Branding, Pricing PPT

8/3/2019 Branding, Pricing PPT

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Product StrategyProduct is the key element of marketing program. Before

taking any decision the firm has to take determinewhat product it will present in the market.

Any firm that is in marketing of products or services hastwo main aims to achieve

A. Customer satisfactionB. Profit maximization

The second is dependent on first.

In this situation product policy becomes the central

function of marketing.The perceptions of the consumers from different anglesare to be combined in the product image and imageshould be retained by using various marketingelements.



• “Branding is the process by which companies

distinguish their product offerings from thecompetition. Brands are created by creating adistinctive name, packaging and design.”

• Brand signifies reputation and symbolic meaning

attached to a brand. Branding is an integral part ofthe overall marketing strategy. For the consumers abrand name is a means of identification of productsas well as means of differentiation of the brandedproducts from its rivals.

• Customers (particularly consumers) view a brand asan important part of a product and branding can addvalue to a product. A brand can provide a guaranteeof reliability and quality, in fact.



• POSITIVE IMPACT OF BRANDING• Recognition And Loyalty

The main benefit of branding is that customers are muchmore likely to remember your business. A strong brand

name and logo/image helps to keep your company image inthe mind of your potential customers.

• Image of Size A strong brand will project an image of a large andestablished business to your potential customers. Like The

Coca Cola Company uses the brand name Coca Cola andBBC is the brand name for the British BroadcastingCorporation.

• Image of Quality A strong brand projects an image of quality in your

business, many people see the brand as a part of a productor service that helps to show its quality and value.

• Image of Experience and Reliability A strong brand creates an image of an establishedbusiness that has been around for long enough to become well

known



• EFFECTIVE BRANDING INCLUDES - four dimensionsEXAMPLE OF „Airtel’

• The Functional Dimension

Airtel says, "Your world of communication just gotsimpler." Even the simplest of the consumer can use theproducts and services.

• The Social Dimension

Airtel is a recognized brand to be associated with. It isassociated with high level of social value.

• The Spiritual Dimension

"Building telecom, building relationships." Airtelencourages everyone to be more involved in buildingrelationships and spread the happiness.

• The Mental Dimension

Airtel gives me the opportunity to "Express Myself."



• Branding: Brand is a name, term, sign, symbol,design or a combination of them which is meantto identify the products or services from those ofcompetitors.

• Trade Mark: When a brand name is registeredand legalized it becomes a trade mark.

• All registered brands are trademarks. • Patent: Patents are public documents conferring

certain rights, privileges, titles, etc. A patentconfers the right to the use of technical

invention. • Copyright: This is applicable in the case ofbooks and is used in the same meaning as thatof patents.



• Types of Brands:

• Individual Brand Name: Each product has aspecial and unique brand name (Lux).

• Family Brand Name: This is limited to one lineof a product e.g. Amul for milk products, Nokia

for mobiles. • Umbrella Brand: Different products under the

name of the company or the manufacturer.

Tata, Videocon etc. • Brand Extension: Use of the same brand for

new products e.g. Lux International



• Co-branding: The practice of marketing two ormore brands together on the same package orpromotion.

• Re-branding: Changing a brand’s focus totarget new markets.

• Characteristics of Good Brand Name • It should suggest the benefits and qualities of

the product• The name should readily come to the minds of

the customers• Easy to pronounce and remember

• It should be distinctive• It should be extendable• Should be capable of registration



• Packaging

• Packaging is the process of covering or

wrapping the product for the purpose ofdelivering to the customer with safety.

• Functions of Packaging

• Packaging is sales tool• It identifies the maker of the product

• It is the biggest advertising tool

• It gives protection to the product• It facilitates retailer’s functions

• To facilitates transportation, storage and

warehousing handling



• Essentials of Good Packaging

• Suitable

• Attractive• Protective

• Informative

• Convenient• Economical

• Durable

• Labeling

• The label may be simple tag attached to theproduct or an elaborately designed graphic thatis part of the package. The label may carry onlybrand name or a great deal of information.



• Functions of Labeling • Label identifies the product or brands

• Label also grade the product• It describes the product: who made it, where itwas made, when it was made, what it contains,how it is to be used, etc.

• It promotes the product through attractivegraphics.• It stresses the special features of the product. • Warranty:

• Warranties are formal statements of expectedproduct performance by the manufacturer.• Products under warranty can be returned to the

manufacturer or designated repair centre forrepair, replacement, or refund.



• Guarantee:

• Guarantee suggests that product is of high quality andthe company and its service performance aredependable. Guarantees reduce the buyer’s perceivedrisk.

• Innovation & Diffusion

• Innovation

• Innovation is purposeful, organized and risk takingchange introduced by a marketer in order to maximizeeconomic opportunities.

• Successful innovation is a necessary condition foreffective marketing. „Innovate or perish‟ is a currentslogan which has rich meaning for business operating inan economy with customer oriented marketing.

• An innovation is the act of developing a novel idea into aprocess or product. For an innovation to be successful,

the new product



• must be feasible and must have commercialacceptability.

• A successful innovation passes through threestages:

• The idea or invention

• The implementation of the idea and

• The market acceptance

• The Adoption Process

• The adoption of an innovation demands planned

management of change. An adoption process isa process bringing about a change in buyer’sattitudes and perception.

• The adoption process goes through different

stages like:



• Awareness: A person knows about changeand has general information, may be through

advertisement. • Interest: Seeks information, after knowing

develops interest and demands detailedinformation about the new product.

• Evaluation: Tries to reason through pros andcons the value of the new product to him.

• Trial: The person is now ready to put the

change into practice once or twice. • Adoption: It is the final stage in buying

decision making process, decides to adopt thenew idea.



• Diffusion (Adoption) of Innovations

• The diffusion process developed by E.M. Rogers is the

same as the product life cycle.• However the diffusion process looks at what ishappening in the market (buyer behavior) whereas

• The product life cycle merely depicts the flows ofrevenues and profits of the business unit on account of

the diffusion process.• The diffusion process is described in the form of the

normal distribution curve.

• Innovators: They are first two and half percent of the

market. They are risk takers and forerunners • Early Adoptors: They are thirteen and half percent.

They are the opinion leaders.

• Early Majority: They are 34% to adopt the new product.They are average people



• and do not hold any leadership position.They form a bridge between the old and

new values. • Late Majority: The next 34% are the late

majority buyers to adopt the innovation.They are older and less educated andhave limited purchasing power. They aremore conservative and less responsiveto change.

• Laggards: It is the last category ofbuyers and is 16%. They are traditionalin their outlook on life. They have veryless contact with mass media.



Importance of Pricing:Price is a matter of vital importance to both the

seller and the buyer in the market place. Inmoney economy, without prices there cannotbe marketing. Price denotes the value of aproduct or service expressed in money. Only

when a buyer and a seller agree on price, wecan have exchange of goods and servicesleading to transfer of ownership.



• Eight Steps to Better Pricing – Assess what value your customers place on aproduct or service:

– Look for variation in the way customers value the

product: – Assess customers' price sensitivity:

– Identify an optimal pricing structure

– Consider competitors' reactions:

– Monitor prices realized at the transaction level: – Assess customers' emotional response:

– Analyze whether the returns are worth the cost toserve:



•Pricing Strategies:Pricing Objectives: Survival,

Maximum current profit, Minimumcurrent revenue, Maximum market

skimming, Product quality leadership.

Pricing Policies: Cost orientedpricing, Demand orientedpricing, Competition orientedpricing, Skimming pricing,Penetration pricing



1) Markup/Cost Plus Pricing Method: The mostelementary pricing method is to add a standardmarkup to the cost of the product.

2) Target Return Pricing Method: Price that would yieldits target rate of return on investment.

3) Perceived Value Pricing Method: Prices on product’sperceived value, especially in Service industry.

4) Going Rate Pricing Method: In this method of pricingthe firms bases its price largely on competitors priceswith less attention paid to its own cost or demand. Thefirm may charge same, less or more than competitors.

5) Sealed Bid Pricing Method: Competitive orientedpricing is common where firms bid for jobs. The firmbases its price on expectations of how competitors willprice rather than on a rigid relation to the firm’s costsor demand.



• Odd Pricing – 49.99/-, 499.99/-• Prestige pricing – Luxuries, high end products /

services• Geographic pricing – Distant / difficult places• Dual / Discriminatory pricing – Railways / Cinema• Monopoly pricing – If no competition

• Customer oriented pricing – FMCG sector• Negotiated pricing – Industrial sector / quantity

orientedProblems in Pricing –

DiscountsAllowancesLegal restrictions – MRTP Act 1969, Essential

commodities act 1955, Drugs price control act 1992



Pure Competition

• low barriers to entry, many choices, no businesshas dominance, many companies competingand nobody has a significant advantageexamples -

• small bars and restaurants

• variety stores, convenience stores

• nail salons, barbers

• small grocery stores• doughnut shops

• professional services (dentist, doctor, architects)



Oligopoly

• very similar products, few sellers, small firmsfollow lead of big firms, fairly inelastic demand

• # many barriers to establishing a business soonly the oldest and biggest businesses areoperatingexamples- all the businesses are big and of equal size – banking industry

– automotive manufacturers, gasoline retailcompanies

– insurance companies, telecommunicationscompanies



Monopoly

• - one single large seller with no closecompetition and no alternate substitutesexamples -

• software companies like Microsoft

• Hydro services

•Indian railways

• Indian Postal dept.



IMPERFECT OR Monopolistic Competition

• there is one or two big companiesdominating the market with a few mediumor smaller sized companies

examples -• Google

(there used to be "pure competition" untilGoogle grew very big and becamedominant)

• Big Bazaar

Documents

Branding, Pricing PPT