Marketing Mix Product Six categories of new

Marketing Mix Product

Six categories of new products 1. 2. 3. 4. 5. 6. New-to-the-world products New product lines Additions to existing product lines Improvements and revisions of existing products Repositioning Cost reductions

Why do new products fail? A high-level executive pushes a favorite idea through in spite of negative research findings. The idea is good, but the market size is overestimated. The product is not well designed. The product is incorrectly positioned in the market, not advertised effectively, or overpriced. The product fails to gain sufficient distribution coverage or support. Development costs are higher than expected. Competitors fight back harder than expected.

Factors that tend to hinder new-product development Shortage of important ideas in certain areas Fragmented markets Social and governmental constraints Cost of development Capital shortages Faster required development time Shorter product life cycles

New-product deployment requires specific criteria – one company established the following acceptance Criteria (examples) The product can be introduced within five years The product has a market potential of at least $50 million and a 15 percent growth rate. The product would provide at least 30 percent return on sales and 40 percent on investment. The product would achieve technical or market leadership.

What is a brand ? A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers’ choice. These added emotions and trust help create a relationship between brands and consumers, which ensures consumers’ loyalty to the brands. Brands create inspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers. The branded lifestyles extol values over and above the brands’ product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets. The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics.

The Key To Branding For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

Brand Wars What’s brand wars? Why are companies fighting each other? The main reason for it is that the companies are trying to get more customers and to increase their market. The aim of the battle is to get the customer to buy your product and not the product of the competitor. There are two types of customers: Active and Passive. Active customers know what they want. And passive ones, on the contrary, have no idea of what they want and think for a long time about what product to buy. So, the second group – passive customers – is the bone of contention, the object of fighting in brand wars. Thus, companies are trying to get their customers by many methods. These methods are: improving the quality of goods, then lowering prices and offering discounts, and using advertising, of course. Let’s talk about prices. The brand wars often take the form of price wars. It’s when 2 competing companies are lowering prices more and more until they reach the level of their costs and they just get no profit. Price wars are good for customers but bad for companies as they decrease their profits. So, it’s better to use other methods when fighting in a brand war.

When we hear about the brand wars the first example that comes into our minds is that of the Pepsi-Cola and the Coca-Cola companies. It all started in the 1980 s. PEPSI entered the market 12 years after the Coca-cola company, so it had to launch different campaigns in order to increase sales. The beginning of the brand war was the campaign called Pepsi challenge. It was designed after some people said that coca-cola and Pepsi were identical drinks with no taste difference. At malls, shopping centers and other public places, a Pepsi representative set up a table with two blank cups, one with Pepsi and one with Coke. Shoppers were encouraged to taste both colas, and then select which drink they preferred. Then the representative revealed the two bottles so the taster could see whether they preferred Coke or Pepsi. If Pepsi was revealed, the shopper was given a small prize. But some participants recall that the two beverages were served to them at different temperatures. The Pepsi sample was served chilled but the Coca-Cola was at room temperature, thus making it less appealing than the Pepsi Stuff is a marketing strategy and global campaign launched by Pepsi. Co during which people were to collect Pepsi points and then purchase stuff with them. Celebrities like Cindy. Crawford, Britney Spears, Shaquille O'Neal, Shakira, David Beckham, and the Spice Girls appeared in TV, print, outdoor, in-store, Internet, and catalog advertising promoting Pepsi Stuff. In 2005, nine years after Pepsi Stuff was first launched, The Coca-Cola Company launched i. Coke, a very similar program in which consumers collect points printed on packages.

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

The objectives that a good brand will achieve include: Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty

Critical to effective brand management is the clear definition of the brand's audience and the objectives that the brand needs to achieve. What are the objectives that you hope to achieve with your brand? Your brand should be comprised of the company personality, image, core competencies and characteristics. The impressions that you make as well as the words people will use to describe your company to others, are the basic framework of your brand. With a strong brand you build credibility, have more influence on your market, and motivate customers and clients to purchase from you. If done correctly your company will be looked at as a leader not a follower.

To determine your brand objectives ask yourself the following question: What is it that you want your brand to do for your company? What do you want others to know and say about your products or services? Sample objectives may include: Being recognized by receiving a specific award Picking up a certain number of choice projects Gaining a specific number of new clients in the next year Positioning your company as an industry leader in the next five months

Branding is a way of clearly highlighting what makes product or service different to, and more attractive than, the competitors'. A brand goes much deeper than just the company logo. You could define a brand as a set of associations that an existing or potential customer has of a company, product, service or individual. These associations can be the result of company marketer's efforts and actively promoted through marketing and corporate identity. Branding also reflects the customers' experiences of company business and affects every interaction the company has with the customers and suppliers. The intelligent use of design, advertising, marketing, service proposition, and corporate culture can all help to generate associations in people's minds that will benefit business.

Successful branding is about promoting your strengths. You need to be sure that you can always deliver your promises using these strengths, sometimes referred to as 'brand values'. You can start by thinking about what your business is good at and what you believe in as a business. For example: the particular skills your business has your high-quality customer service the best value for money you provide in your marketplace your innovative approach

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact. Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot. A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without.

BRAND VALUE Brand Finance is an independent intangible asset valuation consultancy. It advises strongly branded organisations, or those with valuable intangible assets, on how to maximise their value through effective management of their brand other intangible assets. Brand Finance has been certified with ISO 10668

http: //brandirectory. com / The definitive online encyclopedia of brands Best Global Brands 2012 № 1 in 2012 Apple Brand Value $70, 605 m

№ 2 GOOGLE Brand Value $47, 463 m № 3 MICROSOFT Brand Value $45, 812 m № 4 IBM Brand Value $39, 135 m

№ 5 WALMART Brand Value $38, 320 m № 6 SAMSUNG Brand Value $38, 197 m № 7 General Electric Brand Value $33, 214 m

№ 8 Coca-Cola Brand Value $31, 082 m № 9 Vodafone Brand Value $30, 044 m № 10 Amazon. com Brand Value $28, 665 m

When creating your brand strategy for a product or service it is important to perform a careful analysis to determine principal barriers that you may come in contact with. These barriers are also known as market conditions that can keep your product or service from achieving success. For example they could include the following: Competition Timing Financing Location Lack of Demand

In order to be prepared to face these obstacles or barriers it is important to spend time doing a careful analysis of your product or service. This analysis will assist you not only in the development of your brand, but also in the positioning of your product or service. A careful and thorough analysis will assist you in answering the following questions: Do you have a niche market? What problem does your product or service solve or need? How should you determine the price of your product or service? Who are your potential customers and where can you find them? Who are your biggest competitors? What can you do better than them? How should you advertise? Where will you find your target market? Will you use new media or traditional media?