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Module 3 Notes For Unit Test 2

The document discusses marketing mix decisions at the individual product, product line, and product mix levels. It covers key product decisions around attributes, branding, packaging, labeling, and support services. It also defines different types of consumer and industrial products and how they are classified. The levels of a product from core benefit to potential product are explained as a customer value hierarchy.

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0% found this document useful (0 votes)
38 views25 pages

Module 3 Notes For Unit Test 2

The document discusses marketing mix decisions at the individual product, product line, and product mix levels. It covers key product decisions around attributes, branding, packaging, labeling, and support services. It also defines different types of consumer and industrial products and how they are classified. The levels of a product from core benefit to potential product are explained as a customer value hierarchy.

Uploaded by

Syed Afnaan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE 3

MARKETING MIX DECISION

CONTENT: Product Decisions: Concept of a product; Classification of products;


Major product decisions; product hierarchy, product line, product mix, product mix
strategies, Product life cycle stages, Brand- selecting brand name, selecting logo,
brand extension, New Product Development, Packaging as a marketing tool, Role of
labelling in packaging.

Pricing Decisions: Pricing Objectives, Factors affecting price determination;


Pricing strategies.

Physical Distribution Decisions: Nature, functions, and types of Distribution


channels; Factors Affecting Channel Choice, Distribution channel intermediaries;
Channel management decisions; Retailing and wholesaling.

Promotion Decisions: Marketing communications- Integrated Marketing


Communications (IMC)- communication objectives, Promotion mix – advertising,
personal selling, sales promotion, publicity and public relations; Advertising:
Advertising Objectives, Advertising Budget, Advertising Copy, AIDA model,
Traditional Vs Modern Media- Online and Mobile Advertising, social media for
Advertising. Personal selling- Meaning and process, Publicity, Public relation,
Sales promotion – meaning and techniques.

MEANING OF PRODUCT

A product is anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. Products include more than just tangible
goods. They include physical objects, services, events, persons, places, organizations, ideas,
or mixes of these entities. We use the term product broadly to include any or all of these
entities. Thus, an Apple iPad, a Toyota Camry, and a Green Tea Frappuccino at Starbucks
are products. But so are the Baidu search engine, HSBC online investment services, and
advice from your doctor. Because of their importance in the world economy, we give special
attention to services. Services are a form of product that consist of activities, benefits, or
satisfactions offered for sale that are essentially intangible and do not result in the ownership
of anything. Examples are banking, hotel, airline, retail, tax preparation, and home-repair
services.

PRODUCT AND SERVICE CLASSIFICATIONS

Products and services fall into two broad classes based on the types of consumers that use
them: consumer products and industrial products. Broadly defined, products also include
other marketable entities such as experiences, organizations, persons, places, and ideas.

Consumer Products

Consumer products are products and services bought by final consumers for personal
consumption. Marketers usually classify these products and services based on how consumers
go about buying them. Consumer products include convenience products, shopping
products, specialty products, and unsought products. These products differ in the ways
consumers buy them and therefore in how they are marketed.

Convenience Products are consumer products and services that the customer usually
buys frequently, immediately, and with minimum comparison and buying effort.
Examples include soap, candy, newspapers, and fast food. Convenience products are
usually low-priced, and marketers place them in many locations to make them readily
available when customers need them.

Shopping Products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style. When buying
shopping products and services, consumers spend much time and effort gathering
information and making comparisons. Examples include furniture, clothing, used cars,
major appliances, and hotel and airline services. Shopping products marketers usually
distribute their products through fewer outlets but provide deeper sales support to help
customers in their comparison efforts.

Specialty Products are consumer products and services with unique characteristics or
brand identification for which a significant group of buyers is willing to make a special
purchase effort. Examples include specific brands and types of cars, high-priced
photographic equipment, designer clothes, and the services of medical or legal specialists.
A Lamborghini automobile, for example, is a specialty product because buyers are usually
willing to travel great distances to buy one. Buyers normally do not compare specialty
products. They invest only in the time needed to reach dealers carrying the wanted
products.

Unsought Products are consumer products that the consumer either does not know about
or knows about but does not normally think of buying. Most major new innovations are
unsought until the consumer becomes aware of them through advertising. Classic
examples of known but unsought products and services are life insurance, preplanned
funeral services, and blood donations. By their very nature, unsought products require a
lot of advertising, personal selling, and other marketing efforts.

Industrial Products

Industrial products are those purchased for further processing or for use in conducting a
business. Thus, the distinction between a consumer product and an industrial product is
based on the purpose for which the product is bought. If a consumer buys a camera for
personal use, the camera is a consumer product. If the same consumer buys the same
camera for use in a photography business, the camera is an industrial product.

The three groups of industrial products and services include materials and parts, capital
items, and supplies and services.

Materials and parts include raw materials and manufactured materials and parts. Raw
materials consist of farm products (wheat, livestock, fruits) and natural products (fish,
lumber, crude petroleum). Manufactured materials and parts consist of component
materials (yarn, cement, wires) and component parts (small motors, tires, castings). Most
manufactured materials and parts are sold directly to industrial users. Price and service are
the major marketing factors; branding and advertising tend to be less important.

Capital items are industrial products that aid in the buyer’s production or operations,
including installations and accessory equipment. Installations consist of major purchases
such as buildings (factories, offices) and fixed equipment (generators, elevators).
Accessory equipment includes portable factory equipment and tools (hand tools, lift
trucks) and office equipment (computers, desks). They have a shorter life than
installations and simply aid in the production process.

The final group of industrial products is supplies and services. Supplies include
operating supplies (lubricants, paper, pencils) and repair and maintenance items (paint,
nails, brooms). Supplies are the convenience products of the industrial field because they
are usually purchased with minimum effort or comparison. Business services include
maintenance and repair services (window cleaning, computer repair) and business
advisory services (legal, management consulting, advertising). Such services are usually
supplied under contract.

Product Levels / Customer Value Hierarchy

In planning its market offering, the marketer needs to address five product levels.

Each level adds more customer value, and the five constitute a customer-value hierarchy.

The fundamental level is the core benefit: It refers to the service or benefit the customer
is really buying. A hotel guest is buying rest and sleep.

At the second level, the marketer must turn the core benefit into a basic/generic product.
Thus, a hotel room includes a bed, bathroom, towels, desk, dresser, and closet.
At the third level, the marketer prepares an expected product, a set of attributes and
conditions buyers normally expect when they purchase the product. Hotel guests
minimally expect a clean bed, fresh towels, working lamps, and a relative degree of
quiet.

At the fourth level, the marketer prepares an augmented product that exceeds customer
expectations. Example the hotelier may arrange for a pick and drop facility to the
customer.

At the fifth level, the potential product, which encompasses all the possible
augmentations and transformations the product or offering might undergo in the future.
Telling the hotel guests about the future plans and offers that the hotel would provide, the
discounts it might offer etc.,

PRODUCT DECISIONS

Marketers make product decisions at three levels: individual product decisions, product
line decisions, and product mix decisions. We discuss each in turn.

Individual Product Decisions

Figure below shows the important decisions in the development and marketing of
individual products. We will focus on decisions about product attributes, branding,
packaging, labelling, and product support services.

a) Product Attributes

Developing a product involves defining the benefits that it will offer. These benefits are
communicated and delivered by product attributes such as quality, features, and style and
design.
Product quality is one of the marketer’s major positioning tools. Quality has a direct
impact on product performance; thus, it is closely linked to customer value and
satisfaction. It is concerned with the product characteristics that can satisfy stated or
implied customer needs. Siemens defines quality this way: “Quality is when our
customers come back and our products don’t.”

Product Features: A product can be offered with varying features. A stripped-down


model is the starting point. The company can create higher-level models by adding more
features. Features are a competitive tool for differentiating a company’s product from
competitors’ products.

Product Style and Design: Another way to add customer value is through a distinctive
product style and design. Design is a larger concept than style. Style simply describes the
appearance of a product. A sensational style may grab attention and produce pleasing
aesthetics, but it does not necessarily make the product perform better. Unlike style,
design is more than skin-deep—it goes to the very heart of a product. Good design
contributes to a product’s usefulness as well as to its looks, while poor design can result
in lost sales and embarrassment.

b) Branding

A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies
the maker or seller of a product or service. Consumers view a brand as an important part
of a product, and branding can add value to a product. Customers attach meanings to
brands and develop brand relationships. Brands have meaning well beyond a product’s
physical attributes.

c) Packaging

Packaging involves designing and producing the container or wrapper for a product.
Traditionally, the primary function of the package was to hold and protect the product.
However, with increased competition and clutter on retail store shelves, packages must
now perform many sales tasks from attracting attention, to describing the product, to
making the sale. Companies are realizing the power of good packaging to create instant
consumer recognition of the company or brand.
d) Labelling

Labels range from simple tags attached to products to complex graphics that are part of
the package. They perform several functions. The label identifies the product or brand,
such as the name Sunkist stamped on oranges. It might also describe several things about
the product—who made it, where it was made, when it was made, its contents, how it is to
be used, and how to use it safely. Finally, the label helps to promote the product and
support its positioning.

e) Product Support Services

Customer service is another element of product strategy. A company’s offer usually


includes some support services, which can be a minor or a major part of the total offering.
The first step in providing such support services is to survey customers periodically to
assess the value of current services and to obtain ideas for new ones. Once the company
has assessed the value of various support services to customers, it must assess the costs of
providing these services. It can then develop a package of services that will both delight
customers and yield profits for the company.

PRODUCT LINE DECISIONS

A product strategy also calls for building a product line. A product line is a group of
products that are closely related because they function in a similar manner, are sold to the
same customer groups, are marketed through the same types of outlets, or fall within given
price ranges. For example, Lenovo produces several lines of laptops, netbooks, desktops,
and workstations.

The major product line decision involves product line length—the number of items in a
product line. The line is too short if a manager can increase profits by adding items; the line
is too long if a manager can increase profits by dropping items. Managers need to conduct a
periodic product line analysis to assess each product item’s sales and profits and to
understand how each item contributes to the line’s performance.
PRODUCT MIX DECISIONS

An organization with several product lines has a product mix. A product mix (or product
portfolio) consists of all the product lines and items that a particular seller offers for sale.
Colgate’s product mix consists of four major product lines: oral care, personal care, home
care, and pet nutrition. Each product line consists of several sublines. For example, the home
care line consists of dishwashing, fabric conditioning, and household cleaning products. Each
line and subline have many individual items. Altogether, Colgate’s product mix includes
hundreds of items.

A company’s product mix has four important dimensions: width, length, depth, and
consistency.

Product mix width refers to the number of different product lines the company carries. For
example, Colgate markets a fairly contained product mix, consisting of personal and home
care products. By comparison, 3M markets more than 60,000 products and GE manufactures
as many as 250,000 items, ranging from light bulbs to jet engines.

Product mix length refers to the total number of items the company carries within its
product lines. Colgate typically carries many brands within each line. For example, its
personal care line includes Soft-soap liquid soaps and body washes, Irish Spring bar soaps,
Speed Stick and Crystal Clean deodorants, and Plax mouth rinse.

Product mix depth refers to the number of versions offered of each product in the line.
Colgate toothpaste comes in several varieties, ranging from Colgate Total, Colgate Tartar
Control, Colgate 2-in-1, and Colgate Cavity Protection to Colgate Sensitive, Colgate
Sparkling White and Colgate Kids Toothpaste. Each variety comes in its own special forms
and formulations. For example, you can buy Colgate Total in regular, mint fresh stripe,
whitening paste and gel, advanced fresh gel, or 2-in-1 liquid gel versions.

Finally, the consistency of the product mix refers to how closely related the various product
lines are in terms of end use, production requirements, distribution channels, or some other
way. Colgate’s product lines are consistent insofar as they are consumer products that go
through the same distribution channels. The lines are less consistent insofar as they perform
different functions for buyers.

Product Mix Strategies

To make a product mix work, there exist several strategies that can be chosen based on the
company’s goals. The major alternative product mix strategies (given by William Stanton and
others) have been discussed briefly as under:

Expansion: When a company increases the number of product lines that can even be
unrelated to the existing product. This is usually done when a company feels that it
cannot stand in the market with the existing portfolio. For example, if a beverage
company introduces flavoured water as a new product line, that would be an expansion
of the product mix.

Contraction: When a company eliminates some product lines or individual products


that are not profitable enough or to simplify remaining products. In this case, a
company decides to focus only on the most profitable models or lines. Here, fat product
lines are made thin. Some models or varieties, which are not profitable, are eliminated.
This strategy results in more profits from fewer products. If Hindustan Unilever
Limited decides to eliminate a particular brand of toilet shop from the toilet shop
product line, it is an example of contraction.

Alteration of existing products: When a company improves existing products in


terms of features, qualities, or performance instead of developing new ones. This
strategy is less risky compared to creating a new product from scratch. For example,
Maruti Udyog Limited decides to improve fuel efficiency of existing models.

Product Differentiation: This is a unique product mix strategy. This strategy involves
no change in price, qualities, features, or varieties. In short, products have not
undergone any change. Product differentiation involves establishing superiority of
products over the competitors. By using rigorous advertising, effective salesmanship,
strong sales promotion techniques, and/or publicity, the company tries to convince
consumers that its products can offer more benefits, services, and superior
performance. Companies can communicate to the people the distinct benefits of its
products.
Deepening Product Mix Depth: Here, a company will not add new product lines, but
expands existing product lines with more models or varieties. Here, some product lines
become fat from thin. For example, Hindustan Unilever Limited offering ten varieties
in its editable items decides to add four more varieties.

Developing New Uses: When a company finds new uses for existing product lines or
products. Rather than changing the product lines, a company suggests new occasions or
scenarios when a product can be used. For example, Coca Cola may convince people
to use its soft drink along with lunch.

Trading Up: Trading up consists of adding the high-price-prestige products in its


existing product line. The new product is intended to strengthen the prestige and
goodwill of the company. New prestigious product increases the popularity of the
company and improves the image in the mind of customers. By trading up product mix
strategy, demand for its cheap and ordinary products can be encouraged.

Trading Down: Contrary to trading up, a company adds a cheaper variety to an


existing line of high-cost products to attract new customers who cannot afford the
original versions. A company adds a lower-cost product to an existing line of higher-
cost products.

NEW PRODUCT DEVELOPMENT (NPD)

New Product Development is a growth strategy, because of the heavy role that marketing
plays in finding, developing and launching successful new products. New products can be
original products, product improvements, product modifications and new brands that the
company develops through its own R&D efforts. New product development (NPD) is the
complete process of bringing a new product to market. The stages of NPD are as mentioned
below:
Idea generation – Ideas for a new product can come from a number of sources. For example,
if the organization is large enough, they may come from the R&D department; they could
come from employees who have contact with the customers regular basis; or they could be
‘crowd-sourced’ – the organization engages with a large number of people over the internet
with the sole objective of obtaining new ideas for new products.

Idea Screening – Not all ideas that are put forward will be developed into a new product, and
at this stage, all ideas are analyzed against a number of criteria before the organization takes
any decision to take anyone's idea forward. For example, will this really satisfy a customer
need, do we have the resources to develop and market the product, and is the potential market
large enough to generate revenue or profit?

Concept Testing – At this stage an organization may test one or more versions of the idea
with a sample for prospective buyers. They will examine their attitude and reactions and use
the responses to understand which features and benefits are most important to potential
customers. The product is not fully developed at this point; the organization is testing the
concept, which may be in the form of drawings, written descriptions or computer-generated
images/ virtual reality.

Business Strategy Development – The organization will develop a business case for the
ideas that it judges as potentially worthwhile, and this should include all the financials –
costs, cash flow forecasts and profitability. The organization should discard the ideas that are
not strong enough financially.

Product Development – Costs start to rise at this point as prototypes are developed to gauge
potential customer reactions and to investigate how difficult the product will be to produce. If
market reaction is negative at this stage, the company shouldn’t move forward to production
and launch but instead make adjustments to it (provided customer feedback is not
overwhelmingly negative).

Test Marketing – This stage is more likely to be used by FMCG – fast moving consumer
goods companies. Large industrial companies with fewer production customers, where
products are innovative but might be copied, may well miss this stage out and go straight to
launch. Those that do test marketing often test out a full marketing mix at this stage, in a
market that is as representative to the target market as possible. The business might run two
or more slightly different marketing mixes at the same time to measure the effectiveness of
each before launching on a larger scale.

Commercialization – The final stage of the process is the launch and commercialization of
the product to the target market using an appropriate marketing mix.

PRODUCT LIFECYCLE (PLC)

The product life cycle concept is used to plan the introduction of a new product and to
manage existing products. It assumes that all products have a limited life span and go through
several distinct phases before they decline.

Development – At this stage there is often heavy investment in research to test product
suitability, and there can be heavy investment in promotion to raise awareness of the
coming launch.

Introduction – The product is launched with heavy emphasis on and investment in


promotion. Advertising is usually informational and also communicates the benefits of the
product to the customer. Sales promotion or special offers may be used to encourage trial. If
the product is innovative a price skimming strategy may be used. If a company wants a fast
entry to the market with the product a penetration pricing strategy may achieve more.

Growth – As sales volume increases, profit margins will improve as the marketing spend
reduces. However, as other competing products enter the market the organization may add
new features to the product to make it more competitive, and/or change the promotional
messages to convey specific brand benefits to establish brand superiority. Prices might be
lowered as organizations are able to pass on economies of scale to the customer.

Maturity – At this stage, market shares of products tend to settle down into the hierarchy
of competitors. Although sales continue to grow, they do so much more slowly, and
promotion usually focuses on retaining customers through brand loyalty. Price wars may
erode profitability, as the market becomes saturated some manufactures leave the market as
it is no longer profitable to them.

Decline – Markets fall into decline for a number of reasons, and the most common is the
changing customer preferences. As companies start to leave the market, the ones that
remain ‘milk’ their products by cutting costs. Promotion is cut back, sales promotion is
used to try and retain loyal customers, and the costlier distribution channels may also be
abandoned to cut further costs.

BRANDING STRATEGY: BUILDING STRONG BRANDS

Brand Equity

Brands are more than just names and symbols. They are a key element in the
company’s relationships with consumers. Brands represent consumers’ perceptions and
feelings about a product and its performance and everything that the product or service
means to consumers.

A powerful brand has high brand equity. Brand equity is the positive differential effect
that knowing the brand name has on customer response to the product and its
marketing. It’s a measure of the brand’s ability to capture consumer preference and
loyalty. A brand has positive brand equity when consumers react more favourably to it
than to a generic version of the same product.
Building Strong Brands

Branding poses challenging decisions to the marketer. Below image shows that the major
brand strategy decisions involve brand positioning, brand name selection, selecting a
logo, brand sponsorship, and brand development.

Brand Positioning

The brand's positioning is the place in the consumer's mind that you want your brand to
own. It is the benefit you want your consumer to perceive when they think of your brand.
A strong brand position means that the brand has a unique, credible and sustainable
position in the mind of the consumer.

Attributes-An attribute can be defined as a characteristic or feature that a product has


which can be thought of as being appealing to customers. Attributes can include
properties like size, colour, features, functionality, components that affect the product’s
acceptance in the market. For example, attributes of green tea may include its aroma,
taste, color, price, shelf-life, health benefits, packaging and presentation, etc.

Benefits-Brand positioning can provide benefits in better decision-making. Brand


Positioning focuses limited resources on a clearly defined goal, enabling these
investments to build upon each other instead of being deployed scattershot. It also gives
you control over your own brand image, because it defines the space you can own like no
one else.

Beliefs and values-A brand is born inside you. It’s the thought that starts a revolution,
the motivator that makes your vision come to life. A brand you can believe in provides
consistent clarity, motivates your people, and importantly, it’s a brand your customers
can believe in; brands are a work in progress. They evolve and the best ones continue to
improve their distinction, storytelling, and they freshen up their communications to
reflect their essence, standout and stay relevant. One’s beliefs and values are important
bricks in building a brand foundation. Beliefs are concepts that you hold to be true.
Brand Name Selection

It is not easy to find a suitable name for a brand. Marketers need to do some research
about their products with the profit, the market for the target, plus the strategies for the
future marketing. Then, naming a brand needs some knowledge on science, art, and
history. A perfect brand should have the following 6 parts.

• Firstly, is when people hear the brand name, which can give some information
about benefits and qualities to them.
• Secondly, the brand name could be simple, understandable, easy to remember
and pronounce.
• The brand name should be common.
• The fourth one is that it should better be expandable and extendable.
• The brand name should be easy to translate into different languages and have
a global name.
• The brand name should have legal protection.

In fact, finding an excellent name for a design brand is a difficult job. So, once chosen,
the brand name must be protected. Actually, some good brand names can give consumers
important information that includes benefits and attributes very clearly. For example,
imagine the brand name ‘‘SUN’’. If we use the name for a light bulb, then it means the
bulb is for brightness. If you use the name for a TV, it may mean that the TV has a sharp
image. Apple Company did a good job too. They choose “apple” as the brand name
because it is a very common fruit’s name and it’s good for our health. So, everyone can
remember the brand name and it’s an easy job for us.

Selection- A brand name must distinguish the brand owner’s goods or services from
those of its competitors. In this sense the brand name should be unique so that it is clear
to consumers that all goods bearing the brand name or services provided in association
with it come from or are sponsored by the brand owner. This will not occur if the brand
name selected is confusingly similar with a brand name already in use by another.

Protection- Having a strong brand provides a way for your customers to identify your
business, and to refer your products or services to others. A strong brand is valuable. Like
any valuable asset, a brand should be protected. Failure to protect your brand may reduce
its value, and could damage your business' reputation. The most effective form of brand
protection is through trade mark registration.

Selecting a Logo for Business

An impactful and recognizable logo helps people remember the company but creating one
from scratch can be challenging. These points would help in choosing an appropriate logo for
your business:

• Understand the purpose of your logo.


• Use a color that makes your logo stand out.
• Get familiar with different types of logos.
• Balance your design elements.
• Make your logo versatile.
• Get help from an expert.

Understand the purpose of your logo - A logo acts as a visual representation of what a
company does, and helps existing and potential customers recognize the business. An
effective logo design -
Symbolizes the business values.
Increases credibility in the eyes of potential customers.
Serves as a visual keepsake for customers.
It is important to create a list of business attributes to give a clear communication goal. Let us
use a spa as an example. You go to a spa to relax and rejuvenate. These associations need to
come through visually so that people get a sense of how they will feel relaxing at the spa just
by looking at your logo. Think of some of the words associated with a spa - Calmness?
Tranquility? Peace?
Clean and simple design elements and text treatments would best represent those attributes.
The lotus flower is a popular symbol for spas for its cultural associations with purity, beauty
and rebirth. It could be coupled with a simple serif font to convey that sense of calm.

On the other hand, if you are a mechanic, you might want to communicate that you are
practical, hardworking and reliable. How would you visualize these qualities? You might opt
for something vintage and rustic that includes the tools of your trade, like a wrench or an oil
can. These visual clues both communicate that you are not afraid to get your hands dirty
fixing cars. They are also easy to recognize and associate with a service.

2. Use a color that makes your logo stand out.


The subject of typical emotional associations with colors is fascinating, especially seeing how
they differ between cultures. For example - Black is often used as an expression of strength,
sophistication, tradition and trust. Blue is typically associated with competence, trust,
dependability and security. Think about what you want your logo to say and how color
associations will affect your message. Then, consider the type of logo that best suits your
business. If you describe your style as bold and colorful, those attributes should come across
in your logo. If your business style is more mellow and understated, you can use more subtle
shades.

3. Get familiar with different types of logos.


There are three basic types of logos – check them all out and decide which one is best for
your business.
• The first is a text-only or wordmark identity, which is ideal if your business has an
established reputation or uses a family name.
• The second type of logo consists of a monogram or lettermark, which uses the first
letters of the company name in a visual way. This combination provides both a visual
representation of your company and a verbal recognition of your name.
• The third logo type combines a symbol with words. The logo is often made up of a
shape that acts as a visual clue to the service or product you offer. This serves as the
central part of your logo, which when coupled with a company name creates a
recognizable and enduring look.

4. Balance your design elements.


Once you have figured out the essence of your business, you need to start thinking about how
to balance that vibe to the style of your logo. For example, if your company is quirky and
fun, you can try fresh, unique fonts paired with dynamic colors and symbols. Or, if your
company is more traditional, you could balance your logo by using a classic font and more
conventional color palette. However, when in doubt, keep things simple. Generally clean,
open spaces will instantly make your logo look professional…and ensure it is easy to
recognize.

5. Make your logo versatile.


Knowing where people see and interact with your logo is crucially important. If you own a
coffee shop, you probably want your logo to go on your T-shirts as well as the menus, flyers,
website and your social profiles. It’s also likely to be included on your signage, so it needs to
work in a variety of sizes. If you work onsite as a landscaper, plumber or building contractor,
you may want to advertise when you’re on the go—maybe by adding your logo to the side of
your vehicle. So, make sure all text is clear and easy to read, even from a distance!

Brand Sponsorship

Manufacturer Brands: They are created by producers and bear their chosen brand
name. The responsibility for marketing the brand lies with the producer. Most
manufacturer brands are supported by massive advertising budgets. They also have to
manage long distribution channels to reach the final customers.

Private Brands/Own-Label Brands: In the past few decades, some distribution channel
members, particularly retailers, have started selling their own brands, called private
labels. These brands are usually of comparable quality with the manufacturers’ brands,
though they are lower period. These private labels are given more prominence in the
retail stores, thus enabling the transfer of power from manufacturers to retailers.

Licensing: Licensing means renting or leasing of an intangible asset. It is a process of


creating and managing contracts between the owner of a brand and a company or
individual who wants to use the brand in association with a product, for an agreed period
of time, within an agreed territory.

Co-Branding: Co-branding, is a marketing strategy that involves strategic alliance of


multiple brand names jointly used on a single product or service. Co-branding, also called
brand partnership, is when two companies form an alliance to work together, creating
marketing synergy.
Brand Development

Line extensions- It happens when a company develops stronger than before, and they
want to continue to expand the company. They extend obtainable brand’s names to
new sizes, factors, forms, and colours or amplify an accessible product kind. For
example, Maybelline has Colour Sensational Pearls Lip Colour, Shine Sensational
Lip Gloss and Colour Sensational Lip liner. For example, the “seven-up” which was
made by Pepsi was very popular with consumers in 1978. Another example is
Coors, which is a company that is famous for their product—beer. Now, they made
bottled water that still uses the Coors brand, and in fact, they succeeded. However,
not all companies will succeed with using this idea. In fact, Parker is famous
because of their high-grade pen, but in the 70s Parker brought a new product that
cost $5.00 into the market, and consumers did not accept that low-grade pen because
they thought the pen which was made by Parker should have high quality, high
grade and high price. So, marketers should deal with using this way very carefully.

Brand extensions – Brand extension or brand stretching is a marketing strategy in


which a firm marketing a product with a well-developed image uses the same brand
name in a different product category. Brand Extension is the use of an established
brand name in new product categories. This new category to which the brand is
extended can be related or unrelated to the existing product categories. A
renowned/successful brand helps an organization to launch products in new
categories more easily. For instance, Nike’s brand core product is shoes. But it is
now extended to sunglasses, soccer balls, basketballs, and golf equipment.

Multi-brands- Marketing of two or more similar and competing products by the same
firm under different and unrelated brands. While these brands eat into each other’s
sales, multi-brand strategy does have some advantages as a means of (1) obtaining
greater shelf space and leaving little for competitors' products, (2) saturating a
market by filling all price and quality gaps, (3) catering to brand-switchers users who
like to experiment with different brands, and (4) keeping the firm’s managers on
their toes by generating internal competition.

New Brand - Company believes that for increasing more power, brand for new design
name is necessary. Many companies develop a new brand and they still like using
the original brand name because the marketers of these companies believe in the
power of their existing brand. Creating a new brand name is the key to developing a
new brand.

Packaging

First impressions go a very long way in how people perceive anything. This is the same idea
that companies implement via their packaging. The outer appearance of the product (the
package) is the first thing a potential customer will see, and so it can be a great marketing
tool for the product. In fact, the package of a product serves multiple practical purposes as
well. Let us take a look at some of the uses and functions that it serves.

Protection: The first and the most obvious use of packaging is protection. It physically
protects the goods from damage that may be caused due to environmental factors. It is the
protection against breaking, moisture, dust, temperature changes etc.

Information Transmission: Packaging and labelling are essential tools to inform the customer
about the product. They relay important information about directions for use, storage
instructions, ingredients, warnings, helpline information and any government required
warnings.

Convenience: Goods have to be transported, distributed, stored and warehoused during their
journey from production to consumption. Packaging will make the process of handling goods
more convenient for all parties involved.

Security: To ensure that there is no tampering with the goods packaging is crucial. The
package of a product will secure the goods from any foreign elements or alterations. High-
quality packages will reduce the risk of any pilferage.
Packaging as a Marketing Tool

Effective packaging can actually help a company attract consumers to their product. It can be
the tool that sets apart their product in a vast sea of options that the consumer has at their
disposal. A good packaging can actually add to the perceived value of a product. There are
some effective techniques one can use to ensure that product package is a great marketing
tool for your product. These are some elements that can be incorporated into a package to
make it more effective.

Capturing Attention

One important aspect of a package is that it must draw the attention of a potential customer
when it is sitting on a shelf. It does not have to be the loudest or brightest package, but it must
be unique in some way. Sometimes simplicity could be what sets it apart. Other factors could
be the shape, the colour scheme or even the texture of the package.

Brand and Product Names should be very Clear

It is of absolute attention that packaging draws maximum attention to brand name. The
customer will not buy a product if they do not know whose product they are buying. And
clearly displaying brand name is also a good branding strategy.

Point out to Benefits

Your product may have certain unique elements or benefits. Your packaging should draw
attention to such benefits, it is a huge selling point. For example, if the product is ‘organic’ or
has ‘no preservatives’ it should say so on the package and be displayed prominently.

Designed with the Target Audience in Mind

The company must be clear on whom the packaging is designed to attract and impress. Say
the target audience is youth, then the design can be abstract and modernistic. But say the
target customers are senior citizens, then the design should be clear and specific. Designing
your packaging for a target audience is not always easy but certain criteria can be followed.
Additionally, while designing the packaging there are certain environmental factors all
companies must keep in mind. This is one way to be environmentally conscious and avoid
pollution

· Make sure the package is easily disposable, and provide instructions for such
disposal
· Avoid using excess material while packaging the product. We must restrict our
use of excessive plastic if there is no necessary requirement for it.
· The materials we use for the packaging should be recyclable or reusable.

Labelling

The section of the product which conveys the details of the product and the seller is called as
'labelling'. It specifies the information about the product like its brand name, components,
brand logo, instructions to be followed while using the product, promotional messages, if
any. A label can be a portion of the packaging or a small sheet may be fixed with the product
itself.

Purpose of Labelling
Label specifies the qualities and other aspects of the product which enables its sale.
Following points highlight the purpose of labelling:

1) Brand Identification: Labelling is used to provide information regarding the entity, i.e.,
the manufacturer of the packaged product and who outsources it. It provides the details about
the location where the pre-packaged product is produced, processed, or distributed.

2) Description: Description about the product contents, expiry date, price, user manuals, etc.,
is given through labelling. In case of packaged food items, nutritional value is also provided.

3) Promotion: Labelling is also required for promoting the product, and brand. New and
appealing graphics are useful to advertise and popularize the product. It helps in building
brand image.
4) Other Purposes:

• A specific label of a product will help to segregate the product from other several
products available in the outlet It assists the purchaser to make the right choice as per
his or her specific requirements. It specifies the quality and level of the product.
• It creates a sense of assurance about the product and also enables the consumers to
determine the standard of the product.

Role of Labelling

1) Identifies Product: The main role of labelling is to allow the customers to know the
product and the concerned brand and thus publicize or familiarise the brand name and the
product. The features and other details of the product are given by labelling. It informs the
positive attributes of the product, helping it to become a fast-moving item in the market.
2) Grades Product: The standard of the product is reflected on its label. Division of the
product in various grades as per its quality can be done with labelling. For example,
classification of wheat can be done in grades; 1, 2, 3 or 4 and respected grades are described
on the label.
3) Promotes Product: Labelling is also involved in promoting the particular product or
brand, Interesting, bright pictures and forms of graphics are used in labelling to grab the
attention of customers and encourage them to finally purchase the product. With effective
labelling, the customers are inclined towards the buying decision, thus making it a crucial
factor for increasing the sales and distribution of the product.
4) Protects Customers: The label provides details like maximum retail price, quality,
quantity of the packaged product, contents, etc., and thus safeguards the consumers from any
kind of malpractices or unethical behavior of the dealers or intermediaries. Consumers can
differentiate between real and fake brands with the help of labelling.
5) Provides Information Required by Law: To provide necessary information related to the
product as required by the law, is also an important role of the labelling. Thus, labelling
provides the disclaimer or statutory warning about the product. For example, "smoking is
injurious to health" and "chewing tobacco is injurious to health" are the two popular statutory
warnings provided on the labels of cigarettes and pan masala, respectively. Similarly,
relevant statutory warnings need to be given on the labels of other poisonous or harmful
products as well.
6) Facilitates Buying Process: A specific label segregates the product from other products
offered by competitors. It is very important to avoid such confusion in case of medicines and
chemicals where a small mistake in the spelling of the brand name can be fatal to the
customer.
7) Encourages Self-Service: It is an effective instrument to increase sales as it stimulates
self-service in large departmental stores and supermarkets. If the label provides the necessary
information like the ingredients, price, quantity, quality, taxes, uses, instructions for use,
safety warnings, etc., the consumers can decide and purchase the best product on their own.
Thus, labelling assists the self-selling firms in their operations by way of promoting self-
service.

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