b) What is a brand? What distinct advantages do firms get from branding?

Pickup two brands one from FMCG and other from consumer durables to explain how the firms were benefited BRANDS AND BRANDING An essential issue in product management is branding. Different firms have different policies on the branding on their products. While 3M puts its brand name on a great diversity of products, Proctor & Gamble, on the opposite extreme, maintains a separate brand name for each product. In general, the use of brand extensions should be evaluated on the basis of the compatibility of various productscan the same brand name represent different products without conflict or confusion? Coca Cola for many years resisted putting its coveted brand name on a diet soft drink. In the old days, available sweeteners such as saccharin added an undesirable aftertaste, implying a clear sacrifice in taste for the reduction in calories. Thus, to avoid damaging the brand name Coca Cola, Coke instead named its diet cola Tab. Only after NutraSweet was introduced was the brand extension allowed. Research shows that consumers are more receptive to brand extensions when (1) the company appears to have the expertise to make the product [McDonalds was not thought as credible as a photo-finishing service], (2) the products are congruent (compatible), and (3) the brand extension is not seen as being exploitative of a high quality brand name [e.g., one should not use a premium brand name like Heineken to make a trivially easy product like popcorn]. In many markets, brands of different strength compete against each other. At the top level are national or international brands. A large investment has usually been put into extensive brand buildingincluding advertising, distribution and, if needed, infrastructure support. Although some national brands are better regarded than otherse.g., Dell has a better reputation than e-Machinesthe national brands usually sell at higher prices than to regional and store brands. Regional brands, as the name suggests, are typically sold only in one area. In some cases, regional distribution is all that firms can initially accomplish with the investment capital and other resources that they have. This means that advertising is usually done at the regional level. This limits the advertising opportunities and thus the effect of advertising. In some cases, regional brands may eventually grow into national ones. For example, Snapple was a regional beverage. While a regional beverage, it became so successful that it was able to attract investments to allow a national launch. In a similar manner, some brands often start in a narrow niche either nationally or regionallyand may eventually work their way up to a more inclusive national brand. For example, Mars was originally a small brand that focused on liquor filled chocolate candy. Eventually, the firm was able to expand. Store, or private label brands are, as the name suggests, brands that are owned by retail store chains or consortia thereof. (For example, Vons and Safeway have the same corporate parent and both carry the Select brand). Typically, store brands sell at lower prices than do national brands. However, because the chains do not have the external brand building costs, the margins on the store brands are often higher. Retailers have a great deal of power because they control the placement of products within the store. Many place the store brand right next to the national brand and place a sign highlighting the cost savings on the store brand. Co-branding involves firms using two or more brands together to maximize appeal to consumers. Some ice cream makers, for example, use their own brand name in addition to naming the brands of ingredients contained. Sometimes, this strategy

may help one brand at the expense of the other. It is widely believed, for example, that the Intel inside messages, which Intel paid computer makers to put on their products and packaging, reduced the value of the computer makers brand names because the emphasis was now put on the Intel component. Certain peripheral characteristics of products may signal quality or other value to consumers. For some products, packaging accounts for a large part of the total product manufacturing cost. Long warranties often signal to consumers that the product is of good quality since the manufacturer is willing to take responsibility for its functioning. THE PRODUCT-SERVICE CONTINUUM There is no clear distinction between a pure tangible product and a service. Most products contain some of both. A computer, for example, is a tangible product, but it often comes with a warranty and software updates

FMCG stands for Fast Moving Consumer Goods and India is a hub for FMCG companies. Quite a number of people of India are dependent on the FMCG products for their day to day operations. FMCG products are of relatively low cost than any other products and they offer a quick turnover to the manufacturer. FMCG products normally include different varieties of frequently purchase consumer products like detergents, shaving products, tooth cleaning products, cosmetics, soap, toiletries and other non-durable products like plastic goods, paper products, bulbs and glassware. FMCG goods might also include products like packaged drinks and food products, consumer electronics and pharmaceuticals even though these products are categorized separately. The list of top players in India in FMCG sector is given below: Top ten FMCG companies in India: Hindustan Unilever Ltd Indian Tobacco Company Nestle India GCMMF (Amul) Dabur India Asian Paints Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

Amul Brand Building

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers. AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and [SAARC] SAARCneighbours, Singapore, The Philippines, Thailand, Japan and China. In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.[10] In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The Brand Trust Report,[11] published by Trust Research Advisory.

Born: History: Flagship brand of Parle Products Pvt. Ltd

1939

Status: Has a market share of 60% in the glucose biscuits category, worth about Rs2,000 crore Brand story: In the hit Bollywood movie Welcome, actor Nana Patekar, in a passing reference to Parle-G, notes that even biscuits command respect and have to be addressed with a ji (a term of respect in Hindi). His remark, while made in jest, is not far off the mark. It is a heritage brand. We sell over 25 crore packets every month. That should reflect the stature of the brand, says Praveen Kulkarni, marketing head at Parle Products Pvt. Ltd. Parles mantra has always been about repositioning the brand without tweaking the look and feel of the product. The brand is clearly an Indian brand and it straddles all economic strata. The fact that it is a staple for everyone in the house keeps it going, says Nirvik Singh, chairman and president, Grey Global Group, South and South-East Asia, the agency that handles the Parle-G account.

There was a time when Parle-Gs dominance was threatened by rival brands, especially the Tiger brand from Britannia. We found out that Tiger was getting stronger in the kids segment, and we decided to change our positioning, says Kulkarni. Later, when the company sponsored the television show Shaktimaan on Doordarshan, it literally rescued Parle-G.

The brand also had some innovative commercials involving young children with a new punchline, G means Genius, which was an instant hit.While rivals have signed on celebrities, Parle-G has managed to retain its leadership position with just a simple white-and-yellow striped wrapper with a picture of a baby on it. We dont need celebrities as the brand equity is so strong, says Kulkarni.

The biggest concern is that the brand shouldnt become outdated as it is a historic brand. The brand has managed to retain its leadership position because it has evolved its campaign with every consumption trend, says Singh.

The last campaign, Hindustan ki Takat, (the strength of India) is a huge position which no other brand can take so effortlessly.

As of 2011, Parle-G is the largest selling biscuit in the world.[1] It has 70% market share in India in the glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). Last fiscal[when?], Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the world and is starting to sell in Western Europe and USA. Parle Products top the list of biscuits, snacks and confectionery business in India. They are very much famous in India. Biscuit goodies offered by the company are Parle-G, Krackjack, Magix, Monaco, Hide and Seek, Hide and Seek Milano, Digestive Marie, Parle Marie, Kreams, Parle 20-20 Cookies, Nimkin, Chox, Hide and Seek Bourbon, Monaco Jeera, Kreams Gold, Golden Arcs, Milk Shakti and others. Brands of snacks that belong to this company are Jeffs, Musst Bites, Cheeslings, Sixer, Monaco Smart Chips, Musst Stix & Musst Chips and Sixer Zeera. There are also brands in the category of sweets and confectionery.
Parle Products top the list of biscuits, snacks and confectionery business in India. They are very much famous in India. Biscuit goodies offered by the company are Parle-G, Krackjack, Magix, Monaco, Hide and Seek, Hide and Seek Milano, Digestive Marie, Parle Marie, Kreams, Parle 20-20 Cookies, Nimkin, Chox, Hide and Seek Bourbon, Monaco Jeera, Kreams Gold, Golden Arcs, Milk Shakti and others. Brands of snacks that belong to this company are Jeffs, Musst Bites, Cheeslings, Sixer, Monaco Smart Chips, Musst Stix & Musst Chips and Sixer Zeera. There are also brands in the category of sweets and confectionery. Brand name strategy Parle follows company brand name strategy, since all its products are named using the companys name as a prefix such as Parle-G, Parle- Monaco, Parle hide&seek, Parle digestive Marie, etc. Brand strategy decision: Product category

Parle follows both line extension and brand extension for its products. For a product like Parle-G it followed line extension with the introduction of Parle-G milk Shakti and Parle-G magix which has 2 flavors- choco and cashew. For Parle Monaco too it followed line extension when a new favor Monaco jeera was introduced. Similarly when it introduces any new product in the biscuit category, it follows line extension. Initially Parle used to produce only confectionaries. Parle followed brand extension with the introduction of products in the biscuits and snacks category. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

Why does the marketing mix change as the product moves through its life cycle? How would you foresee the mix to change for any innovative product of your choice as it moves through its life cycle? Specify the brand and clearly explain the phenomenon THE PRODUCT LIFE CYCLE Products often go through a life cycle. Initially, a product is introduced.

Since the product is not well known and is usually expensive (e.g., as microwave ovens were in the late 1970s), sales are usually limited. Eventually, however, many products reach a growth phasesales increase dramatically. More firms enter with their models of the product. Frequently, unfortunately, the product will reach a maturity stage where little growth will be seen. For example, in the United States, almost every household has at least one color TV set. Some products may also reach a decline stage, usually because the product category is being replaced by something better. For example, typewriters experienced declining sales as more consumers switched to computers or other word processing equipment. The product life cycle is tied to the phenomenon of diffusion of innovation. When a new product comes out, it is likely to first be adopted by consumers who are more innovative than othersthey are willing to pay a premium price for the new product and take a risk on unproven technology. It is important to be on the good side of innovators since many other later adopters will tend to rely for advice on the innovators who are thought to be more knowledgeable about new products for advice. At later phases of the PLC, the firm may need to modify its market strategy. For example, facing a saturated market for baking soda in its traditional use, Arm & Hammer launched a major campaign to get consumers to use the product to deodorize refrigerators. Deodorizing powders to be used before vacuuming were also created. It is sometimes useful to think of products as being either new or existing. Many firms today rely increasingly on new products for a large part of their sales. New products can be new in several ways. They can be new to the marketnoone else ever made a product like this before. For example, Chrysler invented the minivan. Products can also be new to the firmanother firm invented the product, but the firm is now making its own version. For example, IBM did not invent the personal computer, but entered after other firms showed the market to have a high potential. Products can be new to the segmente.g., cellular phones and pagers were first aimed at physicians and other price-insensitive segments. Later, firms decided to target the more price-sensitive mass market. A product can be

new for legal purposes. Because consumers tend to be attracted to new and improved products, the Federal Trade Commission (FTC) only allows firms to put that label on reformulated products for six months after a significant change has been made. DIFFUSION OF INNOVATION The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people.

Usually, when new products or ideas come about, they are initially only adopted by a small group of people. Later, many innovations spread to other people. The bell shaped curve frequently illustrates the rate of adoption of a new product. Cumulative adoptions are reflected by the S-shaped curve.

The saturation point is the maximum proportion of consumers likely to adopt a product. In the case of refrigerators in the U.S., the saturation level is nearly one hundred percent of households. The figure will almost certainly be well below that for video games that, even when spread out to a large part of the population, will be of interest to far from everyone. Several specific product categories have case histories that illustrate important issues in adoption. Until some time in the 1800s, few physicians bothered to scrub prior to surgery, even though new scientific theories predicted that small microbes not visible to the naked eye could cause infection. Younger and more progressive

physicians began scrubbing early on, but they lacked the stature to make their older colleagues follow. ATM cards spread relatively quickly. Since the cards were used in public, others who did not yet hold the cards could see how convenient they were. Although some people were concerned about security, the convenience factors seemed to be a decisive factor in the tug-of-war for and against adoption. The case of credit cards was a bit more complicated and involved a chickenandegg paradox. Accepting credit cards was not a particularly attractive option for retailers until they were carried by a large enough number of consumers. Consumers, in contrast, were not particularly interested in cards that were not accepted by a large number of retailers. Thus, it was necessary to jump start the process, signing up large corporate accounts, under favorable terms, early in the cycle, after which the cards became worthwhile for retailers to accept. Rap music initially spread quickly among urban youths in large part because of the low costs of recording. Later, rap music became popular among a very different segment, suburban youths, because of its apparently authentic depiction of an exotic urban lifestyle. Hybrid corn was adopted only slowly among many farmers. Although hybrid corn provided yields of about 20% more than traditional corn, many farmers had difficulty believing that this smaller seed could provide a superior harvest. They were usually reluctant to try it because a failed harvest could have serious economic consequences, including a possible loss of the farm. Agricultural extension agents then sought out the most progressive farmers to try hybrid corn, also aiming for farmers who were most respected and most likely to be imitated by others. Few farmers switched to hybrid corn outright from year to year. Instead, many started out with a fraction of their land, and gradually switched to 100% hybrid corn when this innovation had proven itself useful.

Several forces often work against innovation. One is risk, which can be either social or financial. For example, early buyers of the CD player risked that few CDs would be recorded before the CD player went the way of the 8 track player. Another risk is being perceived by others as being weird for trying a fringe product or idea. For example, Barbara Mandrel sings the song I Was Country When Country Wasnt Cool. Other sources of resistance include the initial effort needed to learn to use new products (e.g., it takes time to learn to meditate or to learn how to use a computer) and concerns about compatibility with the existing culture or technology. For example, birth control is incompatible with religious beliefs that predominate in some areas, and a computer database is incompatible with a large, established card file. Innovations come in different degrees. A continuous innovation includes slight improvements over time. Very little usually changes from year to year in automobiles, and even automobiles of the 1990s are driven much the same way that automobiles of the 1950 were driven. A dynamically continuous innovation involves some change in technology, although the product is used much the same way that its predecessors were usede.g., jet vs. propeller aircraft. A discontinuous innovation involves a product that fundamentally changes the way that things are donee.g., the fax and photocopiers. In general, discontinuous innovations are more difficult to market since greater changes are required in the way things are done, but the rewards are also often significant.

Several factors influence the speed with which an innovation spreads. One issue is relative advantage (i.e., the ratio of risk or cost to benefits). Some products, such as cellular phones, fax machines, and ATM cards, have a strong relative advantage. Other products, such as automobile satellite navigation systems, entail some advantages, but the cost ratio is high. Lower priced products often spread more quickly, and the extent to which the product is trialable (farmers did not have to plant all their land with hybrid corn at once, while one usually has to buy a cellular phone to try it out) influence the speed of diffusion. Finally, the extent of switching difficulties influences speedmany offices were slow to adopt computers because users had to learn how to use them. Some cultures tend to adopt new products more quickly than others, based on several factors: Modernity: The extent to which the culture is receptive to new things. In some countries, such as Britain and Saudi Arabia, tradition is greatly valuedthus, new products often dont fare too well. The United States, in contrast, tends to value progress. Homophily: The more similar to each other that members of a culture are, the more likely an innovation is to spreadpeople are more likely to imitate similar than different models. The two most rapidly adopting countries in the World are the U.S. and Japan. While the U.S. interestingly scores very low, Japan scores high. Physical distance: The greater the distance between people, the less likely innovation is to spread. Opinion leadership: The more opinion leaders are valued and respected, the more likely an innovation is to spread. The style of opinion leadersmoderates this influence, however. In less innovative countries, opinion leaders tend to be more conservative, i.e., to reflect the local norms of resistance.

It should be noted that innovation is not always an unqualifiedly good thing. Some innovations, such as infant formula adopted in developing countries, may do more harm than good. Individuals may also become dependent on the innovations. For example, travel agents who get used to booking online may be unable to process manual reservations. Sometimes innovations are disadopted. For example, many individuals disadopt cellular phones if they find out that they dont end up using them much.

2 a)

What do you understand from Segmentation Targeting and Positioning strategies (STP) strategies? Discuss with suitable illustrations

Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that You cant be all things to all people, and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really cant offer much that another one cant. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travelersusually business travelerspay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over. Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time. Thus, we need to determine which variables will be most useful in distinguishing different groups of consumers. We might thus decide, for

example, that the variables that are most relevant in separating different kinds of soft drink consumers are (1) preference for taste vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price sensitivitywillingness to pay for brand names; and (4) heavy vs. light consumers. We now put these variables together to arrive at various combinations. Several different kinds of variables can be used for segmentation.

Demographic variables essentially refer to personal statistics such as income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size. Campbells soup, for instance, has found that Western U.S. consumers on the average prefer spicier soupsthus, you get a different product in the same cans at the East and West coasts. Facing flat sales of guns in the traditional male dominated market, a manufacturer came out with the Lady Remmington, a more compact, handier gun more attractive to women. Taking this a step farther, it is also possible to segment on lifestyle and values. Some consumers want to be seen as similar to others, while a different segment wants to stand apart from the crowd. Another basis for segmentation is behavior. Some consumers are brand loyal i.e., they tend to stick with their preferred brands even when a competing one is on sale. Some consumers are heavy users while others are light users. For example, research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumerspresumably a rather intoxicated group. One can also segment on benefits sought, essentially bypassing demographic explanatory variables. Some consumers, for example, like scented soap (a segment likely to be attracted to brands such as Irish Spring), while others prefer the clean feeling of unscented soap (the Ivory segment). Some consumers use toothpaste primarily to promote oral health, while another segment is more interested in breath freshening.

In the next step, we decide to target one or more segments. Our choice should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow? (Note that a downside to a large, rapidly growing segment is that it tends to attract competition). Thirdly, do we have strengths as a company that will help us appeal particularly to one group of consumers? Firms may already have an established reputation. While McDonalds has a great reputation for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonalds now offers gourmet food. Thus, McDs would probably be better off targeting families in search of consistent quality food in nice, clean restaurants. Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for non-geeks. The Visual C software programming language, in contrast, is aimed a techies.

Michael Treacy and Fred Wiersema suggested in their 1993 book The Discipline of Market Leaders that most successful firms fall into one of three categories:

Operationally excellent firms, which maintain a strong competitive advantage by maintaining exceptional efficiency, thus enabling the firm to provide reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. The emphasis here is mostly on low cost, subject to reliable performance, and less value is put on customizing the offering for the specific customer. Wal-Mart is an example of this discipline. Elaborate logistical designs allow goods to be moved at the lowest cost, with extensive systems predicting when specific quantities of supplies will be needed. Customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, which is sacrificed for providing more precisely what is wanted by the customer. Reliability is also stressed. Nordstroms and IBM are examples of this discipline. Technologically excellent firms, which produce the most advanced products currently available with the latest technology, constantly maintaining leadership in innovation. These firms, because they work with costly technology that need constant refinement, cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. Intel is an example of this discipline.

Treacy and Wiersema suggest that in addition to excelling on one of the three value dimensions, firms must meet acceptable levels on the other two. Wal-Mart, for example, does maintain some level of customer service. Nordstroms and Intel both must meet some standards of cost effectiveness. The emphasis, beyond meeting the minimum required level in the two other dimensions, is on the dimension of strength. Repositioning involves an attempt to change consumer perceptions of a brand, usually because the existing position that the brand holds has become less attractive. Sears, for example, attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered everyday low prices. Repositioning in practice is very difficult to accomplish. A great deal of money is often needed for advertising and other promotional efforts, and in many cases, the repositioning fails. To effectively attempt repositioning, it is important to understand how ones brand and those of competitors are perceived. One approach to identifying

consumer product perceptions is multidimensional scaling. Here, we identify how products are perceived on two or more dimensions, allowing us to plot brands against each other. It may then be possible to attempt to move ones brand in a more desirable direction by selectively promoting certain points. There are two main approaches to multi-dimensional scaling. In the a priori approach, market researchers identify dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. This is useful when (1) the market researcher knows which dimensions are of interest and (2) the customers perception on each dimension is relatively clear (as opposed to being made up on the spot to be able to give the researcher a desired answer). In the similarity rating approach, respondents are not asked about their perceptions of brands on any specific dimensions. Instead, subjects are asked to rate the extent of similarity of different pairs of products (e.g., How similar, on a scale of 1-7, is Snickers to Kitkat, and how similar is Toblerone to Three Musketeers?) Using a computer algorithms, the computer then identifies positions of each brand on a map of a given number of dimensions. The computer does not reveal what each dimension meansthat must be left to human interpretation based on what the variations in each dimension appears to reveal. This second method is more useful when no specific product dimensions have been identified as being of particular interest or when it is not clear what the variables of difference are for the product category.

How would you reply to the marketers who say, Marketing Research is too expensive, so the firm will just have to get by without it?

Low-Cost Market Research Sources

Many marketers mistakenly believe marketing research, while important in helping make marketing decisions, is something that is far too expensive to do on their own. While this is true for some marketing decisions, marketers should also know that not all marketing research must be expensive to be useful. For the rest of this tutorial we discuss secondary research sources that are easily obtainable and relatively low cost (often free). Many of these inexpensive sources hold great potential to aid marketers in several ways. First, for marketers seeking information to help with marketing decisions, the material found through these sources can be extensive and, on many occasions, will meet the marketers needs. Second, even in situations where the available information is not sufficient quantity or quality to be used for marketing decision-making, the information could still be used to fill smaller needs, such as the need to enter a metric in a slide presentation. Third, the information located through these sources may suggest to the research seeker that conducting their own primary research is necessary in which case the secondary research could serve as a guide for how this can be done. Despite these advantages, inexpensive research carries many disadvantages making it unsuitable for some situations. As we noted in the Planning for Market Research Tutorial , these problems include:

The information lacks sufficient detail to address the marketers needs. The method in which the research is presented does not provide sufficient supporting material to allow the research seeker to judge the quality of the research. The amount of information presented represents only a teaser that requires the purchase of a full report to obtain full details.

Our coverage of low-cost market research looks at the following sources:

Trade Associations Government Sources Company-Provided Information News and Media Sources Other Sources

1 a) Discuss the elements of Marketing Mix. Explain the additional marketing mix elements essential in marketing of services, giving suitable examples. The Company Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets Under Management (AUM) of Rs. 79,974 crores (AUM as on 31st Oct 07) and an investor base of over 40.28 Lakhs Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 115 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer serviceinitiatives to increase value to investors. Reliance Mutual Fund schemes are managed byRelianceCapital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

Reliance Mutual Fund Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which was changed on March 11, 2004. Reliance Mutual Fund was formed for launching of various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities.

The 7 Ps of Service Marketing Product: Customers invest in mutual funds with capital appreciation, liquidity and safety as their objectives. So, marketers need to design the products keeping these objectives in mind. In addition, the marketer has to take care of the government regulations that govern the industry. As a result, he needs to be very judicious in designing the product and planning the investment portfolio of the customer. Only then he can maximize the returns while minimizing the risk. In the case of Reliance Mutual fund they also have products based on the same segmentation. Price: Before we try to understand the pricing of mutual funds, let us first understand the concept of NAV (Net Asset Value). The net asset value of the fund is the cumulative market value of the assets fund net of its liabilities. In other words, if the funds is dissolved or liquidated, by selling of all the assets in the fund, this is the amount that the share holders would collectively own . They give rise to the concept of the net asset value per unit, which is the value, expressed by the owner ship of one unit in the fund, It is calculated simply by dividing the net asset value of the fund by the number of units. However, most people refers usually to the NAV per unit as NAV, ignoring the per unit. We also abide by the same convention. Calculation of NAV: The most important part of the calculation is the valuation of the assets owned by the funds . Once it is calculated the NAV is simply the net value of assets divide by the number of units out standing . The detail methodology for the calculation of the net asset value is given below Promotion: With more and more private and global players entering the mutual market, the market has become quite competitive in the recent past. Mutual funds, as an investment option, are now competing with commercial banks and other financial institutions for the investors savings. Mutual fund companies need to differentiate themselves from the other investment avenues in the market and position their services exclusively in the customers mind. They need to adopt innovative promotional strategies like strategic tie-ups. Reliance uses electronic media, print media and hoardings for promotion. Place: The various distribution channels employed by mutual fund companies include their own employees, agents, third party distribution companies, banks and post offices. The third party distribution companies started flourishing with the entry of private players into the industry in

1993. UTI and the government players relied completely on their agents for distributing the funds. Reliance has more than 500 distributors in the state. In addition to it 50 brokerage houses and 2 AMCs (Asset Management company) People: The process of investment decision-making in a mutual fund company determines the importance of the individuals in the company. If the fund manager has a free hand to decide the fate of savings of thousands of unit holders, he needs to be very competent and judicious in his decision-making. In such companies, people become the most important element of the marketing mix. In fact companies publicize the success of their fund manager who has delivered consistent results, to promote their services. If we talk about Reliance AMC, it has not a big staff. The reason behind that is the expenses made on these people is adjusted from the return which they earn from the investment of their customer. In Reliance AMC there is 1 Relationship manager, 2 Office Coordinator executives (customer), 1 coordinator (Karvy), 1 Sales manager, and 1 assistant sales manager, and 1 coordinater. Process: The process of investment by one mutual fund company can be quite different from that of another. In some companies, the fund manager given a free hand and he decides where to invest and how much to invest. On the other hand, the investment decision in some companies is strictly governed by the company itself. Any fund manager can operate within the defined parameters of the company. Difference in investment processes defines the style of functioning of a fund and determines its success. Physical Evidence: Providing physical evidence to the customer is one of the most difficult aspects of the mutual fund business. As there are very few instances of the customer entering the company premises, buildings and infrastructure can rarely be used as physical evidence. Therefore, companies use their channels of distribution like banks and post offices to attach an element of credibility to their services. They also try to use their service personnel to reduce the perceived risk of customers. One of the most important ways is to promote the earlier successes of the company in a big way.

The extended marketing mix (7Ps)

Category: Marketing

The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. Traditionally the marketing mix consisted of just 4 Ps. For example, a motor vehicle manufacturer like Audi:

Produces products that are of the highest quality and fit for the needs of different groups of consumers, Offers a range of cars at value for money prices, depending on the market segmented they are targeted at, Sells the cars through appropriate outlets such as dealerships and showrooms in prime locations, i.e. in the right places, and Supports the marketing of the products through appropriate promotional and advertising activity.

The marketing mix thus consists of four main elements: 1. Product 2. Price 3. Place 4. Promotion.
The New Marketing Mix Structure: Adding Ps
Why add more Ps? The answer to this question is that the traditional marketing mix was designed in and created for the age of marketing brought about by the manufacturing explosion of the 50s and 60s. The 4 Ps are simply not enough to describe new marketing systems, paradigms and methodologies which are much more focused on people and technology.

The fact of the matter is that even 7 Ps may not be enough to cover everything that you need to know to successfully create marketing plans. However you define the components of the marketing mix the real question is, what do you need to know to create customers today? In looking at the 3 Ps of People, Process and Physical Evidence in the new marketing mix, think about what other factors will play a role in creating a successful marketing program. These may be as important for you to consider as traditional elements of the marketing mix.

People
The marketing equation of the past was traditionally concerned with only two parties, you and your customer (You). The new marketing mix structure broadens this to include a myriad of other people involved in modern business.Your Marketing Communication Strategy must now encompass employees, shareholders, partners, the press, analysts and the general public. Each of these groups is a stakeholder in your businesses whose needs must be addressed. While the complexity of the diverse interests you must cater to can seem intimidating, they provide you the opportunity to provide a rich message that delivers more value to your customers in the form of an experience and not just a product.

Process
It is not enough to say you have a Product and a Place where your consumer will purchase from you without more focus on the shape and form your business will take. Sales and marketing today is far more complicated than the simple transactions of the past. Some of the questions covered by Process within the components of the marketing mix are not only where and how customers will do business with you but what added value you provide and how you can develop relationships and provide an interactive experience.

The advent of e-commerce has caused an explosion and exponential growth in new ways of doing business. The most successful organizations today are those that interact and transact with customer through a variety of methods. In cultivating long term relationships with your customers, Process within the new marketing mix will come to include not only how you promote and deliver the value you create but also how you educate and support customers on an ongoing basis.

Sales and Marketing for "You" means making sure you keep your customer in mind throughout the sales and marketing process. In looking at this element of the marketing communication mix, always keep their needs in mind. Are they being serviced excellently? Do they have all the information they need? Is their experience of interacting with your organization satisfying and rewarding?

Physical Evidence
What is Physical Evidence? Within the new marketing mix structure this refers to whatever your customers can see before purchasing. This can include the physical environment, packaging, supporting collateral and anything else that helps in presentation. Physical Evidence as one of the components of the marketing mix is most useful in selling and marketing services and intangible products. Whenever your customer can't feel or see your end product, then supporting physical evidence they can see and feel becomes important. Physical Evidence within the marketing mix structure should once be tied into trying to understand your customer's perspective. What experience are you providing them during the purchase process itself? Is it pleasant and rewarding doing business with you? How can you tailor your customer interactions to be in and of themselves a value add and unique differentiator for you?

b)

How would you reply to the marketers who say, Marketing Research is too expensive, so the firm will just have to get by without it?

3 a) When is personal selling more effective then other methods of promotion? Explain its importance with two examples of your choice.

4 a)

What are the different types of costs associated with the physical distribution? Discuss each of them in detail.

b)

Discuss the importance of packaging as a tool for market cultivation. Elaborate why Packaging is considered as the fifth element of marketing mix.

b) What is a brand? What distinct advantages do firms get from branding? Pickup two brands one from FMCG and other from consumer durables to explain how the firms were benefited BRANDS AND BRANDING An essential issue in product management is branding. Different firms have different policies on the branding on their products. While 3M puts its brand name on a great diversity of products, Proctor & Gamble, on the opposite extreme, maintains a separate brand name for each product. In general, the use of brand extensions should be evaluated on the basis of the compatibility of various productscan the same brand name represent different products without conflict or confusion? Coca Cola for many years resisted putting its coveted brand name on a diet soft drink. In the old days, available sweeteners such as saccharin added an undesirable aftertaste, implying a clear sacrifice in taste for the reduction in calories. Thus, to avoid damaging the brand name Coca Cola, Coke instead named its diet cola Tab. Only after NutraSweet was introduced was the brand extension allowed. Research shows that consumers are more receptive to brand extensions when (1) the company appears to have the expertise to make the product [McDonalds was not thought as credible as a photo-finishing service], (2) the products are congruent (compatible), and (3) the brand extension is not seen as being exploitative of a high quality brand name [e.g., one should not use a premium brand name like Heineken to make a trivially easy product like popcorn]. In many markets, brands of different strength compete against each other. At the top level are national or international brands. A large investment has usually been put into extensive brand buildingincluding advertising, distribution and, if needed, infrastructure support. Although some national brands are better regarded than otherse.g., Dell has a better reputation than e-Machinesthe national brands usually sell at higher prices than to regional and store brands. Regional brands, as the name suggests, are typically sold only in one area. In some cases, regional distribution is all that firms can initially accomplish with the investment capital and other resources that they have. This means that advertising is usually done at the regional level. This limits the advertising opportunities and thus the effect of advertising. In some cases, regional brands may eventually grow into national ones. For example, Snapple was a regional beverage. While a regional beverage, it became so successful that it was able to attract investments to allow a national launch. In a similar manner, some brands often start in a narrow niche either nationally or regionallyand may eventually work their way up to a more inclusive national brand. For example, Mars was originally a small brand that focused on liquor filled chocolate candy. Eventually, the firm was able to expand. Store, or private label brands are, as the name suggests, brands that are owned by retail store chains or consortia thereof. (For example, Vons and Safeway have the same corporate parent and both carry the Select brand). Typically, store brands sell at lower prices than do national brands. However, because the chains do not have the external brand building costs, the margins on the store brands are often higher. Retailers have a great deal of power because they control the placement of products within the store. Many place the store brand right next to the national brand and place a sign highlighting the cost savings on the store brand. Co-branding involves firms using two or more brands together to maximize appeal to consumers. Some ice cream makers, for example, use their own brand name in addition to naming the brands of ingredients contained. Sometimes, this strategy

may help one brand at the expense of the other. It is widely believed, for example, that the Intel inside messages, which Intel paid computer makers to put on their products and packaging, reduced the value of the computer makers brand names because the emphasis was now put on the Intel component. Certain peripheral characteristics of products may signal quality or other value to consumers. For some products, packaging accounts for a large part of the total product manufacturing cost. Long warranties often signal to consumers that the product is of good quality since the manufacturer is willing to take responsibility for its functioning. THE PRODUCT-SERVICE CONTINUUM There is no clear distinction between a pure tangible product and a service. Most products contain some of both. A computer, for example, is a tangible product, but it often comes with a warranty and software updates

Brand Extensions Ppt 011