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PRODUCT AND BRAND MANAGEMENT

HISTORY OF A BRANDA brand is an identity of a certain service, product or business. There are many forms osuch as name, symbol, sign, and command or color combination. The term brand caexistence as a simple way to identify cattle of different people by marking a hot iron stam

A brand name that is lawfully protected is called trademark. The term brand covers indivthe brand, service or product. A registered trade mark through IP Australia gives you the to use, license or sell it within Australia for the goods and services for which it is register

A concept of branding is linked with a concept rather than a definite business, product owhereas a commodity brand is linked with a commodity. In the early days the automotivcalled brands as mar ues! and the term is still in use as a synonym to refer to motor veh

term brand! is often used as a metonym! that indicates a company which is stronglywith a brand.

"randing has a long history all over the world. The word is derived from a word brnmeant to burn!. This word was used by the early #orse tribesmen to brand their livemarking a hot iron stamp.

$ith the passage of time, branding not only became an expression of ownership, but also uality. "uyer%s in &hicago%s meat market identified uality beef by means of brand

cattle. It happened because the speciali'ed farms which brought improved uality of meatbetter grass or sufficient supply of water or improved living conditions to cattle. (oon mhoot! was no longer a commodity) it became branded and better uality was visible.

(everal years ago in the (oviet *nion products were sold under a common namemanufacturers had to mark their packaging to put a name to their product. +ery soon cuwere able to recogni'e that one brand of detergent was different or superior in uality frombrand. As a result homemakers began to look for the packaging of the product while purchelp them identify the brand they wanted. They were able to choose a product upon the pstamp and its manufacturing location. A manufacturer%s serial number became a brandwas diverse from various detergents. According to the state laws, every manufacturer hthe same formulas to produce detergents.

In a market where products, services and industry limitations are in fluctuation, a wellcan be a primary source of competitive benefit. In present times branding has becomstrong force, to the point that everything in the market is branded. There are many branding that serve many purposes such as-


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. A brand recogni'es the seller or maker./. A brand shields both the consumer and the producer from opponents who endea

present products that are identical in appearance.0. A brand offers the seller an opportunity to draw a gainful set of customers. "rand

offers sellers protection from opposition and better control in preparing their marketin1. $ell built brands help make the commercial image, making it simpler to begin anapproval by distributors and consumers.

2. 3rgani'ing a positive brand image builds opportunities to launch new products thbrand e uity. It attracts and keeps first class employees and the stockholders.

TYPES OF BRAND NAMES "rand names come in different styles because each brand is uni ue and functions for marketing strategies. (ome of the types of brands are as follows-

Acronym 4 A name made up of initials such as I"5 or *P(6escriptive 4 #ames or tags that describe a product benefit or function such as Ai

$hole 7oodsAlliteration and 8hyme 4 #ames that are fun to say and retain in the mind such as

6onuts and 8eese%s Pieces9vocative 4 #ames that suggests a related, brilliant image, for instance) &rest and A#eologisms 4 Totally made up names like :odak and $ii7oreign word 4 Adopt a term from another language such as (amsung and +olvo7ounder%s names 4 These names use the names of real people such as $alt 6isne

;ewlett Packard


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Types of brands

There are various kinds of brands where different products can be categorised. "randpowerful marketing tool that distinguishes your brands in such a manner that builds up preference! and gives you the benefit to control premium pricing.

. Product brands &ommodities turn into branded products when the seller knows threally well. The seller should know that his or her products have persuasive characterdifferentiate them from other brands in the market and makes them better among thbrands in the same product line.

/. (ervice brands (ervice brands are those products that people buy without seeing. Tbrands are sold entirely based on the trust that the seller will deliver the brand as proyou sell any services, you need to build up and organise a powerful and an influentimage.

0. "usiness brands Anyone can brand his or her business itself. This can be done in pbranding the product and services or in addition to it. "usinesses that have insumarketing expertise or money, should build only one brand. It is advised that theydevelop into a business brand because this way they will able to attract investoapplicants and mainly) customers.

Personal brands Personal brands endorse your own personality. >ou know it or not, everyindividual has a brand recognition) your name and face recognition becomes your brand ithe minds of people.

Personality brands These brands endorse individual people who are very influential. Thedeliver broad reaching personal celebrity but also build considerable worth when theywith different brands. 9meril ?agasse, 5artha (tewart and 3prah are perfect examplpersonality brands. All these people are regular people, but they share brand associatitheir names that speaks of their personality branding.

The art of mak n! yo"r b"s ness name stand o"t

>ou might want to put a name to your new group, program, product, service, company or>ou might also want to change a well known name, a refurbished image or change of nammerger. ;ere are some benefits that you can get by ac uiring an appropriate brand nambrand name can also save you from financial loss and public embarrassment.

@ part ways from your competitors@ make it obvious to the people that you are special and memorable


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@ emphasise an exclusive positioning policy@ produce positive and long lasting commitment with your addressees@ drive itself through the world, becoming a 'ero cost and self financing P8 driving fac@ present a strong base of advertising and marketing descriptions@ be the originator of a brand that goes above the commodities and services you provide@ totally control a category

"elow are some uestions that set the criteria for your appropriate brainstorming for sename. In each uestion about selecting a brand name, start brainstorming yourself, as weothers also. 3ther people can give you a lot of positive feedback and help you idendrawbacks.

. $ho are your consumers/. $hat are you naming

0. $hat kind of a name do you want1. ;ow lengthy should the name be2. 6o the sounds in the chosen name contain the correct appealB. $hat connections should the name remindC. $hat are the foreign language inferences of the nameD. ;ow should you assess the nameE. ;ow will the name emerge in the local directories

F. $ill you be able to trademark the name

?ook out for below mentioned categories that will greatly help you to derive a creative nayour brand.

. 8eal words examples such as Apple, &lick,


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/. 6iscover secrets from earlier successes, for example 5o'illa 7oundation is a blend o5osaic :iller and


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In such cases, a powerful and influential brand name or even a company%s name is used driving factor for a wide range of products such as "lack K 6ecker or 5ercedes "en'. Therealso be various subsidiary brands such as &adbury 7lake, &adbury 6airy 5ilk or &adbury

Individual brandingit is also known as multi branding or individual product branding. "asically it is the markstrategy of assigning each and every product a uni ue brand name in a portfolio. This is dwith corporate branding, umbrella branding and family branding where all the products inline are assigned a particular overshadowing brand name. The individual branding has itsadvantages such as each of its products carries a uni ue brand identity and image. This behelps in the location of all the products that allow a firm to position the brands diversely. product branding includes Procter K


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No-brand brandingIn the recent times, more companies have started to follow successfully no brand! stratereproduce general brand simplicity. A clear example is the Gapanese company 5u=irushi meaning no brand uality products, and 7lorida based company #o Ad (unscreen. The tbrand strategy! means that the company spends a little amount on advertisement and tradimarketing. The commercial success of 5u=i! is powered by the word of mouth, a simpway of shopping and anti brand association. It may be taken as a kind of branding becauproduct is made obvious by the nonexistence of a brand name. +ene'uelan brands such as>ellow &ap! or Tapa Amarilla! are a fine example of no brand strategy. Their productsrecogni'ed by the color of their company caps same as >ellow &absLTaxis.

Brand extension and brand dilutionIf a product has a very influential brand name, it can be utili'ed as a driving tool for the necustomi'ed products. 7or example, several designer companies further extended their branother goods such as shoes, fragrance, accessories, home dMcor, home luggage, hotels, etc

&aterpillar extended its brands to watches and shoes, 5ars extended its brand into ice crePuma and Adidas into a personal hygiene range and 5ichelin into restaurant channel. Theinfamous 6unlop! further extended its brand from selling tires to various rubber productstennis rac uets, golf balls, adhesives and shoes.

There is a huge difference between line extension and brand extension. $hen companies wenter a new market in the current product class on the basis of an existing brand name alonew flavors, varieties and si'es, it is called line extension. $hen a brand loses its brand conwith a product area) market segment, price, reputation or uality, the risk of over expanscalled brand dilution!.

Multi brands3n the other hand, a fragmented market among various brands can deliberately launch a nof brands against its own well known brands. These multi products more or less have thecharacteristics. This way the companies grab the leftover share of the market that otherwihave gone to the minor brands. The logic behind is that when you have 0 out of / brands

kind of market, it will give a bigger share overall rather than out of F.If a supplier wants to establish a new market that he finds commercially viable, he or she launch a second brand in competition with the first brand. This strategy will obstruct othecompanies to enter the market.Individual brand names allow superior elasticity naturally by authori'ing a range of diversof different uality. These products can be sold without mystifying the consumer%s awarthe nature of the business.


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Private label brandsPrivate label brands have also emerged as a ma=or factor in the market ever since the emeof influential retailers. Private labels are also known as own brands! or store brands!. $hretailer has a particular a powerful brand identity, these own brands! may be capable to cagainst the strongest brands and even out class those products which are not strongly branotherwise. 3ne such example in this case is 5arks K (pencer%s clothing line in the *nited:ingdom%.

Individual and organizational brandsThere are different types of branding that consider organi'ations and individuals as producrecogni'ed. Personal branding is known to treat people and their profession as brands. Thiwas first used by Tom Peters in an article in EEC. 7aith branding is known to regard relipersonalities and associations as brands. Phil &ooke, a religious expert says that faith bratackles the uestion of how a person can express his or her faith in a culture that is mediadominated.

Crowd-sourcing brandingThese kinds of brands are established by the people meant for business) it is contrary to thconventional method where a business establishes a brand. This kind of method reduces tof brand failure, because the people who might discard the brand in the conventional manthose who play a part in the branding process.

Nation branding#ation branding considers the existence and reputation of countries as brands. It is a branch of thpractice that determines, assembles and supervises the reputation of different countries. This is srelated closely to place branding. Approaches, such as application of increasing importance upofigurative value of products have guided the countries to highlight their individuality. The brandimage icon of a nation is e ually important as their sales and purchases.

TRADEMAR& A trademark is typically a name, logo, word, phrase, design, image, symbol or a combinathese terms. The products and services which appear with this trademark inform consume

they come from an exclusive source.Trademarks also distinguish one product and service from another. A trademark can be chwith the following signs-

designed for an unregistered trade mark that is used to endorse or brand.designed for an unregistered service mark that is used to endorse or brand service

designed for a registered trademark


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There is a broad range of alternative trademarks that include marks or signs which do nthese standard groups, for instance) marks and signs that are based on sound, smell oThe holder of a registered trademark may instigate lawful proceedings in case of trinfringement to stop illegal utili'ation of that trademark. The holder of a common law tradfile a lawsuit also but an unregistered trademark can be guarded only in the geographicawhere it is used or at geographical locations where it is probable to spreadThe word trademark is often used to refer to any apparent feature of any individual that or her) such as an infamous uality or feature of a celebrity. A trademark might also bservice mark! if its use is related to services rather than products, mainly in the *nited (ta

United States Trademark Process

The law considers a trademark as a type of property. In the *nited (tates, the registration pinvolves several steps before a trademark receives its &ertificate of 8egistration. The persentity that applies for registration files an application to register the trademark. The applic

put in the order it was filed for an assessment by an examining attorney for the *.( Patent Trademark 3ffice.

#ext, the application is reviewed in three to six months to ensure that it fulfills all the reto ualify for registration. 6uring the review it is assessed whether the applicant%s services are suitably recogni'ed. It also considers that the trademark sign of the applicadescriptive or causes doubt with any other applied for or registered trademark sigapplication is conflicted of any re uirement, the attorney will ask the applicant to adconflicted information before registration. After the application has been examined, the will be available for the third parties for a 0F day period if they want to file an 3Proceeding! to discontinue the registration proces

In the *nited (tates, the *(PT3, *nited (tates Patent and Trademark 3ffice is liable to presedatabase for all the registered trademarks. This database is open for the public, thoughlicensed attorney is permitted to read the search resul

In the *nited (tates, an attorney%s advice on ac uiring a trademark search might protect atrademark user to pay treble damages and the attorney%s fees in case of a trademark infritrial. This is important because it will demonstrate that the user acted upon due diligenceused the trademark in good faith.


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Australian Trademark Process$hen you finally decide upon an appropriate trademark you should go for its registration. are three ways to go through the application procedure for the registration of a trademarkthree procedures are described below-

>ou can re uest an assessment whether your trademark can ualify the registrationprocess through T5 ;ead start. This should b e ensured before you fill up the trademarkapplication form.

>ou can apply for the registration of your trademark through any of the below menalternatives-The (tandard Trade 5ark e form application on the website)Through a downloadable form, Paper Application to 8egister a Trade 5ark which can lodged at an IP ?odgment Point or through the post.

3therwise, you can take support or guidance from an IP professional.

SO'ND MAR&S A sound trademark is a non traditional trademark where sound is used to indicate the tpurpose. It uni uely classifies the commercial viability of various products and servirecently, sounds are being used as trademarks in the marketplace. Though, conventionabeen difficult to protect sounds as trademarks by means of registration because sounds wregarded appropriate for trademark purposes. This issue was addressed by the $orld3rgani'ation Agreement on Trade 8elated Aspects of Intellectual Property 8ights!. It widlawful meaning of trademark to include any sign that is able of differentiating the p

services of one activity from those of other activitiIn spite of the acknowledgment which must agree to the sound trademarks in the macountries) the graphical demonstration of such words occasionally includes a probtrademark owners who want to protect their marks. All the countries deal individuallissue.

Registration of sound marks in Australia(ounds marks in Australia are usually acceptable if they can be characteri'ed through musnotations. According to the Australian Trademarks head uarters, sound trademark applic

cannot be represented graphically along with musical notations must incorporate the folloinformation.

a graphic demonstration of the mark, for example e.g. ting ten tine!.a clear and concise description of the trademark Nexamples are given belowH)The trademark is an exclusive sound mark. It encompasses the sound of dogs barki

the usual tune


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The trademark includes the sound of a soprano voice! playing noiselessly on the tembodied in the musical score attached to the application. The trademark is verified irecording accompanying the application form.

The trademark comprises of a fre uent and uick beating sound through a woodendrumming on a metal trash canister top which steadily turns louder in approximately seconds of time. The sound clip is attached in the recordings along with the applicatio

A recorded sample of the trademark that can be played on the media. It should beaccessible and easy.

All the other conditions are available in the trademarks 3ffice 5anual of Practice and Propublished by IP Australia.

US Sound Markets

In the *nited (tates, the condition that verifies whether a sound is capable to serve as a tra

varies upon the hearing opinion of the listener. It may be transitory except if the essentially so diverse that it connects to the listener%s mind. The listener should feel thewhen he or she hears it and finds a connection with the occurrence or source of its evThe *nited (tates Trademark Trial and Appeal "oard strictly applied this test in


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Bene!its o! Global Branding9conomies of scale, that takes account of production and distribution activities.8educed costs of marketing9nabling the establishment for probable extensions globallyPreserving a steady brand image7aster incorporation and recognition of creativity that is noticed world wide3bstructs the global competitors to enter the local marketplace or impedes you out

geographic marketplacesIncreased contacts with the international media9nhanced international business and tourism are also some benefits of global brand

"ariables o! Global BrandingThe following characteristics of global branding might be different from country to count

&orporate catchphrase


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described by values and is taken up by a community or people who follow a particu&omparatively, a traditional brand is completely dependent on products and theicompanies.

Brand Na$e

5ore often brand name! is used interchangeably with the term brand. In this perspectivename represents a kind of trademark if it recogni'es the brand owner exclusively as source of goods and services. A brand owner may demand to defend proprietary privilbrand through the registration of trademark. Australian brands such as Aerograd, #obPaddle Pop are examples of brand names

%ATT(E BRANDIN$ &attle branding is a techni ue that is used to mark livestock so that it is identifiable to Initially, cattle branding meant to be a hot brand used for a large stock, but today the terused for alternate methods such as free'e branding. There are other kinds of cattle bridentification in use, such as, ear tattoos, inner lip, ear tagging, earmarking and 87I6fre uency identificationH tags that are used with a microchip. The paint markings that classify sheep are known as a paint! or color brand!. In the American $est, cattle brandeveloped into an intricate marking method that is highly used today.

%igns and ter$inolog& in cattle branding

(everal brands in the *nited (tates use numbers, capital letters along with other signs scircle, semi circle, slash, bar and cross. These kinds of brands have a particular langcalling! the brand. (ome of the cattle owners also use simple pictures as cattle marks. Thof these cattle call them using a short description of the picture e.g. shining moon. $hen areads the brand loudly, it is known as calling the brand!. These brands can be called fromlocations such as, outside to inside, right to left and top to bottom. 8eading complex andbrands depends upon the interpretation of the owner, whereas some of the complex identmay re uire expert interpreter. (ome of the terms used are as follows-

'er$s used are(*pright symbols are called normally by the letters, numbers or other symbols invol8everse or cra'y- The alphabet will be read as &ra'y :!.?a'y- (igns turned EF degrees. Also, a symbol turned EF degrees can be interpreted

?a'y 6own! or ?a'y 8ight!. In the same way, a symbol turned EF degrees can be interas ?a'y *p! or ?a'y ?eft!. The number will be interpreted as ?a'y 2O, ?a'y *p 2O or?eft 2O.

Tumbling- a symbol tilted around 12 degrees.


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7lying- a sign that begins and ends with an extended serif or hori'ontal line.$alking- a sign along with.8unning- a letter with a curved flare on its top that also sometimes leans towards th

side like an italic letter.3ver- a sign over above another sign, but does not touch the other sign. The alphab

above the # will be interpreted as G over #!.

'e$)orar& cattle branding

Temporary branding is accomplished by heat branding in a light mode. It is done lightly hair on the cattle%s skin is burned and the skin remains safe. This method is not conslong lasting one because it remains until the animal sheds its

*reeze branding cattle

7ree'e branding uses an iron that is chilled with a coolant such as li uid nitrogen oso it spoils the pigment developing hair cells. As a result, the animal%s hair gwhere the mark is applied. The hair coat of the animal is shaved off so that the bappears to mark the stamp. The time period differs with the animal species and the color. 7ree'e brands do not cause severe damage to the animal%s hide like an irodoes.


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UNIT-1

What is the di!!erence between a )roduct and a brand

In marketing, product is anything that can be offered to the market that may satisfyneed, want, and demand of a certain individual or market. It is also called asgoods or service.Product is more than =ust a material ob=ect. It is also an inclusive package of bsatisfactions that the consumer or buyer may achieve upon purchase or usage. A produtotal amount of all physical, psychological, symbolic, and service attributes. (everal exproducts are the following- hamburger, fries, and soft drink.

3n the other hand,brand is a symbolic manifestation of all the information connected company, product, or service. A brand is typically composed of a name, logo, and oth

elements such as images, colors, and icons. It is believe that a brand puts an impressioconsumer on what to expect to the product or service being offered. In other applicatimay be referred as atrademark , which is legally an appropriate term. In summary, a brandsymbol of a product NCoca-ColaH, service NEurostar trainsH, company NCampari H or evenan individual NMichael JordanH to identify what it is. (pecifically, an example of bran5c6onald%s fast food restaurant, which carries the world%s most popularGolden Arches.

Wh& do co$)anies develo) core )roducts into brands

In uest for market leadership and inevitable competition, companies worldwide

their core products into brands in order to present and maintain their company%s name the marketplace through the productLservice itself. They utili'e the brand to prescompany%s symbol, color, goal Nas to some cases of brand taglinesH, and some intepersuasive features of the company to all the consumers. The development of core prodbrands is an innovative way to leave a lasting impact on memory of consumers on wproductLservice is and who manufactures or makes it. This is a simple way to est

awareness on the specified target market of the productLservice or company. What role does )ac+aging )la& in $ar+eting a brand

At the very heart of a strong brand sits the productLservice package. This is wcustomer is buying. A product, a service or, more and more is a total package. A packagas the protector of the product itself. It is very important for the product to have an innopractical package. Packaging is of great significance in the final choice of the potent


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&onsumers always look for something new. People choose a product that involves conappeal, information and branding in the package.

In this case, constant research and development of the product packaging should bProduct package and packaging is absolutely critical for a product in order to survive thecompetition. It is also argued that product innovation is absolutely the key to l

competitiveness. &ustomer information in more traditional industries is of couuseful. Traditionally, product improvements and development of new products have beena combination of analysis of market trends and creativityLintuition. The combination ofalways be re uired.

What is branding

"randing is the act of creating a brand. The process involves positioning your company oin the market Ncarving out your own placeH, devising brand strategy Nhow you will reacreating your name Nyour verbal identityH, designing corporate identity or product i

visual identityH, writing brand messaging Nverbal and written toneH, and setting braNhow you keep your brand consistent and strongH.

What is &our brand>our brand is the result of the branding effort. >our brand describes who you are and whby use of visual identity, verbal dialog and tone of actions. It is utili'ed for virtually marketing communications. It is how people identify, know and remember you.

What is a brand designAccording to American 5arketing Association, "rand is defined as a Qname, term, sign, sydesign, or a combination of them pro=ected to recogni'e the goods and services to distingfrom those of a group or sellers or one seller. "randing is not only targets market but also provides solution to the problem. "randing differentiates themselves from the competitionand it creates loyalty in the market place.

The ob=ective of a good brand is that it delivers the message clearly and it confirms you"randing also connects your target emotionally, motivates the buyer and also provides the customers. A brand strategy always comes with a tag line of about three to seven wor

that comes along with your logo.The tag line should express the important benefits and the uality offered to your custotag =ust flows effectively without an effort too. The phrases should stick to the targetedmind forever.

,elation between logo and brand design5ost common "randing is mistaken along with the logo. "ut logo is part of your branding sIt instantly provides consumers recognition of the business and for the services and produ


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are offered. ?ogo and brand design is not the same but both of them are interlinked one wThe mission of your logo and brand design should portray the values and goals of your coAlways be clear in finding out the message what your brand wants to convey. ?ogo and bdesign should have strong connection between them. 5ake your logo simple and conveyinmessage is the only way for your brand strategy. In short a confident and strong brandingshould convey a message through the design.

?ogo and brand design should attract the audience that you want to attract. The way yoand differentiate your logo and brand design helps in differentiating you and your co&reate a logo and a distinctive tag line while creating your brand strategy which properfect image for the company.

'he Product Conce)t

This orientation holds that consumers will favor those products that offer the mosperformance, or innovative features. 5anagers focusing on this concept concentrate onsuperior products and improving them over time. They assume that buyers admire wproducts and can appraise uality and performance. ;owever, these managers are somcaught up in a love affair with their product and do not reali'e what the needs. 5anagement might commit the better mousetrap! fallacy, believing that mousetrap will lead people to beat a path to its door.

5arketing strategy5arketing strategy is a process that can allow an organi'ation to concentrate its limited re

on the greatest opportunities to increase sales and achieve a sustainable competitive. 5astrategy includes all basic and long term activities in the field of marketing that deaanalysis of the strategic initial situation of a company and the formulation, evaluation anof market oriented strategies and therefore contribute to the goals of the companymarketing ob=ectives.

.evelo)ing a $ar+eting strateg&

5arketing strategies serve as the fundamental underpinning of marketing plansdesigned to fillmarket needs and reachmarketingob=ectives. Plans and ob=ectives are generally testedmeasurable results. &ommonly, marketing strategies are developed as multi year plantactical plan detailing specific actions to be accomplished in the current year. Time covered by themarketing planvary by company, by industry, and by nation, however, thori'ons are becoming shorter as the speed of change in the environment increases. 5arstrategies are dynamic and interactive. They are partially planned and partially un(ee strategy dynamics.5arketing strategy involves careful scanning of the internal and external environmentsenvironmental factors include the marketing, plus performance analysis and sconstraints. 9xternal environmental factors include customer analysis, competitotarget market analysis, as well as evaluation of any elements of the technological, economic, cu
http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Strategy_dynamicshttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Strategy_dynamicshttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_market


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politicalLlegal environment likely to impact success. A key component of marketing strato keep marketing in line with a company s overarching mission statement.3nce a thorough environmental scan is complete, astrategic plan can be constructed to identifybusiness alternatives, establish challenging goals, determine the optimal marketing mixthese goals, and detail implementation. A final step in developing a marketing strategy isa plan to monitor progress and a set of contingencies if problems arise in the implementaplan.

!"!#$P A PR$ UCT MAR%!T&'( STRAT!() 6eveloping a marketing plan or strategy to introduce a new technical productcan be painless, andseems confusing only when we lose site of ob=ectives.

(tart by writing an outline of your marketing strategy. Then begin by gathering re uired infor each section in your outline. As you gather your market information, you may see crit7ind a way to fill the gaps Ne.g. telemarketingH. Then polish the information with helpfu

charts and graphs. >ou can even use the outline to organi'e your marketing presentationR6eveloping a Product 5arketing (trategy is one of the most challenging and excitingaspects of product marketing and launching a new product. The marketing professionalshould begin by writing a working outline of his market plan to help organi'e the study,gather information, and organi'e the presentation.

Mission Statement

&orporate 5ission (tatement.5anufacturing ob=ectives.Product 6evelopment ob=ectives.5arketing ob=ectives.

Customers

;ow many of them are there$hat are they buying$hat practical problems do they try to solve$hat emotional problems do they try to solve

$hat is the si'e of your market$hat is your customer s price point and other economics9xactly what does it take to win an order;ow long does it take to win an order9xactly how do customers use competitive products$hat s the current satisfaction with competitors
http://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Strategic_planning


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Market Segmentation


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to the idea of buying a new car

Read this care u!!" #ecause this is the ke" to a!! market strategies$ $hen your sales force closes sales, they will do so only by understanding your customeremotions.

>our customers will buy from &hina, India, (outh America, anybody. +ery few industrial

have loyalty to any country or brand name today. If you don t agree, =ust look at numberdrinking bottled water that is imported from other countries. The last time I looked, the *n(tates did produce good clean water. ou must understand your customer s psychological needs. Take a piece of paper out andthis down, Q>ou must understand your customer s psychological needs to best succeed imarketing and sales.Q

% Possi#!e& Do Market Testing

(how product and promotional concepts to customers.6ouble check.

Make Strateg" Decisions

6ecide on new revenuegrowth and)ro!its .6ecide on new)roduct development.6ecide on)rice .6ecide on sales force,distribution , service.6ecide on customer)s&chological !actors , not features and benefits.6ecide on product)ro$otion .

A popular way to remember the function of marketing is the Qfour p s of marketingQ, wproduct Nyou must have a Qnew product development processQH, place Ndistribution orwill sell your productH, promotion and price. A gooddefinition of marketing will provide a moredetailed definition of the standard marketing function, and the four p s of marketing.

I added psychological sales factorsas a fifth p of marketing) because, your marketing strategymust list the relevant sales psychology factors, and state how these factors will be address(ales psychology is arguably the most important part of a marketing strategy. >et, custompsychology is seldom mentioned in marketing strategies.

Write an Action Plan

Pert chart on product development.&alendar of planned media.
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"udget

I$)le$ent 0our Plan

;old routine meetings to review progress on sales leads. Provide a lead tracking system. #is status uo. 8evisit your plan andupdate.

Six Steps of New Product Planning %dea Conception'

#ew product planning typically commences with a great idea. &ompany marketers, experts and engineers hold brainstorming sessions to decide the types of products to addexisting product lines. They may also plan new lines of products. $hatever the case, cemployees usually devise product concepts to solve consumer problems or fill voidmarketplace. They then decide which types of customers are most likely to buy their (ales and profitability are factored into the evaluation process to determine whether the

idea is viable.

Concept Statement'

Product marketers use input from the idea generation session to start drafting a concept stA concept statement is a more specific version of the product idea or concept. It is the stacompanies determine what the product will look like, including special features, dimensions. Product pricing and distribution are also determined as are the types of adand promotions that will be used to market the product. 5any companies will create versions of products before narrowing their concept statement down to one specific proallows for input from consumers who will ultimately determine the products success.

(ocus Groups'

7ocus groups are used to present the product idea to a group of consumers, accord:nowthis.com, an online marketing reference site. 7ocus groups are usually run at focufacilities. 5anagers observe how consumers react to their product idea through one wayThe focus group session is typically run by a professional moderator or interviewer. Thuses a discussion guide or uestionnaire to introduce the concept statement. They ask coif they would like the product as it is presented and whether or not they would pur&ompanies use the input from focus groups to tweak their product concepts with refeatures, styles and price points.

Marketing Research Sur)e"s'

5arketing research surveys help uantify whether consumers will like and purchase the&ompanies often do hundreds of surveys to ensure that their results are valid and represethe average consumer. This better ensures that the product will sell in the marketplac


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companies hire marketing research agencies to conduct surveys by phone, mail or via theThese professionals use experienced interviewers to conduct the surveys and computer to tabulate survey results.

Product De)e!opment'

&ompanies will usually start producing their products on a small scale if the survey resfavorable. &ompanies start with smaller amounts of products so they can evaluate sales imarkets. This helps them avoid high production costs if the product somehow fails. Prousually produced for another phase of testing called beta testing.

Beta Testing'

&ompanies will usually sell the initial products in two are more cities that are comparaand demographics like age and income. These tests can run several months to one or mor6uring beta tests, companies advertise and promote their products as they planned when the concept statement. 7inancial managers then evaluate sales and profits. They then m

product managers and engineers to determine whether further expansion is warranted.

Sta!es Pro*ess Steps of Ne# Prod"*t De+e,opment

The stages or process or steps involved in a newproduct development are depicted in the imagegiven below. &lick on it to get a 'oomed preview.

The eight stages or process or steps involved in the development of a new product are list

also hyper linked as follows-. Idea generation./. Idea screening.0. &oncept testing.1. "usiness analysis.2. Product development.B. Test marketing.C. &ommerciali'ation.8. 8eview of market performance.

#ow let s discuss each stage in the process of a new product development.

-. Idea !enerat onThe first step in new product development is idea generation.#ew ideas can be generated by-

. &onducting marketing research to find out the consumers needs and wants./. Inviting suggestions from consumers.0. Inviting suggestions from employees.1. "rainstorming suggestions for new product ideas.
http://kalyan-city.blogspot.com/2012/02/what-is-product-development-meaning.htmlhttp://kalyan-city.blogspot.com/2012/02/what-is-product-development-meaning.htmlhttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Idea_generationhttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Idea_screeninghttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Concept_testinghttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Business_analysishttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Product_developmenthttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Test_marketinghttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Commercializationhttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Review_of_market_performancehttp://kalyan-city.blogspot.com/2012/02/what-is-product-development-meaning.htmlhttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Idea_generationhttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Idea_screeninghttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Concept_testinghttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Business_analysishttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Product_developmenthttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Test_marketinghttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Commercializationhttp://kalyan-city.blogspot.in/2012/02/stages-process-steps-of-new-product.html#Review_of_market_performance


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2. (earching in different markets vi'., national and international markets for new prodideas.

B.


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At this stage, the company has decided to introduce the new product in the market. It willnecessary steps to produce and distribute the new product. The production department wiplans to produce the product. The marketing department will make plans to distribute the The finance department will provide the finance for introducing the new product. The advdepartment will plan the advertisements for the new product. ;owever, all this is done as ascale for Test 5arketing.

3. Test market n! Test marketing means to introduce the new product on a very small scale in a very small mthe new product is successful in this market, then it is introduced on a large scale. ;oweveproduct fails in the test market, then the company finds out the reasons for its failure. It mnecessary changes in the new product and introduces it again in a small market. If the newfails again the company will re=ect it.Test marketing reduces the risk of large scale marketing. It is a safety device. It is very ticonsuming. It must be done especially for costly products.

4. %ommer* a, 5at on

If the test marketing is successful, then the company introduces the new product on a largsay all over the country. The company makes a large investment in the new product. It proand distributes the new product on a huge scale. It advertises the new product on the masslike T+, 8adio, #ewspapers and 5aga'ines, etc.

6. Re+ e# of market performan*eThe company must review the marketing performance of the new product.

It must answer the following uestions-. Is the new product accepted by the consumers/. Are the demand, sales and profits high0. Are the consumers satisfied with the after sales service1. Are the middlemen happy with their commission2. Are the marketing staffs happy with their income from the new productB. Is the 5arketing manager changing the marketing mix according to the chan

the environmentC. Are the competitors introducing a similar new product in the market

The company must continuously monitor the performance of the new product. They must

necessary changes in their marketing plans and strategies else the product will fail./rganizational Arrange$ents

3rgani'ing #ew Product 6evelopmentProduct managers#ew product managers;igh level management committee#ew product department


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+enture teams(tage gate system

%tage-Gate - 0our ,oad$a) !or New Product .evelo)$ent

The need for lean, rapid and profitable new product development has never been greater. Prcycles are shorter, competition is more intense and customers are more demanding. &ompanies

innovate face a grim future. The problem is that winning with new products is not easy. An estof the resources that companies devote to the conception, development and launch of new prodpro=ects that do not succeed they fail in the marketplace or never make it to market.

1ow .oes the %tage-Gate Process Wor+

Product innovation begins with an idea and ends with the successful launch of a new prosteps between these points can be viewed as a dynamic process. (tage


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The (tage


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Attributes #isting Method

These may include-

Physical 5ental 9motional (ocial and more Ndepending on the complexity of the challengeH

"y doing so, you can then concentrate on each attribute at a time. This will no doubt give peace of mind Nand pulling of your hairsH when generating your ideas.

The attribute listing techni ue is often used in a 8esearch K 6evelopment N8K6H departmmany companies, especially those who are constantly producing innovative products to hadvantage over their competitors.

?et%s go through this worked example to give you a better understanding of how attributcan be of help to you.

7or example, if your challenge is to design a new ladies% handbag, you could list the attrthe physical aspects which include shape, length, color, and materials used and on the emaspects the stress some women faced of misplacing their handbags. >ou might choose totackle the emotional stress of losing one%s handbag by creating a new small gadget to bewithin the handbag to sound the owner that she is moving too far away Nmaybe one or twawayH from her treasure chest%. After that, you could work on the other attributes, onethe shape or materials used for the handbag.

Putting >our 9lements to $ork-

Try to generate oodles of ideas using attributes listing with these sets of challenges-

. 6esign a new toy for children under B years old to teach them simple arithmetic. (afetyimportant attribute.

/. &reate a campaign to encourage people to stop smoking. NThink through the attributes5ental, 9motional and (ocialH

0. (et up an effective marketing plan Nthere are many parts to a good marketing plan- theProduct, Price, Place and PromotionH for your new products.

*orced ,elationshi)(

7orcing relationships is one of the most powerful ways to develop ways to develop newand new solutions. A useful way of developing the relationships is to have a selection of
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cards with pictures to help you generate ideas. &hoose an ob=ect or card at random andrelationships you can force.

M/,P1/#/GICA# ANA#0%I%The morphological analysis is actually a group of methods that share the same structumethod breaks down a system, product or process into its essential sub concepts, eachrepresenting a dimension in a multi dimensional matrix. Thus, every product is consibundle of attributes. #ew ideas are found by searching the matrix for new combination ofthat do not yet exist. It doesn%t provide any specific guidelines for combining the patends to provide a large number of ideas.

Re+erse ass"mpt on ana,ys s

3ne of the techni ues of creativity used in generating new product ideas. In this techninormal assumption about an entity are listed and then they are reversed. 7or example, inassuming that a restaurant has menus, charges for food, and serves food, reverseassumption to come out with some novel idea

What is a Mind Ma)

A mind map is an intricate web of thoughts, ideas, names, words and images that all stemone central idea or word in diagram form.

5any designers use 5ind 5apping to brainstorm and generate ideas. The loose and visual min which a mind map is created is not only a fantastic tool to free up% creativity,

way to communicate to clients, team members and professors while in a design%s phase.

A Q.ro) 2rror Q occurs when a business errs in deciding to abandon a product idea thindsight, may have been successful if developed. Too many drop errors indconservative approach to product screening)

A QGo 2rror Q occurs when a business fails to identify a poor product idea that has amoved into the development and commerciali'ation stages. Too many go errors indyoung, ambitious yet inexperienced approach to product screening.
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3NI'-4

Managing the .evelo)$ent Process( Conce)t to %trateg&&oncept 6evelopment and Testing

Product ideaProduct concept

&oncept development

&ategory concept

Product4positioning map

"rand concept

&oncept Testing

8apid prototyping N6esignH

+irtual reality

&ustomer driven engineering

Juestions to measure product dimensions

&ommunicability and believability

#eed level


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Three prices

Possible


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.e)th Interviews

interview is conducted one on one, and lasts between 0F and BF minutesbest method for in depth probing of personal opinions, beliefs, and valuesladdering is a techni ue used by depth interviewers in which you start with uestio

about external ob=ects and external social phenomena, then proceed to internal attitudes feelings

hidden issue 5uestioning is a techni ue used by depth interviewers in which theyconcentrate on deeply felt personal concerns and pet peeves

s&$bolic anal&sis is a techni ue used by depth interviewers in which deeper symbolmeanings are probed by asking uestions about their opposites*ocus Grou)s

an interactive group discussion led by a moderatorunstructured Nor loosely structuredH discussion where the moderator encourages

flow of ideasusually D to / members in the group who fit the profile of the target group or con

but may consist of two interviewees Na dyadH or three interviewees Na triadH or a lesseparticipants Nknown as a mini groupHPro6ective 'echni5ues

these are unstructured prompts or stimulus that encourage the respondent to pro=eunderlying motivations, beliefs, attitudes, or feelings onto an ambiguous situation

they are all indirect techni ues that attempt to disguise the purpose of the researchexamples of pro=ective techni ues include-

word association say the first word that comes to mind after hearing a wo

some of the words in the list are test words that the researcher is interested in, the restfillers is useful in testing brand names variants include chain word association ancontrolled word association

sentence completion respondents are given incomplete sentences and askcomplete them

story completion respondents are given part of a story and are asked to coit

cartoon tests pictures of cartoon characters are shown in a specific situatiwith dialogue balloons one of the dialogue balloons is empty and the respondent isfill it in

thematic apperception tests respondents are shown a picture Nor series ofpicturesH and asked to make up a story about the pictureNsH

role playing respondents are asked to play the role of someone else researchers assume that sub=ects will pro=ect their own feelings or behaviours into th

third person techni ue a verbal or visual representation of an individual hisLher situation is presented to the respondent the respondent is asked to relate the
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attitudes or feelings of that person researchers assume that talking in the third persominimi'e the social pressure to give standard or politically correct responses

Ne*er Methods

O#ser)ationa! + Ethnographic Research

3ne of the more fundamental uses of ualitative research is understanding fundamental consumebehaviour through 3bservational research. The roots for this come from Anthropological studiestrained researchers went to observe tribes L cultures L societies for periods as long as a couple#owadays, this kind of research is being supplemented by more cutting edge fields like neuro swhere the observation is accompanied by measuring brain activity. This is under the assumptionoften our brain reacts without us even knowing it and asking uestions or pure observation by thare not enough to really pinpoint what goes on.

Ps"cho!ogica! Research

Jualitative marketing research comes in a lot of different guises but ualitative psychological research hascrystallised as one the most effective ways of gathering insight into the behaviours, attitudes andmaking processes of consumers and customers. 5ost ualitative research companies in the worldclaim that they employ psychologists and base their findings on psychological theories.

Product )ositioning

Product positioning is a marketing strategy that aims to make a brand occupy a distinct positiothe competing brands, in the mind of the customer.7irms apply this strategy either by emphadistinguishing features of their brand Nwhat it is, what it does and how, etc.H or try to create a sNinexpensive or premium, utilitarian or luxurious, entry level or high end, etc.H through advbrand is positioned, it is very difficult to reposition it without destroying its credibility.

Product attributes

(ome products re uire attribute designation. 7or example, clothes are sold in different colors anthis case, color is a product attribute and si'e is another.$hen used in a market research context, QAttributesQ are simply properties of a given prodservice, advertisement or any ob=ect of interest.5uch brand and market research is targeted at understanding the most significant and powerfulof a productLserviceLbrand or productLserviceLbrand class.A product, service, or brand can have many attributes including cost, value for money, presusability, liking NQaffectQH and a wide range of image or personality attributes.To use one very common example, the car or QautomobileQ brand class can sometimes includsuch as prestige, cost, reliability, exclusivity, availability, type Ne.g. sporty, family, luxuryH origin.
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,a)id )rotot&)ing is a group of techni ues used to uickly fabricate a scale model of a physical assembly using three dimensional computer aided designN&A6H data.

"irtual ,ealit&(--In #ew Product 6evelopment, +8 can help streamline the process, cutting production time and exas much as /2S.

*nfinished ideas or designs that need to be changed are easily manipulated before beginnproduct design.

The core elements of the virtual reality used in research can then be applied to marketingcommunications

+8 is easily converted back to &A6 for engineering purposes

Additional benefits of applying +8 technology to research pro=ects are- +8 reduces concept development K testing time by 2FS Product development cycle time can be reduced by as much as /2S +8 allows concept testing to occur almost immediately without having to wait for prototy +oice of the customer results are presented to engineering sooner eliminating engineering

NredesignsH +irtual research environments can provide more control at a lower cost

+8 can be used during all stages of the product life cycle, but is especially useful during #ew Pro6evelopment, and in an online environment to offer participants a more realistic experience uponbase their preferences.

Product Engineering

To define and extract the re uirements for the methodology development, it is useful to lmotivation to introduce and to use a methodology in the first place. Answering the uestionproduct engineering NP9H all about Q and Q$hat distinguishes P9 from research Q offers somanswers to these uestions can be summari'ed in the following points-

Predefined time and budget limitations Activities focused on actual QproductQ 7ocus on reproducibility and uality Predictability of the development progress and process 7ocus on deliverables and the business case

Taking these re uirements for development into account, it becomes clear that a thorough anmethodology needs to be established. The processes of such a methodology need to be ratherThey must provide a framework for execution that can be amended and merged with the processestablished within an adopting organi'ation. The baseline for the framework should be a combiproduct development and a pro=ect management methodology. The product development methguidelines for target deliverables and the general steps as to how to progress the product develop
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strategic goals and proceduresH. The pro=ect management method supplements this with tprocedures needed. 9nriched with uality aspects and tools, a comprehensive, yet flexible meframework can be derived.

Con6oint anal&sis is a statistical techni ue used inmarket research to determine how people valuedifferent features that make up an individual product or service.The ob=ective of con=oint analysis is to determine what combination of a limited number of attrinfluential on respondent choice or decision making. A controlled set of potential products or seshown to respondents and by analy'ing how they make preferences between these products, the ivaluation of the individual elements making up the product or service can be determined. Thesevaluations Nutilities or part worthsH can be used to create market models that estimate market srevenue and even profitability of new designs.

Con6oint .esignA product or service area is described in terms of a number of attributes. 7or example, a televhave attributes of screen si'e, screen format, brand, price and so on. 9ach attribute can then bdown into a number of levels. 7or instance, levels for screen format may be ?96, ?&6, or Plasma

Advantages

estimates psychological tradeoffs that consumers make when evaluating several attributestogether

measures preferences at the individual leveluncovers real or hidden drivers which may not be apparent to the respondent themselvesrealistic choice or shopping taskable to use physical ob=ectsif appropriately designed, the ability to model interactions between attributes can be used

develop needs based segmentation

.isadvantages

designing con=oint studies can be complexwith too many options, respondents resort to simplification strategiesdifficult to use for product positioning research because there is no procedure for convert

perceptions about actual features to perceptions about a reduced set of underlying featuresrespondents are unable to articulate attitudes toward new categories, or may feel forced to

about issues they would otherwise not give much thought to

poorly designed studies may over value emotionalLpreference variables and undervalue variablesdoes not take into account the number items per purchase so it can give a poor reading of

share

Business ris+s to consider !or each business !unction(

(afety. Potential for human loss of life or in=ury

/. Potential for ma=or incident or accident such as fire, explosion, release, spill
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0. 9nvironmental damage1. 3ffice or facility security

8evenues. 8ecoverable monetary loss

/. ?oss of customer base0. ?ost opportunity in time to market1. *nrecoverable monetary loss

&osts. &osts incurred due to problems that could have been prevented

/. &osts due to lost discounts, increased warehousing space, vendor changes, etc.0. ?egal defense costs

?egal. 8egulatory compliance failures

/. 8esults or actions which could =ustify legal actions against the company Nlitigatio 8elated 9xposure

. ?oss of customer/. ?oss of goodwill0. ?oss of shareholder confidence1. ?oss of image or reputation Investor confidence

(ecurity breaches. (ystem breaches causing lost data

/. (ystem breaches causing a loss of capital0. Physical security breaches

'he Brea+-even Anal&sis de)ends on three +e& assu$)tions(

. Average )er-unit sales )rice 7)er-unit revenue8(This is the price that you receive per unit of sales. Take into account sales discounts and specoffers. ou are nothis, the vast ma=ority of businesses sell more than one item, and have to average for their "rAnalysis.

/. Average )er-unit cost(This is the incremental cost, or variable cost, of each unit of sales. If you buy goods for resalwhat you paid, on average, for the goods you sell. If you sell a service, this is what it costs yodollar of revenue or unit of service delivered, to deliver that service. If you are using a *nits(ales 7orecast table Nfor manufacturing and mixed business typesH, you can pro=ect unit co(ales 7orecast table. If you are using the basic (ales 7orecast table for retail, service and distr

businesses, use a percentage estimate, e.g., a retail store running a 2FS margin would have acost of .2, and a per unit revenue of .0. Monthl& !ixed costs(

Technically, a break even analysis defines fixed costs as costs that would continue even if ybroke. Instead, we recommend that you use your regular running fixed costs, including payronormal expenses Ntotal monthly 3perating 9xpensesH. This will give you a better insight onrealities. If averaging and estimating is difficult, use your Profit and ?oss table to calculate a fixed cost estimateVit will be a rough estimate, but it will provide a useful input for a conserv"reak even Analysis.
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Managing 'he .evelo)$ent Process( .evelo)$ent to Co$$ercialization

Product 6evelopmentJuality 7unction 6eployment NJ76H

&ustomer attributes N&AsH

9ngineering attributes N9AsH

&ustomer tests

Alpha testing

"eta testing

&onsumer preference measures

8ank order

Paired comparison

5onadic rating

5arket Testing

&onsumer


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$hich cities

?ength of test

$hat information

$hat action to take

"usiness


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adults.

Custo$er seg$ent attributes

>ou can create customer segments using any of the following attributes-

Address(--

Cit&Target or exclude customers based upon the city in which they reside.%tate or Province

Target or exclude customers based upon the state or province in which they reside.Countr& or ,egion

Target or exclude customers based upon the country or region in which they reside.:IP or Postal Code

Target or exclude customers based upon their IP or Postal code. This supports stringcomparison, so you can target partial codes.

Phone nu$berTarget or exclude customers based upon their telephone number. This supports string com

so you can target area codes, or specific exchanges.2-$ail addressTarget or exclude customers based upon their e mail address. This supports string compayou can target domain names.

.e$ogra)hics(--Gender

Target or exclude customers based upon their gender, or specifically target those customehave not specified.

AgeTarget or exclude customers whose age falls within a specified range. 5ultiple ranges can targeted by promotions or activities, and the ranges can be customi'ed as necessary.

Annual Inco$eTarget or exclude customers whose income falls within a specified range. 5ultiple ranges targeted by promotions or activities, and the ranges can be customi'ed as necessary.

Marital %tatusTarget or exclude customers based upon their marital status, or specifically target those cuwho have not specified.

Nu$ber o! childrenTarget or exclude customers who have a number of children that falls within a specified r5ultiple ranges can be targeted by promotions or activities, and the ranges can be custominecessary.

1ousehold size

Target or exclude customers whose household si'e falls within a specified range. 5ultiple can be targeted by promotions or activities, and the ranges can be customi'ed as necessaryPurchase .etails(--

A$ount s)entTarget or exclude customers whose total amount spent at the store falls within a specified5ultiple ranges can be targeted by promotions or activities, and the ranges can be custominecessary

Nu$ber o! ordersTarget or exclude customers whose number of orders at the store falls within a specified r5ultiple ranges can be targeted by promotions or activities, and the ranges can be customi


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necessary. #ote that this total only captures the amount spent on orders in the database, annot reflect an amount spent prior to database pruning.

#ast )urchase dateTarget or exclude customers that made a purchase from the site on, before, or since a specdate, or number of days. 7or example, you can target customers who have made purchaselast 0F days to follow up with a coupon.

#ast visit dateTarget or exclude customers that have visited the site on, before, or since a specified datenumber of days. This works like the last purchase date.

,egistration(--,egistration status

Target or exclude customers based upon their registration status Nregistered or guestH, ospecifically target those customers who have not specified.

,egistration dateTarget or exclude customers that registered at the site on, before, or since a specified datenumber of days.

#ast ,egistration u)dateTarget or exclude customers that last updated their registration information on, before, orspecified date, or number of days.

InterestsTarget or exclude customers based on their specified interests.

Co$)an&Target or exclude customers based on their specified employer.

Currenc&Target or exclude customers based on their specified preferred currency.

#anguageTarget or exclude customers based on their specified preferred language.

;ob *unctionTarget or exclude customers based on their specified =ob function, such as senior manageprofessional. These =ob functions can be customi'ed as necessary.

Pre!erred $ethod o! co$$unicationTarget or exclude customers based on their specified preferred method of communication

Accounts(--Account size

Target customers that belong to accounts with a particular si'e, as specified during accouncreation.

Account credit ris+Target customers that belong to accounts with a particular account credit risk, as specifiedaccount creation.

Account geogra)hical locationTarget customers that belong to accounts that are based in a particular location, as specifiduring account creation.

Account countries or regions o! o)erationTarget customers that belong to accounts that operate in a particular location, as specifiedaccount creation. This is distinct from the geographical location in that an American accooperate in the *(, &anada, and the *:.


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Account industr&Target customers that belong to accounts that are within a particular industry, as specifiedaccount creation.

Attribute(--

Definition:--

< Mar+eting ( Acharacteristic or feature of aproduct that is thought toappeal to customers. Attributesusually represent a manufacturer s or aseller s perspective and not necessarily that of a customer.Attributes of instant coffee, for example, may include its aroma, flavocolor, caffeinecontent, packaging andpresentation, price, shelf life, source, etc. Attributes have only twopossibleratings Nnegative or positiveH expressed as acceptable or unacceptable, desirable or undgood or bad, etc.

4 2ngineering ( A visual but non dimensional characteristic that is uantified by applnumerical scale Nsuch as?ikert (caleH between the two extreme values, such as acceptable notacceptable, good bad, or satisfactory unsatisfactory.= %tatistics ( A characteristic of asystem for which numericalmeasurements cannot be made andtherefore Nirrespective of its importanceH cannot be treated as a variable in uantitative analysis.

AlphaTesting

Also known as alpha testing, here your main ob=ective is to find the bugs. >our product is not

any longer. It has nearly all the features of its commercial model in terms of appearance and futhough its packaging and promotional materials may not be fully ready.

>ou will want to test your product with and get feedback primarily from in house staff, and addlike customers and partners you feel are close to the firm. our product now fully resembles its planned launall aspects. Participants% interaction rate is higher and they are much better informed on thfunctions, features, benefits, and intended use conditions.
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>our product testing has three primary ob=ectives. 7irst, you will want to measure participantthe product and its features, their preference of individual attributes, and if they would bepurchase the product. It must not only be acceptable, but desirable compared to any current pucompetitive offerings.

(econdly, you will want to find out how the customer uses the product and its durability un

conditions. Are there particular applications, use environments, or occasions that are appealinappealing $hat kinds of participants were these

Third, you will need to record and analy'e all the feedback received. This will give you hindesign improvements that will not significantly affect your production, and perhaps if a line extbe added or dropped. Additionally, your participants% responses will provide your sales K mawith words, phrases, and stories that can be used in communicating the product during the lafeatures and benefits that elicit the highest initial positive reactions can be used when dadvertisements, brochures and sales presentations.

Paired &omparison Analysis$hen you re choosing between many different options, how do you decide on the best way forwThis is especially challenging if your choices are uite different from one another, if decisionsub=ective, or if you don t have ob=ective data to use for your decision.Paired &omparison Analysis helps you to work out the relative importance of a number of diffethe classical case of Qcomparing apples with oranges.QIn this article, we ll explore how you can use Paired &omparison Analysis to make decisions.About the 'ool

Paired &omparison Analysis Nalso known as Pairwise &omparisonH helps you work out the imnumber of options relative to one another.

This makes it easy to choose the most important problem to solve, or to pick the solution that weffective. It also helps you set priorities where there are conflicting demands on your resources.The tool is particularly useful when you don t have ob=ective data to use to make your decisioideal tool to use to compare different, sub=ective options, for example, where you need to relative importance of ualifications, skills, experience, and teamworking ability when hiringnew role.6ecisions like these are often much harder to make than, for example, comparing three similar I

where Grid Anal&sis or some form of !inancial anal&siscan help you decide.

1ow to 3se the 'ool

. 5ake a list of all of the options that you want to compare. Assign each option a letter N6, and so onH and note this down.

/. 5ark your options as both the row and column headings on the worksheet. This is so thacan compare options with one another.
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0. $ithin each of the blank cells, compare the option in the row with the option in the co6ecide which of the two options is most important.

1. $rite down the letter of the most important option in the cell. Then, score the differeimportance between the options, running from 'ero Nno differenceLsame importanceH to, sNma=or differenceLone much more important than the other.H

2. 7inally, consolidate the results by adding up the values for each of the options. >ou may to convert these values into a percentage of the total score.

B. *se your common sense, and manually ad=ust the results if necessary.5onadic 8atinga method for measuring consumer preferences in which potential purchasers are askedtheir liking for each of a certain number of products on a scale) that is, on a seven poProduct A may be rated as B, Product " as 1, and Product & as . The method allows resnot only to derive the individual s preference order, but also to know the ualitative lepreferences and the approximate distance between their preferences.

Sa,es7#a+e resear*hone of the methods used in consumer goods market testing. In this type of research conwho initially try the product at no cost are re offered the product, or a competitor%sslightly reduced prices. They may be re offered the product as many as three to five timwavesH, with the company noting how many customers selected that product again reported level of satisfaction. (ales wave research can be implemented uickly, conducfair amount of security, and carried out without final packaging and advertising.si$ulated test $ar+etDefinition

5arketing research techni ue in whichconsumers areexposed tostagedadvertising andpurchase decisions to observe theirresponse to a newproduct.

Controlled Mar+et 'estingProvides an accurate forecast of the sales volume potential for a new product andLor promextension.*nlike (imulated Test 5arket models, aControlled Mar+et 'est allows you to assess an item%ssales potential in a real world environment with real consumers making real purchases, rea national marketing plan and sales volume, forecasted from a robust sample of nationallyrecogni'ed food, drug, andLor mass merchandise retailers.

A))lications !or Controlled Mar+et 'ests

#ew product introduction ?ine extension "rand restage

o #ew formulationo #ew positioning
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7inal evaluation of marketing plan prior to regional or national roll out N?9A6 5A8:9TH 9valuate market level promotionsLmedia

Business goods $ar+et testing"usiness goods can also benefit from market testing. 9xpensive industrial goods and new technonormally undergo alpha testing and beta testing. 6uring beta testing, the vendors technical peop

how test customers use the product, a practice that often exposes unanticipated problems of sservicing and alerts the vendor to customer training and servicing re uirements. The vendoobserve how much value the e uipment adds to the customers operation as a clue to subse uent

The vendor will ask the test customers to express their purchase intention and other reactions aft+endors must carefully interpret the beta test results because only a small number of test custoused, they are not randomly drawn, and the tests are somewhat customi'ed to each site. Anoththat test customers who are unimpressed with the product may leak unfavorable reports about it.

A second common test method for business goods is to introduce the new product at trade shvendor can observe how much interest buyers show in the new product, how they react to varioand terms, and how many express purchase intentions or place orders.

#ew industrial products can be tested in distributor and dealer display rooms, where they may stthe manufacturers other products and possibly competitors products. This method yields prefepricing information in the product normal selling atmosphere. The disadvantages are that the might want to place early orders that cannot be filled, and those customers who come in

represent the target market. Industrial manufacturers come close to using full test marketing whea limited supply of the product to the sales force to sell in a limited number of areas that receivsupport and printed catalog sheets.

&ommerciali'ation-

If the company goes ahead with commerciali'ation, it will face its largest cost to date. The compahave to contract for manufacture or build or rent a full scale manufacturing facility. Plant si'e wildecision. $hen Juaker 3ats launched its FF percent natural breakfast cereal, it built a smaller placalled for by the sales forecast. The demand so exceeded the forecast that for about a year it coulsupply enough product to stores. Although Juaker 3ats was gratified with the response, the low fcost it a considerable amount of profit.

Another ma=or cost is marketing. To introduce a ma=or new consumer packaged good into the nmarket, the company may have to spend from U/2 million to as much as U FFmillion in advertipromotion, and other communications in the first year. In the introduction of new food products,


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expenditures typically represent 2C percent of sales during the first year. 5ost new product campon a se uenced mix of market communication tools.

In commerciali'ing a new product, market entry timing is critical. (uppose a company has almostcompleted the development work on its new product and learns that a competitor is nearing the edevelopment work. The company faces three choices-

< *irst entr&( The first firm entering a market usually en=oys the first mover advantages of lockindistributors and customers and gaining leadership. "ut if the product is rushed to market before ithoroughly debugged, the first entry can backfire.

4 Parallel entr&( The firm might time its entry to coincide with the competitors entry. The market more attention when two companies are advertising the new product.

= #ate entr&( The firm might delay its launch until after the competitor has entered. The competitohave borne the cost of educating the market, and its product may reveal faults the late entrant caThe late entrant can also learn the si'e of the market.

The timing decision involves additional considerations. If a new product replaces an older producompany might delay the introduction until the old products stock is drawn down. If the productit might be delayed until the right season arrives) often a product waits for a killer application to&omplicating new product launches, many companies are encountering competitive design aroimitating inventions but making their own versions =ust different enough to avoid patent infringthe need to pay royalties.

&ritical path

.e!inition?ongest se uence of activities in a pro=ect plan which must becompleted on time for the pro=ect tocomplete ondue date. An activity on the critical path cannot be started until its predecessor accomplete) if it is delayed for a day, the entire pro=ect will be delayed for a day unless the activity fo

the delayed activity is completed a day earlier.

Ado)tion Process o! New ProductsThe growth rate and total sales level of new products rely heavily on two related consumebehavior concepts- the adoption process and the diffusion process.

ual consumer goes through when learning about and purchasing a new product. The proceconsists of these stages-
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