UNIT III

Product
Decision
 Unit III : Product decision
Meaning and importance; Product classification;
SYLLABUS Concept of product mix; Branding, Packaging and
Labeling; After-sales service; Product life-cycle;
New product development.
WHAT IS A PRODUCT?

– A product is any offering by a company to a market that serves to

satisfy customer needs and wants.
– Product is the bundle of utilities by which it can satisfy the
– needs of the users.

– Products are broadly classified into two categories – consumer

products and industrial products.
WHAT PRODUCT “Goods, service, place, people,
experience or idea etc. offered by an
MARKETERS OFFER? organization are examples of market
offerings.”
 TYPES OF PRODUCT

1) Consumer Products: Consumer products are products that the ultimate consumer
purchases himself for direct use. The consumer purchases these consumer products to
satisfy his personal needs and desires.
a) Convenience Products:
These are consumer goods that are very convenient to purchase. They are bought
frequently and with very little effort. Such convenience products have ongoing and
continuous demand. Such goods are also bought in small quantities and are also
generally lowly priced. Toothpaste
b) Shopping Products:
To shop for these consumer products, consumers devote considerable time and effort.
They compare prices and features, and a lot of thought is involved before making the
decision to buy. These products generally fall in the higher price range. Such products
are pre-planned purchases. Television
 TYPES OF PRODUCT
c) Specialty Products:
For specialty products, consumers make special efforts to buy them. They are
not your regular run of the mill consumer products. The buyer is willing to
go through a lot of effort to purchase such products. The demand for such
specialty products is usually limited and the prices are high. Luxury Watches

d) Unsought product:
It is consumer products that the consumer either does not know about or
knows about but does not normally think of buying. Insurance
2) Industrial Products: These are products
which are used as input for manufacturing
other products. Unlike consumer goods,
these are not for direct consumption. These
are meant for business and non-personal
use.
Core Benefit: Why a customer purchases a product?
It represents the fundamental need or want that the product fulfills.
Example, the core benefit of a smartphone is communication and
connectivity.

Generic Product: The second level is the generic product, which refers to
the basic features and functions that the product provides.
A version of the product containing only those attributes or characteristics
necessary for it to function.
For the smartphone example, the generic product includes features like a
touchscreen, camera, and internet access.

Expected Product: It represents the attributes and qualities that customers

expect from the product.
For a smartphone, this might include a long-lasting battery, decent camera
quality, and a user-friendly interface.
• Augmented product: The inclusion of additional features, benefits,
attributes or related services that serve to differentiate the product
from its competitors.
• It includes additional features and services that exceed customer
expectations
• For the smartphone, augmented product features might include
extended warranty, free software updates, and excellent customer
support.

• Potential product: This includes all the augmentations and

transformations a product might undergo in the future.
• It represents the vision of what the product could become in the future.
• For the smartphone, potential product features could include holographic
displays or advanced AI capabilities.
 CLASSIFICATION BASED ON CONSUMER
DURABILITY
Durable Goods: Products that have a
long lifespan and are not consumed
quickly.
Example: Refrigerator - durable, long-
lasting appliance used for preserving
food.

Non-durable Goods: Products meant

for short-term use and are quickly
consumed.
Example: Food items - non-durable
goods like vegetables, fruits, and snacks.
CLASSIFICATION BASED ON TANGIBILITY
Tangible Goods: Physical products that can be touched and felt.

Example: Smartphone - a tangible product with a touchscreen, camera, and other

physical features.

Intangible Goods: Products that lack physical presence but provide value.

Example: Software - intangible products like computer programs or mobile apps..

PRODUCT MIX
 Product Mix or Product Assortment
can be defined as the total number
of product lines that a company
offers to its customers.
• The product lines may range from one to
PRODUCT MIX many and the company may have many
products under the same product line as well.
All of these product lines when grouped
together form the product mix of the
company.
COMPONENTS OF PRODUCT MIX

Product line: The Product Line

Product width/breadth: It shows Product length: The length of a
refers to the list of all the related
the different kinds of product lines product mix refers to the number
products manufactured or that firm carries. of items in the product mix.
marketed by a single firm.

Product consistency: It shows the

extent to which the product lines
Product depth: It refers to the are closely related to each other in
variants of each product in the terms of their end-use,
product line. distribution requirements,
production requirements, price
ranges, advertising media, etc.
 iPhone Series: Variants like iPhone 13, iPhone 13 Pro, and
iPhone SE.
MacBook Series: MacBook Air, MacBook Pro, and other
configurations.

APPLE'S iPad Series: iPad Pro, iPad Air, and iPad Mini.
Apple Watch Series: Apple Watch Series 7, Apple Watch SE.
PRODUCT MIX Services: Apple Music, Apple TV+, Apple Arcade.
Accessories: AirPods, AirPods Pro, MagSafe accessories.
Mac Software and Operating Systems: macOS, Final Cut Pro,
Logic Pro.
 CHALLENGES IN MANAGING A PRODUCT MIX

Complexity: Managing numerous product lines and variations can

be challenging and resource-intensive.
Cannibalization: Similar products within the mix might compete for
market share.
Strategic Alignment: Ensuring all products align with the company's
overall strategic goals.
 PRODUCT LINE EXTENSION/ PRODUCT LINE FILLING

▪Product line extension is a marketing strategy wherein a company introduces new

variations or versions of an existing product to target different segments of the
market or to cater to diverse customer preferences.
▪It involves leveraging the existing brand name and customer loyalty to introduce
new products that share similarities with the original product but offer some distinct
features or attributes.
▪This strategy allows a company to capitalize on its established brand recognition,
distribution channels, and customer base to introduce new offerings and potentially
increase market share and revenue.
 TYPES OF PRODUCT LINE EXTENSIONS

Down-market Extension:
In a down-market extension, a company introduces a more affordable or lower-
priced version of its existing product. This extension aims to capture a segment of
the market that is price-sensitive and looking for budget-friendly options.
Example: Apple iPhone SE, Maruti Suzuki Alto, Tata Nano
Up-market Extension:
An upmarket extension involves introducing a higher-priced or premium version of
an existing product. This extension targets consumers who are willing to pay more
for enhanced features, quality, or exclusivity.
Example: Mercedes-Benz S-Class, BMW 7 Series, Tanishq Diamond Jewelry, Royal
Enfield Classic 350
 Flavor or Ingredient Size or Packaging Health or Nutritional Dietary or Lifestyle
Variation: Lay's Potato Variation: Coca-Cola Variation: Special K Variation: Gluten-Free
Chips Flavors: Mini Cans: Cereal: Low-Fat Bread Varieties:
Version:

Function or Usage Scent or Fragrance Age or Demographic Geographic Variation:

Variation: Gilette Variation: Dove Body Variation: Revlon McDonald's McSpicy
Fusion ProGlide Wash Fragrances: Makeup for Teens Burger (India)
Styler(trimmer)

Premium or Luxury Eco-Friendly or Seasonal or Limited- Complementary

Variation: BMW M Sustainable Variation: Edition Variation: Product Variation:
Series Tata Nexon EV Cadbury Dairy Milk Amul Cheese and
Silk Diwali Gift Packs Amul Butter
COCA-COLA PRODUCT LINE EXTENSION
 PRODUCT LINE EXTENSIONS
Diet Coke:
▪A variation targeting health-conscious individuals.
▪Offers a low-calorie option by using artificial sweeteners.
Coca-Cola Zero Sugar:
▪Targets consumers seeking a sugar-free option.
▪Uses different artificial sweeteners to mimic the taste of the original product.
Coca-Cola Cherry:
▪Appeals to customers who prefer a fruit-flavored twist.
▪Adds a cherry flavor to the classic beverage.
Coca-Cola Vanilla:
▪Offers a different flavor profile with a hint of vanilla.
▪Appeals to those looking for a unique taste.
Coca-Cola Lime:
▪Provides a citrusy twist by adding lime flavor.
▪Targets consumers who enjoy a refreshing and tangy taste.
Coca-Cola Caffeine-Free:
▪Specially formulated for individuals sensitive to caffeine.
▪Offers the classic taste without the stimulating effects of caffeine.
 PRODUCT LINE CONTRACTION/ PRODUCT LINE
PRUNING
▪Product line contraction, also known as product line pruning or
product line rationalization, refers to a strategic business
decision to reduce the number of products or variations within a
company's product line.
▪This involves discontinuing or phasing out certain products or
product variants that may be underperforming, outdated, or no
longer aligned with the company's overall strategy.
▪Product line contraction aims to streamline the product portfolio,
eliminate inefficiencies, and focus resources on products that
have higher potential for growth and profitability.
 EXAMPLES
Maruti Suzuki Ritz: Maruti Suzuki, a leading Indian car manufacturer, phased out the Ritz
model due to changing customer preferences

Videocon Electronics: Videocon, an Indian consumer electronics company, phased out its
television manufacturing division as it faced financial difficulties and increased competition.

HMT Watches: HMT Watches, a well-known Indian watch brand, discontinued several watch
models as demand declined with the rise of digital watches and smartphones.

Nescafé Ready-to-Drink Coffee in India: Nestlé discontinued some of its Nescafé ready-to-
drink coffee products in India due to competitive pressures and changing consumer
preferences

Bajaj Chetak Scooters: Bajaj Auto, a leading Indian two-wheeler manufacturer, phased out
its iconic Bajaj Chetak scooter as consumer preferences shifted towards motorcycles
 PRODUCT LIFE CYCLE (PLC)

– A new product progress through a sequence of stages from Introduction to Growth,

Maturity and Decline. This sequence is known as PRODUCT LIFE CYCLE and is
associated with changes in the marketing situations thus impact the marketing
strategy and marketing mix.

– It includes following four stages:

i. Introduction

ii. Growth

iii. Maturity

iv. Decline
PRODUCT LIFE CYCLE
CURVE
 INTRODUCTION STAGE

Characteristics Strategies:
•Low sales and limited awareness. •Heavy promotion and advertising to
create awareness.
•High marketing and promotion
efforts. •Limited product variations to keep
costs manageable.
•High product development costs.
•Target early adopters and
•Few competitors. innovators.
•Potential losses. •Establish distribution channels and
partnerships.
 GROWTH STAGE

Characteristics Strategies:
•Rapid sales growth. •Expand distribution to reach a wider
audience.
•Increasing consumer demand.
•Focus on product differentiation to
•Emergence of competitors. attract competitors' customers.
•Improving profitability. •Introduce product variations to cater to
•Expansion of distribution. different segments.
•Increase advertising to maintain
awareness and reinforce differentiation.
 MATURITY STAGE

Characteristics Strategies:
•Slowing sales growth. •Differentiate the product through
branding, quality, or features.
•Saturated market.
•Offer promotions and discounts to
•Intense competition. maintain demand.
•Stable or declining profits. •Focus on cost efficiency to protect
•Focus on differentiation. margins.
•Target niche or underserved
segments.
•Expand into international markets.
 DECLINE STAGE

Characteristics Strategies:
•Declining sales. •Reduce marketing expenses while
maintaining core customer base.
•Obsolescence or changing consumer
preferences. •Consider price reductions or clearance
sales to sell remaining inventory.
•Reduced profitability.
•Evaluate options for product
•Limited marketing efforts. diversification or extension.
•Potential product discontinuation. •Make decisions about discontinuation or
reinvention.
 DIFFUSION OF INNOVATION
▪Diffusion of Innovation is a theory that explains how new ideas, products, or
technologies spread and are adopted by individuals and groups within a society.
▪Developed by Everett Rogers, this theory identifies the stages through which
innovation is adopted and diffused across different segments of the population.
The process involves several key elements:
Innovation: The new idea, product, or technology being introduced to the market.
Channels of Communication: The means by which information about the innovation
is disseminated to potential adopters.
Social System: The environment in which the innovation is being adopted, including
social networks, cultural norms, and existing technologies.
Time: The rate at which the innovation is adopted and diffused within the target
population.
 ADOPTER
CATEGORIES
ADOPTER CATEGORIES, ALSO KNOWN AS
DIFFUSION OF INNOVATION SEGMENTS, ARE
CLASSIFICATIONS THAT CATEGORIZE INDIVIDUALS
BASED ON THEIR WILLINGNESS TO ADOPT NEW
PRODUCTS OR INNOVATIONS .
 INNOVATORS
Characteristics: Innovators are the first to adopt a new product. They are risk-takers,
highly educated, and often have higher financial resources. They actively seek out and
embrace new ideas and technologies.

Percentage: Approximately 2.5% of the population falls into this category.

Marketing Strategy: Innovators are crucial for generating early product awareness and
creating a buzz. Marketing efforts should focus on highlighting the product's uniqueness,
advanced features, and benefits.
Early adopters of virtual reality technology who purchase the latest VR headsets and
applications.
 EARLY ADOPTERS:
Characteristics: Early adopters follow the innovators and are also quick
to embrace new products. They have a higher social status, are opinion
leaders, and often have a strong influence on their peers' buying
decisions.

Percentage: Around 13.5% of the population falls into this category.

Marketing Strategy: Engaging early adopters can create a domino

effect, as their positive experiences can influence others. Providing
testimonials, reviews, and demonstrations can help sway this group.
Tech enthusiasts who line up to buy the latest smartphone model as soon as
it's released.
 EARLY MAJORITY
Characteristics: The early majority is more cautious and deliberate in
adopting new products. They wait for the product to be tried and
tested by early adopters before making their decision. They seek
practical benefits and value for money.

Percentage: Approximately 34% of the population falls into this

category.

Marketing Strategy: Providing case studies, evidence of real-world

benefits, and addressing concerns about risks can attract the early
majority. Demonstrating that the product has become widely
accepted can also be persuasive.
People who start using a new social media platform once they see
their friends and family members using it regularly.
 LATE MAJORITY
Characteristics: The late majority group adopts new products even later in the
product life cycle. They are skeptical and adopt innovations only when they
become a social norm or necessity. They rely heavily on peer
recommendations.

Percentage: Around 34% of the population falls into this category.

Marketing Strategy: Highlighting the product's widespread adoption and

practicality can influence the late majority. Providing information about cost-
effectiveness and ease of use is important.
Individuals who start using online banking services after they have become a
standard practice for managing finances.
 LAGGARDS
Characteristics: Laggards are the last to adopt new products. They
have a strong attachment to tradition and resist change. They may
adopt only when there are no other options left.

Percentage: Approximately 16% of the population falls into this

category.

Marketing Strategy: For laggards, simplicity and familiarity are key.

Offering incentives, discounts, and emphasizing the product's
compatibility with their existing practices can encourage adoption.
People who continue to use physical paper maps for navigation even
when GPS technology is widely available.
 INNOVATION: ELECTRIC VEHICLES (EVS)
Innovators: Enthusiasts who were among the first to adopt EVs when they were relatively new
to the market, despite concerns about charging infrastructure and limited model options.
Early Adopters: Environmentally conscious individuals who adopted EVs as soon as they saw
improvements in battery range and charging infrastructure, recognizing the potential for
reduced emissions and lower operating costs.
Early Majority: Mainstream consumers who started considering EVs once they became more
affordable, practical, and widely available. They were influenced by positive reviews and
endorsements from friends and family.
Late Majority: People who adopted EVs after witnessing their neighbors and colleagues
making the switch, realizing that EVs had become a socially accepted choice and that
charging infrastructure was well-established.
Laggards: Individuals who continued using traditional gasoline-powered cars until regulations
or other factors made it necessary to switch to an EV, despite concerns about learning new
technology and infrastructure limitations.
 INNOVATION: RENEWABLE ENERGY
SYSTEMS (SOLAR PANELS)
Innovators: Environmentalists and early adopters who embraced solar panels when they were
relatively expensive and less efficient, driven by their commitment to sustainability and reducing
carbon footprints.
Early Adopters: Homeowners who invested in solar panels as costs decreased and technology
improved, understanding the long-term financial benefits of reduced energy bills and
potential incentives.
Early Majority: Homeowners who decided to install solar panels as they became a more
mainstream option and were promoted as a way to save money and contribute to clean
energy goals.
Late Majority: Homeowners who adopted solar panels as they became a common feature in
their neighborhoods, realizing that their property values could be positively impacted.
Laggards: Individuals who resisted installing solar panels until government regulations or utility
incentives made it a necessary choice for them to consider.
 ADOPTION PROCESS
THE ADOPTION PROCESS
OUTLINES THE STAGES
INDIVIDUALS GO THROUGH
BEFORE DECIDING TO
ADOPT AN INNOVATION.
 Awareness: The individual becomes aware of the
existence of the innovation but lacks detailed information
about it.

Interest: The individual becomes interested in the innovation

and seeks more information to understand its benefits and
potential.
STAGES IN THE Evaluation: The individual evaluates the innovation's
ADOPTION relevance to their needs, weighing its advantages against
any disadvantages or risks.
PROCESS Trial: The individual adopts the innovation on a small scale
to assess its practical utility and compatibility with their
existing practices.

Adoption: The individual fully adopts and integrates the

innovation into their regular routines and practices.
 NEW PRODUCT DEVELOPMENT

New product development covers the complete process of

bringing a new product to market, renewing an existing
product or introducing a product in a new market.
• Most new product development is an improvement on
existing products
• Less than 10% of new products are totally new
concepts.
SUCCESS RATE OF NEW PRODUCTS

• The success rate of new products is very low – less than 5%. ‘You
have to kiss a lot of frogs to find a prince.”
• Product obsolescence is rapid with improvements in technology
• Shorter PLCs
 NEW PRODUCT DEVELOPMENT
PROCESS

Concept
Idea generation Idea screening Concept testing
developmen
t

Product
Business analysis Market testing Commercialization
development
 The first stage of the new product development is the idea generation.
Ideas come from everywhere, can be of any form, and can be numerous.
This stage involves creating a large pool of ideas from various sources,
which include:

Idea • Internal sources – many companies give incentives to their employees to

come up with workable ideas.
Generation • SWOT analysis – Companymay review its strength, weakness,
opportunities and threats and come up with a good feasible idea.

• Market research – Companies constantly reviews the changing needs,

wants, and trends in the market.

• Customers – Sometimes reviews and feedbacks from the customers or

even their ideas can help companies generate new product ideas.

• Competitiion- Competitors SWOT analysis can help the company

generate ideas.
 Ideas can be many, but good ideas are few. This second step
of new product development involves finding those good and
feasible ideas and discarding those which aren’t. Many
factors play a part here, these include:

Idea • Company’s strength,

Screening • Company’s weakness,

• Customer needs,

• Ongoing trends,

• Expected ROI,

• Affordability, etc.
 The third step of the new product development includes concept
development and testing. A concept is a detailed strategy or
blueprint version of the idea. Basically, when an idea is
developed in every aspect so as to make it presentable, it is
CONCEPT called a concept.
DEVELOPMENT & All the ideas that pass the screening stage are
TESTING turned into concepts for testing purpose. Company never
launch a product without its concept being tested.
 The testing results help the business in coming up with the
final concept to be developed into a product.

BUSINESS Now that the business has a finalized concept, it’s

STRATEGY time for it to analyse and decide the marketing, branding, and
other business strategies that will be used. Estimated product
ANALYSIS & profitability, marketing mix, and other product strategies are
decided for the product.
DEVELOPMENT – Competition of the product

– Costs involved

– Pricing strategies

– Breakeven point, etc.

 Once all the strategies are approved, the product concept

Product is transformed into an actual tangible product. This

Development development stage of new product development results in

building up of a prototype or a limited production model.
All the branding and other strategies decided
previously are tested and applied in this stage.
 Unlike concept testing, the prototype is introduced for
research and feedback in the test marketing phase.
TEST Customers feedback are taken and further changes, if
MARKETING required, are made to the product. This process is of
utmost importance as it validates the whole concept and
makes the company ready for the launch.
 The product is ready, so should be the marketing
strategies. The marketing mix is now put to use. The final
decisions are to be made. Markets are decided for the
COMMERCIALIZATION
product to launch in. This stage involves briefing different
departments about the duties and targets. Every minor
and major decision is made before the final introduction
stage of the new product development.
EXAMPLE OF A FICTIONAL COMPANY, "TECHGEAR INC.," THAT
IS DEVELOPING A NEW SMARTWATCH .

Idea Generation:
TechGear Inc. holds brainstorming sessions with its R&D, marketing, and design
teams to generate ideas for innovative wearable technology. They also gather
feedback from existing customers and study emerging trends in the wearables
market. As a result, they come up with the idea of creating a smartwatch that
combines health tracking, communication features, and sleek design.
Idea Screening:
The company evaluates several ideas and decides to focus on the smartwatch
concept due to its alignment with their vision, market demand, and technological
feasibility. Other ideas, like a smart coffee maker, are rejected as they don't fit
the company's expertise and strategic direction.
Concept Development and Testing:
TechGear Inc. develops detailed concepts for the smartwatch, outlining features such
as heart rate monitoring, customizable watch faces, call and message notifications,
and compatibility with various fitness apps. They create prototypes and conduct focus
groups with potential users to gather feedback on the concept. Feedback reveals a
strong interest in the health tracking capabilities and sleek design.
Business Analysis:
The company conducts a thorough analysis of the potential costs and revenues
associated with developing and launching the smartwatch. They estimate
manufacturing costs, marketing expenses, and pricing strategies. Based on market
research and competitive analysis, they project a strong demand for the smartwatch
among fitness enthusiasts and tech-savvy consumers.
Product Development:
TechGear Inc. begins the product development phase, engineering the hardware and
software components of the smartwatch. They design the user interface, develop the
health tracking algorithms, and ensure seamless integration with popular fitness apps.
Prototypes are rigorously tested for durability, performance, and user experience.
Market Testing:
The company selects a few key markets to conduct a soft launch of the smartwatch.
They release a limited quantity of the product in specific retail locations and online
platforms. Customer feedback is collected through surveys, reviews, and direct
interactions. Users appreciate the accurate health tracking features and user-friendly
interface, but some suggest improvements to battery life.
Commercialization:
With positive feedback from the market testing, TechGear Inc. proceeds to the
commercialization phase. They ramp up manufacturing, establish distribution channels,
and launch a comprehensive marketing campaign highlighting the smartwatch's health
benefits and sleek design. The smartwatch is officially launched in major markets, and
sales steadily increase over time.
Throughout the entire process, TechGear Inc.
maintains close collaboration between its
engineering, design, marketing, and sales teams.
They continuously monitor user feedback and
market trends, leading to updates that enhance
battery life and introduce new fitness tracking
features in subsequent versions of the
smartwatch.
 TATA NANO (AFFORDABLE CAR)
Idea Generation: Tata Motors identified a need for an affordable car to meet the transportation needs
of the middle-class population in India.
Idea Screening: Tata evaluated the feasibility of producing a low-cost car while meeting safety and
quality standards.
Concept Development and Testing: Tata developed a concept for the Nano, a compact and fuel-
efficient car. They showcased prototypes and gathered feedback from potential buyers.
Business Analysis: Tata conducted a financial analysis to determine cost-effective production methods
and a competitive pricing strategy.
Product Development: Tata engineered the Nano to be compact, lightweight, and fuel-efficient. They
used innovative manufacturing processes to keep costs low.
Market Testing: The Nano was introduced to the market, targeting first-time car buyers and families.
Initial sales were strong, but concerns arose about safety and performance.
Commercialization: Tata addressed safety concerns, refined the product, and continued marketing
efforts. Despite early challenges, the Nano contributed to affordable mobility in India
 CASE STUDY
Imagine you work for a medium-sized technology company that specializes in
consumer electronics. The company has decided to venture into the smart home
automation market and is considering developing a new product. The
leadership team has identified two potential product ideas: a smart thermostat
and a smart security camera. Both products have the potential to be successful,
but they present different challenges and opportunities.
Question:
As a product manager at this company, how would you approach the decision-
making process for selecting which smart home automation product to develop?
What factors would you consider, and what steps would you take to ensure the
chosen product aligns with the company's goals and market demands? Please
outline your strategy and provide reasoning for your decisions.
 CASE
Imagine you are part of a product development team in a tech startup that specializes in
mobile apps. The company is considering creating a new mobile app for the healthcare
sector. The team has narrowed down the options to two potential app ideas:
Telemedicine App: An app that connects patients with doctors for remote consultations,
prescription refills, and medical advice.
Medication Reminder App: An app that helps patients track their medication schedules,
sends reminders, and provides information about potential interactions and side effects.
Question:
As a member of the product development team, how would you decide between developing
the Telemedicine App and the Medication Reminder App? What factors would you consider,
and what steps would you take to ensure the chosen app aligns with market needs and the
company's goals? Please outline your strategy and provide reasoning for your decision.
 BRAND

• The term brand refers to a business and marketing concept that

helps people identify a particular company, product, or individual.

•Brand: A name, term, sign, symbol, or design, or a combination of

these, that identifies the products or services of one seller and
differentiates them from those of competitors.
•-- Branding has become so strong that today hardly anything goes
unbranded.
CHARACTERISTICS OF
BRANDS

Competitiveness Distinctiveness Passion Consistency

Audience
Leadership Exposure
knowledge
 ADVANTAGES OF
BRANDING
• Easy for the seller to track down problems and process orders

• Provide legal protection of unique product features

• Branding gives an opportunity to attract loyal and profitable

set of customers

• It helps to give a product category at different segments,

having separate bundle of benefits

• It helps build corporate image

• It minimizes harm to company reputation if the brand fails

BRANDING
CHALLENGES

SAVVY ECONOMIC BRAND MEDIA INCREASED INCREASED

CUSTOMERS DOWNTURNS PROLIFERATION TRANSFORMATION COMPETITION COST

GREATER
ACCOUNTABILITY
BRANDING
OPPORTUNITIES
Online presence
Creating new
Branding as an asset especially on social
partnerships
media

Getting global Leveraging the

recognition customers' network
BRAND
EQUITY
• “A set of assets or liabilities in the form of brand visibility, brand associations
and customer loyalty that add or subtract from the value of a current or
potential product or service driven by the brand.” (Aaker, 1991)

• It represents the value of a brand. It is the simple difference between the value
of a branded product, and the value of that product without that brand name
attached to it (Rosenbaum-Elliott, 2015).
BRAND
LOYALTY
Brand loyalty dictates that a consumer who truly believes in the
value of a brand’s offerings will often make frequent and repeat
purchases from it instead of switching between brands.

High brand loyalty ensures that business is stable and

consistent and enables the organization to capture a larger
market share.
BRAND
AWARENESS
Brand awareness concerns the extent to which a brand is known
or recognizable to a consumer.

A brand with high brand equity will spring to mind when a

customer searches for a particular product. This is also termed
brand salience; the brand occupies a prominent position in
consumers’ minds.
PERCEIVED
QUALITY
This element centers on the brand’s reputation for high-quality
products and customer experience.

Good quality is favored more highly than particular product

features, with consumers often willing to pay premiums for high-
quality products relative to other brands.
BRAND
ASSOCIATION
Brand association involves anything related to the brand, which
evokes positive or negative sentiments, for example, a product’s
functional, social or emotional benefits.

More broadly, this relates to the brand’s overall image, and

what consumers associate with that image – if consumers
associate predominantly positive attributes with the brand, then
the brand possesses high brand equity.
OTHER
PROPRIETARY
Proprietary assets include patents, trademarks, and channel or
trading partner relationships.

These assets are vital to ensuring that other brands cannot

compete by operating under a similar name or using very
similar packaging, which may confuse consumers and compete
away from a brand’s customer base.
 PACKAGING PACKAGING LABELING

&
LABELING
Packaging Decisions: Another set of
questions to consider involves the
packaging on which a brand’s marks and
name will be prominently displayed.
Sometimes the package itself is part of
the brand:
For example, the curvaceous shape of
Coca- Cola’s Coke bottle is a registered
trademark. If you decide to market your
beverage in a similar-shaped bottle,
Coca- Cola’s attorneys will have grounds
to sue you.
 PACKAGING- BASIC
TYPES
Primary packaging: It holds a single retail unit of a product.
Primary packaging can be used to protect and promote products
and get the attention of consumers, demonstrate the proper use of
an offering, provide instructions on how to assemble the product, or
any other needed information. If warning or nutrition labels are
required, they must be on the primary packaging.
Secondary packaging: It holds a single wholesale unit of a product.
Example, as are cartons of reams of paper. Secondary packaging
is designed more for retailers than consumers. It does not have to
carry warning or nutrition labels but is still likely to have brand
marks and labels.
Tertiary packaging: It is a packaging designed specifically for
shipping and efficiently handling large quantities. When a Coca-
Cola bottler ships cases of Cokes to a grocery store.