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BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT SECTION 4B Brand Management and the Firm Brand Equity Models ALAN L. WHITEBREAD

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Title: BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT SECTION 4B Brand Management and the Firm Brand Equity Models ALAN L. WHITEBREAD


1
BRAND MANAGEMENT AND NEW PRODUCT
DEVELOPMENTSECTION 4BBrand Management and the
Firm Brand Equity Models ALAN L.
WHITEBREAD
2
SEVEN BRAND MANAGEMENT APPROACHES
  1. Economic
  2. Identity
  3. Consumer-based
  4. Personality
  5. Relational
  6. Community
  7. Cultural

3
COMPANY SENDER FOCUS
  • THE ECONOMIC APPROACH
  • Manages the brand with the traditional marketing
    mix
  • Company identity helps shape a brand message
  • Marketer is in charge of brand value creation
  • A consumer is an economic man passively
    receiving and understanding messages from the
    sender exactly as intended.

4
COMPANY SENDER FOCUS
  • Economic approach The economic man
  • Human behavior is rational
  • Humans maximize their satisfaction and/or utility
    self-interest is important
  • Humans have perfect market information
  • The exchange is an isolated event and not related
    to any other event
  • Humans have limited income which causes them to
    maximize the utility of their income

5
COMPANY SENDER FOCUS
  • THE IDENTITY APPROACH
  • Brand is integrated into all organizational
    levels
  • Organizational culture and corporate identity
    heavily influence the brand

6
HUMAN RECEIVER FOCUS
  • THE CONSUMER-BASED APPROACH
  • Brand is linked to customer associations
  • Focus shifts to the message receiver
  • Marketer can program the consumer through brand
    messages

7
CONSUMER-BASED BRAND EQUITY CBBE
  • Ensure consumers identify and associate the brand
    with a specific type of product or solution.
  • Establish the brand in the mind of the consumer
    through associations to certain properties.
  • Assure brand identification and brand meaning are
    accurate.

8
HUMAN RECEIVER FOCUS
  • Consumer-based approach
  • The brand is a consumer mental construct
  • The consumer is the owner of the brand
  • Marketer can program the consumer through brand
    messages

9
CUSTOMER-BASED BRAND EQUITY PYRAMID
10
BRAND IDENTITY
  • Brand salience
  • How often is the brand recalled?
  • Is it easy to recall?
  • What reminders are necessary?
  • Dimensions of brand awareness
  • Depth the likelihood of recall
  • Breadth the range of purchase opportunities
  • How effective are the brand elements?
  • Identify and differentiate each one

11
BRAND MEANING
  • Brand performance
  • Primary product and supplementary features
  • Product reliability, durability, and
    serviceability
  • Style and design
  • Value proposition using emotional and intangible
    elements not price

12
BRAND MEANING
  • Brand imagery
  • User profiles
  • Demographics, psychographics,
  • Purchase and usage situations
  • Channel, store, timing,
  • Personality and values
  • Sincerity, excitement, competence,
  • History, heritage, and memorable experiences

13
BRAND RESPONSE
  • Brand judgments
  • Brand quality
  • Value, satisfaction,
  • Brand credibility
  • Expertise, trustworthiness, likeability,
  • Brand consideration
  • As a relevant solution,
  • Brand superiority
  • Differentiation, associations,

14
BRAND RESPONSE
  • Brand feelings
  • Warmth
  • Fun or excitement
  • Security
  • Social approval
  • Self-respect

15
BRAND RELATIONSHIPS
  • Brand resonance
  • Behavioral loyalty
  • Frequency of repeat purchases
  • Attitude attachment
  • Strong affection, pride of ownership,
  • Sense of community affiliation
  • Active engagement
  • Regularly involved with some aspect

16
CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE What about you me?
JUDGMENTS What about you?
FEELINGS
PERFORMANCE What are you?
IMAGERY
SALIENCE Who are you?
17
HUMAN RECEIVER FOCUS
  • Personality approach
  • Humans endow the brand with a human character /
    personality, thus giving it symbolism
  • A prerequisite for the relational approach
  • Models
  • David Aakers Brand Equity Model
  • Brand Personality more in Section 7 and
    Corporate Brand Personality

18
DAVID AAKERS BRAND EQUITY MODEL
  • Brand equity is composed of distinct categories
    of brand assets and liabilities.
  • Brand loyalty
  • Brand awareness
  • Perceived quality
  • Brand associations
  • Other proprietary brand assets

19
DAVID AAKERS BRAND EQUITY MODEL
  • BRAND LOYALTY
  • Reduced marginal marketing expenses
  • Provides trade leverage with resellers
  • The ability to attract new customers and keep
    existing ones
  • Provides time to respond to competitive threats

20
DAVID AAKERS BRAND EQUITY MODEL
  • BRAND AWARENESS
  • It is an anchor to which you can attach other
    associations
  • It is familiar
  • It is an indicator of commitment to the brand
  • It indicates the brand should be considered if
    not already a customer

21
DAVID AAKERS BRAND EQUITY MODEL
  • PERCEIVED QUALITY
  • Provides a reason to buy
  • Differentiates the brand and its products
  • Part of the positioning
  • Provides value
  • Provides the opportunity for extensions

22
DAVID AAKERS BRAND EQUITY MODEL
  • BRAND ASSOCIATIONS
  • Helps with information retrieval
  • Provides a reason to buy
  • Creates positive attitude or feelings
  • Provides the opportunity for extensions

23
DAVID AAKERS BRAND EQUITY MODEL
  • OTHER PROPRIETARY BRAND ASSETS
  • Establishes competitive advantage

24
DAVID AAKERS BRAND EQUITY MODEL
  • BUILDING A BRAND
  • Have a strong core brand identity that can be
    modified for different segments and products.
  • Have a strong value proposition using emotional
    and intangible appeals.
  • Establish a strong brand positioning that links
    to the brand identity.
  • Great execution
  • NPD, launch, product / family life cycle

25
DAVID AAKERS BRAND EQUITY MODEL
  • BUILDING A BRAND
  • Be consistent over time
  • Coca-Cola vs. RC Cola
  • Use the brand leverage that has been developed
    only participate in strong co-branding programs
  • Measure and track various brand equity elements
    over time
  • Have a strong brand manager
  • Invest in the brand

26
PRODUCT BRAND PERSONALITY
  • Defined in user imagery
  • Understand the characteristics of customers
  • Customers can express their actual or desired
    self-image by association with the product

27
CORPORATE BRAND PERSONALITY
  • Defined in the actions, values, and words of all
    its employees
  • Supersedes any product brand personality
  • Core dimensions traits
  • Heart passionate and compassionate
  • Mind creative and disciplined
  • Body agile and collaborative

28
BRAND MANAGEMENT AND NEW PRODUCT
DEVELOPMENTSECTION 5Brand Management and the
Firm Brand Types and Characteristics
ALAN L. WHITEBREAD
29
THE FOUR STEPS OF BUILDING A BRAND
  • Brand identity
  • Who are you?
  • Brand meaning
  • What are you?
  • Brand response
  • How do I think or feel about you?
  • Brand relationships
  • What type of a connection do we have?

30
BUILDING A BRAND
  • BRAND IDENTITY FORMS
  • The company is the only brand name used
  • ?
  • The company and the brand are together
  • DuPont, IBM, Philips, Siemens
  • The brand by Company X
  • ?
  • The brand with minor mention of Company X
  • Clairol, Crest, Folgers, Noxzema, Pampers, Puffs,
    Tide Proctor and Gamble
  • The brand represented / distributed by X
  • ?

31
TYPES OF BRANDS
GENERIC Pharmaceuticals, Vegetables
CORPORATE / FAMILY Nike, IBM, GE, RCA
COMBINATION HP Deskjet, DuPont Stainmaster
INDIVIDUAL / PRODUCT Huggies, PG soaps, Crest
PRIVATE LABEL Kenmore, Craftsman, Die-Hard Great
Value,
CO-BRANDING Post Oreo Os cereal, Disney SUV
BRAND LICENSE Disney
32
PRIVATE LABEL BRANDS
  • Are generally a threat only to brands that are
  • The value equation is wrong because the real or
    perceived benefits are not sufficient.
  • Very small IMC relative to what is needed to
    build or sustain a brand.
  • Very poor differentiation if any and probably
    some combination of bad POP, IMC,

33
PRIVATE LABELS SOME DISHWASHERS
See http//www.ajmadison.com/cgi-bin/ajmadison/ite
m_list/cat00263/Built_In_Dishwashers.html for
more. See http//www.appliance.com/dishwashers/lis
t.html for a list of firms.
34
PRIVATE LABEL BRANDS
  • PRIVATE LABEL NOTES
  • Some people differentiate a private label brand
    as one that identifies the source of the product
    and a generic brand as one that does not identify
    the source.
  • Private labels are called store brands for
    retailers.
  • Private labels for wholesalers and distributors
    may or may not have detailed specifications and
    identify the source of the product.

35
BUILDING A BRAND
  • PRIVATE LABEL BRANDS
  • Manufacturers brands OEM
  • Manufacturer A makes products for Manufacturer B
    so the market believes Manufacturer B is making
    the products.
  • ?
  • Resellers brands
  • B2B
  • Nearly all mail order firms
  • B2C
  • Sears Craftsman tools, DieHard batteries, and
    Kenmore appliances

36
BUILDING A BRAND
  • PRIVATE LABEL BRANDS
  • Counter brands or Generic brands
  • Usually the same ingredients as the major brand
    and imitates it in nearly all aspects same size
    package, information is identical and in the same
    place, etc.
  • Wal-Mart Equate
  • Fakes or Knock-offs
  • Illegal versions of usually major brands
  • CDs, movies, software,

37
B2B BRANDS
  • Most are unknown by the average consumer.
  • Known Alcoa, Intel,
  • Unknown FMC, Lexan, TIVAR
  • Important considerations
  • Company reputation and financial stability
  • Capacity, flexibility, service levels
  • NPD

38
POSITIONING BRAND IDENTITY
  • Vision includes purpose / need fulfillment
  • What makes it different?
  • What makes it recognizable?
  • This is a part of but not the same as identity
  • As seen from senders side!
  • Sight
  • Graphic symbol logo
  • Sound
  • Name
  • Must penetrate the noise.

39
BRAND IDENTITY TRAPS
  • Each of these approaches is too limiting or
    tactical.


How the brand is currently perceived The customer determines who you are How we want the brand to be perceived Must be a visionary positive projection The part of the brand identity and value proposition that is communicated to the target audience. focus on attributes features restricts the brand identity
40
POSITIONING BRAND IMAGE
  • Brand image as seen from receivers side
  • Perceptions of the product
  • Must not be distorted by the noise
  • If you are doing a great communications job,
    brand image will be very close to the brand
    identity.
  • Understanding the receivers side
  • Use a Mental map / Mind map
  • A graphical technique that takes advantage of the
    brain associative capability not just is linear
    capability.

41
MIND MAP
42
POSITIONING MIND MAP TOOL
  • To effectively use this technique
  • Get a very large sheet of paper.
  • Put the central idea at the center of the paper.
  • Write down every association where it first
    appears to belong.
  • Draw all known connections between ideas with
    various arrows, lines, markers, symbols, colors,
    etc.
  • Go very quickly.
  • NEVER PAUSE, JUDGE, OR EDIT DURING THE MIND MAP
    SESSION!
  • This maximizes the number of associations and
    minimizes the linear thinking aspect of the brain.

43
REMEMBER THE BENEFITS OF STRONG BRANDS
  • Increased customer loyalty
  • Increased brand recognition
  • Stronger competitive position
  • Larger gross and pre-tax margins
  • Increased trade cooperation
  • Increased IMC effectiveness

44
REMEMBER STRONG BRANDS PROVIDE POTENTIAL FOR
  • a corporate brand
  • brand extensions
  • product line extensions

45
POSITIONING FIRST STEPS
  • Four key questions must be answered before you
    begin to evaluate positioning alternatives.
  • Why does the brand exist?
  • Who is the brand for?
  • Market segmentation market descriptions
  • Why are the benefits meaningful?
  • What are we competing against?
  • SWOT analysis competitive analysis product
    charts

46
POSITIONING FIRST STEPS
  • Why does the brand exist?
  • The brand vision brand promise for the
    consumer.
  • Brand benefits must be rank ordered by perceived
    value for each target market segment.
  • Who is the brand for?
  • Precise market segmentation and target marketing
    are required.

47
POSITIONING FIRST STEPS
  • Why are the benefits meaningful?
  • What proof exists?
  • How are those messages conveyed?
  • What are we competing against?
  • You must understand the nature of competition.
  • By level direct, various indirect
  • By product for direct competitors
  • By company by probability of competing

48
SELECTING BRAND ELEMENTS
  • Six criteria should be used to do this.
  • Meaningful / descriptive / interesting / rich in
    visual and verbal imagery
  • Likeable aesthetically and emotionally
  • Transferable within and across product,
    geographic, or cultural boundaries
  • Adaptable, flexible over time to keep from
    becoming stale or outdated

49
A SUCCESSFUL BRAND
  • When you have positioned a brand correctly, it
    has all of the following characteristics.
  • Recall physically, imagery, familiarity
  • Personality character
  • Culture group
  • Relationship meaning to the customer
  • Customer reflection perception
  • Self-image

50
BRAND MANAGEMENT AND NEW PRODUCT
DEVELOPMENTSECTION 6Brand Management and the
Firm New Product Development Risk Assessment
ALAN L. WHITEBREAD
51
REASONS FOR NPD
  • Capitalize on existing markets
  • Capitalize on new technology
  • Erect competitive barriers
  • Establish a market presence
  • Expand the product offering
  • Improve the companys image
  • Increase market penetration
  • Preemptive move in an emerging segment
  • Lower cost / higher value product
  • Offset a seasonal cycle
  • Utilize excess capacity

52
NEW PRODUCT DEVELOPMENT NPD
  • NPD is risky and expensive.
  • More than 9 out of 10 new products fail in the
    first year.
  • Food Industry 1997 first year failure rate
  • Top 20 firms success rate is 76
  • Food industry failure rate is nearly 80
  • Large firm vs. small firm NPD performance
  • Medicines Of 5,000
  • Only 5 make it to clinical trials
  • Only 1 is approved for patient use
  • U.S. 2007 Fortune 1000 firms
  • Spend more than 60 billion in new product
    failures each year.
  • Even if a product survives its first year, it is
    likely to fail in the second year.

53
NEW PRODUCT DEVELOPMENT NPD
  • New product development is cross-functional
  • Marketing identifies unfilled customer needs
  • Marketing specifies the type of product that is
    needed
  • RD develops conceptual alternatives for
    marketing to approve
  • RD, engineering, and production develop the
    product with marketings guidance
  • Finance verifies the estimated cost and
    profitability

54
MITIGATING RISK
  • Companies are faced with increasing levels of
    risk in todays market.
  • You must develop and introduce products faster!
  • Competitors have speeded up their NPD cycles.
  • Product life cycles are shortening, increasing
    risk because
  • more new products must continually be in
    development, and
  • there is less time to capture development costs
    and generate profits.
  • New product development is expensive.
  • A large percentage of all quality problems stem
    from poor design.
  • Most of a new product's cost is determined during
    the design stage.

55
KEYS TO NEW PRODUCT SUCCESSTHE DIMENSIONS OF
INDUSTRIAL NEW PRODUCT SUCCESS AND FAILURE, R.
G. Cooper, Journal of Marketing, Vol. 43 (Summer
1979), pp. 100-101.
  • Product uniqueness and perceived superiority
  • Market knowledge and marketing proficiency
  • Technical and production synergy and proficiency

56
CRITICAL GENERAL SUCCESS FACTORS FOR NEW PRODUCTS
  • Exceptional product quality
  • Quality leader
  • Superior to competitors perceived ability to meet
    a need or solve a problem
  • Unique benefits that are highly visible, easily
    understood, and

57
CRITICAL SUCCESS FACTORSPROJECT LEVEL
  • Unique perceived superior products
  • Market research
  • Clear, early, and stable project and product
    definitions
  • Planning and resourcing the launch
  • Excellent execution from idea forward

58
CRITICAL SUCCESS FACTORSPEOPLE AND THE
ENVIRONMENT
  • Organizing the right project team
  • Strong team chemistry
  • Outstanding leadership

59
QUALITIES PROMOTING CREATIVITYA MODEL OF
CREATIVITY AND INNOVATION IN ORGANIZATIONS,
Teresa M. Amabile, Research in Organizational
Behavior, Vol. 10, pp. 128-129. 1988.
  • Personality traits
  • Persistence, curiosity, energy, and intellectual
    honesty
  • Self-motivation 3M intrapreneurship
  • Self-driven and committed to the idea
  • Cognitive abilities
  • General problem-solving, tactics for creative
    thinking

60
QUALITIES PROMOTING CREATIVITYA MODEL OF
CREATIVITY AND INNOVATION IN ORGANIZATIONS,
Teresa M. Amabile, Research in Organizational
Behavior, Vol. 10, pp. 128-129.
  • Risk-orientation Norm Dion, Dysan Corp.
  • Unconventional, attracted to challenge, do things
    differently
  • Expertise in the area Al Shugart, Finis Conner
  • Talent, experience, and knowledge in a field
  • Qualities of the group
  • Synergy of intellectual, personal and social
    qualities of the group

61
QUALITIES INHIBITING CREATIVITYA MODEL OF
CREATIVITY AND INNOVATION IN ORGANIZATIONS,
Teresa M. Amabile, Research in Organizational
Behavior, Vol. 10, p. 129.
  • Unmotivated
  • Not challenged by the problem, pessimistic,
    complacent, lazy, do not believe in the idea
  • Unskilled
  • Lack of ability or experience in the problem area
  • Inflexible
  • Opinionated, unwilling to do things differently

62
ENVIRONMENTS FOR CREATIVITYA MODEL OF
CREATIVITY AND INNOVATION IN ORGANIZATIONS,
Teresa M. Amabile, Research in Organizational
Behavior, Vol. 10, pp. 146-147.
  • Freedom of what to do or how to do
  • 2 for inhibiting creativity
  • Good project management
  • Sufficient resources
  • Organizational characteristics
  • Cooperation and collaboration
  • Failure is not fatal
  • 1 for inhibiting creativity

63
THE POWER OF VISUALIZATION
  • On the internet find any or all of the following
    to appreciate visualization.

64
CRITICAL SUCCESS FACTORSPEOPLE AND THE
ENVIRONMENT
  • Organizing the right project team
  • Strong team chemistry
  • Outstanding leadership
  • Provide a supportive corporate environment
  • Climate
  • Culture
  • Top management support

65
B2C TARGET MARKET SEGMENT CRITERIA
  • Measurable
  • - Is it quantifiable ?
  • 2. Substantial
  • - Is it the right size for my firm?
  • Accessible
  • - Does it use our existing channels of
    distribution?
  • Heterogeneous
  • - Is it differentiable? Are there obvious
    customer benefits?
  • Actionable
  • - Does my firm have a committed long-term desire
    to succeed?

66
B2B TARGET MARKET SEGMENT CRITERIA
  • Measurable
  • The degree to which you can measure buyer
    characteristics
  • Accessible
  • The ability to focus on target market segments
  • Substantial
  • The degree to which target market segments are
    large enough and potentially profitable enough to
    pursue

67
B2B TARGET MARKET SEGMENT CRITERIA
  • Compatible
  • -The extent to which marketing and business
    strengths compare to current and expected
    competitive and technology states
  • Responsive
  • -The extent to which target market segments
    respond to elements of the marketing mix

68
WHAT IS A NEW PRODUCT?
  • Product improvements and modifications.
  • A different
  • Size
  • Color
  • Style
  • Specifications
  • Package
  • A new product family or product line
  • A new SBU
  • Products that require a new technology

69
FIVE TYPES OF DEVELOPMENT PROJECTS
HARDEST
LARGE
P R O C E S S C H A N G E
RD ADVANCED DEVELOPMENT PROJECTS GENETIC ENGINEERING
  NEW CORE PRODUCT NEXT GENERATION PRODUCT ADDITION TO PRODUCT FAMILY DERIVATIVES AND EXTENSIONS
ALLIANCES PARTNERSHIPS PROJECTS NEW CORE PROCESS BREAKTHROUGH PROJECT NEW FAMILY OF DRUGS      
RD JOINT VENTURE NEXT GENERATION PROCESS        
  SINGLE DEPARTMENT UPGRADE     PLATFORM PROJECT APPLE iMAC TRANSLUCENT PLASTIC COLORATION TECHNOLOGY  
  INCREMENTAL CHANGE       DERIVATIVE PROJECT SIMPLE SIZE CHANGE
MORE PRODUCT CHANGE LESS
EASIEST
SMALL
For more information see Creating Project Plans
to Focus Product Development, Harvard Business
Review, Vol. 70, No. 2, p.74.
70
NPD
  • New product development begins with the
    recognition of
  • an unmet customer need or want and
  • a potential market segment that is large enough
    to justify exploration.
  • NPD proceeds either in a sequential or concurrent
    fashion.
  • Sequential completing one step before proceeding
    to the next NPD is the traditional method.
  • It is time consuming, thus slow.
  • The lack of speed to market results in either not
    as much of a lead over competitors or it trails
    them further in the market. Either way, the firm
    does not realize as much profit from NPD as it
    could.

71
NPD A STAGE-GATE PROCESS
  • -Conduct necessary research discovery
  • -Determine the type of project scoping
  • Gain project approval
  • Development activities
  • Testing and validating

72
WHERE DO IDEAS COME FROM?
  • MARKET RESEARCH / CUSTOMERS / PROSPECTS /
    EMPLOYEES
  • SUPPLIERS
  • ACQUISITIONS
  • UNDERSTANDING TRENDS / ISSUES /
  • Demographics
  • Problems
  • Competition
  • Market research
  • Technology

73
NEW PRODUCT IDEA STRATEGIES
Original Products
Acquire Companies
Product Improvements
Acquire Patents
Product Modifications
Acquire Licenses
New Brands
74
METHODS OF IDEA GENERATION
  • METAPHOR BUILDING
  • FREE ASSOCIATION
  • Fruit ? Banana ? Yellow ? ?
  • Fruit ? Banana ? Orange ? ?
  • BRAINSTORMING
  • CATALOG TECHNIQUE
  • ATTRIBUTE LISTING
  • THINKING OUT OF THE BOX
  • Techniques for creative thinking
  • http//members.optusnet.com.au/charles57/Creative
    /Techniques/

75
ANSOFFS PRODUCT / MARKETEXPANSION GRID
Existing products
New products
2. Product Development
1. Market Penetration / Saturation
Existing markets
4. Diversification
3. Market Development
New markets
76
PRODUCT GENERATION MAP HP
DeskJet 560C
Cost reduction
DeskJet 300
Portable with small footprint
DeskJet 550C
One color and one black cartridge
DeskJet 500C
Swap color and black cartridges
DeskJet Plus
Cost reduction Quality improvement
DeskJet
TIME
77
TECHNOLOGY ROADMAP
Technology area Last year This year 1 year 2 years Vision
Weight/size 16-bit chip Micro controller Integrated unit Single chip Soft radio
Ease of use 4 line screen 10 line screen VGA Touch screen Voice interface
Longevity
Audio quality
Video quality
78
CONCEPT SCREENING
  • Sort and classify by type of project
  • Concept Screening Does it fit with the
    portfolio?
  • Form, function, design, aesthetics
  • ?
  • Risk analysis
  • Technological
  • Technology demands, engineering, operations, and
    quality
  • Business
  • Business analysis

79
THREE KEY QUESTIONS
Ø
  • Who?
  • What?
  • Where?
  • Why?
  • When?
  • How?
  • How is it differentiated?

80
THREE KEY QUESTIONS
Ø
  • 2.
  • Utilizing which core competencyies?
  • Utilizing which key success factors?
  • What operating model?
  • How will it be made?
  • What are the key hurdles?

81
THREE KEY QUESTIONS
Ø
  • 3.
  • Projected units
  • Projected net revenue including elasticity
  • Projected cost schedules
  • Projected profitability
  • Risk assessment the potential to make
    considerably more or less than the projections

82
BRAND MANAGEMENT AND NEW PRODUCT
DEVELOPMENTSECTION 7ABrand Management and the
Firm Market Research - 1 ALAN L.
WHITEBREAD
83
MARKET RESEARCH OVERVIEW
Market Research The collection and analysis
ofdata for market decisions about COMPETITORS MA
RKETS PRODUCTS RESPONDENTS STRATEGY OPTIONS
Strategic Marketing for Evaluation data for
-Strategy analysis -New business analysis
Market Planning for Market segmentation Market
potential / share Competitive analysis
Product Management for New or enhanced products
4 P's decisions
Product Development for Product concept
testing Sales techniques Price testing
84
FRAMING AN ISSUE
85
McKinsey Company
  • Breakthrough Thinking from Inside the Box, HBR,
    December, 2007, pp.71-78.
  • Create new boxes to think inside
  • Bound the range of acceptable ideas
  • Tailor the questions accordingly
  • Select participants capable of original insight
  • 21 Great Questions for Developing New Products

86
ELEMENTS OF A GOOD QUESTIONNAIRE
  • Most are short, simple, and quick but some can
    be quite long
  • Precise wording of questions and answers
  • Avoids leading questions
  • Does not ask unreasonable questions
  • Does not alienate the respondent
  • Sensitive topics ?
  • Readily lends itself to statistical analysis

87
THE QUESTION MUST BE VERY CAREFULLY WORDED AND
STRUCTURED! THE STRUCTURE OF THE ANSWER IS JUST
AS IMPORTANT AS THAT OF THE QUESTION!
88
TYPES OF QUESTIONS
DICHOTOMOS QUESTION THE RESPONDENT MUST ANSWER
ONE OF JUST TWO CHOICES DO YOU THINK TIDE GET
CLOTHES CLEAN WITHOUT INJURING THE FABRIC? YES NO
89
TYPES OF QUESTIONS
OPEN-END or COMPLETELY UNSTRUCTURED
QUESTION OBTAINS INFORMATION WITHOUT BIAS IT IS
LIKE AN ESSAY EXAM IT IS VERY HARD TO
ANALYZE FREE RESPONSE QUESTION ANSWERS ARE
LIMITED TO A WORD OR A PHRASE
90
TYPES OF QUESTIONS
SENTENCE COMPLETION QUESTION THE ______ IS
OBTAINED BY DIVIDING ______ BY ______. GOOD
FOR ROTE MEMORY MEASUREMENT THE RISK IS THAT
IS ALL THEY MEASURE!
91
TYPES OF QUESTIONS
MULTIPLE CHOICE QUESTION you must know
everything about an issue to properly write these
structured questions. 1-VERY EASY ANSWER
SET ONE CORRECT ANSWER 2-TO MEDIUM HARD
ANSWER SET SEVERAL ANSWERS ARE ONLY SLIGHTLY
DIFFERENT 3-TO HARD ANSWER SET COMBINATION
ANSWERS ONLY SLIGHTLY DIFFERENT
92
TYPES OF QUESTIONS
RANKING, RATING, and CONTINUUM QUESTIONS FORCE
A MORE PRECISE SCALE OF MEASUREMENT SCALE
DETERMINES TYPE OF STATISTICAL ANALYSIS PROBLEM
IS THE MEANING OF THE SCALE OF MEASUREMENT CHECK
QUESTIONS
93
QUALITATIVE RESEARCH
  • Words and images
  • Soft or subjective data
  • Exploratory in nature
  • Understand unmet needs
  • Heuristic analysis search for themes and deeper
    meanings

94
COMPETITIVE ANALYSIS
  • Traditional competitors
  • Evolving competitors
  • New competitors to the industry
  • The growing role of strategic alliances

95
COMPETITIVE ANALYSIS
Company 1 2 3 4 5 6 7 8 9 10 4 User
OUR COMPANY Y Y Y N N Y Y Y GUI Win 5,000
MCS Y Y Y ? ? ? Y ? CLI Unix ?
DMCS Y Y Y Y PROP Y Y Y CLI Unix 12,000
AS Y Y Y Y PROP ? Y ? GUI Unix ?
API Y Y N N Y ? N ? GUI Win 5,080
PCSS Y Y Y Y PROP Y Y Y GUI Win 7,460
MAC Y Y N N N N N N GUI Win ?
FMSI Y Y N N PROP Y Y ? GUI Win ?
HTC Y Y N N Y N Y N GUI Win 3,980
LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary LEGEND Yyes Nno GUIgraphic user interface CLIcommand line interface PROPproprietary
96
PRODUCT LINE EXPLOSION
97
PRODUCT LINE EXPLOSION
  • Look at what happens with only a little changes
    to the previous slide.
  • Brandstypessizescollarscolors
  • 14824 256
  • 34826 1,152

98
CONTEXTUAL RESEARCH
CONTEXT -Activities -Environment -Interactions -O
ther products -People -Processes -Relationships
99
CONTEXTUAL RESEARCHPRINCIPLES
  • Empathy for understanding
  • Rapport for true behavior and values
  • Subjects lead the session and identify what is
    important
  • Focus on what subjects do more than their
    opinions
  • General patterns should emerge

100
CONTEXTUAL RESEARCHTHE PROCESS
101
QUALITATIVE TECHNIQUES
  • INTERVIEW USERS
  • FREE ASSOCIATION
  • What does _________ mean to you?

102
QUALITATIVE TECHNIQUES
  • FOCUS GROUPS
  • How do they work?
  • PROJECTIVE TECHNIQUES
  • Completion and interpretation tasks
  • Comparison tasks
  • To try and uncover true opinions and feelings
  • Example Rorschach Test inkblot
    http//www.stupidstuff.org/main/rorschach.htm

103
CONCEPT TESTINGWhat ideas should we pursue?
  • The unmet need or want
  • The universal carryall
  • What is it?
  • How should it work?
  • Features ?
  • Advantages ?
  • Benefits ?

The universal carryall
104
CONCEPT TESTINGWhat ideas should we pursue?
  • Test as many ideas as possible
  • Test before any feasibility analysis
  • Do not mix innovative and very futuristic ideas
    in the same test set

105
BRAND ATTRIBUTES AND BENEFITS
User imagery
Usage imagery
Product-related attributes
Brand personality
PRODUCT OR SERVICE
Symbolic benefits
Functional benefits
Experiential benefits
106
TTU DELOITTE PROJECT, FALL 2008
107
SCALES OF MEASUREMENT
 
  • Ordinal scales are often used to evaluate
    consumer satisfaction. Likert scale
  • How satisfied are you with PRODUCT X?
  • Not satisfied
  • Neither satisfied or dissatisfied
  • Satisfied
  • Very satisfied
  • Extremely satisfied

108
SCALES OF MEASUREMENT
 
Equal distances between items (e.g. 3-24-3)
Calendar days Temperature
Interval scales are often used to rank
items. Which products do you prefer the most?
Assign 1 to the most preferred and 5 to the
least preferred product. PRODUCT A _____
PRODUCT B _____ PRODUCT C _____
PRODUCT D _____ PRODUCT E _____
109
BRAND PERSONALITY
  • IF PRODUCT __________ WAS YOUR FRIEND,
  • HOW WOULD IT TALK TO YOU?

110
THE BRAND PERSONALITY APPROACH
SUPPORTING THEME Personality
SUPPORTING THEME Brand-self congruence
BRAND PERSONALITY
SUPPORTING THEME Consumer self
111
BRAND PERSONALITYSupporting theme personality
Recessive personality Personality dimensions Dominant personality
Quiet, reserved, shy, silent, withdrawn EXTROVERSION Talkative, active, energetic, outgoing
Fault-finding, cold, unfriendly, quarrelsome, hardhearted AGREEABLE Sympathetic, kind, appreciative, affectionate, softhearted
Careless, disorderly, frivolous, irresponsible, slipshod CONSCIOUSNESS Organized, thorough, efficient, responsible
Tense, anxious, nervous, moody, worrying EMOTIONAL STABILITY Stable, calm, contented, unemotional
Commonplace, narrow interests, simple, shallow, unintelligent OPENNESS / CULTURED Wide interests, imaginative, intelligent, original, insightful
112
BRAND PERSONALITY
Brand Personality Central Theme
Ruggedness
Sophistication
Competence
Excitement
Sincerity
  • Hallmark
  • Coke
  • Pepsi
  • HP
  • Wall Street Journal
  • BMW
  • Lexus
  • Grey Poupon
  • Nike
  • Wells Fargo

113
THE POWER OF PASSIONS
  • The brand is what makes a product more than just
    a product it makes it unique.
  • The brand goal is to be more than brand
    preference a passionate brand insistence!
  • This is done through engagement and fulfilling
    self-concept and image to others.

114
CONNECTING WITH CONSUMERS
  • B2C
  • Needs and wants
  • Emotions and self-actualization
  • Hopes dream realizations
  • Fears risk reduction, safety
  • Familiarity and trust brand loyalty
  • Understanding demographic trends

115
CONNECTING WITH CONSUMERS
  • B2B connections
  • Performance and reward best solution
  • Fears risk reduction, improve safety
  • Familiarity and trust consistency ? brand
    loyalty
  • Understanding trends

116
BRAND MANAGEMENT AND NEW PRODUCT
DEVELOPMENTSECTION 7BBrand Management and the
Firm Market Research - 2 ALAN L.
WHITEBREAD
117
QUANTITATIVE RESEARCH
  • Numbers based
  • Hard data
  • More confirmatory in nature
  • Optimize the appeal of new products
  • Statistical analysis

118
QUANTITATIVE TECHNIQUES
  • ANALYSIS OF VARIANCE ANOVA
  • Closely related to multiple regression
  • Can examine multiple variables and their
    influence on some response
  • Analysis of - 1A, 2B, 1 A B, 1 2 A
    B, etc.
  • CONJOINT ANALYSIS
  • Many tools including variance and regression
    analysis
  • Allows many variables and aspects to be analyzed
    simultaneously
  • Human perceptions and preferences
  • to single attributes and interactions such as
    price point, sales likelihood, and
    cannibalization
  • CORRESPONDENCE MAPPING
  • Graphically represent the relationship between
    brands or products and other variables such as
    psychographics, media, etc..
  • Can be a preliminary step to cluster analysis,
    used in determining the most discriminatory
    psychographic statements

119
QUANTITATIVE TECHNIQUES
  • FACTOR ANALYSIS
  • A data reduction technique to explain variability
    of factors
  • Finds commonality in sets of variables
  • Used to identify consumer lifestyle and
    personality types
  • PRINCIPAL COMPONENT ANALYSIS PCA
  • A type of factor analysis
  • Used to identify
  • the most independent variables
  • and relative strength/position of a set of linear
    variables
  • MULTIDIMENSIONAL SCALING
  • Similar to factor analysis
  • Human perceptions and preferences in relative
    perceptual space e.g. perceptual map

120
FACTOR ANALYSIS AND PCADeloitte study 2009
Rotated Factor Analysis PCA Rotated Factor Analysis PCA Rotated Common Factor Analysis Rotated Common Factor Analysis
Factor 1 by Sex Single Factor 1 by Sex Single Factor 1 by Sex Single Factor 1 by Sex Single
  MALE FEMALE MALE FEMALE
Exterior design 0.7829 0.5233 0.5833  
GPS system       0.4914
Fuel efficiency 0.6915   0.4410  
Horsepower 0.7468   0.6816  
iPod link       0.5497
Leg room 0.5856 0.6206 0.4816  
Newest model       0.5113
Performance 0.8633 0.5986 0.7602  
Quietness inside   0.8159    
Responsiveness / handling 0.8902 0.6436 0.7513  
Sound system 0.5224 0.6015 0.4585  
Steering wheel controls 0.4122 0.5275    
Tells you when it needs service   0.7664   0.4054
Type of transmission 0.4497   0.4244  
See what happens when you force the results to
only one attribute!
121
CORRESPONDENCE MAPPING0 Degree Angle 100
Correlation
AWKWARD ABSENTMINDED FORGETFULUL
MONEY IS THE BEST MEASURE OF SUCCESS
MAGAZINES MAIN SOURCE OF ENTERTAINMENT
READ INFO ON LABEL
MAXWELL HOUSE REG GRND
MOST MAGAZINES ARE WORTH THE MONEY
WIN LOTTERY WOULD NEVER WORK AGAIN
JOB SECURITY IS MORE IMPORTANT
LITTLE I CAN DO TO CHANGE MY LIFE
MAXWELL HOUSE INST
MAKE SURE I TAKE EXERCISE REGULAR
ON WHOLE PEOPLE GET WHAT THEY DESERVEE
I AM A WORKAHOLIC
PAY ANYTHING WHEN IT
CONCERNS MY HEALTH
ADV GIVES TRUE PICTURE
  • Maxwell House Regular Ground Maxwell House
    Instant have a nearly 100 positive correlation,
    meaning if you buy more of one, you buy more of
    the other (the brands are perceived very similar
    in the marketplace).

122
CORRESPONDENCE MAPPING90 Degree Angle 0
Correlation
CHIPS AHOY CHUNKY
CABLE TV HAS TOO MANY CHANN NEVER KNOW
LISTEN TO RADIO FOR QUICK NEWS UPDATE
BUY PRODS USE RECYCLE
SPANISH ADS RESPECT MY HERITAGE
PLAN AHEAD FOR EXP PURCHASES
I ENJOY TAKING RISKS
NO GOOD AT SAVING MONEY
SHOP FOR SPECIALS
COMPUTERS CONFUSE ME WILL NEVER GET USEE
MUCH INFO AS POSS BEFOR BUY ELECT ITEM
LOYAL TO COMPANIES WITH ADS IN SPANISH
  • Chips Ahoy Chunky and Oscar Mayer Hot Dogs form
    near a 90 degree angle and therefore have no
    correlation.

OSCAR MAYER HOT DOGS
123
CORRRESPONDENCE MAPPING180 Degree Angle 100
Negative Correlation
AWKWARD ABSENTMINDED FORGETFULUL
MONEY IS THE BEST MEASURE OF SUCCESS
MAGAZINES MAIN SOURCE OF ENTERTAINMENT
READ INFO ON LABEL
MAXWELL HOUSE REG GRND
MOST MAGAZINES ARE WORTH THE MONEY
WIN LOTTERY WOULD NEVER WORK AGAIN
JOB SECURITY IS MORE IMPORTANT
LITTLE I CAN DO TO CHANGE MY LIFE
MAKE SURE I TAKE EXERCISE REGULAR
ON WHOLE PEOPLE GET WHAT THEY DESERVEE
I AM A WORKAHOLIC
PAY ANYTHING WHEN IT
CONCERNS MY HEALTH
ADV GIVES TRUE PICTURE
  • Maxwell House Regular Ground and Starbucks are
    opposite, meaning they have a negative
    correlation. If you buy more of one brand, you
    buy less of another (brands are perceived as
    opposites in the market). This is particularly
    helpful when looking at competitors in a market.

STARBUCKS
124
CLUSTER ANALYSIS
  • USED FOR SEGMENTING MARKETS BY GROUPING
    INDIVIDUALS WITH SIMILAR RESPONSES INTO DISCRETE
    GROUPS.
  • Respondents will be more like their group than
    outside their group, e.g., no overlap.
  • There is a greater probability of being in one
    group than any other.
  • A POWERFUL STATISTICAL TOOL FOR UNDERSTANDING
    CHARACTERISTICS AND RELATIONSHIPS.

125
CLUSTER 3 TOP MAGAZINES
CONSUMER REPORTS
NEWSWEEK
NAT GEO
MARTHA STEWART LIVING
U.S. NEWS WORLD RPT
TIME
SOUTHERN LIV.
MODERN MATURITY
PEOPLE WKLY
BETTER HOMES AND GRDNS
SPORTS ILLUSTRATED
PARADE MAG
COSMO
100
110
120
130
140
150
160
Expected Frequency of Interest
126
EXPECTED BUYER BEHAVIORTry doing this for a
product you like and one you know little about.
  • Describe the expected buyer behavior profile of
    the market.
  • CONSUMER - use key items like demographics,
    psychographics, POP behavior, the marketing mix,
    classification of your product, and other
    relevant items to generally describe how buyers
    would purchase this item.
  • B2B use industry NAICS, application,
    quantity, purchasing patterns, the marketing mix,
    classification of your product, and other
    relevant items to generally describe how buyers
    would purchase this item.
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