Download Introduction to Marketing

Introduction to Product
Management
Professor Carl Mela
BA 460 Product Management
Fuqua School of Business
• Brand
Management
System
• On Building
A Brand
• Managing
Across
Brands
Introduction to Product Management–1
Agenda
•
•
•
•
Course Overview
What is a Brand?
Brand Equity
Brand Management
Introduction to Product Management–2
Course Overview
• Objective
• Structure
– Brand Management System
– On Building A Brand
– Managing Across Brands
• Requirements
– 2 case write-ups, class participation,
marketing plan, and final exam.
Introduction to Product Management–3
Structure
• Part I - The Brand Management System
– Class 1: Class Overview, The Nature of a
Brand, Brand/Product Management. An
application to the Pepsi syringe scare.
– Class 2: P&G Case. Live commentary from
P&G.
Introduction to Product Management–4
Structure
• Part II - Building Brands
– Class 3: Branding and Price. The case is
Kodak. Then, Red Hat discusses how its
branding strategy leads to a price
advantage.
– Class 4: Distribution and forecasting.
The Goodyear case. Video regarding the
effect of channel on brand.
Introduction to Product Management–5
Structure
• Part II - Building Brands (Cont.)
– Class 5: Craig Stacey (VP from IRI)
discusses the use of information to build
brands.
– Class 6: Promotions and Brands:
Marketing in the NHL with live
commentary from the Hurricanes
Director of Communications, Ken
Lehrner
Introduction to Product Management–6
Structure
• Part II - Building Brands (Cont.)
– Class 7: Advertising and Brands with
Intel Inside Interactive CDROM. Live
Commentary and Discussion with
Michael J. Ganey, Director, Howard,
Merrell & Partners,Inc.
Introduction to Product Management–7
Structure
• Part III - Across Brands and Markets
– Class 8: The Marketing Plan &
Pharmasim. Tom O’Guinn, Visiting
Professor discusses Brand Communities.
– Class 9: Product Extensions: The Black
and Decker Case and Video
– Class 10: Global Branding: The
Heineken Case, MTV Worldwide, and
The Fuqua MBA with Jim Gray,
Associate Dean, Fuqua.
Introduction to Product Management–8
Structure
• Part III - Across Brands and Markets
– Class 11: Branding on the Internet.
Deborah Kania (Lens Express and
author of branding.com) and Beth Yakel
(Sciquest)
– Class 12: Wrap-up and PharmaSim
Summary.
Introduction to Product Management–9
Agenda
•
•
•
•
Course Overview
What is a Brand?
Brand Equity
Brand Management
Introduction to Product Management–10
What is a Brand?
• Name, term, sign, symbol, or design,
or a combination of them intended to
identify the goods and services of one
seller or groups of sellers and to
differentiate them from those of
competition.” - AMA
• Not all products are brands.
– Focus of Court et al. reading
Introduction to Product Management–11
Why Brand?
•
•
•
•
•
•
•
Identify product
Reduce risk
Reduce consumer search cost
Signal quality
Legal protection
Create product associations
Differentiate product
Introduction to Product Management–12
Agenda
•
•
•
•
Course Overview
What is a Brand?
Brand Equity
Brand Management
Introduction to Product Management–13
Brand Equity
• The marketing effects uniquely
attributable to the brand - Keller
• Positive brand equity leads to:
–
–
–
–
–
Loyalty
Margins
Reduced vulnerability to competition
Enhanced marketing effectiveness
Brand extensions
Introduction to Product Management–14
Brand Equity
• Sources of Brand Knowledge
– Brand Awareness
– Brand Image
• Strength of Brand Associations
• Favorability of Brand Associations
• Uniqueness of Brand Associations
Introduction to Product Management–15
Brand Equity
• Benefits
–
–
–
–
–
–
Loyalty
Larger Margins
Greater Trade Support
More Efficient Communications
Licensing Opportunities
Brand Extension Opportunities
• Coke name worth $39BB, Kodak
$11BB (Brand Valuation Reading)
Introduction to Product Management–16
Best Corporate Reputations
in America
Source: Wall Street Journal / Harris Poll
Introduction to Product Management–17
Brand Equity
• But how does one develop brand
equity?
• The goal of this course is to learn how
to manage brands (via marketing
programs) in order to create brand
equity - that is, create an enduring
advantage for your brands.
Introduction to Product Management–18
Figure 2-9
Building Customer-Based Brand Equity
TOOLS AND OBJECTIVES
KNOWLEDGE EFFECTS
Choosing Brand Elements (4)
Brand name
Logo
Symbol
Character
Packaging
Slogan
}
Memorability
Meaningfulness
Transferability
Adaptability
Protectability
BENEFITS
Brand Awareness (3)
Depth
Recall
Recognition
Greater loyalty
Breadth
Purchase
Consumption
Less vulnerability to competitive
marketing actions and crises
Larger margins
Developing Marketing Programs (5 & 6)
Product
Price
Distribution channels
Communications
Functional & symbolic benefits
Value perceptions
Integrate “Push” & “Pull”
Mix and match options
Leverage of Secondary Associations (7)
Company
Country of origin
Channel of distribution
Other brands
Endorsor
Event
}
Awareness
Meaningfulness
Transferability
Possible Outcome
More elastic response to price
increases
More inelastic response to
price increases
Brand Associations (3)
Strong
Relevance
Consistency
Favorable
Desirable
Deliverable
Unique
Point of parity
Point of difference
Increased marketing communication efficiency and effectiveness
Possible licensing opportunities
More favorable brand extension
evaluations
Introduction to Product Management–19
Agenda
•
•
•
•
Course Overview
What is a Brand?
Brand Equity
Brand Management
Introduction to Product Management–20
Brand Management
• Brand management is the act of
designing and implementing
marketing programs to build and
maintain brand equity.
–
–
–
–
Product
Price
Distribution
Communications
Introduction to Product Management–21
The Role of a Brand or
Product Manager
• Prepare Marketing Plan
• Develop Copy, Programs, and Campaigns
• Stimulate Sales and Distribution
• Market Intelligence
• Product Improvements
Introduction to Product Management–22
The Role of a Brand or
Product Manager
• Pluses
- Cost effective mix, quick market reaction,
attention for small brands, good training for
executives
• Minuses
- Conflict and frustration (responsibility and no
authority), administrative work with executive
expectations, learns products not functions, short
horizon, costs of associates and assistants
Introduction to Product Management–23
A Product Manager Computer Software Firm
• Background
– Undergrad in architecture, became
director of marketing for architecture
firm
– Received MBA
– International marketing manager for
sporting goods company
– Founded a toy company
Introduction to Product Management–24
A Product Manager Computer Software Firm
• Typical day
– Meetings - new product line, marketing
mix, marketing staff, organizational
design and integration
– E-mail/Phone - 3rd party developers,
sales force, product support
• Marketing planning - drafting the
marketing plan
Introduction to Product Management–25
A Product Manager
Computer Software Firm
• Marketing mix - recommends price to
corporate committee, manages
advertising, conducts focus groups for
product positioning and development,
decides on channels
Introduction to Product Management–26
A Product Manager - Consumer
Packaged Goods Firm
• Background
– Medical equipment sales after undergraduate
– Received MBA
– Assistant Brand Manager at large CPG
Company
– Switched firms, promoted several times to
product manager.
– Switched firms again to as senior product
manager
Introduction to Product Management–27
A Product Manager Consumer Packaged Goods Firm
• Typical day
– 75% fighting fires, 25% planning
• Marketing planning - key is volume
forecasting since unsold inventory is
perishable
• Mix - 1/3 on pricing issues (list &
trade), 20% on consumer promotions,
president handles ads, 15% on
distribution, little on sales and service
Introduction to Product Management–28
A Product Manager
Computer Software Firm
• Marketing mix - recommends price to
corporate committee, manages
advertising, conducts focus groups for
product positioning and development,
decides on channels.
Introduction to Product Management–29
The Marketing Department
VP Marketing
Marketing
Administration
New Products
Advertising &
Promotion
Existing Products
Sales
Market Research
Design the Department!!!
Matrix or Tree?
Introduction to Product Management–30
Brand Management Issues
Purchasing
Media
Packaging
Promotion
Services
Salesforce
Product
Manager
R&D
Distribution
Fiscal
Manufacturing
Legal
Publicity
Market
Research
Advertising
Agency
Introduction to Product Management–31
The Nature of the Job
Department
Their Emphasis
Marketing’s Emphasis
R&D
Basic Research, Intrinsic Quality,
Functional Features
Applied Research, Perceived
Quality, Sales Features
Engineering
Long Design Lead Times, Few
Models, Standard Components
Short Lead Times, Many Models,
Custom Components
Purchasing
Narrow Lines, Standard Parts, Price
of Material, Large & Infrequent Lots
Broad Lines, Nonstandard Parts,
Quality of Material, Small Lots
Manufacturing Long Lead Times, Long Runs, Few
Models & Revisions, Standard Orders,
Ease of Fabrication, Average Quality
Short Lead Times, Short Runs,
Many Models, Custom Orders,
Fine Appearance, Tight Quality
Finance
Strict Rationale for Spending, Hard
and Fast Budgets, Pricing Covers
Costs
Intuitive Arguments for Spending,
Flexible Budgets, Pricing to
Market Developments
Accounting
Standard Transactions, Few Reports
Special Terms/Discounts
Credit
Full Disclosures, No Risk, Tough
Terms, Tough Collection
Minimum Disclosure, Some Risk,
Easy Credit, Easy Collection
A Key Trend in Product/Brand
Management
• Salaries and bonus for product
marketers are up 65% in the last two
years (Marketing News, Nov. 99)
Introduction to Product Management–33
Brand Management
Prognostications
• Future of brand management
– Customer management vs. product
management
– Cuts across brands and products
– Managers organized by portfolios of
customers
Introduction to Product Management–34
Summary
• Brand Equity
– Awareness
– Associations
• Created by the mix
• It is the role of a product manager to
manage the mix to create equity
• The brand management system
Introduction to Product Management–35