Course Objective

 To develop an understanding of the basic branding principles and

their exposure to classic and contemporary branding applications.

 To make the students aware about the role of brands, the concept of
brand equity, and the advantages of creating strong brands.

 To increase the understanding of the important issues in planning,

implementing, and evaluating brand strategies

 To acquaint the students with the appropriate concepts, theories,

models and other tools to make better brand decisions.

 To understand the latest developments and cultivate an

understanding of the adjustments to be made in branding strategies
over time and geographic boundaries to maximize brand equity
Text Books

 Product Management by Lehman & Winer, 4th

Edition, Tata McGraw Hill Publishing Pvt Ltd.

 Strategic Brand Management by Kevin Lane Keller,

3rd Edition, Pearson Education India Limited
Responsibilities of Product Manager

 Product Planning
 Analysis of market

 Customer

 Competitors

 External Environment

 Deciding objectives & strategies

 Coordination with other departments

A Product Manager’s Potential Interactions
Agency media department
Company media department
Suppliers Media sales reps
Advertis-
Trade Manufactur ing
-ing and agency Media
Suppliers Premium
distribution suppliers
Research Premium
and Promotion screening Store
development services testing Sampling
Couponing

Legal Product Packaging

manager

Designers
Purchasing Researchers
Fiscal

Market Publicity Suppliers

research
Sales
Research
suppliers Trade
Product Vs. General Marketing

Product General
Management Marketing

Scope of Narrow Broad

Responsibility

Nature of Tactical Strategic

decision making

Time Horizon Short run Long Run

Marketing Organization

 Organizing by Product
 Organizing by market
 Organizing by function
 Product-Focused Structure

Head of
company/division

Manufacturing Marketing Corporate

Finance
communications

Marketing Product
Support
Research management

Manager of Manager of Manager of

product A product B product C
Evaluation of Product Focused Structure

Advantages Disadvantages

 Easier to assess work- • Duplication of activities

unit performance
 Decision-making is
faster

9
 Market-Focused Organization

Head of the
company/division

Corporate
Manufacturing Marketing Finance
communications

Manager, Manager, Manager,

market A market B market C
Evaluation of Market Focused Structure

Advantages Disadvantages
• • Duplication
 Focuses on customer
 Focuses on customer Duplicationofof
needs resources
resources
needs
• • Difficult
 Products and services
 Products and services Difficulttotocoordinate
coordinate
tailored across
acrossdepartments
tailoredtotocustomer
customer departments
needs
needs

11
11
Marketing Organization: Regional Bell
Operating Company
Vice president, marketing

Assistant vice president, Assistant vice president, Assistant vice president,

consumer marketing business marketing interindustry marketing

Marketing planning and

Product management Carrier marketing
product development

Operations and sales Product management Operator services

Customer billing Operations

Revenue and
Directory products
market forecasting
Functionally-Focused Organization

Head of the
company/division

Corporate
Manufacturing Marketing Finance
communications

Product Sales Marketing

Advertising
marketing promotion research
 Evaluation of Functionally Focused Structure

Advantages Disadvantages

 Work done by highly • May lead to slower

skilled specialists decision making
 Lowers costs through • Produces managers
reduced duplication with narrow
experiences
Skills of Product Managers

 Background, desirable but not essential

 Negotiation Skills
 Teamwork
 Communication Skills
 Analytical Skills
Changes Affecting Product Management

 The Web
 Data explosion
 Increased emphasis of brands
 Changes in the balance of market power
 Increased importance of customer retention
programs
 Increased global competition
*

CATEGORY
ATTRACTIVENESS
ANALYSIS
 Product category defines set of competitors against
which one most often competes on a daily basis.
Category Attractiveness Factors

 Aggregate Market Factors

 Category Factors
 Environmental Factors
Aggregate Category Factors

 Category size
 Category growth
 Stage in product life cycle
 Sales cyclicity
 Seasonality
 Profits
Attractiveness of Market Variables
Category Attractiveness
over the Product Life Cycle
Sales

Stage of Introduction Growth Maturity Decline Time

product life
cycle
Category Small Moderate Large Moderate
size
Category Low High Low Negative
growth

Category Low High Low/high Low

attractiveness
Category Factors

 Threat of new entrants

 Bargaining power of buyers
 Bargaining power of suppliers
 Current category rivalry
 Pressure from substitutes
 Category capacity
Threat of new entrants

 Can be managed by creating high entry barriers like:

 Economies of scale

 Product differentiation

 Capital requirements

 cost

 Distribution
Buyer Bargaining Power is High When:

 Product bought is a large percentage of the

buyer’s cost.
 Product bought is undifferentiated.
 Buyers earn low profits.
 Buyer has full information.
 Substitutes exist for the seller’s product or
service.
 Buyers have formed a union
Supplier Bargaining Power is High When:

 Suppliers are highly concentrated, that is,

dominated by a few firms. (OPEC)
 There is no substitute for the product supplied.
(Petrol)
 Supplier has differentiated its product or built
in switching costs. (Providing raw materials
that are not provided by any other)
 Supply is limited.
Major Characteristic of Categories Exhibiting Intensive
Rivalries

 Many or balanced competitors

 Slow growth
 High fixed costs
 Lack of product differentiation
 Personal rivalries
Pressure from substitutes

 As the substitutes are more, category is lesser

attractive and as they are less, it is more.
Category capacity

 If category unused capacity is high, bargaining power

of buyers are more.
Impact of Category Factors
on Attractiveness
Environmental Factors

 Technological
 Political
 Economic
 Regulatory
 Social