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1、Marketing ManagementReview of Last Session/HousekeepingNew DevelopmentsBrand ManagementPillarsPositioning via the pillarsNPD8 stage process v Landrover practiceCase ExerciseQuestions/Reading for next week What is a Brand?A brand is a name,term,sign,symbol,or design or a combination of them intended
2、to identify the goods and services of one seller and to differentiate them from those of the competition-(Bennett,P.D.,1998,AMA)Branding Basics Contd.Brands are:-What the customer buysthe receptical of the emotional values over and above the functional values of the product/servicemuch more difficul
3、t to copy and thus compete witha major potential source of differentiationlonger-lived-brands can transcend the original product/service.It is the products DNA.Brand Architecture and EquityBrand KnowledgeBrand Heritage Core ValuesBrand TerritoryBrand PersonalityBrand PropertiesBrand LoyaltyBrand Equ
4、ityBrand Architecture1.Brand Heritage-The brand brings 2.Core Brand Values-The brand means 3.Brand Territory-The brand competes in 4.Brand Personality-The brand is like5.Brand Properties-The brand owns.Landrover ExampleAccording to Nestl,the strength of the brands positioning is built on five“pillar
5、s”:Brand Architecture1.Brand Heritage-The brand brings 2.Core Brand Values-The brand means 3.Brand Territory-The brand competes in 4.Brand Personality-The brand is like5.Brand Properties-The brand owns.Landrover ExampleAccording to Nestl,the strength of the brands positioning is built on five“pillar
6、s”:50 years of Tradition.Britishness.Royalty?4X4 Market.Outdoors.Adventure Market etc.Male,Extrovert,Quietly Assured,Informal conservative.Logo,Brand Oval,BRG and Gold,ShapeGuts,Authenticity,Originality,Ruggedness,CapabilityBrand Architecture-Try It Yourself!1.Brand Background-The brand brings 2.Bra
7、nd Core Values-The brand means 3.Brand Territory-The brand competes in 4.Brand Personality-The brand is 5.Brand Properties-The brand owns.Your Brand ExampleAccording to Nestl,the strength of the brands positioning is built on five“pillars”:InnovationLife Cycle/BCG ImplicationsBeing the Leader provid
8、es advantagesBetter Mousetrap?RevenueTime0Introduction stageGrowth stageMaturity stageDecline stageThe Product Life CycleLeader Advantages*10%20%30%PIONEERFAST FOLLOWERLATE ENTRANTAVERAGE MARKET SHAREMARKET ENTRY STRATEGY*W.T.Robinson,(1984),”Market Pioneering and Sustainable Market Share Advantages
9、”PIMS*and Pioneer AdvantageThe Profit Impact of Marketing Strategy research is based on 3000 SBUs in 450 companies in the US.70%of SBUs with the leading market share were one of the pioneersOnly 40%of the SBUs with less than a leading market share were pioneers*Buzzell,R.and Gale,B.(1987),The PIMS P
10、rinciples:Linking Strategy to Performance,Free PressEmerson Was Wrong If a man can write a better book,preach a better sermon,or make a better mousetrap than his neighbor,though he builds his house in the woods the world will make a beaten path to his door.Ralph Waldo Emerson(1803-82),U.S.essayist,p
11、hilosopher and poet If you only build a better mousetrap,the world will not beat a path to your door.How will the world know you have the mousetrap?Who cares?Only those who have mice-And wish they didnt And dont like catsAnd then,they have to Understand how to operate it Have something to offer you
12、in exchangeAnd before long,a better mouse will come along!New Product strategyIdea GenerationScreeningConcept testingBusiness AnalysisProduct DevelopmentMarket TestingCommercialisationSource:Cooper and Kleinschmidt,1986,Journal of Product Innovation ManagementThe New Product Development(NPD)ProcessT
13、he NPD Process“We should note that new products pass through each stage at varying speeds;some may dwell at a stage for a long period while others may pass through very quickly”Jobber,Principles and Practice of Marketing,p.298What will determine this progress?Types of New Products20%10%26%26%11%7%Ne
14、w productLinesNew to the CompanyHighLowNew to the marketLowHighNew tothe world productsImprovementsto existing productsCost reductionsAdditions toexiting productlineRepositioningSource:-Booz,Allen and Hamilton,1982Landrover Video CaseDiscuss the sort of NPD process that the Discovery went throughHow
15、 might the Diffusion of Innovation process have been used to guide the Discoverys commercialisation?Mller Case QuestionVolunteer Group Answer Qs 2In own time,identify the NPD process for Muller yoghurt in the UKAppreciate the likely NPD differences for extensions v new to the world productsNext WeekRead ch.11 in JobberNB NOT Ch 12&13 as per the module outlineAddress the Mller case again Q2Describe Mllers brand positioningUse the 8 stage new product development process to analyse Mllers new product development processNB This replaces the SWATCH CASE!
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