Module 1: Introduction to IBM

1. Module 1:Introduction to IBM

2. Module 1:Introduction to IBM • Concept of category and product • Concept of Brand & Evolution of Brand • Category attractiveness and competitor analysis • Product strategy over life cycle • New product development

3. Fiscal Sales Research and development Manufactur-ing and distribution Media Market research Legal Publicity Purchasing A Product Manager’s Potential Interactions Agency media department Company media department Media sales reps Suppliers Advertis-ing agency Trade Premium suppliers Premium screening Store testing Sampling Couponing Suppliers Promotion services Packaging Productmanager Designers Researchers Suppliers Research suppliers Trade

4. Product-Focused Structure Head of company/division Manufacturing Marketing Finance Corporate communications Marketing Research Product management Support Manager of product B Manager of product A Manager of product C

5. Brand: The beginning • Searing of flesh with a hot iron to produce a scar or mark with an easily recognizable pattern for identification purpose • Livestock were branded by the Egyptians as early as 2000BCE. • The practice was brought to North America in the sixteenth century by the Spanish conqueror Hernan Cortes (1485-1547)

6. Brand: The evolution • 1882: Harley Procter named his generically named ‘white soap’ as ‘Ivory Soap’: an idea that apparently came to him while reading a psalm in church • In December of that year, ‘Ivory’ got a slogan ‘’99 and 44/100% pure’ • 1888, in Janesville, Wisconsin, George Safford Parker named each pen produced by his company a ‘Parker Pen’ • In Europe, food industry provided the first brand names such as Nestle, Cadbury, Kellogg

8. Best Global Brands 2009

9. Summary of INTERBRAND top 100 Global Brands 2008 http://www.superbrandsindia.com/sb07_brands.htm :: Superbrands India ::

10. What is a brand? A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identity the goods or services of one seller or group of sellers andtodifferentiate them from those of competitors - American Marketing Association

11. “A product is an object or service that’s available. A brand is a complex set of satisfactions delivered.” Jeremy Bullmore, WPP “Branding is a natural, instinctive human creation. A way of making a complicated world simpler. With a brand, you get a symbol, a cue - you know what you’re getting, you know what to expect.” Niall Fitzgerald, Unilever How others define a brand

12. Or put another way Brand/flesh Personality Country of origin and history Product/stone Functional benefits Attributes Uses Quality Value Symbols Corporate associations User imagery Brand/customer relationships Self-expressive benefits Emotional benefits

13. SO, Brands can reduce risk in product decisions. There are many different types of risks that consumers may perceive in buying and consuming a product: 1. Functional Risk 2. Physical Risk 3. Financial Risk 4. Social Risk 5. Psychological Risk 6. Time Risk

14. Defining the Competitive Set

15. Bases of Competition • Customer-oriented Who they are – competition for same budget When they use it Why they use it- benefits sought • Marketing-oriented: advertising and promotion Theme/copy strategy Media Distribution Price

16. Bases of Competition cont. • Resource-oriented Raw materials Employees Financial resources • Geographic

17. Beers Ice cream Tea Regular colas Diet lemon limes Diet-Rite cola Wine Product form competition: Diet colas Diet Pepsi Diet Coke Juices Fast food Fruit flavored colas Product category competition: Soft drinks Video rentals Lemon limes Bottled water Generic competition: Beverages Coffee Baseball cards Budget competition: Food and entertainment Levels of Competition

18. Levels of Competition: Implications for Product Strategy Competitive Level Product Management Task Product Form Convince Customers that the Brand is Better than Others Convince Customers that the Product Form is Best in the Category Product Category Generic Convince Customers that the Product Category is the Best Way to Satisfy Needs Budget Convince Customers that the Generic Benefits are the Most Appropriate Way to Spend their Money

19. Category Attractiveness Analysis

20. Aggregate Category Factors • Category size • Category growth • Stage in product life cycle • Sales cyclicity • Seasonality • Profits

21. Category Attractiveness over the Product Life Cycle Sales Stage of product life cycle Time Decline Moderate Negative Low Introduction Small Low Low Maturity Large Low Low/high Growth Moderate High High Category size Category growth Category attractiveness

23. Category Factors • Threat of new entrants • Bargaining power of buyers • Bargaining power of suppliers • Current category rivalry • Pressure from substitutes • Category capacity

24. Customer Analysis: What We Need to Know about Current and Potential Customers • Who buys and uses the product • What customers buy and how they use it • Where customers buy • When customers buy • How customers choose • Why they prefer a product • How they respond to marketing programs • Will they buy it (again)?

25. Basic Customer Strategies • Customer acquisition • Customer retention • Customer expansion • Customer deletion

26. New-Product Development

27. New-To-The-World New Product Lines Six Categories of New Products Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products Categories of New Products

28. New-Product Development Process Marketing Strategy Business Analysis Concept Development and Testing Product Development Idea Screening Test Marketing Idea Generation Commercialization

29. Sources ofNew-ProductIdeas Customers Employees Distributors Competitors R & D Consultants Creative Thinking Idea Generation “you could not help but notice that there were three or four family members on a scooter, the kid standing in the front, the guy driving the scooter and the wife sitting side saddle holding a little kid. And when you're driving a car, you certainly say, Oh my god, be careful, they may slip. Add to that slippery roads and night time too.”

30. Idea Screening • The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason. • Many companies have systems for rating and screening ideas which estimate: • Market Size • Product Price • Development Time & Costs • Manufacturing Costs • Rate of Return • Strange New Products

31. 1. Develop New Product Ideas into Alternative Detailed Product Concepts New Product Development ProcessStep 3. Concept Development & Testing 2. Concept Testing- Test the New Product Concepts with Groups of Target Customers 3. Choose the One That Has the Strongest Appeal to Target Customers

32. New Product Development ProcessStep 4. Marketing Strategy Development Marketing Strategy Statement Formulation Part One Describes Overall: Target Market Planned Product Positioning Sales & Profit Goals Market Share Part Two Describes Short-Term: Product’s Planned Price Distribution Marketing Budget Part Three Describes Long-Term: Sales & Profit Goals Marketing Mix Strategy

33. Demand Considerations in Business Analysis Stage Cost Sales Profitability Step 5. Business Analysis apple-history.com :: iPod

34. Step 6. Development • Creation of prototype • Marketing strategy • Packaging, branding, labeling • Manufacturing feasibility • Final government approvals if needed

35. New Product Development ProcessStep 7. Test Marketing Budget Levels Product Packaging Positioning Strategy Branding Advertising Distribution Pricing Test Marketingis the Stage Where the Product and Marketing Program are Introduced into More Realistic Market Settings. Elements that May be Test Marketed by a Company

36. New Product Development ProcessStep 8. Commercialization Commercialization is the Introduction of the New Product into the Marketplace. Where? When? Whom? How?

37. Why New Products Fail • No discernible benefits • Poor match between features and customer desires • Overestimation of market size • Incorrect positioning • Price too high or too low • Inadequate distribution • Poor promotion • Inferior product

39. From Product to Brand

40. Why do Brands matter?

41. For Consumers Identification of Product Source Risk reducer Reduces search costs Symbolic of self image Signal of Quality Assignment of responsibility

42. For Manufacturers Identification to simplify handling or tracing Legal Protection Signal of Quality Level Competitive Advantage Financial Returns

43. Contracting with a Brand A Brand is a contract, carved in stone and long (ever ?) lasting contrat with the final consumer with her own environment This is a two ways contract (return contract ?) Historical / MemoryFuture / Project

44. The Moral Contract of a Brand Battle Field Existence (Identity) Utility (Functions/Values) Target Acceptance

45. MENTAL MAPS Portrays salient brand associations and responses for a particular target market Reflect how brand is perceived by consumers Beliefs Attitudes Opinion Feelings Images Experiences

47. THANK YOU