Introduction to Product Management

Agenda

Course Overview What is a Brand? Brand Equity Brand Management

Course Overview

Objective Structure

Brand Management System On Building A Brand Managing Across Brands

Requirements 2 case write-ups, class participation, marketing

plan, and final exam.

Structure

Part I - The Brand Management System Class 1: Class Overview, The Nature of a Brand,

Brand/Product Management. An application to the Pepsi syringe scare.

Class 2: P&G Case. Live commentary from P&G.

Structure

Part II - Building Brands Class 3: Branding and Price. The case is Kodak.

Then, Red Hat discusses how its branding strategy leads to a price advantage.

Class 4: Distribution and forecasting. The Goodyear case. Video regarding the effect of channel on brand.

Structure

Part II - Building Brands (Cont.) Class 5: Craig Stacey (VP from IRI) discusses the

use of information to build brands. Class 6: Promotions and Brands: Marketing in the

NHL with live commentary from the Hurricanes Director of Communications, Ken Lehrner

Structure

Part II - Building Brands (Cont.) Class 7: Advertising and Brands with Intel Inside

Interactive CDROM. Live Commentary and Discussion with Michael J. Ganey, Director, Howard, Merrell & Partners,Inc.

Structure

Part III - Across Brands and Markets Class 8: The Marketing Plan & Pharmasim. Tom

O’Guinn, Visiting Professor discusses Brand Communities.

Class 9: Product Extensions: The Black and Decker Case and Video

Class 10: Global Branding: The Heineken Case, MTV Worldwide, and The Fuqua MBA with Jim Gray, Associate Dean, Fuqua.

Structure

Part III - Across Brands and Markets Class 11: Branding on the Internet. Deborah

Kania (Lens Express and author of branding.com) and Beth Yakel (Sciquest)

Class 12: Wrap-up and PharmaSim Summary.

Agenda

Course Overview What is a Brand? Brand Equity Brand Management

What is a Brand?

Name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competition.” - AMA

Not all products are brands. Focus of Court et al. reading

Why Brand?

Identify product Reduce risk Reduce consumer search cost Signal quality Legal protection Create product associations Differentiate product

Agenda

Course Overview What is a Brand? Brand Equity Brand Management

Brand Equity

The marketing effects uniquely attributable to the brand - Keller

Positive brand equity leads to: Loyalty Margins Reduced vulnerability to competition Enhanced marketing effectiveness Brand extensions

Brand Equity

Sources of Brand Knowledge Brand Awareness Brand Image

Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations

Brand Equity

Benefits Loyalty Larger Margins Greater Trade Support More Efficient Communications Licensing Opportunities Brand Extension Opportunities

Coke name worth $39BB, Kodak $11BB (Brand Valuation Reading)

Best Corporate Reputations in America

70

72

74

76

78

80

82

84

Source: Wall Street Journal / Harris Poll

Brand Equity

But how does one develop brand equity? The goal of this course is to learn how to

manage brands (via marketing programs) in order to create brand equity - that is, create an enduring advantage for your brands.

Greater loyalty

Less vulnerability to competitive marketing actions and crises

Larger margins

More elastic response to price increases

More inelastic response to price increases

Increased marketing communica- tion efficiency and effectiveness

Possible licensing opportunities

More favorable brand extension evaluations

Figure 2-9 Building Customer-Based Brand EquityTOOLS AND OBJECTIVES KNOWLEDGE EFFECTS BENEFITS

Choosing Brand Elements (4)Brand name Logo MemorabilitySymbol MeaningfulnessCharacter TransferabilityPackaging AdaptabilitySlogan Protectability

Brand Awareness (3) Possible Outcome

Brand Associations (3)

Developing Marketing Programs (5 & 6)

Leverage of Secondary Associations (7)

Depth Recall Recognition

Breadth PurchaseConsumption

Strong RelevanceConsistency

Favorable DesirableDeliverable

UniquePoint of parityPoint of difference

Product Functional & symbolic benefitsPrice Value perceptionsDistribution channels Integrate “Push” & “Pull”Communications Mix and match options

CompanyCountry of originChannel of distribution AwarenessOther brands MeaningfulnessEndorsor TransferabilityEvent

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Agenda

Course Overview What is a Brand? Brand Equity Brand Management

Brand Management

Brand management is the act of designing and implementing marketing programs to build and maintain brand equity. Product Price Distribution Communications

The Role of a Brand or Product Manager

Prepare Marketing Plan Develop Copy, Programs, and Campaigns Stimulate Sales and Distribution Market Intelligence Product Improvements

Pluses- Cost effective mix, quick market reaction, attention for small brands, good training for executives

Minuses- Conflict and frustration (responsibility and no authority), administrative work with executive expectations, learns products not functions, short horizon, costs of associates and assistants

The Role of a Brand or Product Manager

A Product Manager - Computer Software Firm

Background Undergrad in architecture, became director of

marketing for architecture firm Received MBA International marketing manager for sporting

goods company Founded a toy company

A Product Manager -Computer Software Firm

Typical day Meetings - new product line, marketing mix,

marketing staff, organizational design and integration

E-mail/Phone - 3rd party developers, sales force, product support

Marketing planning - drafting the marketing plan

A Product ManagerComputer Software Firm

Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels

A Product Manager - Consumer Packaged Goods Firm

Background Medical equipment sales after undergraduate Received MBA Assistant Brand Manager at large CPG Company Switched firms, promoted several times to

product manager. Switched firms again to as senior product

manager

A Product Manager -Consumer Packaged Goods Firm

Typical day 75% fighting fires, 25% planning

Marketing planning - key is volume forecasting since unsold inventory is perishable

Mix - 1/3 on pricing issues (list & trade), 20% on consumer promotions, president handles ads, 15% on distribution, little on sales and service

A Product ManagerComputer Software Firm

Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels.

The Marketing Department

Marketing Administration

Advertising &Promotion

Sales

Market Research

New Products

Existing Products

VP Marketing

Design the Department!!!Matrix or Tree?

Brand Management Issues

ProductManager

Manufacturing

R&D

Legal

Fiscal

MarketResearch

Salesforce

Publicity

Purchasing Packaging

PromotionServices

Media

AdvertisingAgency

Distribution

A Key Trend in Product/Brand Management

Salaries and bonus for product marketers are up 65% in the last two years (Marketing News, Nov. 99)

Brand Management Prognostications

Future of brand management Customer management vs. product management Cuts across brands and products Managers organized by portfolios of customers

Summary

Brand Equity Awareness Associations

Created by the mix It is the role of a product manager to manage

the mix to create equity The brand management system