comprehensive brand according to consumers’ opinion, brand personality is that aspect of comprehensive brand which generates it’s emotional character and associations in consumers’ mind.

Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look and feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge of customers feelings about the brand. Brand personality differentiates among brands specifically when they are alike in many attributes. For instance - Sony versus Panasonic. Brand personality is used to make the brand strategy lively, i.e , to implement brand strategy. Brand personality indicates the kind of

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relationship a customer has with the brand. It is a means by which a customer communicates his own identity.

Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures immediate awareness, acceptability and optimism towards the brand. This will influence consumers’ purchase decision and also create brand loyalty.

Brand personality not only includes the personality features/characteristics, but also the demographic features like age, gender or class and psychographic features. Personality traits are what the brand exists for.

Brand logo

Elements of a good logo are as follows

Have a lasting value Distinctive and unique Appealing to the target market Supports your USP Legible

Brand slogans and jingles

Slogans and Jingles form an essential part of the advertising industry. The main role of an advertising slogan or radio jingle is to create an identity for the brand.

Once the catchy slogan or jingle becomes popular, it further leads to brand recognition and services as a reminder for the target audiences. A lot of effort goes into brainstorming and creating an advertising slogan / tag line / jingle for a brand / product. The creative tag line must fall in place and gel with the overall marketing efforts and corporate identity of the brand being advertised and promoted. Over the years, it has been seen that certain advertising campaigns have been a huge hit with its target audiences. People, till date, relate to the brand through its catchy and creative ad slogan . jingle. Such is the power of creativity!

Here are a few of my all time favorites - Jingles, Advertising Slogans and Tag Lines

Complan - "I'm A Complan Boy - I'm A Complan Girl!" Lijjat Papad - "Kharram Khurram, Khurram Kharram - Mazedar Lazedar Swaad

Swaaad Mein Lijjat Lijjat Papad" Nirma Detergent - "Nirma Detergent Tikiya - Iski Jhaag Ne Jadu Kar Diya

Hawkins Mentos - "Dimaag Ki Batti Zala De" Sprite - "Clear Hai!"

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Coke - "Thanda Matlab Coca-Cola", "Piyo sar utha ke" Saffola - "Abhi to main jawan hoon"

Characteristics of a good jingle are:

Audible Catchy Effective Long lasting impact

Brand story

The companys history and how it adds value to the brand. A summary of products.

The Power of a Brand

Marketing is not a battle of products, it's a battle of perceptions. The power of a brand lies in what resides in the minds of customers – what they learned, felt, seen, and heard about the brand as a result of their experiences over time.

Strategic Brand Management

When you have a brand that works for people, you should work the brand. "Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity."1 These concepts and techniques are to improve the long-term profitability of your brand strategies.

TOPIC-6

Brand Extension

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Related Unrelated

Category related Image related

Meaning: When a company launches another product into a related or an unrelated category, under the same brand name, it is said to have done a “Brand Extension”

Example Maggi noodles, Aata noodles, Rice Mania, Soupy noodles, Soups, Magic masala,

ketchup, Pasta, etc

Classification of Brand Extension

Brand Extension

Relationship between parent and three types of Brand Extensions:

1. Category related: Products have same use, slightly different benefit, same or different set of customers.2. Image related: A relationship that transfers the emotional benefits and image of the parent to the extension.3. Unrelated: Almost no relationship except brand name.

Need For Brand Extension

The cost of establishing a new brand especially in the international markets is enormous. It is also a known fact that about one in ten product launches meet success. This makes the thought of launching a new brand risky. Often marketers tend to play safe by extending the brand to either the same category or a different category. Thus, marketers view brand extension as a risk minimization exercise.The following reasons justify the need for brand extension:

1. Energizing a brand 2. Expanding core promise to new users3. Blocking competition4. Managing a dynamic environment5. Better survival

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Advantages of Brand Extention

1. Strengthens the existing brand2. Risk is minimized3. Cost of extension is lesser4. Helps a firm to survive in a competitive environment5. Maximize profits

Disadvantages of Brand Extension

1. Rarely expand category demand2. All retailers can provide more shelf space3. Over extension may prove to be costly4. Negative impact on the parent brand in case of failure

BRAND RELATIONSHIP SPECTRUM.

What are some of the advantages and disadvantages of each strategy?

House of brands. (P&G)

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They manufacture Head & Shoulders, Pert Plus, Herbal Essences and Vidal Sassoon. They give up economies of scale by having multiple unconnected brands. However, P&G's house of brands strategy lets them market to distinct niches by providing each niche its own value proposition - dandruff control, combined shampoo and conditioner, etc. Additionally, the house of brands strategy lets you avoid incompatible brand associations (Budweiser beer is incompatible with a Budweiser cola), distinguish new offerings (like Toyota did with Lexus), minimize channel conflict (like L'Oreal sold through drugstores and Lancome sold through high end department stores) and minimize conflicting product lines (Nestle and Purina shouldn't be related).

Endorsed brands.

There are several endorsed brands strategies. For instance, the typical endorsed brand strategy is based on lending the endorser's credibility to the endorsed brand.

There is also the shadow endorser strategy which is a variant of the house of brands in that there are two master brands. The difference lies in the fact that many people know that there is a relationship between the two brands. The key to this strategy is that the endorsed brand yields the benefit derived from the endorser but at the same time there is a degree of separation that allows the endorsed brand to develop its own personality.

Additionally, there is the token endorser strategy that features, albeit less prominently, the endorsement. The token endorser might simply lend a logo to provide the endorsement benefit. But the reason the token endorser takes a less prominent role is to allow the endorsed enough distance to develop on its own.

Next, there is the linked name strategy where the endorser uses naming to create the endorsement. For instance, think about McDonald's and the BigMac, McNuggets, McSwiss, McMuffins, McRib, etc. McDonald's lends the Mac or Mc to their naming system to establish an endorsed relationship.

Subbrands

Subbrands can allow companies with too broad of an appeal to target niche markets. They also can stretch the master brand into new areas of emphasis and signal a new offering. A downside to this strategy can come from the close proximity to the master brand and the inherent risk of associations. Additionally, such close proximity can also restrain the subbrand's development.

Branded House.

A branded house moves the master brand from the primary driver role to the dominant driver role. The branded house strategy leverages an established brand and minimizes the investment required for each product. There are economies of scale. While this strategy

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can provide synergy and maximize clarity, it can also limit niche opportunities and adversely effect the whole staple of products when the brand falters

Master Brand

A specific overarching brand name that serves as the main anchoring point on which all underlying products are based. Masterbranding attempts to create a strong association between a company's products and what the brand represents. While individual products will always have their own names/brands, it is the masterbrand that contributes to the consumer's belief that the product is different compared to all others in its class.

TOPIC-7

BRAND IDENTITY

A genuine brand is unique, that is it has an individual identity. Brand identity is a concept that has been much debated. It is one branding concept that has generated much enthusiasm.

Definition: Brand identity is the total proposition that a company makes to consumers- the promise it makes. It may consist of features and attributes, benefits, performance, quality, service support and the values that the brand possesses.

Signifiers of Brand identity:

Brand identity is the manifestation of inner face of the brand, it is transmitted to the outside world through brand embodiments like brand symbols, name, communication, style, message and so on. These outward manifestations of brand are responsible for creating its identity, as perceived by consumers.

1. Product2. Packaging3. Brand name4. Symbols and logos5. Brand endorser6. Country of origin7. Advertising

BRAND IMAGE V/S BRAND IDENTITY

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Brand image Brand identity1. Passive Active2.Tactical Strategic3. Short-term Long-term4. Fleeting Quintessential

BRAND IDENTITY V/S BRAND POSITIONING

Brand identity Brand positioning1. Forms the basis for strategies for current & future.

Deals with current strategies.

2. Provides guidelines for developing the product range.

Tackles every product class under the brand.

3. Symbolizes what the brand aspires to be.

Symbolizes what the brand is.

4. Specifies the limits of positioning strategy.

Creates specific positioning propositions for the brand.

BRAND IDENTITY SYSTEM

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TOTAL BRAND IDENTITY MODEL

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A Brand sets the Agenda Again, in contrast to purely image led concepts of brands, the Pentagon Brand Identity Model is based on the notion that while brands have to be meaningful to customers, they have to begin by having a very clear picture of who they are in a first place. Great brands clearly and sharply define their character and their turf. The first element in the Pentagon Brand Identity Model therefore answers the existential question “Who am I?”

Customer Insight Customer insight is crucial to brand success. Therefore, besides having an element where the brand states its individuality, the model has another dimension, which articulates key customer insights relevant to the brand domain and agenda. The model reflects the importance of customer insight by posing the question “Who is my customer?”

The RelationshipA brand is an idea in the mind of the customer. But today, brands have to go beyond this to also become an integral part of a customer’s experience. In the intensively competitive markets that exist today, brands are required to “walk the talk” to maintain their credibility and distinctiveness.

How a brand relates to a customer is a crucial element in a Brand Identity, especially in cases of such as Retail, Service and Employer Brands. The relationship element forms the third construct in Pentagon’s Brand Identity Model. It essentially answers the question “How does the brand relate to the customer?”

TOPIC-8 BRAND EQUITY

The aim of all marketing and branding activities is to strengthen brands and turn them into valuable assets. Brand equity deals with brand as an asset and its study is helpful in keeping a track of brand health. It allows a company to establish a baseline and track any change in brand value over time. Brand has been termed as an asset and a creator of wealth. A way to measure the wealth generated by a brand is to determine its equity. The concept of brand equity holds that every brand has a value attached to it.

Definition: 1. “The total accumulated value or worth of a brand, the tangible and intangible assets that the brand contributes to its corporate parent, both financially and in terms of selling leverage.” (Upshaw, 1995)

BRAND EQUITY MODELS

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TOPIC-9BRAND BUILDING STRATEGIES

Building strong brands is a prerogative of every marketing organization. A Product manager should have a complete knowledge of Brand building tools in order to be able to develop a strong “Brand building strategy.” The following are the major Brand building tools used by a Product manager:

1. Advertising2. Brand sites3. Public relations4. Sponsorships5. Sales promotion

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Developing brand loyalty

Creating unique brand positioning

Developing brand image

Hierarchy of brand building tasks

Brand Building Strategies

Mergers, consolidation and worldwide expansion greatly affect the way the insurance industry does business today. As boundaries collapse and markets change, there is a tool you can use to gain an edge over the competition. Other industries already embrace a strategy. In an era of global competition, you must build your company's brand to survive—and thrive.

To most consumers-your customers-the insurance industry is confusing and crowded. Consumers face many options, but what factors will resonate with them when they purchase insurance? As with most industries, and particularly those where experience and trust are so important, the stronger brand will win.

Creating brand awareness

Building brand associations

Brand customer relationship

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Insurance organizations and financial services firms have various operating units, divisions, subsidiaries, products and services. Often, those units or subsidiaries do not consider the larger picture when it comes to the corporate identity and branding. Some communicate their own set of messages without relating them to the overall organization. What is the result? The messages of the overall organization become fragmented and diluted. A strong brand unites your company's messages to drive communication with a clear and consistent voice, and in the process, further strengthening your business.

All brands have several components. As the Brandscape graphic shows, that "brand essence" is at the core. Your brand essence is simple: It is what you stand for, what sets you apart and what makes you unique. This is the overall message and feeling about your company you want consumers to understand.

Outside the center are the "core identity elements," which include the names, designs and brand structure of your company's various brands. In addition, beyond the core identity level are the "communication elements." These include all the ways you communicate your identity to the public—everything from advertising, letterhead, printed materials and signage to web sites, uniforms and vehicle graphics.

Finally, the outermost layer consists of performance, service, quality and actions. Through these, your company demonstrates that the promise of its brand is authentic. The inner layers of the brand mean nothing to customers if your company does not deliver on the brand's promise.

This is the most important lesson of all: if your contact with customers is not in harmony with your brand promise, you will lose the opportunity to influence the decisions people make.

Success Criteria of a Brand

To grow into a strong identity, your brand must incorporate four fundamental building blocks:

1. Legitimacy—What is your key audience's concept of you? Your positioning must be built around a promise on which you can legitimately deliver. In addition, the positioning must be consistent with how audiences think of you.

2. Distinctiveness—Consumers are bombarded with hundreds, even thousands, of messages each day. Your name and identity must be distinctive enough to cut through the clutter. The purpose of a brand is not to describe, but to distinguish.

3. Relevancy—The messages must be meaningful to key audiences. Many companies spend a lot of time talking to themselves, using their own internal jargon, as opposed to communicating in terms of the benefits that are most meaningful to key audiences.

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4. Consistency—Can you live the message consistently? A consideration is whether you can deliver on all of these messages through all the things you do, from how you train employees to the way you deal with consumers. Moreover, can you communicate it consistently through the name, brand structure and design?

Branding Challenges

It is not easy to develop a strong brand. Moreover, in the insurance industry, consistent brand management can be even more difficult for independents, since large state and national direct writers offer their captive agents branding muscle not commonly available to independents at the local level. While independent agents have wide latitude in matters of branding strategies, captive agents generally must follow strict branding guidelines set forth by the insurance company they represent. Compliance departments ensure that they cooperate when creating new signage, sending out marketing letters and advertising in the mass media—and this effectively carries the insurance company's branding efforts to the local level where business is built. Independent agents generally have no such constraints since they represent several different markets; however, on the other hand, scant support from the home office in branding matters poses a challenge that captive agents do not face. Nevertheless, both captives and independents stand toe-to-toe in the marketplace. To ensure success at the local level and throughout the distribution channels, it is vital to establish as strong a brand at as many levels as possible. A strong brand, effectively communicated, will bring your company higher visibility, and that will bring more customers.

IMPORTANCE OF BRANDING.

Branding is a more sophisticated form of marketing communication. The purpose of branding a project is to establish an identity that conjures up a positive image. This is exactly what the marketing people try to do when they brand a product. For instance, The Coca-Cola Company hopes that you feel good about their products and that you will choose their products from a crowded store shelf because you like the image and emotion associated with it. Maybe it works. If you throw a party and you provide a cooler full of Cokes and Sprites, you probably feel pretty good about the image you're portraying. If you stock a cooler full of "Joe's" cola, you might feel a little embarrassed.

Does it impact a large number of people or maybe the entire company?

Will it require a culture change or a change in the way people do their job?

Will your project make people nervous?

Will it result in efficiencies so that less people are required to do the same function?

These are the types of projects that would be candidates for branding. Examples of branding activities include:

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1. Establishing a positive project name: For instance, a project called MarketForce, probably gives more of a positive image than one called Marketing Process Improvement Initiative. You can build a positive image with an easy-to-remember acronym as well.

2. Establishing an image/logo: The project should have an image or logo associated with it. The image must be positive and it should be included on all communication coming from the team.

3. Buying trinkets: Put your project name or logo on pins, tee shirts, pencils, Frisbees, etc. Reward people with a token that contains the project logo when they do something good. Senior professionals don't always care about trinkets. However, many of your users like them.

4. Holding face-to-face meetings. Spend the time to see as many people as possible in person-to-person meetings or small group meetings, especially at the beginning of the project. No one wants to hear all the information about an important project on e-mail. It cheapens the project.

Of course, branding takes time, so you also need to have a project with a long time horizon. A steady stream of positive communication, combined with the positive feeling of the project branding, will help the project be successful and should help overcome any negative perceptions about the project.

Why Branding Pays Off ??

Time, money and effort spent on branding comes back many times over when the process plays out intelligently. Here s why:

1. Memorability. It s easier to remember the branded company than the what s its name? one.

2. Loyalty. When people have a positive experience with a memorable brand, they're more likely to buy that product or service again than competing brands.

3. Familiarity. Psychologists have shown that familiarity induces liking, and this makes even non-customers more likely to recommend a brand they know.

4. Premium image, premium price. Branding can lift what you sell out of the realm of a commodity, with customers willing to pay more for the well-branded product or service.

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5. Extensions. With a well-established brand, you can spread the respect you've earned to a related new product, service or location more easily

6. Greater company equity. Making your company into a brand usually means that you can get more money for the company when you decide to sell it.

7. Lower marketing expenses. Although you must invest money to create a brand, once it's created you get a bigger bang for every marketing buck using it.

8. For consumers, less risk. People tend to choose the brand-name supplier over the no-name one when afraid of the consequences of a mess-up.

References

Books:

1. Product management Donald Lehman 2. Strategic Brand Management Jean/ Noel3. Brand Management Sweta Johri4. The Product manager’s handbook Linda Gorchels5. Product management in India Ramanuj Majumdar6. Marketing your Product Donald Cyr/Douglas 7. Brand management YLR Murthi8. Brand management S A Chunawala9. Managing Indian Brands S Ramesh Kumar10. Srategic Brand Management Kevin Lane Keller

Magazines/ Journals

1. Marketing Mastermind2. Brand reporter3. Indian Journal of Marketing4. Advertising Express

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