Marketing Management
?Review of Last Session/Housekeeping
?New Developments
?Product Management
–PLC
–Boston Box
?Brand Management
–Pillars
–‘Positioning’ via the pillars
?Case Exercise
?Questions/Reading for next week
Fiat targets Chinese market
Fiat hopes to sell
20,000 models in China
this yearItalian c manufacturer Fiat is launching a specially designed version of its Palio model
for the Chinese market,
Fiat is hoping to sell 20,000 of the vehicles in China this year,and 50,000 in 2003,
Despite its huge population,China only has five million cars on the road - 750,000 of
which were registered last year,
Manufacturers are increasingly keen to tap into a potential market of more than 1.3
billion people,many of whom are growing increasingly wealthy,
On-going expansion
Fiat's UK chief executive,Richard Gadeselli,told the BBC's World Business Report that
the cars would be produced in Nanjing in a joint venture with Yeujin Motor Group,
The plant will be located near an Iveco truck plant which Fiat opened in the mid-80s,
Mr Gadeselli emphasised that the models produced in China would not be exactly the
same as those manufactured in Italy,
"The common factor in these developing markets is that the road infrastructure isn't as
well produced as it is in a mature market such as North America,Japan or Europe," he
said,
This means that the suspension systems need to be more rugged,
The Palio project is part of a concerted push by Fiat to develop increase its sales in
emerging markets,
The Palio was first launched in 1996 in Brazil,followed by Argentina,
"We have (since) opened production hubs in Turkey,Poland,Egypt,South Africa,India,
Vietnam,China - and the next one will be Russia," said Mr Gadeselli,
The Product/Service
? Definition:-
– That bundle of benefits which is received
in the exchange process
? Health Club Membership
? A visit to Cadbury world
? Lynx Deodorant
? Caterpillar Earth Movers
Note:-
People buy benefits not products:-
The Product and the Brand
Installation
Packaging
Features
StylingQuality
Brand
name Core
benefit or
service
‘Promises’/Guarantees
After
Sales
Service
Delivery
Augmented Product
Tangible (or actual)
Product
Brand Potential
Adapted from Peter Doyle,
Marketing Management and
Strategy,Prenctice Hall,1994
Core Product
Credit
Ansoff?s Product/Market Growth
Matrix
Market
Penetration
or
Expansion
Product
Development
Market
Development
Diversification
Products NewExisting
Existing
New
Markets
H.I.Ansoff (1957),Strategies for Diversification,Harvard Business Review
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
The Product Life Cycle
PLC Useful or Useless?
? Useless
– Many external/uncontrollable factors
influence life cycle
– Not empirically supported
– The ‘s’ shaped curve doesn’t appear much
in practice – and then only class life cycle
– Which life cycle?
? Brand,form or class?
PLC Useful or Useless?
? Useful
– Describes what may happen; doesn’t prescribe
what will happen
– Describes what may happen; doesn’t prescribe
what will happen
– Allows strategic planning for products
– Intuitively all products go through life cycle
stages
– Allows for managing the mix over time/life
cycle stages
? For Fuller list – refer to Jobber,Ch,8
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
The Product Life Cycle
Product?
Price?
Promotion?
Place?
Check out Jobber re details of Mix
planning from PLC analysis
Product Life Cycle concept was used
to launch & grow the MSc degree!!
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
Cameras -Which Product Life Cycle
Class PLC -
Cameras
Form PLC –
Disposable,
APS,Digital
SLR,Cameras
Brand PLC – Fuji Digital Camera
Which one? A2600,A204,A4800
Portfolio Models -
Boston Consulting Group Matrix
STARS
￡ IN +++
￡ OUT - - -
0
QUESTION
MARKS
￡ IN +
￡ OUT - - -
- -
CASH
COWS
￡ IN +++
￡ OUT -
++
DOGS
￡ IN +
￡ OUT -
0
HIGH
Low
Market
growth
rate
High Low
Relative market share
Question
? Can you Critically Evaluate two product
management models using good
examples to illustrate your answer
What is a Brand?
? A brand is a name,term,sign,
symbol,or design or a combination
of them intended to identify the
goods and services of one seller and
to differentiate them from those of
the competition
- (Bennett,P.D.,1998,AMA)
Branding Basics
? Brands through History
? Brands v Products
- Products are:-
Made in Factories
largely copiable
potentially short lived
Branding Basics Cont?d.
? Brands are:-
– What the customer buys
– the receptical of the emotional values over
and above the functional values of the
product/service
– much more difficult to copy and thus
compete with
– a major potential source of differentiation
– longer-lived - brands can transcend the
original product/service,It is the
product’s DNA.
An example,The value of the
Rowntree brands
Kit Kat Lion
Quality
Street
After Eight Smarties
Book value, SFr,762 m.
Market value, SFr,
3000 m.
Nestlé paid, SFr,4500 m.
Brand Architecture and Equity
Brand Knowledge
Br
an
d H
eri
tag
e
Co
re
Va
lue
s
Br
an
d T
err
ito
ry
Br
an
d P
ers
on
ali
ty
Br
an
d P
rop
ert
ies
Brand Loyalty
Brand
Equity
Brand Architecture
1,Brand Heritage
- The brand brings …
2,Core Brand Values
- The brand means …
3,Brand Territory
- The brand competes in …
4,Brand Personality
- The brand is like…
5,Brand Properties
- The brand owns,..
Landrover
Example
According to Nestlé,the strength of the
brand?s positioning is built on five
“pillars”:
Brand Architecture
1,Brand Heritage
- The brand brings …
2,Core Brand Values
- The brand means …
3,Brand Territory
- The brand competes in …
4,Brand Personality
- The brand is like…
5,Brand Properties
- The brand owns,..
Landrover
Example
According to Nestlé,the strength of the
brand?s positioning is built on five
“pillars”:
50 years of Tradition.
Britishness,Royalty?
4X4 Market,Outdoors.
Adventure Market etc.
Male,Extrovert,Quietly
Assured,Informal
?conservative?.Logo,Brand Oval,BRG
and Gold,Shape
Guts,Authenticity,
Originality,Ruggedness,
Capability
Brand Architecture - Try It Yourself!!
1,Brand Background
- The brand brings …
2,Brand Core Values
- The brand means …
3,Brand Territory
- The brand competes in …
4,Brand Personality
- The brand is …
5,Brand Properties
- The brand owns,..
Your Brand Example
According to Nestlé,the strength of the brand?s positioning is built
on five,pillars”:
Question
? Can you explain the importance of
brand positioning for the building of a
successful brand?
? What examples are relevant to this
answer
Müller Case Question
? Volunteer Group – Answer Qs 1 and 3
Next Week
? Read ch,9 in Jobber
? Address the Müller case again – Q2
? Describe Müller’s brand positioning
? Use the 8 stage new product
development process to analyse
Müller’s new product development
process
? NB This replaces the SWATCH CASE!!!
?Review of Last Session/Housekeeping
?New Developments
?Product Management
–PLC
–Boston Box
?Brand Management
–Pillars
–‘Positioning’ via the pillars
?Case Exercise
?Questions/Reading for next week
Fiat targets Chinese market
Fiat hopes to sell
20,000 models in China
this yearItalian c manufacturer Fiat is launching a specially designed version of its Palio model
for the Chinese market,
Fiat is hoping to sell 20,000 of the vehicles in China this year,and 50,000 in 2003,
Despite its huge population,China only has five million cars on the road - 750,000 of
which were registered last year,
Manufacturers are increasingly keen to tap into a potential market of more than 1.3
billion people,many of whom are growing increasingly wealthy,
On-going expansion
Fiat's UK chief executive,Richard Gadeselli,told the BBC's World Business Report that
the cars would be produced in Nanjing in a joint venture with Yeujin Motor Group,
The plant will be located near an Iveco truck plant which Fiat opened in the mid-80s,
Mr Gadeselli emphasised that the models produced in China would not be exactly the
same as those manufactured in Italy,
"The common factor in these developing markets is that the road infrastructure isn't as
well produced as it is in a mature market such as North America,Japan or Europe," he
said,
This means that the suspension systems need to be more rugged,
The Palio project is part of a concerted push by Fiat to develop increase its sales in
emerging markets,
The Palio was first launched in 1996 in Brazil,followed by Argentina,
"We have (since) opened production hubs in Turkey,Poland,Egypt,South Africa,India,
Vietnam,China - and the next one will be Russia," said Mr Gadeselli,
The Product/Service
? Definition:-
– That bundle of benefits which is received
in the exchange process
? Health Club Membership
? A visit to Cadbury world
? Lynx Deodorant
? Caterpillar Earth Movers
Note:-
People buy benefits not products:-
The Product and the Brand
Installation
Packaging
Features
StylingQuality
Brand
name Core
benefit or
service
‘Promises’/Guarantees
After
Sales
Service
Delivery
Augmented Product
Tangible (or actual)
Product
Brand Potential
Adapted from Peter Doyle,
Marketing Management and
Strategy,Prenctice Hall,1994
Core Product
Credit
Ansoff?s Product/Market Growth
Matrix
Market
Penetration
or
Expansion
Product
Development
Market
Development
Diversification
Products NewExisting
Existing
New
Markets
H.I.Ansoff (1957),Strategies for Diversification,Harvard Business Review
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
The Product Life Cycle
PLC Useful or Useless?
? Useless
– Many external/uncontrollable factors
influence life cycle
– Not empirically supported
– The ‘s’ shaped curve doesn’t appear much
in practice – and then only class life cycle
– Which life cycle?
? Brand,form or class?
PLC Useful or Useless?
? Useful
– Describes what may happen; doesn’t prescribe
what will happen
– Describes what may happen; doesn’t prescribe
what will happen
– Allows strategic planning for products
– Intuitively all products go through life cycle
stages
– Allows for managing the mix over time/life
cycle stages
? For Fuller list – refer to Jobber,Ch,8
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
The Product Life Cycle
Product?
Price?
Promotion?
Place?
Check out Jobber re details of Mix
planning from PLC analysis
Product Life Cycle concept was used
to launch & grow the MSc degree!!
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
Cameras -Which Product Life Cycle
Class PLC -
Cameras
Form PLC –
Disposable,
APS,Digital
SLR,Cameras
Brand PLC – Fuji Digital Camera
Which one? A2600,A204,A4800
Portfolio Models -
Boston Consulting Group Matrix
STARS
￡ IN +++
￡ OUT - - -
0
QUESTION
MARKS
￡ IN +
￡ OUT - - -
- -
CASH
COWS
￡ IN +++
￡ OUT -
++
DOGS
￡ IN +
￡ OUT -
0
HIGH
Low
Market
growth
rate
High Low
Relative market share
Question
? Can you Critically Evaluate two product
management models using good
examples to illustrate your answer
What is a Brand?
? A brand is a name,term,sign,
symbol,or design or a combination
of them intended to identify the
goods and services of one seller and
to differentiate them from those of
the competition
- (Bennett,P.D.,1998,AMA)
Branding Basics
? Brands through History
? Brands v Products
- Products are:-
Made in Factories
largely copiable
potentially short lived
Branding Basics Cont?d.
? Brands are:-
– What the customer buys
– the receptical of the emotional values over
and above the functional values of the
product/service
– much more difficult to copy and thus
compete with
– a major potential source of differentiation
– longer-lived - brands can transcend the
original product/service,It is the
product’s DNA.
An example,The value of the
Rowntree brands
Kit Kat Lion
Quality
Street
After Eight Smarties
Book value, SFr,762 m.
Market value, SFr,
3000 m.
Nestlé paid, SFr,4500 m.
Brand Architecture and Equity
Brand Knowledge
Br
an
d H
eri
tag
e
Co
re
Va
lue
s
Br
an
d T
err
ito
ry
Br
an
d P
ers
on
ali
ty
Br
an
d P
rop
ert
ies
Brand Loyalty
Brand
Equity
Brand Architecture
1,Brand Heritage
- The brand brings …
2,Core Brand Values
- The brand means …
3,Brand Territory
- The brand competes in …
4,Brand Personality
- The brand is like…
5,Brand Properties
- The brand owns,..
Landrover
Example
According to Nestlé,the strength of the
brand?s positioning is built on five
“pillars”:
Brand Architecture
1,Brand Heritage
- The brand brings …
2,Core Brand Values
- The brand means …
3,Brand Territory
- The brand competes in …
4,Brand Personality
- The brand is like…
5,Brand Properties
- The brand owns,..
Landrover
Example
According to Nestlé,the strength of the
brand?s positioning is built on five
“pillars”:
50 years of Tradition.
Britishness,Royalty?
4X4 Market,Outdoors.
Adventure Market etc.
Male,Extrovert,Quietly
Assured,Informal
?conservative?.Logo,Brand Oval,BRG
and Gold,Shape
Guts,Authenticity,
Originality,Ruggedness,
Capability
Brand Architecture - Try It Yourself!!
1,Brand Background
- The brand brings …
2,Brand Core Values
- The brand means …
3,Brand Territory
- The brand competes in …
4,Brand Personality
- The brand is …
5,Brand Properties
- The brand owns,..
Your Brand Example
According to Nestlé,the strength of the brand?s positioning is built
on five,pillars”:
Question
? Can you explain the importance of
brand positioning for the building of a
successful brand?
? What examples are relevant to this
answer
Müller Case Question
? Volunteer Group – Answer Qs 1 and 3
Next Week
? Read ch,9 in Jobber
? Address the Müller case again – Q2
? Describe Müller’s brand positioning
? Use the 8 stage new product
development process to analyse
Müller’s new product development
process
? NB This replaces the SWATCH CASE!!!
