Brand Equity

Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing. Brand Equity exists as a function of consumer choice in the market place. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service. It occurs when the consumer is familiar with the brand and holds some favourable positive strong and distinctive brand associations in the memory.

What is Brand Equity? 
Brand equity is an intangible asset that depends on association made by the consumer. There are at least three perspectives from which to view brand equity: 

The Marketing Mix

Marketing is simplistically defined as ‘putting the right product in the right place, at the right price, at the right time.’ Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple definition up. And if even one element is off the mark, a promising product or service can fail completely and end up costing the company substantially.

The use of a marketing mix is an excellent way to help ensure that ‘putting the right product in the right place,…’ will happen. The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a successful product offering. The marketing mix is most commonly executed through the 4 P’s of marketing: Price, Product, Promotion, and Place.

These have been extensively added to and expanded through additional P’s and even a 4C concept. But the 4Ps serve as a great place to start planning for the product or even to evaluate an existing product offering.

The Four P’s

Product Life Cycle

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).

Decline.
At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting.

Target Market Selection

The selection of target markets is the second major phase of the STP process, as shown in the diagram below. (Where STP stands for segmentation, targeting and positioning.)

As shown, firms initially segment the market and, as part of this process, construct segment profiles for each segment. Included in a segment profile is a detailed description of the segment, along with various size and profit measures. Using this information in conjunction with the firm’s strategy, resources and goals organization appropriate target markets can then be selected.

The selection of a target market is a very important decision for a firm as it then requires significant effort and commitment to implement an appropriate and targeted marketing mix. Target market selection is a key part of marketing strategy and typically involves significant analysis, discussion and review throughout the firm.

Market Analysis

A marketing analysis is a study of the dynamism of the market. It is the attractiveness of a special market in a specific industry.  Marketing analysis is basically a business plan that presents information regarding the market in which you are operating in. It deals with various factors.

What is the use?
A marketing analysis is done so that you can formulate a strategy on how to run your business. By taking into consideration certain factors, you will know how to operate your business.

What are the factors?
The most common factors are the SWOT which is an acronym for; Strengths, Weaknesses, Opportunities, and Threats. By assessing the company’s strengths and weaknesses, you can make a strategy on which factors to focus upon. If you have a good labor force, ample investment and good advertising experts then you are going to make your marketing strategy focusing on those things. Similarly if your technology is comparatively poorer and you lack online presence then you are going to avoid those things. You also look at external factors like situations which may provide you with an opportunity or threat.  Economic factors, political instabilities or even social changes can give you opportunities which you can seize and do better. They can also create threats which are going to hamper your business dealings. Considering all these factors will give you a marketing analysis from which you can implement your decisions.

Market Segmentation

Market segmentation is the first step in defining and selecting a target market to pursue. Basically, market segmentation is the process of splitting an overall market into two or more groups of consumers. Each group (or market segment) should be similar in terms of certain characteristics or product needs.

The concept of market segmentation was first identified by Smith back in the 1950s. He was one of the first to recognize the importance of market segmentation, as shown in the following quote:

“Market segmentation is based upon developments on the demand side of the market and represents a rational and more precise adjustment of product and marketing effort to consumer or user requirements.” (Smith, 1956)

To clarify this statement in simple language, he basically saw market segmentation being an important tool to enable marketers to better meet customer needs. Since that time, market segmentation has become a widely accepted and used marketing approach. Here are some more recent definitions of what is market segmentation:

“Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition” (McDonald & Dunbar, 2004)

“Market segmentation involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a market action.” (Kerin, 2011)

Market Definition

An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

Markets include mechanisms or means for (1) determining price of the traded item, (2) communicating the price information, (3) facilitating deals and transactions, and (4) effecting distribution. The market for a particular item is made up of existing and potential customers who need it and have the ability and willingness to pay for it.

In marketing, the term market refers to the group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product. The market definition begins with the total population and progressively narrows as shown in the following diagram.

Situation Analysis

The process of identifying and evaluating existing internal and external elements that may impact an organization's ability to achieve its objectives. A situational analysis also includes a SWOT analysis which is an assessment of the organization's strengths, weaknesses, opportunities and threats.


In order to profitably satisfy customer needs, the firm first must understand its external and internal situation, including the customer, the market environment, and the firm's own capabilities. Furthermore, it needs to forecast trends in the dynamic environment in which it operates.

A situational analysis defines the internal and external factors of a company or organization and clearly identifies the capabilities, customers, potential customers and the business environment and the impact they may have on that organization or business.   It can also help in identifying strengths, weakness, opportunities and threats to the organization or business.   This analysis can be eye-opening to what’s really going on within a business and can help in determining the next steps a business needs to take within the marketplace.

The Marketing Process

Introduction
The activities of marketers both reflect and shape the world we live in. Every year new products and services are launched and some of them succeeds on an unprecedented scale. As in the case of Apple's iPod, iPhone, and also iPad. They all are great inventions and highly successful in market.

According to marketing concept, the organisation must find ways to discover unfulfilled customer needs and wants and bring products that satisfy those needs and wants. This can be done in a sequence of steps that is called marketing process.

After reading this you will understand - what is marketing process, and the steps involved in marketing process.

Meaning of Marketing Process
The Marketing Process of a company typically involves identifying the viable and potential marketing opportunities in the environment, developing strategies to effective utilise the opportunities, evolving suitable marketing strategies, and supervising the implementation of these marketing efforts. 

The Marketing Concept

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.

In 1776 in The Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. While this philosophy is consistent with the marketing concept, it would not be adopted widely until nearly 200 years later.

To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant. While these alternative concepts prevailed during different historical time frames, they are not restricted to those periods and are still practiced by some firms today.

There are 5 different concepts of marketing, each of which vary in the function that they deal with. For example – production concept deals with production and selling concept deals with selling. Each of the concept was developed as per the need of the market. As the market changed, so did the concepts of marketing. And today, we have an opportunity to look at all 5 concepts of marketing and what they represent. 

What is Marketing

Marketing, more than any other function, deals with customers.
A simple definition of marketing is managing profitable customer relationships.
Marketing is all around you.

Marketing Defined
Marketing must be understood in the new sense of satisfying customer needs.
We define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. 

Understanding the Marketplace and Consumer Needs
There are five core customer and marketplace concepts.

1. Customer Needs, Wants, and Demands
Human needs are states of felt deprivation. They include basic physical needs, social needs, and individual needs.
Wants are the form human needs take as they are shaped by culture and individual personality.
When backed by buying power, wants become demands. Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction.
Outstanding companies go to great lengths to learn about and understand customers’ needs, wants, and demands. They conduct consumer research and analyze mountains of customer data.

Organizational Control Techniques

Control techniques provide managers with the type and amount of information they need to measure and monitor performance. The information from various controls must be tailored to a specific management level, department, unit, or operation.

To ensure complete and consistent information, organizations often use standardized documents such as financial, status, and project reports. Each area within an organization, however, uses its own specific control techniques, described in the following sections.

After the organization has strategies in place to reach its goals, funds are set aside for the necessary resources and labor. As money is spent, statements are updated to reflect how much was spent, how it was spent, and what it obtained. Managers use these financial statements, such as an income statement or balance sheet, to monitor the progress of programs and plans. Financial statementsprovide management with information to monitor financial resources and activities. The income statement shows the results of the organization's operations over a period of time, such as revenues, expenses, and profit or loss. The balance sheet shows what the organization is worth (assets) at a single point in time, and the extent to which those assets were financed through debt (liabilities) or owner's investment (equity).

Financial audits, or formal investigations, are regularly conducted to ensure that financial management practices follow generally accepted procedures, policies, laws, and ethical guidelines. Audits may be conducted internally or externally. 

Management and Society; The External Environment

Every time managers plan, they take into account the needs and desire of members of society outside the organization as well as the needs for material and human resources, technology and other requirements in the external environment. They do likewise to some degree with almost every other kind of managerial activity.
All managers, whether they operate in a business, a government agency, a church, a charitable foundation, or a university, must, in varying degrees, take into account the elements and forces of their external environment. While they may be able to do little or nothing to change these forces, they have no alternative but to respond to them. They must identify, evaluate and react to the forces outside the enterprise that may affect its operations. The impact of the external environment on the organization is illustrated. The constraining influences of external factors on the enterprise are even more crucial in international management.
Managers operate in a pluralistic society, in which many organized groups represent various interests. Each group has an impact on other groups, but no one group exerts an inordinate amount of power. Many groups exert some power over the business. There are many stake holders or claimants in the organization, and they have divergent goals. It is the task of the manager to integrate their aims.
Working within a pluralistic society has several implications for business. Various groups such as environmental groups keep business power in balance. Second, business interests can be expressed by joining such as the Chamber of Commerce. Third, business participates in projects with other responsible groups for the purpose of bettering society; an example is working towards the renewal of inner cities. Fourth, in a pluralistic society there can be conflict or agreement among groups. Finally, in such a society one group is quite aware of what groups are doing.

Line/Staff Authority Empowerment and Decentralization

Although the term authority has various connotations, in the organizational context, authority is defined as the power to make decisions which guide the actions of others. Power, on the other hand, is the ability of individuals to influence the beliefs and actions of others. Power can be legitimate, expert, referent, reward, or coercive. Various authority relationships exist in an organization, many of which are related to line and staff functions.

Line functions are those which are directly responsible for accomplishing the objectives of the enterprise, while staff functions are advisory in nature. The main staff functions are investigation, research and giving advice to line managers on how to accomplish tasks. Functional authority involves conferring rights upon individuals or departments to control the processes and practices pertaining to personnel in other departments. Instead of making recommendations to the line managers or superiors, functional authority allows staff personnel to issue instructions to line managers directly. Although line managers and staff personnel are expected to work together for accomplishment of organizational goals, there are many factors which contribute to the conflicts between line and staff personnel. The line managers have clashes with the staff personnel as they feel that staff personnel are not accountable for their actions. Moreover, line managers feel that staff personnel invade their territory and dilute their powers. Since staff personnel may not have experience of the operational activities, their recommendations and ideas may lack applicability. 

Change Management

The business landscape of the 21st century is characterized by rapid change brought about due to technological, economic, political and social changes. It is no longer the case that the managers and employees of firms in this decade can look forward to more of the same every year. In fact, the pace of change is so rapid and the degree of obsolescence if organizations resist change is so brutal that the only way out for many firms is to change or perish. In this context, it becomes critical that organizations develop the capabilities to adapt and steer change in their advantage.

The role of senior managers becomes crucial in driving through change and ensuring that firms are well placed with respect to their competitors. However, it is the case that in many organizations, senior managers actively resist change and in fact thwart change initiatives due to a variety of reasons which would be explored in subsequent sections. This essay examines the barriers to change by senior managers and discusses approaches to mitigate such resistance. The essay begins with a discussion n the role of senior managers as barriers to change and then outlines some approaches on how to get the senior managers on board for change.