Brand Management/Product Management
What is a brand manager?
marketing person who is responsible for developing and implementing marketing plans with the ultimate goals of growing the brands annual volume and market share
What are the Pricing Approaches?
1. Cost-Based: PROFIT =
2. Competition-based: charge the same price as competitors or lower our prices
3. Perceived Value: Total perceived benefits - Total perceived cost = customer perceived value
What are the reasons for New Product Failure?
1. overestimation of market size
2. Product design problems
3. Product incorrectly positioned; priced or advertised
4. Cost of product development
5. Capital Shortage
6. competitive actions
7. costs and complexity added to supple chains
8. poor marketing research
What is an omni-channel?
Shopping online and in store
What are 2 or 3 types of retailers?
1. Mass Merchandisers- such as Walmart and Target
2. Warehouse stores- Sam's Club and Costco
3. Category Killers- Staples, Best Buy, Dicks Sporting Goods
4. Department Stores- Neiman Marcus, Macys
5. Boutiques- small stores carrying specialized and high-end merchandise
6. Variety Stores- Dollar General, Dollar Tree
7. E-tailers- Amazon, ebay
What is Integrated Marketing Communications?
"Promotion!"
Integrated = communicates value in a consistent way
BONUS!!
What makes up Athlethics Communication?
Crisis Communication:
1. Create awareness
2. Internal and external planning
3. Rollout
4. Evaluation
Original duties of Brand Manager
1. Study shipments of the brand by units
2. Examine what combination of effort seems to be working and apply to comparable territories
3. Study advertisement and promotional history of the brand to identify problem
2. Product- Bundle Pricing
What is the new product development process?
1. Idea screening- screen carefully, keep cost down
2. Concept testing- physical, virtual, symbolic forms to target consumer
3. Product launch/ Commercialization- price and timing are important
What is the difference between Vertical Conflict and Horizontal Conflict?
Vertical Conflict- conflict within the same channel at two different levels of the channel (ex. GoodYear)
Horizontal Conflict- conflict between two different channels at the same level of those two different channels (ex. Ford)
-Emergence of Private Label and Less is More
-Cross Promotion
-Virtual Stores
-Create a "Shopping" experience
-Showrooming
-Localized International Expansion
Promotion Mix AIDA Model
1. Advertising -----------------------> Attention
2. Public Relations -------------------> Interest
3. Personal Selling -------------------> Desire
4. Sales Promotion ------------------> Action
1. What is the term for when consumers judge the goodness of a price?
2. Based of the Supply Chain Structure, what are customers priorities?
1. Relativity
2. Retailer and Manufacturer
What does brand management focus on and what does it not focus on?
-Emphasizes a focus on the product
-does not focus on the function, because each brand is set up to run independently
Intro Stage:
1. Skim Pricing works when: high demand, high initial price does not bring competitors, high price communicates quality
2. Penetration Pricing works when: Demand is elastic, Product will draw significant competition, Biggest risk is consumers may purchase product when first released but if prices increase they will buy an inexpensive alternative
Growth Stage: stabilize prices
Maturity and Decline stage: Price decreases
What is a Conjoint Analysis?
1. A took for new product development
2. Several attributes rated at one time
1. Maintain the business and focus on the customer experience in brick and mortar stores
2. build the online business
3. develop a great mobile shopping experience through an App
4. Focus on millenials as the growing omni-channel customer base
What are 4 vital Enviromental Factors Factors when it comes to Localized International Expansion? (under Retail Trend)
1. High population density
2. Vertical zoning
3. COnsumers on the street "shopping"
4. Need for instant gratification
What factors go into Setting the Total Communications Budget?
1. Affordable- often underestimate marketing costs
2. Percentage of Sales- most popular approach, Target (5%); Wal-Mart (2%) promotion should lead to sales
3. Competitive-Parity- good to analyze competition but do not get too sidetracked
4. Objective-and-Task- Superior; not most widely used
What is Cross Merchandising?
is the retail practice of marketing or displaying products from different categories together, in order to generate additional revenue for the store
Brand management leads to what and why?
Why? Brand management lessened competition amongst brands because of segmentation and targeting
What is Consumer Psychology and Pricing?
1. Reference prices- consumer compare internal and/or external reference prices
2. Price-Quality Inferences- if alternative info is available, then price is less of a quality cue
What are the Product Life Cycle Stages?
1. Intro: create awareness, low sales, negative profits
2. Growth: Objective to maximize market share, rapid climb in sales, rising profits
3. Maturity: maximize profitability, peak sales, high profits
4. Decline: objective to reduce cost, declining sales, declining profits
Shopping in store for the product but purchasing it online
ex. Samsung drops New Frame TV, you got to showroom to view but you decide you rather buy online and find a better deal
What are High/Low Pricing (H/L) VS. Every-Day-Low-Pricing (EDLP)?
H/L: Offer frequent discounts via sales promotions, excitement increases store traffic
EDLP: Have low price-guarantee policies; they can still have sales promotions (not as often)
-Spend less on marketing communications
-Less inventory fluctuation (fewer stock shortages); reduce inventory costs
What is the difference between Push VS. Pull promotion strategies?
PUSH: A push promotional strategy works to create customer demand for your product or service through promotion: for example, discounts to retailers and trade promotions. Appealing package design, maintaining a reputation for reliability, value or style
PULL: pull promotional strategy uses advertising to build up customer demand for a product or service. For example, advertising children's toys on children's television shows is a pull strategy.
What are two types of Advertising?
Bonus* if you can name a 3rd type of advertising and what it means
1. Institutional Advertising:
-Promote a family of brands more than a specific product
-Creates Positive associations
- ex. SC Johnson "Great Expectations" advertisment
2. Product Advertising:
-Majority of advertising; designed to build towards purchase of specific item
-Include comparative advertising (persuasive)
3. Comparative Advertising: advertisement in which a particular product, or service, specifically mentions a competitor by name for the express purpose of showing why the competitor is inferior to the product naming it. (ex. Coke and Pepsi)
What are the modern-day responsibilities of a brand manager?
1. Forecasting
2. Marketing Spending
3.Annual Marketing plans
4. Analysis of the business
5. conduct market research
6. developing new innovations for the brand
7. advertising and integrated marketing communications
8. consumer promotions
9. training and development for subordinates
What are the Factors Leading to Price Sensitivity?
1. Costs is small compared to buyers income
2. Switching costs are high
3. hard for buyers to compare suppliers
4. price is strong cue for quality
What are the Pricing Approaches?
1. Cost-Based: PROFIT =
2. Competition-based: charge the same price as competitors or lower our prices
3. Perceived Value: Total perceived benefits - Total perceived cost = customer perceived value
What are the different levels of Distribution Intensity? And provide an example of a product under one of these distributions.
Intensive Distribution: product is in as many outlets as possible (ex. Pepsi)
Selective Distribution: use of more than one, but fewer than all outlets (ex. Yeti)
Exclusive Distribution: Only a limited number of outlets carry the product (ex. Coke Life)
What are the PROS and CONS of Foreign Direct Investment (FDI)?
PROS: Consumer benefits from improved selection, improved competition and improved price, develops rural infrastructure
CONS: Destroys traditional retail sector, puts people out of work
What are the stages of the Product Life Cycle and Promotion?
Intro: Attention and Awareness through advertising and PR (stimulate primary demand)
Growth: Advertisng increase/peaks
Maturity: Advertising decreases; sales promotions peak
Decline: Direct marketing to make sure loyal customers stay supplied
What are the various Advertising Appeals?
Rational Appeal: focuses on benefits offered to customer - quality of product, dependability
Emotional Appeal: high impact on consumers- ex. Human nature, drama, joy, love
Moral Appeal: nudging to make obligation salient- causing consumer to feel as though they should act out of duty
- Habituation: Consumers grow very accustomed to discounts and so they simply wait on the discount to come back (this hurts margins)
- Try to keep familiar and big brands on price promotion
What are some Public Relation examples we learned in class?
- Public Service Announcements (PSAs)
- Herbst's Research Implications for Children's Advertising (ex. new Cheerios commercial)
- Events (ex. Diet Coke and Pride Month)
- Sponsorships (ex. Susan G. Komen)