Lecture 23 Managing Successful Products, Services, and Brands Part 2

Welcome to Introduction to Marketing Essentials.
Now, we will talk about module Twenty three. Now, as you can see on this slide module twenty
two, twenty three, and twenty four will be covering Managing Successful Products, Services
and Brands. And we now, today we will talk about module twenty three and let us see what
are the things that will be covered in this module.
So, the first thing that we will cover here is to identify the ways that marketing executives
manage a product's life cycle.

We have talked about product life cycle in module twenty
second and the next thing that we will discuss today is the importance of branding and brand
management. To introduce an important task for a firm is to manage its product through
the successive stages of their life cycle. Now, you see that different products will
be at different stages of the life cycle. So, the same company will be managing many
life cycles at the same time. So, in the upcoming slides , we will describe the role of product
manager who is usually responsible for managing the various stages of the product in their
life cycles . We will also discuss the three ways to manage
a product through its lifecycle which are : first is to modify the product, the second
is to modify the market, and the third is to reposition the product .

These are the
three ways in which a product is managed through its various life cycle stages. Now, let us
talk about managing the the product life cycle and the role of the product manager in that.
So, the product manager, sometimes called as a brand manager, manages the marketing
efforts for a close knit family of products or brands.

The brand manager style of marketing
organization is used by consumer product firms, that includes Procter and Gamble, General
Mills and PepsiCo, and by industrial firms such as Intel and HP.
All product managers are responsible for managing existing products through the stages of the
life cycle while some are also responsible for developing new products. So, the problem
is that one product may be in the decline stage, another product may be at maturity,
and the third maybe in the growth stage, and the fifth, the fourth one is in the introduction
stage, but then this product which is in introduction stage will very soon move on to the growth
stage.

So, what remains? So, for the for that company
in the product line there will be no product in the introduction stage of the product life
cycle. So, that is why these product managers, they are several times also responsible for
developing new products so that one or the other product it always remain in the introduction
stage . So, product managers marketing responsibilities
include: developing and executing a marketing program for the product line described in
an annual marketing plan, and also approving ad copy, media selection, and packaging design.
Product managers also engage in extensive data analysis related to their products and
brands.

Sales, market share, and profit trends for every product and brand are closely monitored
, that is for every product and brand are closely monitored, because that will give
a picture about which stage of the product life cycle a product is , is in it is in introduction,
growth, maturity or decline. So, managers often supplement the data related
to their products and brands with two measures: one is the Category Development Index, and
the second is Brand Development Index. So, these are the two indexes available to
a brand manager to understand how their products and brands are doing. These indexes help to
identify a strong and weak market segments, usually demographic or geographic segments
for a specific consumer products and brands and provide direction for marketing efforts
. Now, for one thing that you do while managing,
the product managers do while managing the product line is to modify the product.

So,
what does this means? Product modification involves altering one or more of a product
characteristics such as its quality, performance, or appearance, to increase the product's value
to customers and increase sales. For example, wrinkle free and stain resistance
clothing made possible by nanotechnology revolutionized the men's and women's apparel business and
stimulated industry sales of casual pants, shirts, and blouses.
Another thing that that can be done is to add new features, packaging, or scents they
can be used to to change a product characteristic and give the sense of a revised product.
For example, Procter and Gamble revamped Pantene shampoo and conditioner with a new vitamin
formula and relaunched the brand with a huge budget advertising and promotion campaign.
The results were amazing. The brand first introduced ninteen fourty, is now one of the
top selling shampoos and conditioners in India, in an industry where more than one thousand
competitors are there. Another thing that can be done now is to modify
the market. So, first we have modified the product now we are talking of modifying the
market with market modification strategies, a company tries to increase sales by: first
is to find new customers, the second is increasing the product use among existing customers,
or creating new use situations .

So, these are the three things that are done
in in this option that is modifying the market. So, finding new customers and increasing a
product's use in the existing customers and then creating new use situations for those
existing products. Now, when we are looking at finding new customers.
So, the example is that the advertising by laundry brands in India has evolved to drive
behavioral change, both among kids as well as adults reflecting laundry as central to
the household, affecting every individual and not simply as a woman's job .
Procter and Gambles award winning 'Share the load' campaign for Ariel Matic detergent is
a manifestation of this trend . Harley Davidson has tailored a marketing program to encourage
women to take up biking, thus doubling the number of potential customers for its motorcycles.
Another thing that can be done is to increase the product usage. So, we are talking of modifying
the market, the first thing was finding new customers, the second is to increase a products
usage. For example, promoting more frequent usage has been a strategy of Knorr Soup by
HUL.

Since the soup consumption rises in the winter
and declines during the summer, the company now advertises more heavily in warm months
to encourage consumers to think of soup as more than a cold weather food. Similarly,
Maggi by Nestle was positioned as a healthy snack and not just a quick snack option available
in order to increase its consumption. Now, how to create a new use situation? Selling
baking soda as a refrigerator deodorant and subsequently using it into a variety of new
product categories, such as a toothpaste, antiperspirant, and laundry detergent. Another
option that we have seen earlier, from the slide, slide number five so, we have talked
about modifying the product and modifying the market. Now, we will talk about the new
positioning of this this product . Often a company decides to reposition its
product or product line in an attempt to bolster sales, in an attempt to increase sales.

Product
repositioning changes the place a product occupies in the consumer's mind relative to
competitive products . A firm can reposition a product by changing one or more of the four
marketing mix elements . So, four factors that trigger the need for
a repositioning action are: first is reacting to a competitive position, second is reaching
a new market, the third is catching a rising trend, and the fourth one is to change the
value offered. So, these are the four factors that trigger the need for reposition.
So, there can be more than one factors or there can be one factor out of these or there
can be two, three, or all four that may trigger this repositioning. So, what happens in this
first one that is reacting to a competitor's position? One reason to reposition a a product
is because the competitor's entrenched position is adversely affecting sales and market share.
For example, decathlon has low end price positioning and targets consumers who see value for money
as more important than the brand image.

In doing so, it appeals to a wide range of age
groups and more to participants in sporting and outdoor activities, as opposed to consumers
buying sportswear as a fashion statement. Reaching a new market, so that is another
option that is reaching a new market. So, Johnson and Johnson effectively repositioned
it's Saint Joseph aspirin from a product for infants to an adults low strength aspirin
to reduce the risk of heart problems or strokes. Pizza Hut organized and brought Indianisation
in its methodology right from the ambience to the varied menu offering.
In India, family dinner and outing is meant for an auspicious occasion and therefore,
it opened up restaurants such that a family can visit the place and have their fun time.
Another thing to do is to catch a rising trend.

Changing consumer trends also lead to repositioning.
Growing consumer interests in food that offer healthy and dietary benefits is an example.
Quaker oats make the FDA-approved claims that oatmeal, as part of a low-saturated fat, low
cholesterol diet, may reduce the risk of heart disease. Women Horlicks, positioned as a health
and nutrition drink, claims to make the bones stronger.
The next option is to change the value offered. In repositioning a product, a company can
decide to change the value it offers buyers and trade up or down. Trading up involves
adding value to the product or line through additional features or higher quality material.
For example, multiple retailers have traded up by adding a designer clothes section to
their stores. Goodyear has come up with a "run flat" tire
that can travel up to fifty miles at fifty five miles per hour after suffering total
air loss . Another option is changing the value offered. So, we are still continuing
with with the changing the value offered. So, we have talked about trading up, now we
will talk about trading down. It involves reducing the number of features,
quality, or the price. For example, airlines have added more seats, thus reducing legroom,
and limited snack service.

Trading down also exist when companies engage in downsizing
that is reducing the package content without changing package size and maintaining or increasing
the package price. Another important thing that we will talk about is branding and brand
management. The American Marketing Association defines
a brand as, "a name, term, sign, symbol, or design, or a combination of them, intended
to identify the goods or services of one seller or group of sellers and to differentiate them
from those of the competitors ." Now, these differences may be functional,
rational, or tangible – related to the product performance of the brand. They may be symbolic,
emotional, or intangible – related to what the brand represents or mean in a more abstract
sense. So, these differences can come from rational
, emotion, or tangible or they may come from symbolic, emotional, and intangible .

So,
here we are talking of product performance here, we are talking of the more abstract
sense. Now, what is the brands role for firms? So,
firms may benefit most from branding in the following ways: first is branding simplifies
product handling by helping organize inventory and accounting records , the second is a brand
also offers the firm legal protection for unique features or aspects of the product
, the third is a credible brand results in brand loyalty which provides predictability
and security of demand for the firm , the fourth is branding can be a powerful means
to secure a competitive advantage.

So, in addition to all the first three the
most important is that these brands they provide a powerful means of a competitive advantage.
Now, what does brand do for a consumer? So, consumer may benefit most from branding in
the following ways: the first is recognizing competing products by distinct trademarks
allow them to be more efficient shoppers. The second is consumers can recognize and
avoid products with which they are dissatisfied, while becoming loyal to other more satisfying
brands . And moreover, brand loyalty often eases consumer decision making by eliminating
the need for an external search. So, as soon as the consumer a consumer has a need he goes
and buys a brand, because he is brand loyal. So, branding is the process of endowing products
and services with the power of a brand. It is all about creating differences between
products. So, we are talking of creating differences
. So, that is important. So, when we are doing branding we are creating differences between
products.

Marketers need to teach consumers "who" the product is, "what" the product does
and "why" consumer should care about that product .
So, these are the three function that it does; who is the product, what it does and why the
consumer should be worried about it. So, marketers can apply a branding virtually anywhere a
consumer has a choice. It is possible to brand a physical good, a service, a store, a person,
a place, an organization, or an idea. Now, with this branding and brand management
comes brand personality . Product managers they recognize that brands offer more than
product identification and a means to distinguish their products from those of the competitors
. Successful and established brands take on
a brand personality . A set of human characteristics associated with a brand name . Research shows
that consumer assign personality traits to products . So, they think of brands as traditional
or romantic or rugged or sophisticated or rebellious and choose brands that are consistent
with their own or desired self image . So, this is important . This is the means
why consumer should, why to care, because it is like me.

So, that is why I will buy
this. Marketers can and do imbue a brand with a personality through advertising that depicts
a certain user or usage situation and conveys emotions or feelings to be associated with
the brand. For example, personality traits linked with Pepsi are, young and exciting.
The traits often linked to Harley Davidson are masculinity, defiance and rugged individualism.
Brand equity is the added value. So, now, you see that we have talked about brand, branding,
brand personality, and now we are talking of brand equity . Brand equity is the added
value, a brand name gives to a product beyond the functional benefits provided. This added
value has two distinct advantages; the first is the brand equity provides the competitive
advantage. For example, Disney name defines children's entertainment .
The second advantage is that consumers are often willing to pay a higher price for a
product with brand equity.

For example, Gillette razors and blades, Bose audio systems, and
Duracell batteries, all enjoys a price premium arising from their respective brand equity.
Now, how to go about creating brand equity? Brand equity does not just happen. It is carefully
crafted and nurtured by marketing programs that forge strong, favorable, and unique customer
associations and experiences with the brand. Brand equity resides in the minds of the consumers
.

So, it resides in the mind of the consumers and results from what they have learned, felt,
seen, and heard about a brand over a period of time.
So, how this brand equity is formed in the mind of the consumers, because of what they
have learned , they have felt, seen, and heard about a brand over a period of time . Brand
equity is reflected in perceptions, preferences, and behavior related to all aspect of marketing
a brand. Now, how to go about creating brand equity? So, that was about what how to go
about creating brand equity. Now, we will talk about certain models for creating brand
equity. So, brand equity arises from a sequential
building process consisting of four steps . So, these are given in this figure twenty
three point one. So, that is a customer based brand equity pyramid.
Now, you see that on the right hand side, we have branding objective at each stage.
On on the left hand side, we have stages of the brand development .

So, the first stage
of brand development is to identify, which is who you are? The second is is meaning,
what you are? The third stage is response, what about you? And the fourth stage is relationships
that is, what about you and me ? Now, branding objective at each stage is,
at the first level it it is the deep broad brand awareness, at the second stage it is
strong favorable and unique brand associations, at the third stage it is positive accessible
reactions, and at the fourth stage is intense active loyalty. So, now, here we have brands
and here we have the building blocks. So, at the bottom is salience.
So, when we are talking of stage of brand development, it is identify who you are? The
branding objective is deep broad brand awareness and in this model that is the first step that
is salience. Now, as we move on to the second stage meaning what you are and building a
strong favorable unique brand associations so, that will come from performance and imagery
. Now, let us move on to the next that is response,
what about you? The branding objective is positive accessible reactions.

Now, here there
are two things judgment and feeling and at the top , what about you and me? Intense active
loyalty so that is resonance. Now, let us see about all of them. So, what
is brand salience? Brand salience is how often and how easily customers think of the brand
under various purchase or consumption situations – the depth and breadth of brand awareness
brand performance is how well the product or service meets customer functional needs
and brand imagery describes the extensive property of a product or service including
the ways in which the brand attempts to meet customer psychological or social needs .
Brand judgments are focused on customers' own personal opinion and evaluations.

Brand
feelings are customers' emotional responses and reactions with respect to the brand and
brand resonance describes the relationship customers have with the brand and the extent
to which they feel they are "in sync" with it.
So, in this model the first step is to develop positive brand awareness and an association
of the brands in the consumers' minds with a product class or need to give the brand
an identity . The second step is a marketer must establish
a brands meaning in the mind of the consumer. Now, this meaning arises from what a brand
stands for and has two dimensions to to it. The first is the functional performance related
dimension, and the second is an abstract imagery imagery related dimension that we have talked
about earlier also.

So, this these are the two meanings that comes with the brand .
The third step is to elicit the proper consumer response to a brand's identity and meaning.
Here attention is placed on how consumers think and feel about a brand . Think and feel
here, it is about what the brand stands for on the functional and abstract dimension.
Now, here the attention is on how consumer thinks and feel about a brand.
Thinking focuses on a brand's perceived quality, credibility, and superiority relative to other
brands while feeling relates to the consumers emotional reactions to a brand .
The fourth step is to develop a strong and sustainable relationship with the consumer.
The focus is on developing resonance . The intensity of customer's psychological bond
with the brand and the level of activity it engenders .
Now, after having build this brand equity. Now, it is time to value this brand equity.
So, brand equity also provides a financial advantage for the brand owner. Successful,
established brand names, such as Gillette, Nike, and Nokia, have an economic value in
the sense that they are intangible assets. Brands, unlike physical assets that depreciates
with time and use can appreciate in value when effectively marketed .
Financially lucrative brand licensing opportunities arise from brand equity .

So, what is this
brand licensing? It is a contractual agreement whereby, one company that is called as the
licensor allows its brand names or trademarks to be used with products or services offered
by another company that is licensee for a royalty or a fee. For example: Disney makes
billions of dollars each year licensing its character for children's toys, apparels, and
games. Winnie the Pooh fee alone exceeds three hundred crores annually.
Successful brand licensing requires careful marketing analysis to ensure a proper fit
between the licensor's brand and the licensee products. World renowned designer Ralph Lauren
earns over dollar one forty million each year by licensing his Ralph Lauren, Polo and chaps
brand for dozens of products.

Mistake, such as Dominos fruit flavored bubble
gum, is an example of poor matches and licensing failures.
Another important thing is to understand, how to go about picking a good brand name.
It is often difficult and expensive process to pick a good brand name. So, there are five
criteria's which are mentioned most often when selecting a good brand name and they
are as follows: the first is the brand should should suggest the product benefit .
The first criteria is the name should suggest the product benefits , the second criteria
is the name should be memorable, distinctive, and positive , the third is the brand should
fit the company or product image and the fourth is the name should have no legal or regulatory
restriction. So, now it is it is it is time for picking
a good brand name.

How to go about choosing a brand name ? It is often a difficult and
expensive process to pick a good brand name. So, there are four criteria which are mentioned
most often when selecting a good brand name which are as follows: the first is the brand
should suggest the product benefits, the second is the name should be memorable, distinctive,
and positive, the third important criteria is the name should fit the company or product
image, and the fourth is the name should have no legal or regulatory restriction .
So, to conclude in this module, we have discussed the role of a product manager in managing
the product life cycle and of various products and their life cycles .

We explained the three
ways to manage a product through its life cycle which includes: modifying the product,
modifying the market, and repositioning the product.
We have also discussed about the concepts of brand equity and brand personality and
then finally, we discussed the relevance of picking a good brand name, in brand management.
These are the three books used in this module. Thank you ..

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