Six categories of new products
1. New-to-the-world products
2. New product lines
3. Additions to existing product lines
4. Improvements and revisions of existing products
5. Repositioning
6. Cost reductions
Why do new products fail?
1)A high-level executive pushes a favorite idea through in spite of negative research findings.
2) The idea is good, but the market size is overestimated.
3) The product is not well designed
Factors that tend to hinder new-product development
1) Shortage of important ideas in certain areas
2) Fragmented markets
3) Social and governmental constraints
4) Cost of development
Organizing New-Product Development
• Product managers
• New-product managers
• High-level management committee
• New product department
• Venture teams
17.Branding
The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.
A brand is a long-term profitable bond between an offering & a customer. This relationship is based on economic, emotional and/or experiential value, backed by everyday operational excellence & consistently measured for accountability, usually by customer profitability
SENSE VALUE
• Understand competitors
• Sense market trends
• Understand customers
• Identify opportunities
DEFINE VALUE
• Segment customers
• Target profitable segments
• Craft value propositions
• Validate value propositions
REALIZE VALUE
• Develop offerings
• Meet customer demands for economic, experiential, emotion value
• Measure value
SUSTAIN VALUE
• Improve retention
• Increase customer, product & account penetration
• Personalize relationships
BRANDING: 4 types
• Acquisition branding
Targeting & segmentation
• Retention branding
Keep customers longer & purchasing more
• Brand penetration
Customer, account, product
• Advocacy
Get customers to sell to others
FIRST RULE OF BRANDING
• It is not about you; it is about the prospect & customer
SECOND RULE OF BRANDING
All customers (and prospects) are not created equal.
THIRD RULE OF BRANDING
Measurement is critical.
BRAND PLANNING: PLAN
• KEY ELEMENTS
• I. Executive overview
• II. Market, product, business & competitive review
• III. Situation analysis
• IV. USP (Unique Selling Proposition)
• V. Strategies, objectives, goals & tactics
• VI. Execution
• VII. Budgeting
• VIII. Timetables & responsibilities
• IX. Measurement, evaluation & feedback
What’s brand wars?
Why are companies fighting each other?
• The main reason for it is that the companies are trying to get more customers and to increase their market. The aim of the battle is to get the customer to buy your product and not the product of the competitor. There are two types of customers: Active and Passive.
Active customers know what they want. And passive ones, on the contrary, have no idea of what they want and think for a long time about what product to buy.
• For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.
• Consumer must not think that all brands in the category are the same.
• PERCEPTION = VALUE
The objectives that a good brand will achieve include:
• Delivers the message clearly
• Confirms your credibility
• Connects your target prospects emotionally
• Motivates the buyer
• Concretes User Loyalty
BRAND VALUE
Brand Finance is an independent intangible asset valuation consultancy. It advises strongly branded organisations, or those with valuable intangible assets, on how to maximise their value through effective management of their brand and other intangible assets.