Marketing Strategy and the Product Mix
Class 12 Entrepreneurship — Strategy, Branding, Logos, Taglines, Packaging and IP Rights
Marketing Strategy
What a marketing strategy includes
The analysis of the strategic initial situation of a company.
The formulation, evaluation and selection of market-oriented strategies.
It contributes to the company’s overall goals and marketing objectives.
School-level scope
Definitions of the Marketing Mix (Stanton & Kotler)
“Marketing mix is the term used to describe the combination of the four inputs which constitute the core of a company's marketing system: the product, the price structure, the promotional activities, and the distribution system.”
Plain language:The marketing mix = the four core inputs of a company's marketing system — product, price, promotion, and distribution (place).
“A Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market.”
Plain language: The marketing mix = the controllable marketing variables a firm mixes to achieve its target sales in the target market.
The 4 Ps — and the new Ps
Product and Product Considerations
Product/Service — questions typically considered
Components of the product mix
Branding — Concept and Origin
“BRANDR” — a Norwegian word meaning “to burn”— led to the origin of the word “Brand”.
In olden days, farmers put an identification mark (using a burning hot iron) on the body of livestock to distinguish their possession from others' — marketers do the same to distinguish their offerings from competitors'.
If products were sold by generic names, it would be very difficult for marketers to distinguish their products from competitors'. Branding is an effective differentiation strategy commonly adopted when products cannot be easily distinguished in terms of tangible features.
| Generic Name | Brand Names |
|---|---|
| Detergents | Nirma, Suf, Ariel, Rin etc. |
| Pen | Parker, Rottomac, Cello, Reynold etc. |
| Car | BMW, Honda, Maruti, etc. |
| Refrigerator | LG, Whirlpool, Godrej, etc. |
| Television | Sony, LG, Videocon, Samsung, etc. |
| Milk products | Amul, Saras, Mother Dairy etc. |
| Cosmetics | Ponds, Lakme, Revlon, etc. |
So, the minute a brand name is used, identification of the product becomes easy.
Branding — Three Components of a Brand
A brand has three components — tap a card to flip it
A brand is a comprehensive term used to: (1) identify the products of one firm, and (2) differentiate them from those of the competitors.
Qualities of a Good Brand Name
A good brand name should possess qualities of distinctiveness — the capability to stand out amongst a host of competing names. While selecting a brand name, the entrepreneur should choose a name which is:
Short, Sweet and Catchy! Brand names like Lux, Vim, Rin, VIP, Amul, Titan, Konica, SX, Liv52, Quickfix, Band-aid, Sunflame, Surf, Dalda and many more have earned a reputation for good quality.
Brand Name Policies — Types of Brands
The entrepreneur can follow different policies in choosing brand names keeping in mind the range of products offered. As the whole meaning and direction of a company can be explained through its brand management strategy, an entrepreneur should be very careful in choosing its brand strategy.
Protect your brand
| Example Brand | Concept | Variants/Extensions |
|---|---|---|
| Lifebuoy | Good health | Lifebuoy liquid, Lifebuoy Personal, Lifebuoy Plus and Lifebuoy Gold to cover various price sub-segments in the health segment. |
| Liril | Freshness | - |
| Lux | Beauty soap for film stars | - |
Thus, HUL has ensured for itself a presence in all segments using new brand launches.
Logos and Taglines
McDonald’s golden arches
Purpose of logos
The ‘Promise’ story — a tagline that worked
Balsara Hygiene launched ‘Promise’ toothpaste in 1978 and took an aggressive stand against multinationals, Colgate Palmolive in particular. It soon commanded the second highest market share. The reason: the slogan (tagline) — “The unique toothpaste with time-tested clove-oil.” Clove oil is a traditional and herbal remedy in India for preventing dental ailments and toothaches — the powerful connotation succeeded.
A tagline (US: tag line, tag; UK: end lines, endlines, straplines; Germany: Claims; France: Signatures; Belgium: baselines) is a small amount of text that serves to clarify a thought and is designed with a dramatic effect. Taglines are simple but powerful messages that communicate an enterprise's goals, mission, distinct qualities and so much more. They can come in the form of: Questions, Statements, Exclamations. The whole idea: create a memorable dramatic phrase that sums up the product.
Amul
“A gift for someone you love.”
Rasna
“I love you, Rasna.”
McDonald’s
“I’m lovin it”
Weekender
“Wear your attitude.”
Raymond’s Suiting
“The complete man.”
Yamaha Bike
“The rugged personality.”
Savdhan India
“India fights back.”
Packaging and Labelling
Intellectual Property for the Entrepreneur
Five types of IP — tap a card to flip it
Inventions patentable in India
Art, Process, Method or Manner of manufacture
Machine, Apparatus or other Articles
Substances produced by Manufacturing
Computer Software which has Technical application to Industry or is used with Hardware
Product Patent for Food/Chemical/Medicines or Drugs
One product, many protections (fountain pen example)
Think about it: The next time you pick up a Maggi packet, an Amul butter pack or a Vim bar, notice how many brand elements are protecting that product — the name, the mark, the packaging, the tagline. That is branding working at every layer of the product mix.