2nd sem marketing

8/7/2019 2nd sem Marketing

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Brand Management Basics

Marketing Management - 11 2/16/2011


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Brands Brandr to burn

AMA definition Name, term, sign, symbol, design or acombination of them.identify. Differentiate from competition

Pears soap was the first

registered brand as per Unilever

JWT first introduced trademark

advertising in 1900 through a

house advert

Awareness, Reputation,

Prominence in marketCareful selection of

brand elements

Advanced Marketing Management2 2/16/2011


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Brand v/s productsKotlers definition

Core Benefit

Generic Product

Expected Product Augmented Product

Potential Product

Brand:

Product

+or- perceived

differentiator Rational & Tangible

Performance based

Symbolic, emotional

Brand = Product + customer perception +performance

+ brand name + company



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Role of brands for Customers

Identification of source of product

Assignment of responsibility to the product maker

Risk reducer

Search cost reduces

Promise, bond, with maker of product (KF airlines)

Symbolic device

Signal of quality (arrow shirts)



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Role for Manufacturer

Identification for handling

Patenting Legal IPR protection etc

Signal of quality level price ranges

Endowing products with unique associations

Competitive edge

Financial returns



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How can Brand Equity be created?

3 important questions

How can BrandEquity be

measured?

How can BrandEquity be used

to expand

Business

opportunities?



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Strategic Brand Management Design and implementation of Mktg. programs to build,

measure and manage brand equity

Identify and Establish Brand

Positioning and Values

Plan and implement BrandMarketing Programs

Measure and Interpret

Brand Performance

Grow and sustain

Brand Equity

Mental Maps

Competitive frame of reference

Points of parity and Points of

difference

Core brand ValuesBrand Mantra

Mixing and matching of brand elements

Integrated brand marketing activities

Leverage of secondary association



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Step 1. Identifying the Target Audience

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Step 2. Determining the Communication Objectives

Buyer Readiness Stages

Effective

Communications



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Message Source

Expertise,

Trustworthiness,

Congruity

Message Format

Layout,

Words, & Sounds,

Body Language

Message StructureDraw Conclusions

Argument Type

Argument Order

Message Content

Rational Appeals

Emotional Appeals

Moral Appeals

Step 3. Designing the Message



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Nonpersonal Communication

Channels

Personal Communication

Channels

Step 4: Select Communications Channel



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CompetitiveParity

Objective& Task

Affordable % OfSales

Step 5: Establish the Budget



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Advertising

Public, Pervasive, Expressive, Impersonal

Sales PromotionCommunication, Incentive, Invitation

Public Relations & PublicityCredibility, Surprise, Dramatization

Personal SellingPersonal Confrontation, Cultivation, Response

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive

Step 6: Decide on Communications

Mix



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Step 7. Measure Results

Step 8. Manage the IMC Process



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Sales Promotion

A direct inducement that offers an extra value

or incentive for a product, to the trade or

consumer, with the objective of creating an

immediate sale

Thus, there can be two types, consumer-

oriented or trade-oriented Let us look at both



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Consumer-Oriented Sales Promotion

Coupon

Very popular in West, not so much here

Sampling Very useful in generating trial

Ariel used this successfully

Premium Buy Horlicks, get Mug free

Very popular, freebie used like promos



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Price off

Again, very popular since easy to do

Rebate

Get a mail-in rebate of $5 off

Widely used by durables industry in the West

Bonus Packs

150 gms + 50 gms free Colgate Frequency Programme

Like airlines, stores, hotels



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Contests and sweepstakes Plethora of them in the World Cup



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Trade-Oriented Sales Promotion

Trade Allowances offer cash payments for good display, promotion

many companies will give franchisees support for good infrastructure,

display, shelf display

Incentives quantity discounts

cash discounts

encourage the reseller to stock more

apply stock pressure



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Trade-Oriented Sales Promotion

Contests The # 1 dealer wins a trip to Thailand and back for two

monthly contests

product-wise contests

Cooperative Advertising share the cost when channel members advertise your brand



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Ad Vs. SP

What are some differences between AD&SP?



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Ad Vs. SP

Advertising is long-term focused while SP

is short-term

Advertising is hard to measure, while SPis easy to measure

Advertising gives you a reason to buy,

while SP gives you an incentive to buy



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Ad Vs. SP

Ratio of AD:SP used to be 75:25 40 years back,now is 25:75 in the west Due to short-term pressures

Differentiation getting harder Retailer becoming stronger

Trend will happen in India too at some point

A major issue is that too much SP damagesbrand equity



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Direct Marketing

Direct marketing is defined as any communication to

a consumer that is designed to generate a

behaviouralresponse

Usually it is used to sell e.g. Dell, Amazon

Also the case with personal selling

Communication may be direct

Direct mail

Or thru mass medium

TV e.g. direct-response advertising



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DM Why?

Why DM? Why is DM so popular? What are its

pluses?



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DM Why?

All of us are members of some sort of club Lots of us own mobile phones

Credit cards

Phones

Cable TV

So easy for marketers to target offers A database is essential for direct marketing

We live in a digitised society Useful for marketers!



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DM Why?

Growth of DM syndicates Lots of companies make money selling lists

Technology Imagine a Dell, Amazon 20 years back

Impossible for them to do DM

One more reason for shift from advertising

Time Pressure Direct mail comes to you



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DM Why?

Improved image of the DM industry From shady, pushy telemarketing to sophisticated DM

It is now kinda cool & sexy to do DM

Dell, Mercedes Poor experience with distribution channels

E.g. Japan where there is a maze of channels

Or take the case of Dell computer



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Public Relations

PR is an activity that fosters goodwill between anorganization and its publics, or stakeholders

PR, managed effectively can be useful

PR, managed poorly can be damaging This way, a double-edged sword

More than any other tool, PR rebounds on you

Advanced Marketing Management

28 2/16/2011


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PR Why?

What are some major pluses with PR?

Why PR?



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PR Why?

From consumer-centric organisation to stakeholder

management e.g. Wal-Mart, Reliance

PR it is that targets other stakeholders

Credibility present

PR is generally more credible than advertising

Especially publicity

PR managers however have really bad reputations spin

doctors



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PR Why?

Less Expensive If used effectively

Like James Bond movies, for instance

Microsoft does this brilliantly Can cut back on costly ad spending

For instance, Great Lakes Institute of Management getslots of press while we are PR-shy

Build company image Sony, Intel, GE



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PR Why?

Can create positive buzz for the company Everyone is talking about you

For instance, get a famous person as Chief Guest



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Sources for Secondary Research



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Internal Sources

Company Accounts

Internal Reports and Analysis

Stock Analysis

Retail data - loyalty cards, till data, etc.



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External Sources

Government Statistics (ONS)

EU - Euro Stat

Trade publications

Commercial Data - Gallup, Mintel, etc.

Household Expenditure Survey

Magazine surveys

Other firms research

Research documents publications, journals, etc.



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Sampling Methods



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Sampling

Random Samples equal chance of anyone

being picked May select those not in the target group indiscriminate

Sample sizes may need to be large to be representative

Can be very expensive



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Sampling

Stratified or Segment Random Sampling Samples on the basis of a representative strata or segment

Still random but more focussed

May give more relevant information

May be more cost effective



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Sampling

Quota Sampling Again by segment

Not randomly selected

Specific number on each segment are interviewed, etc.

May not be fully representative

Cheaper method



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Sampling

Cluster Sampling Primarily based on geographical areas or clusters that can

be seen as being representative of the whole population

Multi-Stage Sampling Sample selected from multi-stage sub-groups

Snowball Sampling

Samples developed from contactsof existing customers word of mouth type approach!



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Sampling Methods

Probability

sampling

Nonprobability

sampling



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Types of Sampling Methods

Probability

Simple random sampling

Systematic random sampling

Stratified random sampling

Cluster sampling

Non probability

Convenience sampling

Judgment sampling

Quota sampling

Snowball sampling



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Simple Random Sampling

Simple random sampling is a method of

probability sampling in whichevery unit has an equal nonzero

chance of being selected



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Systematic Random Sampling

Systematic random sampling is a

method of

probability sampling

in which the defined

target population is ordered

and the sample is selected

according to position using a skip interval



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Steps in Drawing a Systematic Random Sample

1: Obtain a list of units that contains an acceptableframe of the target population

2: Determine the number of units in the list and the

desired sample size 3: Compute the skip interval

4: Determine a random start point

5: Beginning at the start point, select the units by

choosing each unit that corresponds to the skipinterval



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Stratified Random Sampling

Stratified random sampling is a

method of

probability samplingin which the population is divided

into different subgroups and samples

are selected from each



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Steps in Drawing a Stratified Random Sample

1: Divide the target population into

homogeneous subgroups or strata

2: Draw random samples fro each stratum

3: Combine the samples from each stratum

into a single sample of the target

population



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Non Probability Sampling Methods

Convenience sampling relies

upon convenience and access

Judgment sampling relies upon beliefthat participants fit characteristics

Quota sampling emphasizes representation

of specific characteristics

Snowball sampling relies upon respondent

referrals of others with like characteristics



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Sources for Secondary Research



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Internal Sources

Company Accounts

Internal Reports and Analysis

Stock Analysis

Retail data - loyalty cards, till data, etc.



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External Sources

Government Statistics (ONS)

EU - Euro Stat

Trade publications

Commercial Data - Gallup, Mintel, etc.

Household Expenditure Survey

Magazine surveys

Other firms research

Research documents publications, journals, etc.



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Step One: Establishing the Need for MarketingResearch

Step Two: Defining the Problem Step Three: Establishing Research Objectives

Step Four: Determining Research Design

Step Five: Identifying Information Types andSources

Step Six: Determining Methods of AccessingData

The Marketing Research Process: 11 Steps



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Step Seven: Designing Data Collection Forms

Step Eight: Determining Sample Plan and Size Step Nine: Collecting Data

Step Ten: Analyzing Data

Step Eleven: Preparing and Presenting the FinalResearch Report


The Marketing Research Process: 11 Steps


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The Marketing Research ProcessStep One: Establish the Need for Marketing Research

When Marketing Research is not needed

The information is already available Decisions need to be made now

You cant afford research

Costs outweigh the value of the research



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The Marketing Research ProcessStep Two: Define the Problem

The most important step in the marketing researchprocess is defining the problem.

What is your teams problem?



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The Marketing Research ProcessStep Three: Establish Research Objectives

What information is needed in order to solve theproblem?

Primary

Secondary

Both



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The Marketing Research ProcessStep Four: Determine Research Design

Exploratory Research: collecting information in an

unstructured and informal manner Descriptive Research: refers to a set of methods and

procedures describing marketing variables

Causal Research (experiments and other approaches):allows isolation of causes and effects via use of

experiment or surveys.



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The Marketing Research ProcessStep Five: Identify Information Types and Sources

SecondaryData: information that has been collected forsome other purpose other than the research at hand

PrimaryData: information that has been gatheredspecifically for the research objectives at hand



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The Marketing Research ProcessStep Six: Determine Methods of Accessing Data

SecondaryData: accessing data through sources such as theInternet and library

PrimaryData: collecting data through methods such as telephone,mail, online, and face-to-face (quantitative) and observationstudies and focus groups (qualitative)

Both are excellent! Use both in your projects & career !!



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The Marketing Research ProcessStep Seven: Design Data Collection Forms

The design of the data collection form that is used to askor observe and record information in marketing research

projects is critical to the success of the project. It is easy

to write a set of questions but very difficult to construct aquestionnaire.

Questionnaires

Observation Studies



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The Marketing Research ProcessStep Eight: Determine Sample Plan and Size

Sample plan: refers to the process used to select unitsfrom the population to be included in the sample

Sample size: refers to determining how many elementsof the population should be included in the sample



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The Marketing Research ProcessStep Nine: Collect Data

Data collection is very important because, regardless ofthe data analysis methods used, data analysis cannotfix bad data. 12

Nonsampling errors may occur during data collection.These are related to poor design and/or execution of thedata gathering.

Sampling errors may occur based purely on chance

Trying to make a decision on a population from a sample



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The Marketing Research ProcessStep Ten: Analyze Data

Data analysis: involves entering data into computer files,inspecting data for errors, and running tabulations andvarious statistical tests

Data cleaning: process by which raw data are checked toverify that the data have been correctly input from thedata collection form to the computer software program



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The Marketing Research ProcessStep Eleven: Prepare and Present the Final Research Report

The last step is one of the most important phases ofmarketing research.

Its importance cannot be overstated because it is thereport, or its presentation, that properly communicatesthe results to the client.



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4 Basic Measurement Scales

Nominal Scales

Ordinal Scales

Interval Scales

Ratio Scales



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Nominal Scales

Nominal scales focus on only requiring arespondent to provide some type of

descriptor as the raw response

Nominal scales focus on only requiring arespondent to provide some type of

descriptor as the raw response

Example.

Please indicate your current martial status.

__Married __ Single __ Single, never married __ Widowed



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Ordinal Scales

Ordinal scales allow the respondent toexpress relative magnitude between the raw

responses to a question

Ordinal scales allow the respondent toexpress relative magnitude between the raw

responses to a question

Example.

Which one statement best describes your opinion of an Intel PC processor?

__ Higher than AMDs PC processor

__ About the same as AMDs PC processor

__ Lower than AMDs PC processor



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Interval Scales

Interval scales demonstrate the absolutedifferences between each scale point

Interval scales demonstrate the absolutedifferences between each scale point

Example.

How likely are you to recommend the Santa Fe Grill to a friend?

Definitely will not Definitely will

1 2 3 4 5 6 7



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Ratio Scales

Ratio scales allow for the identification ofabsolute differences between each scale point,

and absolute comparisons between raw

responses

Ratio scales allow for the identification ofabsolute differences between each scale point,

and absolute comparisons between raw

responses

Example 1.

Please circle the number of children under 18 years of age currently living in your

household.

0 1 2 3 4 5 6 7 (if more than 7, please specify ___.)



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Likert Scale

A likert scale is

an ordinal scale format

that asks respondents

to indicate the extent to which

they agree or disagree with a series of

mental or behavioral belief

statements about a given object

2nd sem marketing

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