Brand Management and 7Ps of Marketing PDF

Brand Name is a name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace. Brand management is the supervision of the tangible and intangible elements of a brand. Tangibles elements: product, packaging, price and location. Intangible elements: per...

Brand Name is a name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace. Brand management is the supervision of the tangible and intangible elements of a brand. Tangibles elements: product, packaging, price and location. Intangible elements: perception and relationship of the customers with the brand. Brand name is a major differentiator of the entrepreneur against competitors. Goals of branding: Branding is the process of integrating the strategies formed from marketing mix to give identity to the product or service Establishing that the business is reliable & trustworthy & that the product or service is the superior solution to their current problem. Differentiating w/ competitors. Driving customer loyalty & retention Characteristics of a brand name Unique Extendable Easy to remember Can describe the benefits of the product or service Can be converted to other dialects or languages in case the entrepreneur expand to other territories Can describe a product category Can describe concrete qualities Positive and inspiring The Marketing Mix: The 7P’s of Marketing  The Marketing Mix The Marketing Mix is a widely accepted strategic marketing tool that combines the original 4Ps (product, place, price, promotion) with the additional 3Ps (people, product, process) in formulating marketing tactics for a product or service. 7  Product A product is any physical good, service, or idea that is created by an entrepreneur or an innovator in serving the needs of the customers and addressing their existing problems. The three-level concept of products or services Level 1: Core Benefits of the Product or Service Level 2: Physical Characteristics of the Product or Service Level 3: Augmented Benefits of the Product or 8 Service  Product Level 1: Core Benefits of the Product or Service The core benefits of a product or service are the major factors why a customer buys a product or avails of a service. For example, a customer buys coffee because he or she wants to feel energetic and alert the whole day. 9  Product Level 2: Physical Characteristics of the Product or Service – the second layer of selection. 10  Product Level 3: Augmented Benefits of the Product or Service – additional benefits. The differentiator comes from the physical evidence, customer experience, or the augmented benefits. 11  Place The place refers to a location or the medium of transaction. A strategic location depends on the nature of the business and the primary target market. 12 Place 13  Place It is also called as the distribution channel. Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. 14  Place One of the major objectives of the entrepreneur for place is to provide customers with pleasant experience in buying the product or availing of the service so that they will keep on coming back whether on-site or online. 15  Price Price is the peso value that the entrepreneur assigns to a certain product or service after considering its costs, competition, objectives, positioning, and target market. 16 Pricing Strategies This refers to two or more products or 1.Bundl service in one reduced price. ing 17  Pricing Strategies 2. Penetration Pricing This refers to setting low prices to increase market share, but the entrepreneur will eventually increase the price once the desired market share is achieved. 18  Pricing Strategies 3. Skimming Prices are initially high and then they are lowered to offer the product or service to a wide market 19  Pricing Strategies 4. Competitive Pricing This refers to benchmarking prices with the competitors. 20  Pricing Strategies 5. Product This refers to pricing different products or services line within a parallel product array Pricing using varying price points. ₱ 983,000 - ₱ 1,303,000 - 21 1,100,000 1,665,000 Pricing Strategies 6. Psychological This considers psychology and positioning of price in the market. 22  Pricing Strategies 7. Premium. pricing This refers to setting a very high price to reflect elitism and superiority. 23  Pricing Strategies 8. Optional Pricing – This refers to adding an extra product or service on top of the original to generate more revenue. 9. Cost-based Pricing – The basis of markup is cost of sales. 10. Cost Plus Pricing – The markup is based on a certain percentage of cost. 24  Two Classification of Costs 1.Variable costs or controllable costs – These costs are directly proportional to the number of products manufactured or to the number of services performed. 2.Fixed costs or uncontrollable costs – These are costs not directly proportional to the manufacturing of a product or to the performance of the service. 25  General Pricing Guidelines The entrepreneur must follow these general pricing guidelines to make the business sustainable and thriving: 1. Do not price the product or service below its cost. 2. Monitor competitors’ prices and ensure that your prices are at par with them unless the product or service is really way superior to the competitors’ 3. Align prices with the other 6Ps (product, place, promotion, people, packaging, and processing) 4. Implement price strategies that are relevant to 26your  Promotion Promotion involves presenting the products or services to the public and how these can address the public’s needs, wants, problems, or desires. In promotion, the primary target market should be identified because it will become the main audience. The main goal of promotion is to gain attention. Key marketing messages for promotion can be the following : (1) value proposition or unique selling proposition of the product or service; (2) product of 27 service image; (3) business image; or (4) business  Promotion Promotional tools: 1. Advertising – This is a type of communication that influences the behavior of a customer to choose the product or service of the entrepreneur over the competitors. 28  Promotional Tools The objectives of advertising includes the following: informing, educating and familiarizing the public with the product or service offering building trustworthy image Increasing sales 29  Promotional Tools The entrepreneur can choose to advertise through the following: Television Radio Internet Mobile phones Print Out-of-home 30  Promotional Tools 2. Selling - This is the act of trading a product or service for a price or a fee. The entrepreneur must identify the target customers who will likely buy the product or service. 3. Sales Promotions – These are short-term promotional gimmick wherein practical incentives and appealing activities are 31 incorporated to entice the customers to buy the  Sales Promotions in the Philippines Sales discounts or discounts coupons Raffles Contests and games Promo items Product or service bundles Trade fairs or exhibit Sample distributions or free taste/free trials Premiums Point-of-purchase Advertising specialties Rewards 32  Promotional Tools 4. Public relations - These are image- building initiatives of the entrepreneur to make the name of the business reputable to stakeholders, such as the target customers, government agencies, business partners, media, and the public. 33  Public Relation Strategies Press conferences Launching events Strong media relations through press kits Social responsibility events Web public relations 34  People People is one of the three additional Ps in the marketing mix. People are the most important element of any service or experiences. How they serve or treat customers will affect their buying behavior. People should know their duties and responsibilities to know their purpose clearly and serve customers well. 35 35 Packaging 36  Packaging Packaging is how the product or service is presented to customers. It is the overall identification (look and feel) of the product or service. This will determine the uniqueness of the product from competitors. This is the first element that customers see because they don’t know what’s inside yet. Packaging is very important in selling physical products or goods, as it establishes the brand's identity, 37 as well as its unique selling proposition.  Packaging Packaging’s ultimate goal is to entice customers to purchase the product or service. Packaging plays a vital role in persuading a customer to try a product or avail of a service base on what he or she has seen. In fact, sometimes packaging matters more than the product or service itself. 38  Process Process is defined as a step-by- step procedure or activity workflow that the entrepreneur or employees follow to effectively and efficiently serve customers. 39 THANKS! 40