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What are Brand and branding? What are the Main Strategies of Its?

>> May 10, 2010

Definition of Brand of Company

Brand means name, symbol or design of the product of company. It creates difference of one company's product with other competitor company's product.

Definition of Branding of Company

Branding is technique in which company provides the name and design to each product for creating a special identity. It is helpful for consumer to identify special quality product or products in market.

Strategies of Branding of Company

Following are the main branding strategy which can be used for making and developing of new brand.

1. Brand Positioning Strategy

Brand positioning means bring the brand name of company in mind of customer. When a customer goes to market and he or she should demand of specific product. It means company is successful to position the brand in the mind of consumer. Company must be careful while positioning the brand.

a) It must not be copied from other brand.

b) Company's brand shows the benefits of products.

c) It simply convey the idea of belief and values of company.

2. Brand Name Strategy

You often see that one company's brand name are easily copied due to weakness of brand selection. For example YouTube.com video site's brand name has been copied by many other site like utube.com etc.
So be careful when you are creating the name of brand.

a) It should tell the quality of product.

b) It should be easily to pronounce, recognize and remember.

c) It should easily be  translated.

d) It should be capable for legal protection.

3. Brand Sponsorship

a) National brand

Sometime, a company can spend money for marketing of company brand as nation or international basis.

b) Middle men's brand

It is private brand which is created by middlemen.

c) Licensing

Sometime, company can take the brand of other company on license basis for increasing sale.

d) Co-brand

Sometime, company can contract with other company and mix other company brand as co-brand with his products brand and sell after this.

e) Takeover the brand

Google takeover the YouTube, so, its brand is also taken over by google.

4. Brand Development

a) Main name of brand + one more line which shows the quality of product

b) Use the same famous brand in other products.

c) Multi brand - Two or more name brand of same product.

5. Brand Management

a) Brand Equity

For brand management, management calculates the estimated value of brand. It shows as brand equity. It is an asset of company. Suppose, Lux, company creates lux brand equity fund with Rs. 9000000 and utilizes it for advertising, now its brand has becomes famous. Company can calculate its estimated value and try to protect it by opening brand asset management team.
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What is Product Mix?

>> May 9, 2010

Product mix is the set or group of products which a particular company offers to public. Product mix is very helpful for taking advantage one product brand benefit for selling other product. For example:

Godrej Agrovet division has following product mix:

a) animal feeds

b) agricultural inputs

c) horticulture

d) tissue culture

e) retailing
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Product Life Cycle


Product life cycle shows the different stages in which it lives his life just as human being. A human being enjoys childhood, youth age and old age and after this, it is sure he will die. Same thing happens with all products. Product life cycle has four parts. In first stage introduction, second stage is stage of growth, third is the stage of maturity and in the end stage is decline. After this, value of product is totally dropped from market due to invention of new product. We can portray its sketch on the graph paper. Its shape will be bell shape.

Its strategies are divided in Four stages according to life of product.

Ist Stage

Introduction stage of Product life cycle

First stage of plc is called introduction stage. In this stage, product is newly developed and launched in the market. Because, consumer does not know about this product earlier, so its marketing is very difficult. Marketer has to teach the consumers about its benefits and its advance facilities . For new product's introductory stage, marketer can take the market with marketing skimming strategy or marketing penetration strategy. One more feature of this stage that company sale will be low.

2nd Stage

Growth stage of Product life cycle

In this stage, consumer knows the product because he has taken past experience after purchasing it at introductory stage. So, sale will increase. In this stage, company can increase the price for getting old promotion and advertising cost. Company can pay more on advertising for developing product brand image in the minds of consumers. In this stage company's profit will also rise.

3rd Stage

Maturity

At this stage product life cycle, our sale reaches at highest level. Product is become well known in the market. In this stage, we have to decrease our price for taking maximum part of product and defeating market competitors. Company can offer special discount to dealer for selling fast before reaching it declining stage.

4th Stage

Decline Stage

At this stage, sales fall very sharply. No more new customer wants to buy it . At this stage, company can offer public to switch to his new advance product. Company can take milk from brand name without any new advertising cost.

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Stages in Developing New Product

>> May 8, 2010

Before describing the stages in developing the new product in marketing mix, we will define the product with following way

Definition of Product

Product is the tangible and intangible things which satisfy the needs of consumers. It means not only physical things which we purchase are the products but all the services of other persons are also product. For example TV, computer, watch, food, house and Taxi driver's services are also products which we can purchase and satisfy our needs.

Following are the seven stages or steps in development of a new product

Ist stage

Idea generation

Idea generation is the first stage of product development. For developing a product, company takes the idea from his internal and external sources.

internal sources of idea generation

a) basic research on google b) idea from production department c) sales men's idea d) top management's idea

external sources of idea generation

a) business magazine b) competitors c) necessity of consumers c) inventor's idea

*

Idea should be helpful for satisfying consumer's need, other wise drop the idea. For taking second step ask from yourself, is it worth considering - if yes, then take second step

2nd Stage

Idea Screening

It is the second stage or step of development of new product. After collecting large number of idea for making new product, company will analyze them with his technical screening system or team and drop bad idea. Idea screening is helpful

a) to reduce the chance of development of product on the basis of poor idea.

b) to reduce the chance of not developing the product on the basis of very good idea.

*

Technical base of idea screening

Company can enumerate his employees to make check list for idea screening.

value of idea

basis of screening

good idea - should be selected

bad idea - should not be selected

3rd Stage

Laboratory Test

This is the third stage of development of new product. In this step, we test the product's development with in company before actual launch in the market for following purpose.

a) To know

whether our buyer will buy it or not?

b) To know

whether it will be suitable for consumer according to their need of product?

* Company can also use computer for lab testing.

4th Stage

Marketing strategy development

In this stage, company makes following planning for good product development

a) first year market budget - cost

b) estimate first year profit

c) value of sales and profit after one year.

5th Stage

Business Analysis

This is the fifth stage of development of new product. In this stage, company calculate his overall return on investment, if company will launch the product. If it is profitable, company will produce it otherwise, drop his plan because company's money is not money of one man or employee but this money is invested by large number of investors. So, board of directors can not waste it by unprofitable production of new product. For calculating this, they will analyze

a) demand b) cost c) profitability

6th Stage

Actual Product development

After this, company's R and D department produces one or two sample of products and check it.

7th Stage

Market Test

In this step or stage, company launches product in very small part of market as market test and for knowing the interest of consumers, dealers and retailers. If consumers' reaction are good, company will take the next action.

8th Stage

Commercialization

In this step, company manages large scale production, marketing and commercialization of new product with following marketing strategy.

a) when to produce - fix the time

b) where to produce - fix the geography

c) to whom to sell - target marketing strategy

d) How  - Brand Strategy.
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Positioning for Competitive Advantage Simplified

Simple definition of Positioning for competitive advantage

Positioning for competitive advantage is strategy for defeating our competitors. In this, we study weak points of our competitors and make the list. After this, company makes the product which can be easily sold, if our competitors are failed to provide same facilities with this product.
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Strategy of Segmenting the Market

For creating target market or segmenting the market, we can use following strategy :


1st Strategy

Undifferential Marketing or Mass Strategy

In this strategy, company does not make small segment of market and target the whole market in one offer. All marketing mix policy will be same for all parts of market.



2nd Strategy

Differentiated Segmented Marketing

In this strategy, company divides his products, services according to need of different consumers. Company's all market policy will be different for all market segmentation.




For example:

Company of refrigerator enters in differentiative marketing technique and divide his product on basis of income of consumers.

Ist Product - 165 liters. with two door advance refrigerator for rich consumers.

2nd Product - 165 liters. with one door simple for middle consumer.

3rd Strategy

Concentrated Marketing

This strategy is used when company has limited resources and wants high profit from specific segment of market, at that time company makes market policies for specific segment.
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Market Segmentation

>> May 7, 2010

Market segmentation is a technique in which companies divide their large market into small parts. This small division is very helpful to reach the specific consumer and providing his best product according to his need. There are large number of buyers in the market and market has been made big. So, it is very necessary to segment or divide into small parts according to the needs, wants, location of consumers.

Major basis or Ways or Approaches for segmenting consumer and business market

[ A] Segmenting Consumer Market

1. Geographic Segmentation

If a company divides his business market according to the geographical location, then it will be geographic segmentation. Segmentation is done on the basis of nations, regions, states countries, cities and villages.

2. Demographic Segmentation

In this segmentation, company divide the market into small parts on the basis of age, gender, family size and income.

For example, we can divide market according to age of consumers

We can develop products for young - Segment A

We can also develop products for old - Segment B

3.Gender Segmentation

In this division company divides market according to male and female need. This division can be seen in clothing business.

4. Income Segmentation

This segmentation can be used for selling financial products and automobile industry.

Suppose a company makes cars. Then its price will be divided according to the income of consumers

a) Car for high income class
b) Car for middle income class

5. Psychological Segmentation

This division is done according to life style and personality of consumer. You can see different makeup and fashion products in the market which are affected with the psychology of consumers.

6. Behavioral Segmentation

This division is done according to a) knowledge of consumers b) attitude of consumers c) response of consumers

For example

i) products for first time users

ii) products for regular users

[B] Segmenting the Business Market

Business market can not divide only above basis but we can divide it on the basis of Zip codes, level of population and IP address of computer also.

[C] Segmenting of International Market

For segmenting our international market, we have to study international economy  and political environment of each country. After this, we can make and fix the target to sell specific product for specific country according to the need of consumer of that country. It is not necessary that same product will be sold in two or more country. Company should watch cultural factors of different country also.
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Analyzing Consumer Market and Buyer Behavior

>> May 6, 2010

Q: What is  consumer behavior? What are main factors affecting consumer behavior and what are the stages or steps of buying decision process?

Definition of Consumer Behavior

Consumer behavior is the study of all factors which affect consumer's buying decision. It is the technique to analyze the psychology of consumer. It is very helpful for selling the products to all consumers and satisfy them. In simple words, with the study of consumer behavior, you can know:

a) When will our consumer buy the goods? - To know the correct time

b) Why will he buy the goods?  - Know the need of consumer

c) How will he buy the goods?  - Process of buying

d) Where will he buy the goods? - Place

Factor affecting consumer's behavior

1. Cultural factors

Culture affects consumer behavior very deeply. Following are the main components of cultural factors.

i) Nationality

Consumer buying decision is affected by nationality of consumer. Need of Indian consumer is different from need of USA consumers

ii) Religion

There are many religion In India. We can not do marketing of drinks for Hindu religious persons, because their behavior is affected by their religion. There religion teach them not to drink alcohols.

2. Social Factors

Consumer's behavior is also affected with many social factor whose list, we can make in following way

a) Reference group

friends, relatives, neighbours, co-workers and classmates

b) Family

father, mother, sister and brother

c) Role and status

peon,  clerk and manager

3. Personal Factors

Age of person, his stage in life cycle and his personal occupation also effect his behavior. Children age is age of fun and they can demand education and fun products. After marriage, young couple can demand house for living but at the old age, you can demand health products.

4. Psychological factors

Following are the psychological factors which affects consumer's behavior.

a) motivation b) love c) morality d) security of body e) security of employment

Steps Of Buying Decision Process

1st Step

To Identify the need of Product

This is the first step of buying decision process in which marketer estimates consumer's need of products. Consumer can buy the product for satisfying his basic and other needs.

2nd Step

Collection of Information

After this, consumer will search for buying best product, he can search on Internet or can take help of friends, neighbours and newspapers for find quality product.

3rd Step

Evaluation of Alternatives

After this, buyer will evaluate all alternatives from where he can buy the product. He will choose the best alternative for buying the product.

4th Step

Purchase decision

In this step, buyer buys the product by physically going to market or by giving the order online.

5th Step

Post Purchase Behavior

After purchasing, buyer uses the product and shows his behavior by following ways

a) He is satisfied from the product

c) He is not satisfied from product
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What is Marketing Research and Strategic Planning in Marketing Management? What are the Steps in Marketing Planning? What are its importance?

>> May 5, 2010

Definition of Marketing Research and Strategic Planning

Marketing research and strategic planning is the process of estimation and directions for creating new customers. We all know that today business are facing competition. If we have to win competition, we have to take many decisions about future marketing. All decision are called marketing research and strategic planning.

Steps of marketing planning

Ist Step

To Identify company's Strength and Weakness

It is the first step of marketing planning in which company estimates his strength, opportunities and powers in marketing. It also estimates its weak points. This step can be done with marketing environment scanning. In this marketing scanning data and compare with our competitors. After this our strength and weakness can be estimated.

2nd Step

To Identify Marketing Objectives:

There are many objectives of marketing. It is the second step of marketing that we should identify these objectives. There are main objective of marketing planning

a) Financial objectives

It is the objective of marketing planning that we have to increase our return on investment.

b) To increase the share in market.

3rd Step

Making Marketing Policies

This is the third step of marketing planning in which company makes his marketing policies according to the marketing objectives.

4th Step

Development of Good Marketing Mix

After making the marketing policies, we have to make good marketing mix.

1. Product
2. Price
3. Promotion
4. Place

5th Step

Sub Plans

We also have to make sub plans which is helpful for obtaining main plan of the marketing.

6th Step

Monitoring

We have to check our main plan under monitoring

Importance of marketing planning and strategy

1. It is helpful for determination of future marketing decisions.

2. To know the opportunities and weakness of the company.

3. Management by Objectives

4. Effective use of financial resources.

5. Good co-ordination
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Data Warehousing

>> May 4, 2010

Data warehousing is system in which data is collected in online data base. It is also helpful for providing data for data mining. In data warehouse, you can find data of consumer according to consumer's profile. So, there is no need to further analyze that data. For taking data from data warehousing there is no need to do any large scale activities. Almost all the work is done automatically.

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Data Mining

Data mining is automatic analysis of large data stored in data warehouse. Today, different data mining sofware or cloud computing are being used for this purpose. It is useful for online marketing.
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Marketing Intelligence

Marketing intelligence is strategy in which company gets the information of competitors activities through his intelligence bureau and use it for his business sales promotion.

For Example :

Suppose there are three companies who are taking the contract for construction of building. The names of company are A, B and C. Suppose, govt. demands bid for construction of government building. C company is very clever and takes help from his intelligence bureau for knowing the bid prices of B and C company. After some investigation, company's intelligence bureau succeeded to know the expected bid prices of B and C company. Now, A company decreases his cost than competitors and win the bid from government department. So, marketing intelligence is very needed for every company.
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Components of Marketing Information System or Sources of MIS

1. Internal Marketing or Accounting System

This component or source tells that company should get all marketing relating information through this source. Company makes the accounts of customers and records the sales. After analyzing it through management accounting and cost accounting, company can obtain all useful information relating to past marketing data.

2. Marketing Intelligence

Company can take the help of marketing intelligence for getting information of competitor activities.

3. Marketing Research

For improving the quality of product, company need marketing research information. This information is given by marketing research team.

4. Marketing science

Marketing science means use mathematics and quantitative techniques to solve business and marketing problems.
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Marketing Information System

Definition of Marketing Information System ( MIS )

Marketing Information system is to collect, sort, analyze, evaluate the information relating to marketing. After this, information is distributed to marketing decisions makers. Internal company records and marketing research are the main sources of marketing information .

Need and Importance and Advantages of Marketing Information System or System to Handle Marketing Information:

1. For making marketing planning

Marketing information system is very useful for making marketing planning. With MIS, we get useful information for marketing short term and long term plans. Suppose, we are new banking company for providing loans to students. But, if our MIS gives us the correct information about how many companies are already providing this facilities, then we can make good strategic planning according to this.

2. Helpful to marketing control

With MIS, we can control marketing risk and our decision becomes effective.

3. Helpful to convert raw data into useful marketing information

MIS makes perfect system in which information providers can easily convert raw data into useful marketing information.

4. Integration

Marketing information system creates integration between all departments.

5. Improve the data capture process

MIS has a perfect system in which there are many steps to collect and convert into useful information. So, it improves the data capture process.

6. Helpful in transfer of Information

MIS makes way easy for transferring the information to those who need it.

Types of Marketing Information System

( I )  Classification which is based on the purpose of information.

( II ) Classification which is based subject matter of the information

Steps of Marketing Information System (MIS)

Ist Step

Defining the information need

2nd Step

Classification of information

3rd Step

Evaluation the cost of collecting the information

4th Step

Identifying the source of information.

Requisites of Good MIS

  1. economical
  2. user friendly
  3. fast
  4. clarity
  5. accuracy
  6. reliability
  7. unbaised
  8. relvance to decision making
  9. completeness
  10. suitable
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Sales Force Management

>> May 3, 2010

What is Sales Force Management? What is its Importance? What are the steps of Process of Sales Force Management in modern Marketing? Tell the Winning Tips of Sales Team?

Definition of Sales Force Management

Sales force management is one work of personnel department. Personnel manager recruits, selects and trains salesmen and sales personnel. Sales force is nothing but the team who are involved in sales related activities. Sales force management means decisions relating to sales team. Right person should be appointed at right place, at right time and he should do right working in sales field of company. In marketing, if sales force will be perfect, relation can be created with others.

Importance of Sales Force Management

  1. It is helpful to make good sales personnel policies.
  2. Job analysis of salesmen.
  3. Good relation with sales force.
  4. Reduction the personal selling cost.
Steps of sales force management process

1st Step

Determination the sales force objectives

Before creating sales force management, it is very important that fix one or all of following objectives

a) Sales Volume : How much will the sale team has to sell in specific time?  - Sales target

b) Market Share:  %  of total share of market for a product.

c) Profit: To increase ROI

2nd Step

Determination of Sales force size

It is affected with need of organisation and cost of per sales man. Over loading and under loading of sales team will be misuse of money.

3rd Step

Recruitment and Selection

a) Recruitment is the list of qualified applicants of sales men.

b) Selection : Choose the best sales team.

4th Step

Training of Sales Team

a) What to teach? - About the company and its product.

b) Whom to teach? - New Salesmen

c) Where to teach? - On job or off job.

d) How to teach ? By expert.

5th Step

Compensating the Sales persons:

{*} Basic salary + Incentive + other Commission and allowance and TA

6th Step

Motivating salesmen

By job security + opportunity of promotion + award + reward

7th Step

Determination the area of salesmen

a) on geographical basis

b) on basis of distance travelled

8th Step

Controlling and evaluation the sale force performance:

Salesman's performance can be evaluated on the following basis

a) average no. of calls per day

b) average sales per customer

c) no. of new customer order

d) average gross profit per customer

Winning Tips for managing sales team

1. Selecting best salesmen

According to object of company, company has to make some minimum standard for clearing the interview by a new fresher who wants to become salesman. Following are best questions for talking or taking interview from new candidate:

a) How do you feel about talking strangers?

b) What is your opinion of salesman in general?

2. Motivation

If you want to get performance from salesmen, it is your duty to motivate them daily.

3 Stories of successful salesman of the world.

It is good to make Strong salesmen. With telling the story of great and successful salesmen, new salesmen can easily learn that for becoming successful salesman, he or she has to face failure , but he or she will not loose courage. After this, he or she can easily become successful businessman like me.
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Public Relation

Simple Definition of Public Relation

Public relation is a technique to promote the public to buy the product and protect company's reputation from bad voice of public via media.

Creation of Public Relation Department

Its duty is to reduce negative publicity.

Main Fields of Public Relation

a) Press Relation

b) Product Publicity

c) Corporate Communication
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Sales Promotion

Definition of Sales Promotion

Sales promotion is the technique in which salesman gives incentives to consumers for increasing the selling of his products.

Major Steps in Sales Promotion:

1st Step :

Setting of Objective

a) Target market - get consumers
b) switch away the market from competitors
c) Free trial for new users.

2nd Step:

Setting of Sales Promotion Tools :

a) Free Sample

b) Gift Coupons

c) Rebate or discount on sale

d) special facility : Free delivery

e) Contest, games and prizes

f) some quantity free with purchasing large scale.

g) Buy back guarantee

3rd Step

Setting Time Period for promotion

{*} Fix month, week or days of promotion

4th Step

Setting test before large scale sales promotion

{*} Test promotion incentive in small segment of market.

5th Step

Evaluation

Check the effect of promotion on sale

+ point : increase the sales

- point  : decrease the sale
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Advertising and its Strategy

Advertising and Strategy which is Used in Advertising

Simple Definition of Advertising

Advertising is a technique in which company promote his sale without existence of any person. Advertisement is contract between advertiser and advertising companies. Advertiser pays money to advertising company. Advertising company uses his resource for showing the ads to public places. It is impersonal presentation of message of advertisers.

Following is the example of Ads

Come at Shop No. 4201  and  Buy garments at 50% discount

Above ads can be shown in banner for or can be distributed in pamphlet form.

Big company has its own department and its name is advertising department. This department manages ads of company.

Strategy which is used in Advertising

1. Setting the advertising objectives

First of all, fix the objectives of advertising. Following are the three objectives of advertising

a) Information : Provide information of new product

b) Position of the Brand : Position the brand in the minds of buyers

c) Reminding : Just remind to buy again

2. Setting the Advertisement Budget

You also set the advertisement budget . It should not be very high or very low. But it should be optimum. After seeing stage of life of product cycle and competitors policy, we should decide minimum amount for advertisement.

3. Setting of advertisement message

Advertisement message should be creative, attractive. It must not make false claims.

4. Setting the media

a) Newspaper

+ point : Flexible, good for local market advertisement

- point : Short life

b) TV

+point: High attention, long life

- point :  High cost

c) Radio

+ point : flexibility, large coverage, less cost

- point : lower attention

d) Magazines

+point : Quality reproduction

- point : some waste circulation

e) Brochures

+ Point : flexibility, full control

- point : over production

f) Telephone

+ point : Personal touch

- high cost

5. Evaluation the effect of advertising

a) Check the effect on sale

Try to check its effect on sale if sale has been increased due to this, it means advertising is successful otherwise change the budget, media or message .

b) Check the effect of communication

We also have to check the effect of advertising on communication.

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