Marketing Management
?Review of Last Session/Housekeeping
?New Developments
?Brand Management
–Pillars
–?Positioning? via the pillars
?NPD
–8 stage process v Landrover practice
?Case Exercise
?Questions/Reading for next week
Question – Who is this man
Is he more valuable than David Beckham
OREO,the largest international biscuit in more than 100 countries,was
introduced in 1912,and today this cream-filled chocolate cookie is a
household name worldwide,Major Markets,Argentina,China,
Indonesia,Taiwan,Thailand,Venezuela
Chips Ahoy!,a sweet snack with real milk chocolate chips baked
into every crispy bite,Chips Ahoy! is introducing the chocolate chip
cookie to the world,Major Markets,Brazil (Chocooky),Central
America,China,Ecuador,Indonesia,Philippines,Taiwan,Venezuela
RITZ,these buttery,flaky crackers are a global favorite,perfect with
spreads,in soups or by themselves,Major Markets,Central America,
China,Ecuador,Hong Kong,Indonesia,Peru,Taiwan,Thailand,
Venezuela
Trakinas,a cookie geared towards children and featuring
playful faces on top that add fun to each bite,Major Markets,
Brazil,Central America,China,Indonesia,Thailand
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 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.
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”:
Innovation
? Life Cycle/BCG Implications
? Being the Leader provides advantages
? Better Mousetrap?
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
The Product Life Cycle
Leader Advantages*
10% 20% 30%
PIONEER
FAST FOLLOWER
LATE ENTRANT
AVERAGE MARKET SHARE
M
AR
KET
EN
TR
Y
ST
RA
TEG
Y
* W.T.Robinson,(1984),”Market Pioneering and Sustainable Market Share Advantages”
PIMS* and Pioneer Advantage
? The Profit Impact of Marketing Strategy
research is based on @ 3000 SBU’s in 450
companies in the US.
– 70% of SBU’s with the leading market share
were ‘one of the pioneers’
– Only 40% of the SBU’s with less than a leading
market share were pioneers
? *Buzzell,R,and Gale,B,(1987),The PIMS Principles:Linking Strategy to
Performance,Free Press
Emerson Was Wrong
?If a man can write a better book,preach a better sermon,
or make a better mousetrap than his neighbor,though he
builds his house in the woods the world will make a beaten
path to his door.
?Ralph Waldo Emerson (1803-82),U.S,essayist,philosopher and poet
?If you only build a better mousetrap,the world will not
beat a path to your door.
?How will the world know you have the mousetrap?
?Who cares? Only those who have mice -And wish they didn't
?And don't like cats
?And then,they have to Understand how to operate it
?Have something to offer you in exchange
?And before long,a better mouse will come along!
New Product
strategy
Idea Generation
Screening
Concept testing
Business Analysis
Product Development
Market Testing
Commercialisation
Source,Cooper and
Kleinschmidt,1986,
Journal of Product
Innovation
Management
The New Product Development (NPD) Process
The NPD Process
?,We should note that new products pass
through each stage at varying speeds; some
may dwell at a stage for a long period while
others may pass through very quickly”
– Jobber,Principles and Practice of Marketing,p,298
? What will determine this progress?
Types of New Products
20% 10%
26% 26%
11% 7%
New
product
Lines
Ne
w
to t
he
C
om
pan
y
High
Low
New to the marketLow High
New to
the world
products
Improvements
to existing products
Cost reductions
Additions to
exiting product
line
Repositioning
Source:-Booz,Allen and Hamilton,1982
Landrover Video Case
? Discuss the sort of NPD process that the
Discovery went through
? How might the Diffusion of Innovation
process have been used to guide the
Discovery’s commercialisation
Müller Case Question
? Volunteer Group – Answer Qs 2
? In own time,identify the NPD process for
Muller yoghurt in the UK
? Appreciate the likely NPD differences for
extensions v ‘new to the world’ products
Next Week
? Read ch,11 in Jobber
– NB NOT Ch 12&13 as per the module outline
? 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
?Brand Management
–Pillars
–?Positioning? via the pillars
?NPD
–8 stage process v Landrover practice
?Case Exercise
?Questions/Reading for next week
Question – Who is this man
Is he more valuable than David Beckham
OREO,the largest international biscuit in more than 100 countries,was
introduced in 1912,and today this cream-filled chocolate cookie is a
household name worldwide,Major Markets,Argentina,China,
Indonesia,Taiwan,Thailand,Venezuela
Chips Ahoy!,a sweet snack with real milk chocolate chips baked
into every crispy bite,Chips Ahoy! is introducing the chocolate chip
cookie to the world,Major Markets,Brazil (Chocooky),Central
America,China,Ecuador,Indonesia,Philippines,Taiwan,Venezuela
RITZ,these buttery,flaky crackers are a global favorite,perfect with
spreads,in soups or by themselves,Major Markets,Central America,
China,Ecuador,Hong Kong,Indonesia,Peru,Taiwan,Thailand,
Venezuela
Trakinas,a cookie geared towards children and featuring
playful faces on top that add fun to each bite,Major Markets,
Brazil,Central America,China,Indonesia,Thailand
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 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.
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”:
Innovation
? Life Cycle/BCG Implications
? Being the Leader provides advantages
? Better Mousetrap?
Time
0
Introduction
stage
Growth
stage
Maturity
stage
Decline
stage
The Product Life Cycle
Leader Advantages*
10% 20% 30%
PIONEER
FAST FOLLOWER
LATE ENTRANT
AVERAGE MARKET SHARE
M
AR
KET
EN
TR
Y
ST
RA
TEG
Y
* W.T.Robinson,(1984),”Market Pioneering and Sustainable Market Share Advantages”
PIMS* and Pioneer Advantage
? The Profit Impact of Marketing Strategy
research is based on @ 3000 SBU’s in 450
companies in the US.
– 70% of SBU’s with the leading market share
were ‘one of the pioneers’
– Only 40% of the SBU’s with less than a leading
market share were pioneers
? *Buzzell,R,and Gale,B,(1987),The PIMS Principles:Linking Strategy to
Performance,Free Press
Emerson Was Wrong
?If a man can write a better book,preach a better sermon,
or make a better mousetrap than his neighbor,though he
builds his house in the woods the world will make a beaten
path to his door.
?Ralph Waldo Emerson (1803-82),U.S,essayist,philosopher and poet
?If you only build a better mousetrap,the world will not
beat a path to your door.
?How will the world know you have the mousetrap?
?Who cares? Only those who have mice -And wish they didn't
?And don't like cats
?And then,they have to Understand how to operate it
?Have something to offer you in exchange
?And before long,a better mouse will come along!
New Product
strategy
Idea Generation
Screening
Concept testing
Business Analysis
Product Development
Market Testing
Commercialisation
Source,Cooper and
Kleinschmidt,1986,
Journal of Product
Innovation
Management
The New Product Development (NPD) Process
The NPD Process
?,We should note that new products pass
through each stage at varying speeds; some
may dwell at a stage for a long period while
others may pass through very quickly”
– Jobber,Principles and Practice of Marketing,p,298
? What will determine this progress?
Types of New Products
20% 10%
26% 26%
11% 7%
New
product
Lines
Ne
w
to t
he
C
om
pan
y
High
Low
New to the marketLow High
New to
the world
products
Improvements
to existing products
Cost reductions
Additions to
exiting product
line
Repositioning
Source:-Booz,Allen and Hamilton,1982
Landrover Video Case
? Discuss the sort of NPD process that the
Discovery went through
? How might the Diffusion of Innovation
process have been used to guide the
Discovery’s commercialisation
Müller Case Question
? Volunteer Group – Answer Qs 2
? In own time,identify the NPD process for
Muller yoghurt in the UK
? Appreciate the likely NPD differences for
extensions v ‘new to the world’ products
Next Week
? Read ch,11 in Jobber
– NB NOT Ch 12&13 as per the module outline
? 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!!!
