*Brand

Management
*Product means anything that is manufactured by labour or
effort
*‘product’ (to lead forward/ Bring forth) = ‘pro’ (forward) +
‘ducere’ (to lead)
*In Marketing, a commodity or service manufactured to
satisfy the needs of consumers
*Product is something which has the capacity to fulfil the
needs of the people.
*It is the medium through which a firm enters the market.

*Product
*Desirability- it refers to the appeal or attraction of a
product. A product must be one which is desired by the
consumers

*Purpose- the usefulness of a product. For example: a

detergent is used for washing clothes

*Usability- it implies the performance of a product. A

product must be one that can be used comfortably by the
consumer.

*User Experience- the product must be a positive feeling,

happiness and satisfaction to the person who uses it.

* Want satisfying capacity of a product

* Product is an umbrella term which includes-
goods, services, information, events( stage
shows, artistic performances, sports events
etc.,), properties ( real estates, financial
instruments etc.) and experiences
( amusement parks, water parks etc. )

* a product is a collection of tangible and

intangible features offered by a seller to a
buyer.
*“ a product is anything that can be offered to a market for
attention, acquisition, use or consumption that might
satisfy a want or need. It includes physical objectives,
services persons, places, organizations and ideas”- Philip
Kotler

*“ a product should be considered as a bundle of utilities

consisting of various product features and accompanying
services”- W. Anderson

*Definitions
*It has something which has the capacity to fulfil the
needs of people
*A product can be a physical good or service
*It is a collection of tangible and intangible features
offered by a seller to a buyer
*It can satisfy both commercial and personal needs
*It is the subject and object of all marketing activities

*Features of
*Levels of Product
* Core Benefit- it is the basic need or want that consumers
satisfy by consuming the product or service
* Generic Product- this level of a product contains those
attributes or characteristics absolutely necessary for it to
function
* Expected product- it is the set of attributes or characteristics
that buyers normally expect and agree to when they
purchase a product
* Augmented product- this level contains the additional
features, benefits, attributes or related services that
differentiate the product from its competitors
* Potential product- it is the additions (modifications) and
transformations a product might undergo in the future
* Kotler observed that huge competition takes place at the
augmented product level rather than at the core benefit
level. All firms try to improve their packaging, services,
advertisements, customer care, delivery arrangements, and
other things that consumers feel valuable.
Sl. Product Service
No
1 The term product is used It means intangible goods
to refer tangible
commodities/goods
2 When a person purchases A buyer cannot see a service, but can
a product he can feel or experience it
physically see (examine)
and touch it
3 If a product is not There are no substitutes for services.
available in the market , Services are highly customized and
customers can use tailored to the specific needs of the
substitute products. customers. Ex: Doctors and Patients
4 It can be preserved and It cannot be stored. When a student
stored for future use misses the class of the teacher , he
cannot regain that class
5 A buyer can examine the Quality can be understood only after
quality of a product getting the service. No prior
before making the examination is possible.

*Product and
purchase
 Types of
Product

Industrial Product Consumer Product

Consumer Perishable Shopping Speciality Non-Sought

Convenienc
FMCGs
Durables Goods Consumer Consumer Consumer
e Goods
Goods Goods
Goods

White goods
Brown
Goods

Soft Goods

*Types of Product
*Products that are sold by one business to another

*These are items purchased by business enterprises for the

production of other goods, in the operation of a business
or for resale to other consumers.

*Machinery, components, equipment, tools, raw materials

are examples

*Industrial
Products
*That are bought by the ultimate
consumers for personal, family, house
hold and other non-business purposes.
*These are items purchased by consumer
for their daily use.
*Food items, clothes, toothpastes, soaps,
vegetables, fruits are examples.

*Consumer
Products
*These are products which are sold quickly
and at relatively low price.
*Soaps, toothpastes, pen, soft drinks,
chocolates are examples

*FMCGs
*Consumer durables are goods that are not quickly wear out or
destroyed by use. Also known as durable goods or hard goods.

* White Goods (White Wears)- Major household appliances and heavy

consumer durables come under this category. Air conditioners,
refrigerators, washing Machines are examples.

* Brown Goods- Light electronic durables come under this category. TV,
Computers, DVD Players, mobile phones are example.

* Soft Goods-Goods made from soft materials. These products are soft in
touch. Mostly textile products come under this category

*Consumer
*These goods are subject to decay and
spoilage with in a short period. They
deteriorate in quality over time.

*Butter, meat , fish, vegetables etc. are

examples.

*Perishable Goods
*Goods which are easily available to
consumers without any extra effort are
convenience goods.

*Mostly, this come under the category of

non- durable goods

*Fast foods, cigarettes, chocolates, pen are

examples

*Convenience
*Consumer makes a lot of selection and
comparison based on various factors such
as cost, brand , style, comfort etc. before
buying a product
*They are costlier than convenience goods
and are durable in nature.
*The outlets for these goods are usually set
up in busy shopping areas to attract
consumer attention.
*Jewellery shops, foot wears, textiles are
examples.

* Shopping consumer
goods
*Goods which are very unique, unusual and
luxurious in nature are called specialty
goods.

*These goods are mostly purchased by

upper-class members of a society.

*Diamond, gold, high end vehicles are

examples

* Specialty Consumer
Goods
*Goods or services which are available in
the market but customers are not really
interested in buying them are called non-
sought goods.

*These goods are purchased not out of

desire but due to certain compulsions.

*Medicines, Coffins are examples.

* Non-sought/Unsought
Consumer Goods
*Development of product is an attempt to design product
to meet the needs of customers.
*It is a complex process with many activities.
*The whole process of product development operates on
the basis of detailed market analysis and research.
*Simply product development means manufacturing of a
product best suited to satisfy the needs of the target
market
*Product development deals with the formulation of a
new product and modification of the existing product so
as to offer new or additional benefits to the targeted
customers.
*It is defined as the science and art of developing new
products and improving existing products to their fullest

*New Product
potential in the target market
*Two aspects of product development- Modification of
the existing product & NPD (New Product
Development)
*NPD is a process to design, develop, test and
introduce new products in the market so as to ensure
the growth and survival of a firm.
*A new product is one which gives rise to a new
market. A product which is totally different from the
existing products in its style, shape, features and
benefits offered.
*It may be an existing product introduced in a new
market.
*It My be an existing product offered in a new package
(old wine in new bottle strategy)
*It may be an existing product marketed in a different
way( new marketing strategy, product remains the
*Product development is highly essential for a firm to
enter into the target market

*The growth and survival of a firm in the market depend

on the quality and ability of its product to meet the
needs of the customers

*Product development also facilitates a firm to

customize its products so as to tailor them to meet the
specific needs of the customers

*The needs of customers are dynamic in nature. So a

company has to modify its products as per the
changing needs of the customers.

*Need for Product

 *No product can exist in a market for a long period of time
without any additions in its value.

*Improving and updating product is crucial for the success

of any firm

*Failure of a firm in modifying its products results in a

decline in sales.

*The process of NPD is vital for an organization in order to

engineer or re-engineer its products

ed for Product Development

 *Customization of Product

*Adjust with product Lifecycle

*Innovation

*Fighting Competition

*Improving Brand Loyalty

*Increasing the Market Share

d for Product Development

*1.Idea Generation- the goal of idea generation is to
explore thoroughly, the space of product in the market is
to satisfy the needs of the customers.
*Every new product and every new product development
starts with the idea generation.
*It is a process in which creative thinking is used too
generate large amount of ideas for the development of
new products.
*For many firms, idea generation is an ongoing process.
They use wide range of techniques for idea generation.
*Market surveys, research, interaction with the customers,
consulting the experts, encouraging ideas from the sales
personnel, conducting brainstorming sessions (where
creative thinkers can meet together and generate new
product ideas).
* Steps in product development
*2.Idea Screening- or selection is the activity in which
various product concepts are analyzed and sequentially
eliminated to identify the best idea.

*Ideas screening helps to make a critical evaluation of the

ideas generated.

*Usually screening stage in a product development

process examines certain important factors related with
the product ideas.

*The selection of a product idea is made on the basis of

the results obtained from the screening..
*The following are some of the important factors on the
basis of which ideas are screened.

* 1. Novelty (innovation ) of the idea

* 2. Ability of the idea to attract the target market
* 3. Benefits offered in comparison competitive products.
* 4. Features that differentiate the product from its competitors
* 5. Ability to generate the profits expected by the firm
(profitability)
* 6. Availability of raw materials
* 7. financial and managerial capacity of the firm to implement
the idea.
* 8. Production capacity of the firm.
*Product concept Development & Evaluation (Concept
Testing )- when an idea or concept has been chosen, it is
evaluated more carefully.
*Firms, use concept testing by collecting feedback from
customers about how well a new product idea satisfies
their needs.
*For this, meetings of the customers are convened and the
ideas are presented to them. The firm collects information
from the customers regarding their likes and dislikes of the
idea, level of interest in purchasing the product, frequency
of purchase and price.
*The development of a product idea occurs after the
concept testing.
*It is a quick and inexpensive way of measuring consumer
perception. It askes potential customers to react to a
product idea of the firm.
*This helps a firm to determine initial attitudes prior to
expensive, time consuming product development.
*Business Analysis- At this stage, the marketer analyses
the viability of the product idea selected.

*The key objective of this stage is to obtain useful

forecasts of market size( overall demand, operational
costs, sales and profits).

*Further the firm must ensure that the product firs within
the framework of its overall mission and strategy.

*Great efforts are taken to conduct internal study

(discussions with production, purchasing and marketing
personnel) and external marketing study ( customer
surveys, distributor surveys and competitor analysis)
*Product and Marketing Mix Development- ideas passing
through business analysis are given serious
consideration for product development.
*Companies direct their R&D teams to construct an initial
design or prototype of the idea.
*They also begin to develop a marketing plan for the
product. Once the prototype is ready the marketer seeks
customer opinion.
*In this stage, the customers get to experience the real
product as well as other aspects of marketing mix, such
as advertising, pricing and distribution.
*Favorable customer reactions helps firms to proceed
with the production and marketing of the product.
*In this stage the idea is transformed into a tangible
product. The result of the development stage is the
prototype(sample/model)
*6.Product Testing/Test Marketing- Usually firms conduct
a product testing before launching the product. In some
cases companies accept what was learned from concept
testing and avoid product testing.
*In test Marketing stage, products re sold to selected
customers of the target market to assess their
responses.
*The most common type of test marketing is making the
product available to a selective small segment of the
larger market( one city) to clearly understand the
performance and customer acceptance of the product.
*Through this the product will be tested by trusted
customers in real-use conditions.
*Systematic test marketing helps a firm to find out
whether the product can be launched successfully on a
commercial basis or not.
*Advantages of Test Marketing

* 1. It helps to understand the customer attitudes and

responses towards the new product on a larger scale.

* 2. it helps firms to understand the deficiencies of the new

product and take necessary steps for modifications.

* It helps to decide the time of commercialization or launching

of the new product.

* Firms can forecast their sales through test marketing.

* Firms can finalize their marketing strategies on the basis of

test marketing
*7. Commercialization/launching of the New product- this is
the final phase of the new product development process.

*If market testing offers promising result; the product is

ready to be introduced to a wider market.

*Full scale production and commercial launch take place

during this stage.

*timing of commercialization is a major concern during this

phase.

*If the firm is of the view that , the product can be

improved further or if the economic condition is not
favorable, then the launch should be delayed.
*8. Post launch Analysis- marketing strategies adopted for
launching a new product need to be revised in order to adjust
with changing needs and conditions of the target market.

*A typical product development process ends at

commercialization of the product. But most firms conduct a
post launch analysis to monitor the performance of the newly
introduced product in the market.
*It helps firms to effectively manage the performance of the
product in the market.

*Post launch analysis helps to understand:

* 1.the strengths and weaknesses of the product and marketing
strategies adopted
* 2.nature of competition
* 3.economic conditions
* 4.technological advancements
Idea generation

Idea Screening

Concept Testing

Business Analysis

Product Development

Market Testing

Commercialization

Post Launch Analysis

*Demand- It is the major factor that determines the
success of a product in the market. If the consumers
are not interested in buying a product, then the
product cannot survive in the market. So firms first
conduct a demand analysis in order to forecast the
market demand for the new product.
*Availability of raw materials- Marketing is not one day
program. It is a continuous process. After launching
the product, it has to be offered to the target market
without any interruptions. Raw materials are the
major factors which determine the supply of products.
So firm shave to ensure that the raw materials are
readily available on a continues basis.

* Factors to be considered in
product development
* Finance- product development is a costly venture. It requires
huge amount of resources in the form of men, materials and
money. It is a critical factor of product development. If the
funds are not readily available to create the product,
development process will be delayed. So firms have to
mobilize adequate finance to fund the product development
process.
* Development team- the quality of product depends on the
quality of team of manpower behind its development. Finding
skilled manpower with the talent and knowledge is highly
essential for product development.
* Legal standards- a firm should comply with the legal
requirements in the development of a new product. The new
product must be in accordance with the quality and safety
standards and other stipulations prescribed by the law.
* Reputation- the product should increase the reputation and
image of the company. It should represent the culture and
values pursued by the company. Reputation and image help
firms to win the trust of customers.
*1. Lack of Specialty- uniqueness of the product is very
important to attract the customer attention.

*A new product must be different from the existing

similar products in one way or the other.

*It has to offer a new feature or satisfy the needs of the

customers in new ways.

*The price and the performance of the new product must

be unique from the existing products to impress the
customers.

* Reason for failure of New

Product
*2. Poor Timing- time of introduction of a product in the
market is an important aspect deciding its success.

*A product has to be introduced in the right time when

the demands of the consumers are high.

*The purchasing power of the customers and market

season are the two major factors deciding the success
of a new product.
*3. Inferior Quality- lack of quality is another major reason
behind the failure of a new product in the market.
*Sub standard and cheaper raw materials used in the
manufacturing of a product reduces its quality and
consumers prefer to avoid low quality products.
*Technical deficiency is another reason for new product
failures.

*4. Unfair Price- some companies charge high price for their
products much more than the cost of production.
*But consumers usually compare the cost and price of a
product and choose a product at reasonable price.
*Irrational pricing leads to failure of a new product in the
market.
*5. Lack of Competitive strength- Excessive competition
and inability to meet the challenges of the dominant
products in the market reduces the market scope of
new products. New products have to sharpen their
competitive edge to survive in the market.

*6. Lack of promotion- companies have to evolve and

implement appropriate promotion strategies to position
their products in the market.
*Good promotion strategies help to give a widespread
communication about a product in the market.
*Lack of adequate promotion reduces the market scope
of new products.
*7. Poor Distribution Network- Availability of the product is
a decisive factor in the success of a product in the market.
*The product must be easily available to the customers as
and when needed.
*For this, companies have to set up an appropriate
distribution network.
*Products may fail due to poor distribution network.

*8. Poor After-sales Service- after-sales service is another

major issue in marketing of new products.
*Good after-sales service and support must be provided for
encouraging customers to buy a product.
*In the case of poor after-sales service, customers will
discard a product or service.
*9. Unavailability of spare parts- in the
case of durable products, repairs and
periodic services are inevitable. In such
situation, companies have to ensure
continuous supply of spare parts and
other accessories to the customers.

*Usually consumers refuse to buy products

which are not having a regular supply of
spare parts.
 *The firm has to ensure that there is sufficient demand
for the new product in the market.
*The pricing of the new product must be fair and rational
*The new product must meet the quality standards.
*The firm has to ensure that the product is free from all
defects.
*The firm has to adopt adequate promotion strategies for
the new product.
*The firm has to set up proper distribution channels and
ensure that the product is easily available in the market.
*The firm has to offer better after-sales service to
consumers.
* Adequate modifications must be made in the product to
retain the customers.

*Measures to prevent product

failures
*The term innovation was derived from the Latin word-
‘Innovatio’ which means to renew or change.
*Thus, the central meaning relates to renewal or improvement.
*Product innovation relates to the creation and introduction of
a new product or improvements made in an existing product.
*There are different innovations or types of innovation. They
are,
*Modification of an existing product. Ex: Tata Indica Vista is the
modified version of Tata Indica V2
*New model of the existing product. Ex: Swift Dezire is the
latest model of Maruti Swift Car.
*New product outside the existing range butin a similar field of
technology. Ex: Introduction of Nano cars by Tata
*A totally new product in a new field of Technology

*Product
*So, product innovation is defined as “ the
development of new products, changes in
design of established products, or use of
new materials or components in the
manufacture of established products”.

*There are two important aspects of

product innovation; one is development of
new products and the other is the
modification or improvements of the
existing products
*1. Increasing Sales & Profit- Innovation usually adds
more value to an existing product. This helps firms to
attract more customers and thereby increase the
volume of sales and profit.
*2. Increasing competitive Advantage- innovative
products are the center of attraction of most
consumers because innovation results in the
refinement of a product or service. This increase
advantage of a firm over its competitors.
*3. Offering more benefits- innovation helps firms to add
more benefits and features to a product. The needs of
customers can be well addressed with the help of an
innovative product.

*Need &
Importance of
*4. Reducing Cost- innovation is required to
identify better ways of production so as to
improve the efficiencies and reduce the
cost. Cost reduction and enhancement of
the production capacity are possible only
through innovative methods of production

*5. Improving Quality- innovation helps

firms to continuously improve the quality
of their products. New ways of production,
technology, machinery, raw materials etc.
result in the enhancement of product
quality.
*It is refers to a group of products manufactured or
traded by the firm to strengthen its presence in the
market, increase its market share and increase the sales
turnover for more profitability.
*It is defined as the overall products offered by a firm to
its customers.
*According to Philip Kotler- “ product mix is the set of all
product lines and items what a particular seller offers
for sale to buyers”.
*According to W.J Stanton-” product mix is the full list of
all products offered for sale by a company”.

*Product Mix
*A product mix consists of both product line and individual
products.
*A product line is a group of products within the product
mix that are closely related to each other.
*It is a set of related products marketed by a firm.
*Product is an individual unit within the product line that
can be separated from other product units in the product
line on the basis of size, price, appearance, features,
benefits and quality.
*According to Philip Kotler- “product item is a distinct unit
that is distinguishable by size, price, appearance or some
other attribute”.

*Product Line
*Ex: All the courses of study offered by a college constitute
a product mix; Courses offered by a particular department
of the college refer to a product line. And a particular
course of a department is a product.

*A product line is a group of products that are closely

related, either because they perform in the same manner
or sold to the same customer group or follow the same
distribution channels or fall under a specified price range.

*Ex: Cosmetic items in a shop, baby care products etc.

*In management context, branding is a symbolic
representation of information associated with a
product or service.
*A band particularly consists of name, logo, other
visible features including color combinations, fonts,
images, symbols etc.
*A brand raises a number of expectations in the minds
of the individuals in relation with particular goods or
service.
*These individuals may be employees working with the
brand, suppliers, vendors and their associate,
distributors and lastly consumers.
*It is a promise towards satisfaction of their needs and
assuring world class product and service quality.

*BRAND
*Three questions, “who”, “what” and “why” are very
crucial for the successful branding of any product.

*Marketers should introduce who the product is, what

does it do and why should consumers know about it.

*According to American Marketing Association- “ brand

is a name term, sign, symbol or design or a
combination of them which is intended to identify the
goods or services of one seller or a group of sellers and
to differentiate them from those of competitors”.
*1. Targetability- one of the main characteristics of
brands is that they must be targetable. That is, business
owners musty identify the types of customers who are
most likely to purchase their brands.

*No one brand can appeal to the entire market.

*Hence, companies must focus on narrower segments of

the population for greater manageability.

*Companies often use demographics such as age,

income, and education as the key target elements.
Geography, lifestyles and buying patterns are also
important.

*Nature of Brand
* 2. Awareness- another characteristics of brand is that it
creates awareness. Brand awareness is the percentage of
people who are aware of a particular brand.

* Companies that are well established usually enjoy the highest

levels of brand awareness.

* There are many ways to build brand awareness, including

television, radio, magazine, newspaper, internet, advertising
etc.

* Logos also helps companies build brand awareness, as people

often recognize brands by these symbols or diagrams.

* The best type of brand awareness is top-of-mind awareness.

* This is when people think of a particular brand fist when

asked.
*3. Consistency- brands must also remain consistent
throughout their existence.

*Business make numerous promises in commercials and

ads about their brands, and consumers expect
companies to continue living up to these promises.

*For example, customers may buy a certain cleaner

because its highly effective in removing grease stains.

*Hence, it shouldn’t matter if customers by the brand a

month or year later. The product should still be
effective in removing grease stains.
*4. Distinctive Design- people make a decision about the
company and the brand within a few seconds of initial
contact, so first impressions do count.

*Customers process through their eyes, so design has a

keen emotional and memorable impact on the brain.

*Companies should make sure that the visual branding

elements are not only consistent across all media
( business card, website, advertising, social media
platforms etc.), but they are conveying the message and
the feeling they want their brand to evoke.
*5. Loyalty- brand loyalty is the highest achievement or
apex for any company.
*Brand loyalists are customers who buy a particular brand
exclusively.
*Many consumers prefer using certain brands of clothing,
tooth pastes etc.
*They like how their favorite brands work or enjoy how
certain brands benefit them.
*The best way to build brand loyalty is to stay in close
contact with customers.
*Know what features or product characteristics are most
important to them.
*Companies must also ensure that their brands continue to
be available in stores to maintain high levels of brand
loyalty.
 Types of Brands

According According to the According to According to Use

to Market Area Products
Ownership
Manufacturer Local Brand
's Brand Family Brand Fighting
Provincial Brand
Middlemen’s Brand Product Line
Brand Brand Competitive
Regional Brand
Brand Individual
Brand
National Brand

International/
Global Brand

*Types of Brands
*1. According to ownership- here ownership determines the
type of Brand.

* A. Manufacturer’s Brand- when the name of the manufacturer

is used for branding the product, it is called manufacturer’s
brand. Ex: Using name of samsung for branding its products
like smartphones, TV, AC etc.

* B. Middlemen’s Brand- in this type of branding instead of the

manufacturer it is middlemen whose name is used as brand.
The middlemen may be wholesalers, retailers etc. Ex:
wholesale stores such as Walmart, Best Price, Metro.
*2. According to the Market Area- Based on target
market area there are s types of brands
* 1. Local Brand- the brands are decided keeping the
local markets in mind. Thus there are different local
brands for different markets.
* 2. Provincial Brand- the brand name is decided for a
particular state or province. Therefore for a single
product, there are different brand names exist in
different states.
* 3. Regional Brand- the brand name is for a particular
region. Different regions thus have different brand
names. The entire country may be divided into regions
like North, South , east, West, Central etc.
* 4. National Brand- when a particular product is
available with the same band name through out the
country it is referred as national brand. The product is
only being nationally distributed and marketed.
*The national brands are owned and advertised by
manufacturer. In marketing side, this type of brand is
more difficult than local brand. In order to market their
product, they have to know their consumer very well but
it may take long period of time.
* 5. International/Global Brand- when a particular product is
available with the same brand name throughout the world it
is known as international brand. Nowadays there are so
many global brands that are sold in the international
markets.
* Ex: Apple, starbucks, Coco Cola
*3. According to the number of Products-

* 1. Family Brands- when all the products of a company

are marketed with the same brand name in different
market segments, it is called family brand. Ex: Reliance
Groups

* 2.Product Line Brand- when a company decides to give

different names to different product lines then they
follow the product line branding. Ex: Hindustan
Unilever

* 3. Individual Brand- when the company uses different

names for the products in the same product line . Ex:
different individual brands of soaps are used by HUL
like Lifebuoy, Rexona, Vivel
*4. According to Use-

* 1. Fighting Brand- these brands are launched in the

market with a significant difference from the brands that
are already being offered by the competitors of the
company. In other words, these brands try to get a
distinct positioning in the market through competition. Ex:
ITC has launched a cigarette named “NOW”

* 2. Competitive Brand- these on the other hand fight for

the same positioning in the market and do not have any
significant differences. Ex: Rexona, Lux
*Characteristics or Requisites of a good Brand Name

*1.It must be easy to pronounce and Remember

*2.It should be short and sweet
*3. it should point out producer
*4. It should be legally protectable
*5. It should be Original
*6. It should reflect product dimensions
*Significance of Brands to Consumers:
* Brands facilitate the identification of products at the point of
purchase

* Brands offer a measure of protection to consumers because

they usually identify the manufacturer or supplier

* Brands give consumer greater freedom of choice in where they

buy product. Ex: panado tablets will be the same at all
pharmacies.

* Brands lead to improved products due to competition and

continual product differentiation.

* Brands simplify the purchasing transaction because consumers

are familiar with the trademarks.
*Brands can serve as a warning against repeat purchase if
the first purchase and use of the product proved
disappointing.

*Brands simplify consumer problem-solving and

information processing.

*Brands helps consumers feel good about their purchases.

Brands have social benefits for consumers

*Brands improve consumer value ( whether branding

brings higher or lower prices , it still ensures value for
money)

*It provide consumers with choice( competition implies a

variety from which consumers can make their individual
selections to match their needs most closely)
* Significance of brands to firms:

* Products, and particularly the brands, have to be pre sold

through advertising so that the consumer will recognise and
select those products on retailers’ shelves.

* Brands facilitate the use of non-price competitive strategies,

such as product differentiation, although of course, price
competition can never be eliminated completely.

* Brand trademarks facilitate product diversification in certain

respects. A new product item can be added wit greater ease
to a known product line as compared with one that has
trademark.

* Strong brands commands higher price points and higher

margin
*Strong brands embody a clear, valued and sustainable
point of difference

*Strong brands offer internal focus and clarity within an

organization

*Brand strength is a lever for attracting the best

employees and keeping satisfied employees

*Brands promote competition (consumers gain from

brands competing strongly) for their patronage.
*Limitations of Brand-

*1. Cost- if anyone wishes to create and maintain a strong

brand presence, it can involve a lot of design and
marketing costs. A strong brand is memorable, but people
will need to be exposed to it. This often requires a lot of
advertising over a long period of time, which can be very
costly. There are also costs involved with the creating of a
brand image or logo.

*2. Higher prices- usually customers have to pay higher

prices for branded products compared to unbranded
products. The higher price is explained by the additional
production costs and marketing expenditures incurred by
the supplier in developing and supporting the brand.
*3. Low profit margin- branded goods give low profit
margin to the dealers. When the customers are highly
loyal to a brand, the firm enjoys a supremacy over the
dealers and they will be forced to deal at a profit
margin decided by the firm.

*4. Brand Monopoly- branding may lad to brand

monopoly, which s not a desirable situation in a
market. A monopoly brand can exercise control over
the demand for products. It can also charge undue
price for the product.

*5. Impersonal- one of the main problems with many

branded businesses is that they lose their personal
image. The ability to deal on a personal basis with
customers is one of the biggest advantages small
business have, and poorly designed branding could
Product Brand

A product is a physical and tangible item which A brad is an emotional identity. It satisfies an
serves the purpose of satisfying a physical or emotional need, for being recognised and
functional need associated with some specific people.

Product refers to what the organization is selling Brand refers to the image of the organization.
with profit motive

Product stands for specific things (car, laptop Brand stands for assurance of good quality,
etc.) practicability etc.

Product refers to the things which can be It refers to the symbolic meaning associated
introduced in the market for serving the desires with an organization, products, services, etc. it
or requirements of people or the market consists of the logo, tagline, colour etc. Which
helps in creating image in the minds of the
consumers.

The existence of the product is always objective. It is the perception about the product. the
It is produced and then introduced in the dimensions of the product can be understood
market. through its components.

Product refers to the things which can be Brand refers to the trade name associated with
offered for the purpose of selling goods and services. It comprises of logo,
pattern, colour, symbol, sound etc. associated
with the brand name; which stands for the
values associated with the brand. Its primary
purpose is to establish the relationship of trust
with customers.
Some of the examples of products are cold Some of the examples of brand are ponds, pepsi,
drink, pizza, cream etc. pizza hut etc.
*Consumers choose products they want not only on the
basis of product features and benefits but also on the
basis of the name of brand.
*A brand name helps them to differentiate a product from
other similar products in the market.
*The American Marketing Association (AMA)- defines a
brand as “ a name, term, sign, symbol or design or a
combination of them intended to identify the goods and
services of one seller or group of sellers and to
differentiate them from those of other sellers”
*A brand name resides within the hearts of the customers.
It is the sum total of their experiences and perceptions
about a product.

*Branding
*Branding is referred to as a process of creating a unique
name and image for a product in the minds of the
consumers through advertisements and other product
promotion measures.

*It aims to establish a significant and differentiated position

for the product in the target market to attract and retain
customers.

*Branding is the process of creating distinctive and long

lasting perceptions in the minds of consumers.

*A brand is a persistent, unique business identity mixed up

with the personality of the consumer, their interest, quality
of the product and the origin.

*It attempts to make people loyal to the product of the firm.

*It helps in fascinating and retaining loyal customers.
*Branding guides the customers in several ways
including picking out the most useful products, and
quality assurance associated with the product etc.
*A loyal purchaser is assured of the same attributes,
quality and satisfaction from a brand during every
shopping experience.
*A seller also has many advantages in getting
associated with a brand
*The exceptional quality of a product speaks
everything about a brand name.
*The exclusive characteristics of a product are lawfully
safeguarded against duplication by competitors due
to its unique brand name and trademark.
1. Brand name
2. Brand identity
3. Brand personality
4. Brand promise
5. Brand equity/value
6. Awareness
7. Brand architecture
8. Brand association
9. Brand differentiation
10.Brand commitment
11.Brand earnings
12.Brand essence
13.Brand experience

*Basic Branding
14.Brand extension
15.Brand image
16.Brand licensing
17.Brand positioning
18.Brand strategy
19.Brand valuation
20.Co-branding
21.Power branding
22.Re-brand
23.Re-Launch
24.Service brand
25.Sub-brand
26.Mass Marketing
27.Master Brand
*The brand name often used interchangeably with
brand, although it is more correctly used to specifically
denote written or spoken linguistic elements of a brand.

*In this context a brand name constitutes a type of

trademark, if the brand name exclusively identifies the
brand owner as the commercial source of product or
services.

*A brand owner may seek to protect proprietary rights in

relation to a brand name through trademark
registration.

*Brand Name
*Brand identity is fundamental to consumer recognition
and symbolizes the brand’s differentiation from
competitors.

*Brand identity may be defined as simply the outward

expression of the brand, such as name as visual
appearance

*Brand Identity
 *It is the attribution of human personality
traits to a brand as a way to achieve
differentiation.

*Such brand personality traits may include

seriousness, warmth or imagination.

*Brand personality is built through long-

term marketing as well as packaging and
graphics.

*Brand Personality
*It is a statement from the brand owner to
customers, which identifies what
consumers should expect from all
interactions with the brand.

*Interactions may include employees,

representatives, actual service or product
quality or performance, communication
etc. the brand promise is often strongly
associated with the brand owner’s name
and/or logo

*Brand Promise
*It measures the total value of the brand to
the brand owner, and reflects the extent
of brand franchise.

*Brand value, especially in the case of

consumer product brands, may arise out
of consumer loyalty.

*Brand value may also arise in terms of

staff retention benefits (ex: the ability of
the company to attract and retain skilled
and/or talented employees offering
competitive salaries)

*Brand
*The percentage of population or target
market who are aware of the existence of
a given brand or company.
*There are two types of awareness
*Spontaneous: it measures the percentage
of people who spontaneously mention a
particular brand when asked to name
brands in a certain category.
*Prompted: it measures the percentage of
people who recognize a brand from a
particular category when shown a list.

*Awareness
*How an organization structures and names the brands
within its portfolio. There are three main types of
brand architecture system.
*Monolithic: when the corporate name is used on all
products and services offered by the company. Ex:
Amul use its corporate name for all product
categories.
*Endorsed: where all sub brands are linked to the
corporate brand by means of either a verbal or visual
endorsement. Ex: Tata Indicia, Tata Safari.
*Free standing: where the corporate brand operates
merely as a holding company, and each product or
service is individually branded for its target. Ex: HUL
uses Lux for soap and clinic plus for shampoo.

*Band
 *The feelings, beliefs, and knowledge that
consumers have about brands.

*These associations are derived as a result

of experience and must be consistent with
the brand positioning and the basis of
differentiation. Ex : LIC

*Brand Association
*It is the process of creating a perceived difference, in
the mind of the consumer, between a brand and its
competitor.
*The critical issue in differentiation is that consumers
perceive a difference between brands.
*If consumers do not perceive a difference, then
whether real differences exist or not does not matter.
*Further, if a firm’s brand is not perceived as distinctive
and attractive by consumers, then consumers will
have no reason to choose that brand over one from
the competition or to choose pay higher prices for the
“better” or “more meaningful” brand.

*Brand
*The degree to which a customer is committed to a
given brand in that they are likely to purchase /re-use
in the future.
*The level of commitment indicates the degree to which
a brand’s customer franchise is protected from
competitors.

*Brand
*The share of a brand-owning business’s
cash flow can be attributed to the brand
alone.

*Brand Earnings
*The brand’s promise expressed in the
simplest, most single-minded terms.
*Ex: Volvo=safety
*Saffola= Heart Care
*The most powerful brand essence are
rooted in a fundamental customer need.

*Brand Essence
*The means by which a brand is created in the mind
of a stakeholder.
*Some experiences are controlled such as retail
environments, advertising, products/services,
websites etc.
*Some are uncontrolled like journalistic comment
and word of mouth.
*Strong brands arise from consistent experiences,
which combine to form a clear, differentiated
overall brand experience.

*Brand Experience
*Leveraging the values of the brand to take
the brand into new markets/sectors.

*Brand extension
*The customer’s net “out-take” from the
brand.
*For users, this is based on practical
experience of the product or service
concerned (informed impressions)
*And how well this meets expectations; for
non-users it is based almost entirely upon
uninformed impressions, attitudes and
beliefs.

*Brand Image
*The leasing by a brand owner for the use
of a brand to another company.
*Usually, a licensing fee or royalty rate will
be agreed for the use of the brand.

*Brand Licensing
 *The distinctive position that a brand
adopts in its competitive environment to
ensure that individuals in its target market
can tell the brand apart from others.
*Positioning involves the careful
manipulation of every element of the
marketing mix.

*Brand Positioning
*A plan for the systematic development of a brand to
enable it to meet its agreed objectives.
*The strategy should be rooted in the brand’s vision and
driven by the principles of differentiation and sustained
consumer appeal.
*The brand strategy should influence
*The total operation of a business to ensure consistent
brand behaviors and brand experience.

*Brand Strategy
*The process of identifying and measuring the
economic benefit- brand value- that derives
from brand ownership

*Brand Valuation
*The use of two or more brand names in
support of a new product, service or
venture.

*Co-Branding
*A strategy in which every product in a company’s
range has its own brand name which functions
independently, unsupported by either the company’s
corporate brand or its other product brands.
*Power branding is resource-intensive strategy, since
each brand must be commercially promoted and
legally protected.
*Mainly manufacturers of consumer goods use this
strategy.

*Power Branding
*When a brand owner re-visits the brand
with the purpose of updating or revising
based on internal or external
circumstances.

* Rebranding is often necessary after an

M&A or if the brand has outgrown its
identity/market place

*Re-brand
*Re-introducing a product into a specific market.
*The term implies that the company has previously
marketed the product but stopped marketing it.
*A re-launched product has usually undergone one or
more changes.
*It may be technically modified, re-branded, distributed
through different channels or re-positioned.

*Re-Launch
*A product consisting predominantly of
intangible values. “ A service is something
you can buy and sell, but not drop on your
foot”- (The Economist)
*In this sense, a service is something that
you do for somebody, or a promise that
you make to them.

*Service Brand
*A product or service brand that had its
own name and visual identity to
differentiate it from the parent brand

*Sub-Brand
*Simultaneous standardized marketing to a
very large target market through mass
media.
*Other names for this are market
aggregation and undifferentiated
marketing

*Mass Marketing
*A brand name that dominates all the
products or services in a range or across a
business.
*Sometimes used with sub-brands,
sometimes used with alpha or numeric
signifiers.
*Ex: Audi, Sony, Nescafe and LG are all
used as master brands

*Master Brand
 *To help consumers to remember the product
*To deliver the product message clearly
*To reach the targeted customers emotionally
*To make consumers loyal to the product. When people
have a positive experience with a memorable brand, they
are more likely to purchase that product again than
competing brands.
*To increase the familiarity of the product in the target
market.
*To give a premium image for the product in the market.
Premium image helps firms to charge high price.
*To easily expend the product line. Well established brands
help firms to introduce new products in the market.
*To reduce the expenses of marketing. People will search,
fins and purchase established brands.

*Objectives of Branding
Pr
o
Brand Image
d +
u Brand
Brand attitude
ct Relationship

Brand Associations
Brand Image +
Brand Personality

Brand Association Links up in Memory with

Brand’s Attributes Benefits

Brand Looks
Brand Symbol
+
Br Brand Name
a
n Brand Symbol Brand Character
d +
Brand Logo

*Process of Branding a
*Brand relationship: it is the ultimate achievement need
of branding. All other aspects might happen but if this
does not happen the job is not complete.

*Brand relationship happens if ‘image’ and ‘attitude’ for a

brand exist. It is the resultant effect of these two aspects
of a brand.

*Brand attitude: it defines what the brand thinks about

the consumer, as per the consumer. A brand may have
‘attitude’ on one or more aspects.

*Brand Image: it includes two aspects of brand- its

associations and its personality. A brand may have
image on one or more aspects.
*Brand Association: includes all that is linked up in memory
about the brand. It could be specific to attributes, features,
benefits or looks of the brand.
*A brand may have range of associations.
* but the one association that stands out in memory and
differentiates it becomes the position of the brand.
*A brand may have one or more associations but no
position.
*For a brand to have brand relationship, it should have
image- and for image, a brand should have association.
*Of among its associations, a brand has a position, it is of
great advantage.
*But if the brand does not have a brand position; it does not
mean that it would not have image or brand relationship.
*In other words, brand position is not a sufficient condition
for brand relationship. But a highly desirable condition.
*Brand Looks- brand looks which have a role to play in
forming/reinforcing brand associations are facilitated by
two key properties of a brand- its name and its symbol.
While brand name is a necessary condition for existence
of brand relationship, the same is not true for brand
symbol. However, if the latter exists it helps the process
if brand relationship and reinforce it.

*Brand Symbol- there are two visual signals of a brand-

it’s character( Ex: Amul girl, Pillsbury Doughboy) and its
logo.
*Importance /Functions of Branding- branding has the
following functions associated with different categories.

*1. Business to Consumers(B2C)

* A. Ease to Recognize- the existence of the brand name
allows the consumers to identify the brand in the market.
This is because the brand has distinctive packaging, color,
design etc.
* B. Quality Products- a brand is an assurance of quality. Even
the producers have to make constant efforts to invest in R
& D etc. So that they offer quality product and fulfil the
brand promise. Consumers therefore get an assurance of
quality when they buy a brand.
* C. Regulates fluctuations in price- it has been seen that
price fluctuation do not occur in brands. Consumers
therefore get assured prices.
*D. Improves Packaging- the packaging of
the brands is given lot of importance. The
name of the brand and other details are
included in the brand packaging. The
packaging itself has to undergo a constant
innovation in terms of look and feel so
that the quality perception of the brand is
maintained.

*E. Mental Satisfaction- the use of brands

by consumers also gives lot of satisfaction
to the consumers as it gives them a
feeling that they are using a superior
product. For many consumers, it can often
be the feeling of pride like owners of
Mercedes and Harley Davidson.
*2.Business to Business(B2B)

* A. Differentiation- brands are an effective and compelling

means to “decommoditise” product categories that are
highly undifferentiated.
* B. Secure Future Business- Quite often it is important to
establish brands for your products or services in order to
prepare for the future. There are many business areas
where only those companies survived that chose to brand
their products from the beginning.
* C. Differentiate Marketing efforts- businesses with strong
brands can benefit from increased communications
effectiveness. Marketing efforts will be more readily
accepted than those of complete no-name products and
services.
* D. Create preferences- brand preference at its best leads to
the rejection of competitive brands. A strong brand,
however, will act as a barrier to people switching to
competitors products.
*E. command price premium- a business with well-known
brands can command premium prices for their products and
services. It makes it automatically less susceptible to
competitive forces. That business to business brands are
valuable resources is also reflected in the acquisition prices.
Brands can balloon these prices tremendously.

*F. Create Brand Image- brands enable companies value

propositions to be more emotive and compelling. Above all,
a positive brand image also appeals to all other
stakeholders it makes it even easier to recruit and retain
talent.

*G. Increase Sales- the main goal of most business is to

prosper. Companies with strong brands can benefit not only
from higher margins but also from high sales volume.
*Role of Branding- brand names came to create
identity to distinguish one product from another.
Identifying is essential to competition because,
without means of identification there is no way of
making a choice except by happen stance. Brand
names not only facilitate choice but they spur to a
responsible action. Following points pin down its
precise role.

*1. Brand is a Massive Asset- brand is considered as a

major intangible asset because all the physical assets
such as plant, equipment, inventory, building, stocks
and bonds can be duplicated or copied very easily.
However, it is almost impossible to duplicate brand
name it has been proved, as there are many case
where the firms have gone to hell still brand remained
high in the sky.
*2. Brand is a promotional tool- sales promotion is
founded on the idea of product identification or product
differentiation. The difference is done by a brand. Major
weapon of product popularization is advertising. And it is
futile to advertise a product without a brand name. even
the work of salesman would be a failure in absence of a
brand name. Thus, branding plays a highly creative role
in determining the success of failure of a product.

*3. Brand is a weapon to protect market- once a consumer

has tried and like a product the brand enables him to
identify so well that he is tempted to levy it again. For
instance, a house wife using a particular cleaning powder
may not use other powders. The products earns goodwill.
In other words, absence of brand name will make
repeated purchases stand still.
*4. Brand is antidote for Middlemen’s Survival- if a
product wins consumer reputation, the manufacturers
gain control over product distribution. The class of
middlemen always tends to go in for a successful
brand. That is, without brand identification, these
middlemen find it difficult as to what to buy and sell.
In fact, brand names can be so strong and penetrating
that the very survival of middlemen rests on their
efforts and ability to sell a powerful branded product.

*5. Brand is a means t identification for customers-

brand is the easiest way of identifying product or
service that a customer likes. For him, brand is
value, quality , personality, prestige and image. A
branded product is a distinct product in his eyes.
Branded products tend to have improvement in
quality over the years. It is naturally out of
competition.