Marketing week 10 â Brand Management and ... amazonaws com
Marketing week 10 – Brand Management and New Product Development Brand Management Product Place Price Promotion
Law of Contraction - Narrow focus - Stock in-depth - Buy and sell cheap - Dominate the category
Law of Publicity - Birth of a brand is achieved by publicity not branding - What others say is more powerful than what you say - It’s better to be first than better, because being first generates publicity
Law of Advertising - Brand needs advertising to stay healthy - Advertising dollars keep you from losing shares to competitors - Advertise brand leadership not quality - For consumers leadership = quality
Law of credentials - Claim to authenticity (ex: Coke – “the real thing”)
Law of Mortality - No brand can live forever; euthanasia is the best solution
Law of word - Brand should strive to own a word in mind of consumer Ex: Kleenex, Jello, Bandaid, Scotch Tape etc…
Law of shape - Ideal shape for a logo is horizontal; it’s designed to fit both eyes
Law of extensions - Easiest way to destroy a brand is by putting its name on everything
Law of colour White = purity, Black = luxury, Blue = leadership, Purple = royalty, Green = environment/health, Red = excitement/energy
Law of category - Brand should promote the category not brand itself - If no category, should make one and lead in it
Law of fellowship - To build the brand, brand should welcome other brands ~ 2 major brands are ideal because it makes the consumer more conscious of the category Traditional View of Product Development
New Product Development Red vs. Blue Ocean Strategy
Dynamic Approach to Product Development
Observe and Improve - How do consumers use products? - How M do consumers get product out of box? - How do consumers read directions (or not)? - QFD {Quality Function Deployment} = “What?” + “How”
Metrics!!! – Return on Marketing Investment (ROMI)
EX: A farm equipment company is considering a direct mail campaign to remind customers to have tractors serviced before spring planting. The direct mail campaign would be in addition to the company’s regular advertising and other marketing activities costing $6,000. Contribution on tractor servicing revenues (after parts & labour) averages 60%. The direct mail campaign is expected to cost $1,000 and to increase revenues from $45,000 to $50,000. Baseline revenues for tractor servicing (with no marketing of any kind) were estimated at $25,000.
ROMI without direct mail campaign
ROMI with Direct Mail Campaign
Incremental ROMI
Law of Contraction - Narrow focus - Stock in-depth - Buy and sell cheap - Dominate the category
Law of Publicity - Birth of a brand is achieved by publicity not branding - What others say is more powerful than what you say - It’s better to be first than better, because being first generates publicity
Law of Advertising - Brand needs advertising to stay healthy - Advertising dollars keep you from losing shares to competitors - Advertise brand leadership not quality - For consumers leadership = quality
Law of credentials - Claim to authenticity (ex: Coke – “the real thing”)
Law of Mortality - No brand can live forever; euthanasia is the best solution
Law of word - Brand should strive to own a word in mind of consumer Ex: Kleenex, Jello, Bandaid, Scotch Tape etc…
Law of shape - Ideal shape for a logo is horizontal; it’s designed to fit both eyes
Law of extensions - Easiest way to destroy a brand is by putting its name on everything
Law of colour White = purity, Black = luxury, Blue = leadership, Purple = royalty, Green = environment/health, Red = excitement/energy
Law of category - Brand should promote the category not brand itself - If no category, should make one and lead in it
Law of fellowship - To build the brand, brand should welcome other brands ~ 2 major brands are ideal because it makes the consumer more conscious of the category Traditional View of Product Development
New Product Development Red vs. Blue Ocean Strategy
Dynamic Approach to Product Development
Observe and Improve - How do consumers use products? - How M do consumers get product out of box? - How do consumers read directions (or not)? - QFD {Quality Function Deployment} = “What?” + “How”
Metrics!!! – Return on Marketing Investment (ROMI)
EX: A farm equipment company is considering a direct mail campaign to remind customers to have tractors serviced before spring planting. The direct mail campaign would be in addition to the company’s regular advertising and other marketing activities costing $6,000. Contribution on tractor servicing revenues (after parts & labour) averages 60%. The direct mail campaign is expected to cost $1,000 and to increase revenues from $45,000 to $50,000. Baseline revenues for tractor servicing (with no marketing of any kind) were estimated at $25,000.
ROMI without direct mail campaign
ROMI with Direct Mail Campaign
Incremental ROMI
