Module 3

Jitendra B
Patil
 Contai
⚫nsChapter 1
Creating Equity and Positioning
Product
Brand Strategy and Managing Services
Designing

⚫ Chapter 2
Introducing New Marketing Offerings
Designing and Executing Pricing Strategies
 Chapter 1
Creating Brand Equity and
Positioning Designing Product
Strategy and Managing
Services
 Brand
⚫Equity
Brand equity, in marketing, is the worth of a
brand in and of itself – i.e., the social value of
a well- known brand name. The owner of a
well-known brand name can generate more
revenue simply from brand recognition, as
consumers perceive the products of well-
known brands as better than those of lesser-
known brands

⚫ Brand equity is the extra value a company

gets from a product with a recognizable
name, as opposed to a generic equivalent.
 Purpo
⚫seThe purpose of brand equity metrics is to
measure the value of a brand. A brand
encompasses the name, logo, image, and
perceptions that identify a product, service,
or provider in the minds of customers.
⚫ Social media has changed the traditional
communication between brands and
consumers and enabled consumer to make
positive as well as negative influence on
brand equity.
⚫ Brand Equity is best managed with the
development of brand equity goals, which
are then used to track progress and
performance.
Creating Brand Equity
through IMC
 The three components of Brand
⚫Equity
Brand perception: Brand perception is what
customers believe a product or service
represents, not what the company owning
the brand says it does. In effect, the
consumer owns brand perception, not the
company.

⚫ Positive or negative effects: When

consumers react positively to a brand, the
company’s reputation, products and bottom
line will benefit, whereas a negative
consumer reaction will have the opposite
effect.
 Cont
⚫. Value: Positive effects return tangible and
intangible value – tangibles include profit or
revenue increase; intangibles are brand
awareness and goodwill. Negative effects can
diminish both tangibles and intangibles.
Uber, for example, was trending positively in
late 2016, but a series of scandals ranging
from sexism to spying negatively impacted
its reputation, bottom line and brand equity.
 How to build Brand
⚫Equity
Brand equity is the value of your brand for
your company. It’s based on the idea that a
recognized brand that’s firmly established
and reputable is more successful than a
generic equivalent. It’s based on customer
perception: customers will tend to buy a
product they recognize and trust. When a
brand is recognized and trusted to the point
that the customer recognizes it and feels a
deep psychological bond with it, your brand
equity is valuable indeed.
⚫ Here are four steps towards building your
own brand equity.
 1. Build Greater
⚫Awareness
Marketer need to make sure his customers
recognize his brand identity when they’re
looking for goods or services, and that they
perceive it in the way you intend. There are
several ways marketers can do this:
⚫ Using the same logo or image to ensure your
branding is
consistent
⚫ Great customer service
⚫ A heart-warming story behind the brand
⚫ Keeping the brand in front of your market
⚫ Providing ongoing value
⚫ Keeping in touch via email or newsletters
⚫ Tap into social media and share – blogs,
tweets, Facebook
 2. Communicate Brand
⚫meaning
There are two things to bear in mind here: how
well marketers product meets the needs of
customers and its social and psychological
aspects. A company that produces a useful
product, and genuinely commits to social or
environmental responsibility will attract
customers and employees who share those
values. And who will be sufficiently connected
and enthusiastic to be advocates.
⚫ IKEA, for example, has invested in sustainability
throughout its entire business operation: 50% of
its wood is from sustainable sources, 100% of its
cotton is Better Cotton standard and 700,000
solar panels power its stores. With feel-good eco-
credentials like these, spending a Sunday
afternoon assembling an IKEA flat pack seems
more a pleasure than a chore when the product
comes from such a reputable brand.
 3. Invest in the Customer
⚫Experience
Since customer experience lies at the heart of
brand equity, it should come as no surprise
investments here can also pay off. Sometimes
that can be as simple as doing your
homework to figure out where customer
pain points exist in your industry and
building out a brand experience that
eliminates those pitfalls. But it also means
following the old “surprise and delight”
marketing tactic. It was arguably perfected by
Amazon, but that doesn’t mean other brands
can’t do it, too, by striving to make every
customer touch-point a delightful experience
 4. Leverage Strategic
Partnerships with Reputable
⚫Brands
Sometimes a little bit of teamwork is what a
brand need. A brand partnership is an
agreement between two or more companies,
organizations, or businesses that help
generate buzz, build consumer trust, and add
value to brand business.
Points-of-difference (POD)
and Points-of-parity (POP)
⚫ Points-of-difference (POD) and points-of-parity
(POP) are essentially opposite in nature, with the
first referring to differences in the second
referring to similarities. As a result, we can the
following definitions for our purposes as
students of marketing:
⚫ Points-of-difference (POD)
The aspects of the product offering that are
relatively distinct to the offerings of like
competitors.

⚫ Points-of-parity (POP)
The aspects of theproduct offering that
are largely
 Brand
⚫Positioning
Brand positioning refers to the unique value
that a brand presents to its customer. It is a
marketing strategy brands create to establish
their brand identity while conveying their
value proposition, which is the reason why a
customer would prefer their brand over
others.
⚫ Additionally, brand positioning is used when
a company wants to position themselves in a
certain way to their audiences in order for
customers to create associations between the
brand and its value proposition.
 Brand Positioning
⚫Strategy
There are various ways through which
companies can create and scale out a brand
positioning strategy, depending on the size,
mission, and segment of the brand.
⚫ Understand how your brand is currently
positioning
itself.
⚫ Determine your unique value proposition.
⚫ Identify your competitors and their
positioning.
⚫ Create your positioning statement.
⚫ Evaluate and test whether your positioning
works.
 Some examples of Brand
⚫Positioning
McDonald’s sets itself apart by promoting its
customers both exceptional service and consistency
among its food products, across its many locations.
The company’s dedication to delighting its customers
through subliminal customer satisfaction and
dedication to improving its operations is received
through the way the brand positions itself.

⚫ Through its personal care products, Dove sets itself

apart by focusing on the natural and real beauty of
women. Their brand positioning strategy emphasizes
the way in which all women can embrace their
authentic self through the use of their products. Dove
utilizes brand campaigns and other marketing tactics
to position themselves in an impactful way while
resonating with their customers.
Designing Product Strategy and
Managing Services
⚫ Product strategy is the backbone of product
design. It tells the full story of the product a
team is building, who will use it, and why
they will use it. It also defines the course of
action that an organization must complete to
develop a product, and keeps everyone
involved in product development on track.
⚫ Product strategy defines the high-level plan
for developing and marketing a product, how
the product supports the business strategy
and goals, and is brought to life through
product roadmaps.
 Cont
⚫. Awith
product strategy describes a vision of the future
this product, the ideal customer profile and
market to serve, go- to-market and positioning
(marketing), thematic areas of investment, and
measures of success. A product strategy sets the
direction for new product development.
⚫ Companies utilize the product strategy in
strategic planning and marketing to set the
direction of the company's activities. The product
strategy is composed of a variety of sequential
processes in order for the vision to be effectively
achieved. T
⚫ The strategy must be clear in terms of the target
customer and market of the product in order to
plan the roadmap needed to achieve strategic
goals and give customers better value.
 Goals of Product
⚫Strategy
Vision provides the big picture of what the company
is trying to achieve. Without vision, it will be difficult
for stakeholders to understand its direction and it
will lack connection to a broader picture.
⚫ Execution is defined by the product roadmap. While
the product strategy outlines the elements of the
product and the company's target market, the
product roadmap explains how the vision will be
executed
⚫ Big picture context provides the background of each
feature and how it relates to larger goals. It also
include details in which certain features will be built,
and in what order.
⚫ Initiatives are the high-level efforts that help achieve
goals. For
 Elements of Product
⚫Strategy
Design
⚫ Features
⚫ Quality
⚫ Branding
⚫ Target
market
⚫ Positioning
 Managing
⚫Services
A service is an act or use for which a
consumer, firm, or government is willing to
pay. Examples include work done by barbers,
doctors, lawyers, mechanics, banks,
insurance companies, and so on. Public
services are those that society (nation state,
fiscal union or region) as a whole pays
for. Using resources, skill, ingenuity, and
experience, service providers benefit service
consumers. Services may be defined as
intangible acts or performances whereby the
service provider provides value to the
customer.
 Nature of
⚫Services
Service industries are
everywhere
⚫ Distinctive characteristics of
services
⚫ Categories of services Mix
 Services Industries are
⚫Everywhere
Government sector
⚫ Private non-profit
sector
⚫ Business
⚫ Manufacturing
 Distinctive Characteristics of
⚫Service
Intangibili
ty
⚫ Inseparabi
lity
⚫ Variability
⚫ Perishabili
ty
 Categories of Service
⚫Mix
Pure tangible good
⚫ Tangible good with accompanying
services
⚫ Hybrid
⚫ Major services with accompanying minor
goods and services
⚫ Pure services
Three types of Marketing in
Service Industry
 Service
⚫Quality
Mass generation and delivery of services must be
mastered for a service provider to expand. This
can be considered as a problem of service quality.
Both inputs and outputs to the processes
involved providing services are highly variable,
as are the relationships between these processes,
making it difficult to maintain consistent service
quality. Many services involve variable human
activity, rather than a precisely determined
process; exceptions include utilities. The human
factor is often the key success factor in service
provision. Demand can vary by season, time
of day, business cycle, etc. Consistency is
necessary to create enduring business
relationships
 Chapter 2
Introducing New Marketing
Offerings Designing and Executing
Pricing Strategies
New Marketing
Offerings
Designing and Executing Pricing
Strategies
⚫ Pricing is the process whereby a business sets the
price at which it will sell its products and
services, and may be part of the business's
marketing plan. In setting prices, the business
will take into account the price at which it could
acquire the goods, the manufacturing cost, the
marketplace, competition, market condition,
brand, and quality of product.

⚫ Pricing is a fundamental aspect of product

management and is one of the four Ps of the
marketing mix, the other three aspects being
product, promotion, and place. Price is the only
revenue generating element amongst the four Ps,
the rest being cost centers.
 Objectives of
⚫Pricing
The financial goals of the company (i.e.
profitability)
⚫ The fit with marketplace realities (will
customers buy at that price?)
⚫ The extent to which the price supports a
product's market positioning and be
consistent with the other variables in the
marketing mix
⚫ The consistency of prices across categories
and products (consistency indicates
reliability and supports customer confidence
and customer satisfaction)
Pricing Strategy
Matrix
Cont
. . Economy Pricing
1
⚫ Economy pricing only works sustainably when
you have lower overheads and costs than your
competitors. Your low cost base allows you to sell
at a discount price so that you can gain a high
market share.

2. Penetration Pricing
⚫ Penetration pricing focuses on setting an
artificially low initial price, or a "special
introductory offer," on a high- quality product.
This strategy relies on the expectation that
customers will naturally switch to your lower-
cost, higher- quality product, helping you to
penetrate the market very quickly.
Cont
.3. Price Skimming
⚫ Price skimming involves setting a high price
on a low- quality product, with the aim of
generating as much revenue as possible from
the small number of people who are
prepared to buy it at that price, before
lowering the price once this market becomes
saturated. Once this happens, you will be
able to "skim" profits from wider, more price-
sensitive segments of the market.
Cont
.4. Premium Pricing
⚫ When your production costs are high and you
have a unique or "prestige" product that you
believe will appeal to image-conscious and
aspirational buyers, a premium pricing
strategy might be the best option. (Louis
Vuitton®, Cunard®, and Rolex®.)
Thank
you