3. Marketing
‘Marketing is the management
process that identifies, anticipates
and satisfies customer
requirements profitably’
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‘The right product, in the right place,
at the right time, and at the right
price’
4. Implications of marketing
Who are our existing / potential
customers?
What are their current / future needs?
How can we satisfy these needs?
Can we offer a product/ service that the customer
would value?
Can we communicate with our customers?
Can we deliver a competitive product of service?
Why should customers buy from us?
5. The Marketing Environment and
Competitor Analysis
SWOT analysis
PEST analysis
Five forces analysis
9. Five forces analysis
Potential
entrants
Threat of
entrants
Suppliers COMPETITIVE Buyers
RIVALRY
Bargaining Bargaining
power power
Threat of
substitutes
Substitutes
Source: Adapted from M. E. Porter,
Competitive Strategy, Free Press,
1980, p. 4.
10. Five Forces Analysis: Key
Questions and Implications
• What are the key forces at work in the competitive environment?
• Are there underlying forces driving competitive forces?
• Will competitive forces change?
• What are the strengths and weaknesses of competitors in relation to
the competitive forces?
• Can competitive strategy influence competitive forces (eg by building
barriers to entry or reducing competitive rivalry)?
12. Market Communication
Marketing Communication: Inform Remind and
Persuade Customers, directly or indirectly, about their
brands [Wimbledon, DLF-IPL, Nike-Women]
Marketing Communication contributes to brand:
Creating Awareness [BSRM-Highway notifications, EBL]
Linking strong favorable unique brand associating
with memory [Meril beauty soap]
Eliciting Positive Brand Judgment or feelings
[AB Bank – Family Friend, Allianz-Security, Femicon]
13. MC effectiveness
1 2 3
Current Desired
Brand Communications Brand
Knowledge Knowledge
I. What is your Current Brand Knowledge?
Detailed Mental Map?
II. What is your desired brand knowledge?
III. How does the communication help it to move
from 1 to 3
14. Information Processing Model
Six steps to persuade a person
Exposure: Hear the Communication
Attention: Notice the Communication
Comprehension: Understand the Message or Arguments
Yielding: Respond favorably to the Message or Arguments
Intentions: Plan to act in Desired Manner
Behavior: Act in Desired Manner
All of the steps must be met for a consumer to be persuaded
17. Brand Positioning
Who the target market is?
Who the main competitor?
How the Brand is similar to Competitor?
How the Brand is dissimilar to Competitor?
19. Brand Positioning- Competition?
Competitive Analysis:
Resource
(Blackberry vs. Apple) 2
Capability
(Technology vs. Labor, Intel
vs. Walmart)
Future possible Action
(Buyout vs. Promotion, MS vs.
Coke)
Nature of Competition
(Oligopoly vs. Mkt., Chevron
vs. Sony)
21. Core Brand Values
Set of abstract concepts or phrases that
characterize 5-10 most important dimensions of the
mental map of a brand.
Perceptual Mapping Coverage
Perceptual Map Core Brand Values Brand
Mantra
22. Brand Mantras
A brand mantra is an articulation of the “heart
and soul” of the brand.
Brand mantras are short three to five word phrases
that capture the irrefutable essence or spirit of the
brand positioning and brand values.
Nike
Authentic Athletic Performance /Just do it
Disney
Fun Family Entertainment
28. Brand Names
Awareness
Pronunciation/Spelling (Aim, Bata, Tata, Jet Vs. Hyundai, IKEA)
Pleasantness (Ramada, Nivea, Nirvana, Emmy)
Familiarity (Mecca Cola, Boston Chicken, Swiss Chocolate)
High Imagery (Newsweek, Body Shop, Sub-Way)
Cultural Differences (Red Cross, Moon & Star)
29. New Products and Brand Extensions
Current
Markets
Market Product
Penetration Development
Current Products New Products
Market
Development Diversification
New Markets
Ansoff’s Growth Share Matrix
30. New Product – Branding Decisions
When a Firm introduces a New Product, it has three
main choices as to how to Brand it
A New Brand – individually chosen for the
New Product
An existing Brand Name applied in some
way
A combination of a New Brand with an
Existing Brand
31. Brand Extensions
An established brand name to introduce a new product
[Ispahani Pure Snax]
An existing brand that gives birth to a brand extension
is referred to as the Parent Brand [Bata Apparels, Pocha Sandal]
If a parent brand is associated with multiple products
through brand extensions then it is called a Family
Brand [Pran Juice, Milk, Chanachur, Mineral Water]
32. Types of Brand
Extensions
Line Extensions
The parent brand is used to brand a new product that
targets a new market segment within a product category
currently served by the parent brand. e.g. Lux Herbal
It often involves a different flavor or ingredient variety, a
different form or size, or a different application for the
brand e.g. Ispahani Mirzapore Tea
33. Types of Brand
Extensions
Category Extensions
The parent brand is used to enter a
different product category from
that currently served by the parent
brand
e.g.: Apex Pharma, Swiss Army
Watch
34. Rebranding
This can be defined as "a process of giving a product or an organization a
new image, in order to make it more attractive and successful" (Collins
English Dictionary).
This is done to increase consumer loyalty, improve member
professionalism, enter a new market trend, create a stronger voice in the
industry, increase share holder value or to reenergize a company
Generally many companies consider rebranding as a 'Cosmetic Work out'.
35. Rebranding
There are many reasons to re-brand:
To keep up with the times and keep pace with changing consumer needs
(e.g. services, accessibility, convenience, choice, fashion, technology).
Because a brand has become old-fashioned and is in danger of stagnation
or is already in a state of erosion. (AB Bank)
Due to fierce competition or a fast-changing environment (PEPSI to Pepsi to
pepsi)
As a result of globalization (e.g. Lever Brothers to Lever to Unilever).
As a result of mergers and acquisitions (e.g. GLAXO to GLAXOWELCOME to
gsk).
To decrease business development and operational costs, or a way of
countering declining profitability or consumer confidence.
To signal a change in direction, focus, attitude or strategy.
Where there are complex product portfolios, considerable advertising and
branding clutter, media proliferation and subsequent audience
fragmentation.
