Presentation on theme: "Chapter 9: Branding and the Marketing program. Contents Branding and Product strategy Branding and Pricing strategy Branding and Distribution strategy."— Presentation transcript:
Contents Branding and Product strategy Branding and Pricing strategy Branding and Distribution strategy
Introduction The focus of marketing – the customers, is the people who make or break the brand. Marketers are doomed when their organization’s product attributes do not better the product features of other brands. It is also important to note that the purchase decision is influenced by the ‘bundle of satisfaction’ offered by the marketers which includes convenience of purchase (place aspect), style of advertising and the price of the product along with manufacturers reputation. It is how the customers perceive the whole bundle that is important. Thus, as marketers while making the decisions regarding the product, pricing, promotion, and place decisions we need to keep in mind how these are going to impact the brand as a whole.
Introduction Product that forms the core of all the marketing efforts and its features are the factors that majorly impact the purchase decision of the consumers. They form the core of the brand equity and the product decisions should be such that they enhance brand image and brand resonance. The gaps in the product offering need to be plugged to provide a wholesome experience to the customers
What is a Product? A product is defined as ‘a tangible object, or an intangible service or an idea, which a marketer has to offer to satisfy the needs and wants of the customers.’ (Jauhari and Dutta, 2009). The product should be built around and satisfy the needs of the customers. Levels of product – Core product – Actual product – Augmented product
Product strategy and branding Product features: The features included in the product help the brand to reach out to the target market Perceived quality: An organization can have high technical standards and quality control systems in place but it is how the product satisfies the wants of the customers that is important for the customers. Packaging: Packaging communicates and advertises, it attracts the customers, and at the same time communicates information about the brand and the product to the customers Product support services: The support services provided by the organization also help in building the brand and contribute to the brand equity Customer experience: The experience of the customers with the product is an important factor impacting brand equity and brand recall.
Conclusion The product is at the heart of all the marketing activities and also the brand equity. Marketers should choose product features and benefits that consumers desire and should sell the product and provide after sales services in a manner so as to form ‘strong, favourable, and unique brand associations’ and lead to brand equity in the form of greater brand resonance.
Introduction Pricing has an importance in the four Ps as all the others result in expenses for the organization but price is the only revenue- generating element of the marketing mix. Consumers form their quality judgments for a new product either on the basis of the brand name (if it is a brand extension) or price. Building strong brands results in a ‘brand halo’ effect wherein ‘perceptions of a brand’s overall attributes affect pricing beyond the effect of the specific qualities of a particular product within the brand’. This means that by building strong brands, companies can charge a price premium for their product
What is pricing In simple terms, price is ‘the amount of money charged for a product or service. Historically, price has been a major factor affecting buyer choice. A number of factors influence the price and the cost incurred in manufacturing the product forms the building block. This cost incurred is a fact but what the company charges for the product is a policy. The pricing decisions are based on a number of factors and organizations after setting the price, keeping in mind the environmental factors, the competition, and the consumers, can offer discounts and various promotional schemes on these prices. Brands that are available globally need to be sensitive to the pricing issues; otherwise, it will lead to gray marketing situation.
Pricing strategy and branding Product line pricing: To offer a range of brands at different price points, organizations can launch different brands in its product line Product mix pricing: The product mix decisions can further be divided on the basis of the different brands being manufactured by the organization. – Captive product pricing: To sell products that can be used with the main product companies use captive product pricing. – Product bundle pricing: When several brands are bundled together and sold at a lower price.
Conclusion Pricing is the only marketing mix that drives revenue for the organization. Prices once set are difficult to increase and organizations need to be very careful as pricing also impacts the brand image of the organization. Companies can use pricing strategically to bundle their brands and drive sales across categories for the organization. The image of the brand can be reinforced through the pricing and should be used strategically to build the brand equity and also to cash in on the brand equity.
Introduction Distribution enables the brand to be present where a customer can purchase it. This includes making the brand available from its place of manufacture, to the place where the final consumer can purchase or consume the brand (in case of a services product). Organizations can sell their brands directly to the final consumer or take the help of the intermediaries like wholesalers, distributors, etc. to reach the final consumer. Organizations can manufacture the best of products, promote it well, and price it accurately, but all this goes waste, if it is not available where and when the customer needs to purchase it.
Importance of Distribution A brand that is not available in a store when the consumer wants to purchase it results in the following situations: Store switching: the consumers can purchase the brand at another store Postpone purchase: the consumers can postpone their purchase till the time it is available in the same store Lost sale: the consumers will not purchase the brand at all, resulting in loss of sale Same brand substitution: the consumer can substitute the brand with a different size of the same brand or a different type of the same brand Brand switching: the consumer can substitute the brand with another brand of another organization.
Distribution strategy and branding The distribution of the product has to be inline with the brand image. Companies have also adopted the strategy of acquisitions to help them in distribution of their brands.
Conclusion Effective distribution is necessary to make the brand available where the consumers can conveniently purchase them. Where the brand is retailed and how it is sold also communicates and has a bearing on the brand image. Organizations thus need to strategize carefully about the distribution aspect of their brands, so that it enhances the brand image and ultimately, the brand equity.
Quick Recapitulation Branding and Product strategy Branding and Pricing strategy Branding and Distribution strategy