Unit – 1 Introduction to Product Management

1. Product Development
Product development refers to the process of creating a new product or improving an existing one.
(Rest covered in 3rd Unit :)

2. Product-Focused Organization
A product-focused organization is structured around products rather than markets or customer
segments. Key characteristics include:
• Emphasis on product innovation and engineering.
• Product teams operate independently.
• Common in tech and manufacturing industries (e.g., Apple, Tesla).

3. Market-Focused Organization
A market-focused organization prioritizes customer needs and market trends over the product itself.
Key traits include:
• Decision-making based on customer feedback and demand.
• Strong emphasis on marketing, branding, and customer service.
• Examples: Amazon, Procter & Gamble.

4. Relationship between Marketing and Product Management

Marketing and product management work closely together:
• Marketing focuses on demand generation, brand positioning, and customer engagement.
• Product Management focuses on product strategy, development, and lifecycle management.
• Both functions collaborate on pricing, promotion, and distribution strategies.

5. Factors Influencing Product Design

Several factors impact product design, including:
• Customer Needs & Preferences
• Technology & Innovation
• Cost & Budget Constraints
• Regulatory & Compliance Requirements
• Market Trends & Competitor Offerings

6. Changes Affecting Product Management

Modern product management is influenced by:
• Digital Transformation: Use of AI, automation, and data analytics.
• Agile & Lean Methodologies: Faster development cycles.
• Sustainability Concerns: Eco-friendly product designs.
• Globalization: Expanding markets and international competition.

7. Setting Objectives & Alternatives

Product managers must set clear objectives such as:
• Increasing market share.
• Enhancing product quality.
• Reducing production costs.
• Expanding into new markets.

They also evaluate alternatives, such as:

• Product Differentiation (unique features, better quality).
• Cost Leadership (lower prices, improved efficiency).
• Market Expansion (targeting new customer segments).

8. Roles of a Product Manager

The product manager acts as a bridge between business, technology, and customers. Key
responsibilities include:
• Defining Product Vision & Strategy
• Prioritizing Features & Roadmaps
• Collaborating with Development Teams
• Analyzing Market Trends & Customer Feedback
• Managing Product Lifecycle.

UNIT - 2 Types of Products & Product Life Cycle

1. Types of Products
Products can be classified into various categories based on their characteristics, usage, and
consumer behavior.
A. Consumer Products (B2C - Business to Consumer)
Products purchased by individuals for personal use. These include:
• Convenience Products – Frequently bought, low-cost items (e.g., toothpaste, snacks).
• Shopping Products – Less frequent purchases, compared before buying (e.g., clothing,
electronics).
• Specialty Products – Unique and brand-specific (e.g., luxury cars, designer handbags).
• Unsought Products – Not actively sought by consumers (e.g., life insurance, emergency services).

B. Industrial Products (B2B - Business to Business)

Used in production or business operations. Categories include:
• Raw Materials – Basic materials (e.g., cotton, steel).
• Capital Goods – Machinery, equipment used for production (e.g., factory machines).
• Supplies & Services – Maintenance, repair, and operating items (e.g., office stationery, cleaning
services).

2. Product Classification
Products are classified based on different criteria:
A. Durability & Tangibility
• Durable Goods – Long-lasting (e.g., furniture, cars).
• Non-Durable Goods – Consumed quickly (e.g., food, beverages).
• Services – Intangible offerings (e.g., education, healthcare).
B. Based on Consumer Involvement
• Low-involvement products – Purchased without much thought (e.g., snacks).
• High-involvement products – Require research and comparison (e.g., laptops).

3. Product Life Cycle (PLC)

The Product Life Cycle (PLC) describes the stages a product goes through from introduction to
decline.
A. Stages of PLC
1. Introduction – Product is launched, low sales, high marketing costs.
2. Growth – Sales increase, competition grows, profits rise.
3. Maturity – Market saturation, peak sales, intense competition.
4. Decline – Demand falls, profits decline, product may be phased out.

4. Operationalizing the PLC Concept

To make the PLC model actionable, companies:
• Use data analytics to track sales trends.
• Adjust pricing, marketing, and production strategies.
• Identify opportunities for new product development.

5. PLC as a Forecasting Model

PLC helps in:
• Predicting sales trends.
• Allocating resources efficiently.
• Planning marketing and production activities.

6. PLC as a Guideline for Marketing Strategy

Each stage of PLC requires a different marketing approach:
PLC Stage Strategy
Introduction High promotional costs, market awareness campaigns.
Growth Expand distribution, aggressive marketing, improved features.
Maturity Focus on differentiation, brand loyalty, price adjustments.
Decline Cost-cutting, discontinuation, or product repositioning.

7. Extension of PLC
To extend a product’s life, companies can:
• Modify the Product (new features, improvements).
• Target New Markets (expand to new customer segments).
• Rebrand or Reposition (change image, branding).
• Introduce Variants (new colors, sizes, flavors).
 Unit – 3 New Product Development

1. New Product Development (NPD)

New Product Development (NPD) is the process of conceptualizing, designing, and bringing a new
product to market. It follows a structured approach:
Stages of NPD
1. Idea Generation – Collecting innovative product ideas from various sources such as customers,
competitors, employees, and market research.
2. Idea Screening – Filtering out impractical or non-profitable ideas to focus on the best ones.
3. Concept Development & Testing – Creating prototypes and gathering customer feedback to
refine the idea.
4. Business Analysis – Estimating costs, pricing, and sales projections to assess financial viability.
5. Product Development – Engineering and designing the final product with quality assurance.
6. Market Testing – Launching the product in a limited area to gauge customer response and make
improvements.
7. Commercialization – Full-scale market launch with branding, pricing, distribution, and
promotional strategies.
Example: Apple follows a systematic NPD approach by launching innovative products like the iPhone
and testing features through beta releases before full-scale production.

2. Line Extension
Line extension involves adding new versions of an existing product to attract new customers or
increase sales.
Types of Line Extension:
A.New Flavors/Colors – Example: Coca-Cola launching flavors like Cherry Coke.
B. Different Sizes/Packaging – Example: Shampoo available in sachets, travel packs, and full-size
bottles.
C.Additional Features – Example: Smartphones with upgraded cameras, storage, and battery life.
Benefit: It allows brands to expand their customer base without creating an entirely new product.

3. Product Testing
Before launching, companies conduct tests to ensure product quality, usability, and market
acceptance.
Types of Product Testing:
• Alpha Testing – Internal testing by employees or selected users to detect issues before wider
release.
• Beta Testing – External testing with real customers for feedback before a full-scale launch.
• Market Testing – Introducing the product in a limited market to analyze performance before
national/global release.
Example: Microsoft conducts extensive beta testing before releasing new Windows versions.

4. Brand Stretching
Brand stretching refers to expanding an existing brand into a new product category.
Examples:
• Nike: From athletic shoes to apparel, accessories, and sports equipment.
• Virgin Group: From music records to airlines, mobile services, and even financial products.
Advantage: Companies can leverage existing brand loyalty and reduce marketing costs.
Risk: If the new product does not align with brand identity, it may confuse consumers (e.g., Colgate
once launched frozen meals, which failed).

5. Reinforcing Brands
To keep a brand strong, companies adopt strategies to maintain consumer trust and loyalty.
Methods to Reinforce Brands:
1. Communicate Brand Benefits: Clear messaging on what makes the brand unique.
2. Maintain Brand Loyalty: Offering loyalty programs and exclusive benefits.
3. Enhance Customer Experience: Ensuring high-quality service and responsiveness.
Example: Starbucks maintains brand loyalty through its rewards program and customer engagement.

6. Revitalizing Brands
When a brand loses relevance, revitalization helps in regaining market presence.
Ways to Revitalize a Brand:
1. Repositioning: Targeting a new audience or updating the brand image.
2. Updating Visual Identity: Changing the logo, packaging, or advertisement strategies.
3. Expanding Distribution: Entering new markets or channels.
Example: Pepsi has undergone multiple logo redesigns and marketing campaigns to stay modern and
appeal to younger generations.

7. Rebranding
Rebranding involves modifying a brand’s identity, logo, messaging, or positioning to adapt to
market changes.
Types of Rebranding:
• Partial Rebranding: Minor updates while keeping core brand identity (e.g., updating a logo).
• Complete Rebranding: Major overhaul, including new brand name, values, and messaging.
Example: Facebook rebranded as Meta to align with its focus on the metaverse.

8. Retiring Brands & Adjusting Brand Portfolios

When brands or products underperform, companies adjust their brand portfolios to optimize
profitability.
Ways to Manage Underperforming Brands:
• Discontinue Products: Stop production and sales (e.g., Microsoft discontinued Windows Phone).
• Sell the Brand: Transferring ownership to another company.
• Merge Brands: Combining brands to strengthen market presence.
Example: Tata Motors retired the Indica brand due to declining sales and shifted focus to newer
models.

9. Global Brand Strategy: Standardization vs. Customization

When expanding internationally, companies choose between:
A. Standardization Strategy
• Using the same branding, messaging, and marketing worldwide for uniformity.
• Pros: Brand consistency, cost efficiency, and strong global recognition.
• Example: Apple maintains the same brand identity across all countries.
B. Customization Strategy
• Adapting branding and marketing based on local cultures and preferences.
• Pros: Higher customer engagement, cultural relevance.
• Example: McDonald's offers localized menus (e.g., McAloo Tikki in India, Teriyaki Burgers in
Japan).
Which strategy to choose?
• Standardization works well for global luxury brands (e.g., Rolex, Louis Vuitton).
• Customization is better for FMCG and food brands that cater to diverse tastes.

UNIT - 4 Test Marketing & Product Launch Strategies

1. Test Marketing
Test marketing is the process of launching a product in a limited market before a full-scale rollout. It
helps companies evaluate product performance, customer response, and marketing strategies
before investing in a large-scale launch.
Key Elements of Test Marketing:
• Testing the Product – Ensuring quality, features, and usability.
• Marketing Mix Evaluation – Analyzing pricing, promotion, distribution, and positioning.
• Consumer Behavior Analysis – Studying how customers react to the product.

2. Testing Products and Other Critical Elements of the Marketing Mix

Before launching, companies test not just the product but also the entire marketing mix:
Elements of the Marketing Mix in Test Marketing:
• Product – Checking functionality, quality, and packaging.
• Price – Analyzing customer willingness to pay and price sensitivity.
• Place (Distribution) – Evaluating retail and online availability.
• Promotion – Testing the effectiveness of advertisements, social media campaigns, and discounts.
Example: McDonald's may introduce a new burger in selected cities to gauge customer demand
before a nationwide launch.

3. Test Marketing Objectives

Test marketing helps businesses achieve the following goals:
• Assessing Market Demand – Identifying customer interest and purchase intent.
• Evaluating Product Performance – Checking if the product meets consumer expectations.
• Validating Pricing Strategy – Understanding how pricing impacts sales.
• Optimizing Marketing Strategies – Improving promotional campaigns based on test results.
• Identifying Operational Challenges – Detecting supply chain and distribution issues.
Example: Apple conducts pre-launch testing to ensure new iPhones perform well under different
conditions before mass production.

4. Limitations of Test Marketing

Despite its benefits, test marketing has some drawbacks:
• High Costs – Running test campaigns and small-scale production is expensive.
• Time-Consuming – Testing delays full-scale product launches.
• Risk of Imitation – Competitors may copy ideas before the official launch.
• Limited Data Accuracy – Test markets may not fully represent larger target audiences.
• Brand Reputation Risks – A failed test marketing campaign can harm brand image.
Example: Google Glass faced public backlash during its beta phase, leading to a discontinued
launch.

5. Design Considerations in Test Marketing

To ensure accurate results, companies must design test marketing carefully.
Key Considerations:
• Selecting the Right Test Market – Choosing a region representing the target audience.
• Determining Test Duration – Running the test long enough to gather meaningful data.
• Monitoring Competitor Reactions – Observing how rivals respond to the test launch.
• Measuring Customer Feedback – Conducting surveys and analyzing sales data.
Example: Amazon often tests new services (like drone delivery) in specific U.S. cities before
expanding globally.

6. Alternatives to Test Marketing Procedures

Since test marketing has limitations, companies may use alternative methods:
A. Controlled Test Markets
• Testing products in specific retail stores under controlled conditions.
• Example: Nestlé may introduce a new chocolate flavor in select supermarkets before nationwide
distribution.
B. Simulated Test Marketing
• Creating a virtual store or online ads to analyze consumer preferences.
• Example: Companies use A/B testing for digital products and e-commerce.
C. Focus Groups & Surveys
• Gathering direct consumer feedback before launch.
• Example: L'Oréal conducts focus groups to test new skincare formulas.
D. Crowdsourcing & Beta Programs
• Engaging early adopters to test products and provide feedback.
• Example: Microsoft allows users to test Windows updates before the official release.

7. Product Launch Tracking

After launching a product, companies track its performance using:
• Sales Analysis – Monitoring revenue and market penetration.
• Customer Feedback & Reviews – Gathering opinions from online platforms and surveys.
• Competitor Benchmarking – Comparing performance against industry rivals.
• Marketing Effectiveness Evaluation – Measuring ad reach and engagement.
Example: Samsung closely tracks smartphone sales and adjusts strategies post-launch.

8. Re-launch Strategies
If a product fails, companies may revise and relaunch it with improvements.
Reasons for Re-launching:
• Poor initial sales or customer acceptance.
• Negative feedback requiring product modifications.
• Market conditions changing after the first launch.

Strategies for Re-launching:

• Product Improvement – Fixing flaws based on feedback.
• Rebranding – Changing the product name, packaging, or positioning.
• New Target Market – Expanding to different demographics.
• Enhanced Promotion – Stronger advertising and influencer collaborations.
Example: Samsung’s Galaxy Note 7 was recalled and relaunched as Galaxy Note Fan Edition with a
safer battery.

UNIT - 5 Brand & Brand Management

1. Concept of Brand & Brand Management

What is a Brand?
A brand is a unique identity differentiating a product, service, or company from its competitors. It
includes elements such as name, logo, tagline, design, and overall customer perception.
What is Brand Management?
Brand management is the process of creating, maintaining, and enhancing a brand’s value over
time. It involves strategies for:
• Building brand awareness
• Developing brand equity
• Maintaining brand consistency
• Managing customer relationships
Example: Coca-Cola has successfully maintained its brand image through consistent messaging
and emotional connections with consumers.

2. Brand Decision
Companies must make strategic decisions regarding their brand, including:
• Brand Positioning – Defining how the brand is perceived in the market.
• Brand Name Selection – Choosing a name that reflects the product’s identity.
• Brand Sponsorship – Deciding whether to launch as a national brand, private label, or licensed
brand.
• Brand Development – Expanding or modifying the brand based on market needs.
Example: Google extended its brand by introducing Google Drive, Google Photos, and Google Meet
under the same umbrella.

3. Elements of a Brand
A strong brand consists of several key elements:
• Brand Name – Unique and memorable (e.g., Nike, Apple).
• Logo & Symbol – A visual representation of the brand (e.g., McDonald’s golden arches).
• Tagline/Slogan – A catchy phrase that reinforces brand identity (e.g., Nike’s "Just Do It").
• Color & Typography – Specific design elements that create recognition (e.g., Facebook’s blue
color).
• Brand Sound/Jingle – Distinctive audio branding (e.g., Intel’s startup sound).

4. Brand Personality & Brand Loyalty

A. Brand Personality
Brand personality refers to human-like traits associated with a brand. It helps brands connect
emotionally with customers.
Types of Brand Personality (Aaker’s Model):
• Sincerity – Honest, ethical (e.g., Dove, TATA).
• Excitement – Trendy, youthful (e.g., Red Bull, Nike).
• Competence – Reliable, intelligent (e.g., IBM, Microsoft).
• Sophistication – Luxurious, prestigious (e.g., Rolex, Chanel).
• Ruggedness – Tough, outdoorsy (e.g., Harley-Davidson, Timberland).
B. Brand Loyalty
Brand loyalty is the consumer’s commitment to repurchasing a brand over time. Factors
influencing loyalty:
• Customer satisfaction
• Emotional attachment
• Perceived quality and value
Example: Apple enjoys high brand loyalty due to consistent innovation, ecosystem integration, and
premium brand perception.

5. The Role of Brands

Brands play a crucial role for both consumers and businesses:
For Consumers:
• Simplifies decision-making.
• Assures quality and consistency.
• Builds emotional connections.
For Businesses:
• Differentiates from competitors.
• Allows for premium pricing.
• Creates customer loyalty and retention.
• Supports brand extensions and product launches.
Example: Starbucks has built a brand that represents premium coffee experiences, allowing it to
charge higher prices.

6. The Brand Equity Concept

Brand equity refers to the value and strength of a brand in the market. Strong brand equity allows
companies to:
• Charge premium prices.
• Expand into new markets easily.
• Gain customer trust and preference.
Example: Google’s brand equity enables it to dominate multiple markets, from search engines to AI
and cloud computing.

7. Brand Equity Models

Several models are used to measure brand equity:
A. Brand Asset Valuation (BAV) Model
Developed by Young & Rubicam, this model measures brand equity based on four pillars:
1. Differentiation – How unique the brand is.
2. Relevance – How meaningful the brand is to consumers.
3. Esteem – The level of respect the brand has earned.
4. Knowledge – How well consumers recognize and understand the brand.
Example: Tesla scores high on differentiation due to its innovative electric vehicles.

B. Aaker Model of Brand Equity

David Aaker proposed that brand equity consists of five elements:
1. Brand Loyalty – Repeat customers and emotional attachment.
2. Brand Awareness – Recognition and recall among consumers.
3. Perceived Quality – Consumer perception of product superiority.
4. Brand Associations – Emotional and functional connections with the brand.
5. Other Proprietary Assets – Patents, trademarks, and brand symbols.
Example: Toyota’s brand equity is built on reliability and strong customer loyalty.

C. BRANDZ Model
Created by Millward Brown, this model ranks brands based on their financial performance and
consumer perception. It follows a five-stage pyramid:
1. Presence – Awareness of the brand.
2. Relevance – Consumer consideration of the brand.
3. Performance – The brand’s ability to meet expectations.
4. Advantage – Competitive differentiation.
5. Bonding – Strong emotional connection and loyalty.
Example: Amazon’s BRANDZ ranking has grown due to customer-centric innovation and service
excellence.

D. Brand Resonance Model (Keller’s Model)

Keller’s model explains how brands build deep connections with customers. It consists of four levels:
1. Brand Identity (Salience) – Ensuring brand awareness.
2. Brand Meaning (Performance & Imagery) – Delivering value and appealing to emotions.
3. Brand Response (Judgments & Feelings) – Shaping consumer opinions.
4. Brand Resonance – Creating brand loyalty and community.
Example: Harley-Davidson has built strong brand resonance by forming a community of loyal
customers (H.O.G. – Harley Owners Group).

8. Building Brand Equity

To enhance brand equity, companies use:
A. Strong Brand Positioning – Clear differentiation from competitors.
B. Consistent Marketing Efforts – Unified branding across all channels.
C. Emotional Branding – Creating customer experiences that resonate.
D. Quality Assurance – Maintaining high product and service standards.
E. Customer Engagement – Active interaction on social media and other platforms.
Example: Netflix has built strong brand equity by focusing on content quality, personalization, and
global expansion.

9. Brand Identity & Brand Image

A. Brand Identity (How a company wants to be perceived)
Brand identity includes logo, design, values, and personality. It is company-driven.
Example: BMW’s brand identity focuses on luxury, performance, and innovation.
B. Brand Image (How consumers perceive the brand)
Brand image is shaped by customer experiences, word-of-mouth, and media influence.
Example: Despite its premium branding, McDonald's is often perceived as a fast, affordable food
option.

UNIT – 6 Brand Performance & Brand Building

1. Brand Performance
Brand performance refers to how well a brand meets its business and consumer expectations. It is
measured through factors like brand awareness, customer loyalty, market share, and revenue growth.

2. Establishing a Brand Equity Management System

A Brand Equity Management System is a structured approach to monitoring, measuring, and
growing brand equity over time.
Steps to Establish a Brand Equity Management System:
A. Defining Brand Equity Goals – Setting clear objectives for brand value.
B. Identifying Brand Equity Drivers – Understanding what influences brand perception (e.g., quality,
reputation, customer engagement).
C. Tracking Brand Performance – Measuring brand awareness, loyalty, and market impact.
D. Making Strategic Adjustments – Improving branding strategies based on data insights.
Example: Coca-Cola tracks brand equity using customer surveys, sales data, and digital
engagement metrics.

3. Measuring Sources of Brand Equity & Consumer Mindset

To measure brand equity, companies analyze consumer perceptions, behaviors, and financial
impact.
Key Sources of Brand Equity:
• Brand Awareness – How well consumers recognize the brand.
• Brand Associations – Emotional and functional links with the brand.
• Perceived Quality – Consumer perception of product/service excellence.
• Brand Loyalty – Repeated purchases and strong consumer attachment.
Measuring the Consumer Mindset:
• Brand Recall & Recognition Tests – Checking if consumers remember the brand.
• Customer Satisfaction Surveys – Assessing consumer experiences.
• Net Promoter Score (NPS) – Measuring customer loyalty and likelihood to recommend.
Example: Apple measures brand equity by analyzing iPhone customer satisfaction and repeat
purchase rates.

4. Co-Branding
Co-branding is a marketing strategy where two brands collaborate to create a joint product.
Types of Co-Branding:
A. Ingredient Co-Branding – One brand adds value to another’s product (e.g., Intel processors in
Dell laptops).
B. Composite Co-Branding – Two brands combine their strengths (e.g., Nike & Apple partnership
for fitness tracking in Apple Watch).
C. Retail Co-Branding – Stores partnering with brands (e.g., McDonald's in Walmart stores).
Benefits:
• Increases brand exposure.
• Enhances customer trust and perceived quality.
• Expands market reach.
Example: Adidas and Prada collaborated on limited-edition sneakers to merge sportswear and
luxury fashion.

5. Celebrity Endorsement
Celebrity endorsement involves using a famous person’s image to promote a brand.
Why Brands Use Celebrities?
• Creates strong emotional connections.
• Enhances credibility and trust.
• Increases brand visibility and sales.
Risks of Celebrity Endorsement:
• Scandals or negative publicity can harm the brand.
• Expensive contracts may not guarantee high ROI.
Example:
• Nike & Michael Jordan (Air Jordans) – A hugely successful celebrity-brand collaboration.
• Pepsi & Kendall Jenner – A controversial ad that faced backlash.

6. Brand Positioning & Brand Building

Brand positioning is about creating a distinct image in the consumer's mind relative to competitors.
Elements of Brand Positioning:
• Target Audience – Defining who the brand serves.
• Unique Selling Proposition (USP) – What makes the brand different.
• Competitive Advantage – Why consumers should prefer the brand.
Example: Volvo positions itself as the "safest car brand", differentiating it from other automobile
manufacturers.

7. Brand Knowledge
Brand knowledge consists of:
• Brand Awareness – Consumer recognition and recall of the brand.
• Brand Associations – Emotional or functional links consumers create with the brand.
Example: Disney is associated with family entertainment, magic, and happiness.

8. Brand Portfolios & Market Segmentation

A. Brand Portfolio
A brand portfolio is the collection of different brands owned by a company to target various customer
segments.
Example: Procter & Gamble (P&G) owns brands like Tide, Pampers, and Gillette, each serving
different markets.
B. Market Segmentation
Market segmentation divides a broad market into smaller, defined groups based on:
• Demographics – Age, gender, income (e.g., luxury brands targeting high-income groups).
• Psychographics – Lifestyle, values (e.g., fitness brands targeting health-conscious customers).
• Geographics – Location-based targeting (e.g., McDonald's menu adaptations in different
countries).
• Behavioral Factors – Buying habits, brand loyalty (e.g., premium vs. budget shoppers).
Example: Coca-Cola markets Diet Coke for health-conscious consumers and Coca-Cola Zero for
those who prefer sugar-free beverages without compromising taste.

9. Steps of Brand Building

Brand building is a step-by-step process to establish strong brand equity.
Key Steps:
1. Define Brand Purpose & Vision – What the brand stands for.
2. Create a Unique Brand Identity – Name, logo, tagline, colors, and typography.
3. Develop a Consistent Brand Message – Communicate core values clearly.
4. Build Customer Relationships – Engage through personalized marketing.
5. Deliver a Consistent Experience – Across all touchpoints (website, ads, customer service).
6. Measure & Improve – Use consumer feedback to refine branding strategies.
Example: Apple built its brand by focusing on innovation, sleek design, and premium user
experience.

10. Identifying & Establishing Brand Positioning

To establish strong brand positioning, companies use:
Positioning Strategies:
• Cost Leadership – Offering lower prices (e.g., Walmart).
• Differentiation – Unique features (e.g., Tesla's electric car innovation).
• Niche Focus – Targeting a specific market segment (e.g., Rolex in luxury watches).
Positioning Statement Template: "For [target audience], [brand] is the [category] that [key benefit]
because [reason to believe]."
Example: "For fitness enthusiasts, Nike is the sportswear brand that enhances performance because
of its cutting-edge technology and innovation."

11. Defining & Establishing Brand Values

Brand values define the core principles that guide a brand’s actions.
Key Brand Values:
• Authenticity – Staying true to the brand’s mission.
• Customer-Centricity – Prioritizing customer needs and experiences.
• Sustainability – Commitment to ethical business practices.
• Innovation – Continuously improving products and services.
Example: Patagonia’s brand values focus on sustainability and environmental activism.

UNIT - 7 Managing & Measuring Brand Equity

1. Managing & Measuring Brand Equity

Brand equity refers to the perceived value and strength of a brand in the market. Managing and
measuring brand equity helps businesses sustain brand strength, improve customer perception, and
enhance financial performance.
Key Aspects of Managing Brand Equity:
• Reinforcing and revitalizing brands to stay relevant.
• Tracking brand performance over time.
• Conducting brand audits to assess strengths and weaknesses.
• Evaluating brand value using financial and consumer metrics.

2. Evaluation of Brands
Brand evaluation involves assessing a brand’s market position, consumer perception, and financial
impact.
Methods for Evaluating Brands:
• Customer-Based Metrics – Brand awareness, customer loyalty, satisfaction surveys.
• Financial Metrics – Brand value, market share, pricing power.
• Competitive Analysis – Benchmarking against competitors.
• Brand Sentiment Analysis – Social media monitoring, online reviews.
Example: Interbrand ranks brands like Apple, Amazon, and Google based on financial performance,
brand strength, and customer impact.

3. Brand Crisis
A brand crisis occurs when a brand’s reputation is damaged due to negative publicity, scandals, or
product failures.
Causes of Brand Crisis:
• Product Recalls – Quality issues (e.g., Samsung’s Galaxy Note 7 battery explosions).
• PR Scandals – Ethical issues (e.g., Volkswagen’s emissions scandal).
• Negative Customer Experiences – Poor service, fraud, or misleading ads.
Crisis Management Strategies:
1. Quick and Transparent Communication – Addressing the issue openly.
2. Apologizing & Correcting Mistakes – Taking responsibility and offering solutions.
3. Rebuilding Trust – Launching new initiatives and improving customer engagement.
Example: Toyota successfully recovered from its 2010 recall crisis by improving safety features and
strengthening customer communication.
4. Brand Value Chain
The Brand Value Chain (BVC) is a model that tracks how branding activities impact financial
performance.
Four Stages of Brand Value Chain:
• Marketing Program Investment – Branding activities (advertising, sponsorships).
• Customer Perception & Response – Awareness, loyalty, and emotional connection.
• Market Performance – Sales, price premium, and customer retention.
• Shareholder Value – Stock price, brand valuation, and profitability.
Example: Apple’s strong marketing investments in iPhones lead to high customer loyalty, premium
pricing, and strong financial performance.

5. Brand Audits
A Brand Audit is a comprehensive analysis of a brand’s strengths, weaknesses, and market
position.
Components of a Brand Audit:
• Brand Inventory – Reviewing logos, taglines, marketing materials.
• Customer Perception Analysis – Conducting surveys and focus groups.
• Competitor Analysis – Comparing against industry rivals.
• Brand Performance Metrics – Measuring sales, market share, and digital presence.
Example: Nike regularly conducts brand audits to align its marketing with evolving customer
expectations.

6. Brand Tracking
Brand tracking involves monitoring brand performance over time to assess its market standing.
Key Brand Tracking Metrics:
• Brand Awareness & Recognition – Tracking brand recall and visibility.
• Customer Loyalty & Engagement – Measuring repeat purchases and brand advocacy.
• Social media & Online Sentiment – Analyzing customer reviews and discussions.
• Market Share Analysis – Comparing performance with competitors.
Example: Netflix tracks customer viewing habits and engagement metrics to improve content
recommendations and brand positioning.

7. Brand Evaluation
Brand evaluation measures the total financial and strategic value of a brand.
Methods of Brand Evaluation:
• Market-Based Valuation – Comparing brand value with competitors.
• Revenue-Based Valuation – Assessing profits generated by the brand.
• Customer Perception Surveys – Measuring trust and loyalty.
Example: Forbes evaluates brands like Google and Amazon based on financial revenue and
consumer impact.

8. Emerging Trends in Product & Brand Management

The landscape of brand management is evolving with new consumer behaviors and technological
advancements.
Key Emerging Trends:
• Digital Transformation – Brands investing in AI, blockchain, and automation.
• Sustainability & Ethical Branding – Consumers preferring eco-friendly brands.
• Personalization & Customer Experience – Hyper-targeted marketing campaigns.
• Influencer & Social Media Branding – Growing impact of influencers in shaping brand perception.
• Metaverse & Virtual Branding – Brands launching virtual stores and NFTs.
Example: Nike is exploring NFT sneakers and metaverse experiences to connect with digital-savvy
consumers.