MARKETING AND CONSUMER BEHAVIOUR

PREPARED BYDILEEP

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BRANDING BRAND EQUITY PACKAGING MARKET ACTIVITIES CONNECTED

WITH PRODUCT DEVELOPMENT AND LAUNCHING

TEST MARKETING

DISCUSSION TOPICS

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The American Marketing Association defines a brand as a name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.A brand is one of the most valuable intangible assets of a firm.Building a strong brand requires careful planning, a deep long term commitment and creatively designed and executed marketing plan.

Definition of Brand

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It helps to identify the maker or seller of a product from its competitors.

A brand is a seller’s promise to deliver a specific set of features, benefits, and services consistently to the buyers.

The best brands convey a warranty of quality.

Brands can convey up to six levels of meaning.

Why branding is required?

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Meaning Description Example

Attributes A brand brings to mind certain attributes.

Mercedes suggests expensive, well-built, durable, high-prestige vehicles.

Benefits Attributes must be translated into functional and emotional benefits.

The attribute “durable” could translate into the functional benefit “I won’t have to buy another car for several years.”

Values The brand says something about the producer’s values.

Mercedes stands for high performance, safety, and prestige.

Culture The brand may represent a certain culture.

Mercedes represents German culture: organized, efficient, high quality.

Personality The brand can project a certain personality.

Mercedes may suggest a non-nonsense boss (person) or a reigning lion (animal).

User The brand suggests the kind of customer who buys or uses the product.

Mercedes vehicles are more likely to be bought by 55-year old top managers than by 20-year-old store clerks.

Levels of Branding

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Role of Brands

To consumers Manufacturer/Firm

Easy identification

Easy for decision making

Best brands convey a warranty of quality

Easy for tracing Legal protection for

unique features Manufacturing

process can be protected through patents.

Need to spend less money on marketing activities.

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Brand equity is a common phrase used in marketing industry which describes the value of having a well known brand name, based on the idea that the owner of a well known brand name can generate more money from products with less known brand name, as customers believe that a product with well known brand name is better than products with less well known names.

Brand Equity

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Brand equity is the added value endowed on products and services. It may be reflected in the way consumer think, feel and act with respect to the brand, as well as in prices, market share and profitability the brand commands.

The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand of soda is an example of brand equity.

According to Aaker, Brand equity is highly related to the degree of brand-name recognition, perceived brand quality, strong mental and emotional associations, and other assets such as patents, trademarks, and channel relationships.

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Improved perception of product performance. Less vulnerable to competitive marketing actions and

marketing crisis. High brand equity allows a company to enjoy reduced

marketing costs because of high brand awareness and loyalty.

Gives a company more leverage in bargaining with distributors and retailers, permits the firm to charge more because the brand has higher perceived quality.

It allows the firm to more easily launch extensions because the brand has high credibility, and offers some defence against price competition.

Improved employee recruiting opportunity and retention. Greater financial market returns.

Significance of Brand equity

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Packaging includes the activities of designing and producing the container for a product.

The container is called the package, and it might include up to three levels of material.

Packaging is an effective marketing tool

Packaging

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Self-service: The typical supermarket shopper passes by some 300 items per minute. Given that 53 percent of all purchases are made on impulse, an effective package attracts attention, describes features, creates confidence, and makes a favourable impression.

Consumer affluence: Rising consumer affluence means consumers are willing to pay a little more for the convenience, appearance, dependability, and prestige of better packages.

Company and brand image: Packages contribute to instant recognition of the company or brand. Campbell Soup estimates that the average shopper sees its red and white can 76 times a year, the equivalent of $26 million worth of advertising.

Innovation opportunity: Innovative packaging can bring benefits to consumers and profits to producers. Toothpaste pump dispensers, for example, have captured 12 percent of the toothpaste market because they are more convenient and less messy.

Packaging as a Marketing Tool

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Every physical product must carry a label, which may be a simple tag attached to the product or an elaborately designed graphic that is part of the package.

Labelling

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Promotion

Attractive design

Describe

Make Expiry date Contents Price

Grade

It should classify a product to grade the quality

Identify

Identify the brand or product

Labelling

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1. Idea generation2. Idea screening3. Concept developing4. Business analysis5. Beta testing and market testing6. Technical implementation7. Commercialization/Product

launching

Marketing Activities during Product Development stage

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1. Building awareness2. Building demand

Building awareness Press releases Press outreach Website updates Endorsements Advertising

Marketing activities connected with product launching

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Building demand Email campaigns Referral campaigns Contests Tradeshows

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Having established your goals for your product launch, you will know the particular outcomes you intend to achieve. Meeting these goals usually involves building product awareness and demand in the marketplace, which will lead to sales.

Building awareness Awareness is a precursor to demand. By building awareness, you improve

the chances that your market will be interested in buying your product. Use the following tools to strengthen your efforts:

Press releases: Many companies use press releases to announce new products or upgrades to their existing ones. Press releases are most effective when the content is newsworthy (like a major product release) and they include a customer endorsement.

Press outreach: Over time, your marketing team will build relationships with different journalists and press outlets. At the time of a product release, your team can reach out to the press to entice journalists to write about the new upgrade.

Website updates: Announce every new product or feature release on your corporate website

Endorsements: Building relationships with third-party industry analysts and receiving endorsements can boost your marketing efforts.

Marketing activities connected with product development and launching

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Advertising: Advertising is another option for building awareness. This includes search-engine marketing (e.g., buying Google AdWords) and other forms of advertising (e.g., print, online).

Building demand Your marketing team can engage in the following types of activities to

help generate demand for your product and create a sense of urgency for your prospects to buy.

Email campaigns: Email campaigns designed for existing prospects can help encourage their purchase decision. Follow-up these campaigns with a phone call to maximize effectiveness.

Referral campaigns: Use your existing customer base to generate additional leads through a referral campaign. Offer an incentive to your existing customers to refer a friend (e.g., free maintenance for a year, or a gift). Because these new prospects will have had your product endorsed by a friend, the chance for you to close the sale is much higher.

Contests: Hold a contest to collect contact information for prospects for a particular release. Set up contests prudently; make sure that you attract legitimate sales prospects, and not just anyone who wants to win the prize.

Tradeshows: Tradeshows enable you to connect with a targeted audience that wants to see solutions to their market problems. Use tradeshows with care, however. They can prove a costly and labour-intensive way to generate leads, and might not provide the buyer persona you seek.

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The marketing technique that is used to gauge the viability of a product or service in the mass market prior to a wide scale roll out.

Test marketing will help to find out the following information Demand for a product or service in your market Sales figures within a market for a particular product or service Who your customers are Customer opinion about the product How to distribute the product To find out the competitive price Who your direct and indirect competition is Product placing in the market Which governmental regulations your product or service will be

subject to on a local, state, and federal level Which sales, advertising, display, and promotion method(s) are

most effective

Test Marketing

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