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Chapter Questions
What is the definition of an Industrial product? What factors influence changes in product strategy? How marketing strategies differ at various stages of
Product and Brand Strategy
product life-cycle (PLC)? How product strategies are developed for existing products? What is the purpose of branding and the branding process in business marketing?
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Changes in Product Strategy Definition of an Industrial Product
It is a physical thing and also a complex set of economic, technical, legal, and personal relationship between a buyer and a seller. Total product characteristics include: Basic properties (i.e. fundamental benefits) Enhanced properties (i.e. tangible benefits) Augmented properties (i.e. intangible benefits) (as competition increases) Product strategy is dynamic Firms change product strategy because of changes in : 1)Customer needs 2)Technology 3)Government policies / laws 4)Product life-cycle
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PLC Stages and Marketing Strategies
(for innovative products new to the market)
In the Introduction stage
Market development to educate buyers Product has basic properties Promotion to create awareness Establish distribution channels Pricing is related to positioning
In the Growth Stage
Differentiate the product from competitors Promotion to remind and reinforce Increase distribution to cover more segments Reduce price to penetrate the market.
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In the Decline Stage In the Maturity Stage
Product differentiation by superior quality of product and service Promotion to focus on superior value Intensify distribution by entering new markets Reduce costs to keep prices competitive
Harvest, divest / withdraw the product, or develop a substitute product Minimize promotion and distribution to reduce costs. Satisfying existing customers. Price becomes an important decision.
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Developing Product Strategies for Existing Products
For this, following steps involved: (1)Evaluate existing products performance (2)Use perceptual mapping for poor performance products (3)Decide product strategies from the following alternatives Continue the product and marketing strategy Modify the product and / or change marketing strategy Drop the product Add new product or product lines
Branding in Business Markets
What is a brand?
It is a name, symbol, design, or combination, intended to identify the goods or services of one seller and differentiate them from those of competitors. In short, a brand identities the seller.
What is a brand equity?
It is the value (or worth) of a brand
Purpose of branding
To identify and differentiate a product / service / business from its competitors
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Branding Process in Business Marketing
Yes To Brand or not to brand Brand planning and analysis Stop Brand Strategy
Brand building
To Brand or Not to Brand
Major factors considered:
Brand auditing
No
High pressure on prices due to intense competition (strong brands get higher prices) Solution oriented marketing, make selling complex (Branding reduces complexity) Large number of similar products / services offerings (buyers can differentiate with strong brands)
Key Brand functions in B2B Markets:
Risk reduction Easy information Image creation
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Brand Planning and Analysis
Marketers should develop brand plans Key factors in brand planning: Involvement of all Brand continuity Brand creation starts with brand analysis Brand analysis is done through marketing research Marketing research gets information about: Target customers / segments Competitors External environment
Brand Strategy
After brand analysis, brand strategies are made: Brand Hierarchy: Corporate, product, or both
Choosing Brandnames:
Persons name Nature of business Use of Acronyms Artificial / Metaphorical names
Brand Positioning
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Brand Strategy
Brand Extensions
(Continued)
Brand Building
Focus on value propositions (V.P.) important to target customers. Make functional and performance aspects superior. Document, demonstrate, and communicate V.P. Use brand-building tools for communicationviz: personal selling, advertising, trade-shows, seminars, sponsorships, etc.
Multibrand Strategy Co-branding / Dual branding: Ingredient branding Global Brand Strategy
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Brand Auditing
Purpose: To find the brands strengths and
weaknesses. Should be done once in two, six, or twelve months.
The Process of brand auditing includes:
Decide audit objectives Do internal analysis Do external analysis through marketing research Analyse and interpret the data Prepare report, including brand score card, which includes brand performance Vs target customers expectations.
