Product and Brand mamagement

Marketing Management
Tamás Gyulavári

11/30/2023 1
Conceptual framework of the measurement of marketing performance
Macro- and microenvironment

Marketing goals

Effectiveness
Efficiency
Customer reactions
Cognitive effects
- awareness
Market presence - image
- product supply - satisfaction Market Business
- prices - preference performance performance
- communication - WTP - customer - financial
- availability base performance
Behavioural effects - CLV - other value crated
- information search - turnover to the stakeholders
- trial - market share of organisation
- loyalty
- defection

Marketing efforts
Hubert-Gyulavári-Malota, 2012
Performance of other corporate functions 2
 Decisions with regard to product portfolio –
Product line extension

- following a competitor expanding its product line;

- changes in the profitability of individual segments;
- the maturation of the market, the polarization of needs, the formation of
several segments;
- pressure due to increasing competition to develop more customized
products and services;
- a sudden market opportunity (e.g. withdrawal of a company operating in
another segment);
- the company wants to be present in all segments, on the one hand, in
order to have a complete picture of the market, and on the other hand, it
wants to be available from the very beginning in promising future
segments.

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 Decisions with regard to product portfolio –
Product line reduction
- It is not possible to serve the given segment cost-effectively, therefore
the product aimed at them generates a loss in the longer term.
- Strong competition pushes the company's product out of the market. The
market share of the brand is decreasing.
- Consumer habits are changing, so the size of the given segment is
constantly decreasing.
- In trade/sales channels, the selection is narrowing, and the company's
product will be the victim of this.
- Another segment offers outstanding business opportunities, so the
company regroups all its resources there.
- Strategically, the company sees that the successful response to the
increasing industry competition does not lie in smaller and smaller
volume, customized products that satisfy individual needs, but in larger
brands that focus on basic capabilities, are more cost-effective and appeal
to a wider range of people. 4
 Decisions with regard to product portfolio -
Product life-cycle
- When do we schedule the introduction (first mover advantage vs
follower)
- How we support the implementation phase
- For what period of time do we plan the given product variant
- When will we start introducing the next product version?
- How do we handle the declining phase (how long do we want to
extend the lifetime and how do we want to launch the product

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 Managing the product in the market III.
I.
Moving out of the
Introduction phase II. b) II. c)
II. a) Growth market
Maturity Decline

Increasing Brand Increasing the prestige of Maintaining brand Refreshing the brand Avoiding damage to the
Awareness the brand awareness image brand image

Maintaining satisfaction
Keep switching
Increasing the proportion Increasing the proportion Strengthening customer by providing an adequate
customers with other
of product trials of product users loyalty level of warranty
products of the company
services
Continuously increasing Ensuring and
Replacing the product
Ensuring product the distribution of the maintaining the
Protecting positions in with another own
availability for consumer product; development of availability of the
more preferred channels product at the
innovators integration between product for the target
intermediaries
distinct channels group
Market skimming in the Achieving appropriate Protecting brand
case of innovative price levels for the target Maximizing profitability positions with price Minimizing losses
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products group promotions
 Brand Management Decisions–
Selecting brand name

5F 3M
CSFM BMW
Sademac Adidas
Kovács Heinz

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Brand Management Decisions–
More Ccomlex branding strategies

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 Brand Management Decisions–
Brands in the product line

Persil
Henkel Perwoll
Tomi

Sony

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 Types of brand equity models
• Quantitative procedures to compute a monetary value
• Consumer’s perspective not taken into account
Business Finance Models • Used to value brand equity in the context of acquisitions, licensing and
analysts’ opinions

• Brand equity seen as a qualitative construct that can be made manifest

Psychographic/ using scorecards/quantitative surveys
behaviorally • High degree of subjectivity in the choice of factors explaining brand
strength
oriented models • Endeavor to explain what goes on in the “hearts and minds” of customers
to determine a brand’s value
Composite • Provide a monetary value for brand equity
• Include variables covering earnings status, market status and
financial/ psychographic status of a brand
behavioral mode • Interlink qualitative and quantitative fact

• Establish a relative brand value index

Input/output and • Determine potential changes in a product’s market share (given constant
distribution)
porfolio mode
• Identify potential for optimizing specific product 10
David Aaker’s
brand Equity
model

Brand Awareness
Perceived Quality
Brand Loyalty
Brand Associations
Other benefits
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 Pszichografikus márkaérték-modell (példa)

Brand knowledge

Brand awareness Brand image

Brand Types of
Brand recall recognition association Favorability Strength Uniqueness

Brand
Attributes Benefits
attitude

Non-product- Product- Functional Experimental Symbolic

related related

Price Package User’s personality

Keller Equity Model 12

Brand Equity models based on Customer Engagement
(e.g. Millward Brown: BrandDynamics)

Bonding Are you loyal to it?

Advantage Is it better than the competing offers?

Performance Does it meet your needs/expectations?

Relevancy Do you find it relevant for you?

Presence Have your heard about it?

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 Vevői elkötelezettségen alapuló márkaérték-modellek
(pl. Millward Brown: BrandDynamics)

Proportion of Conversion Industry

Deviation
customers rate conversion rate
Bonding 10 10/30 =33 40 -7

Advantage 30 30/45 = 67 75 -8

Performance 45 45/60 = 75 80 -5

Relevancy 60 60/80 = 75 71 4

Presence 80 80/100 = 80 50 30
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Jeniffer Aaker: Brand Personality

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THANK
YOU