In Short…

  • Innovate beyond the product.
  • Balance brand positioning, pricing and distribution.
  • Build differentiated brands in sectors like FMCG markets, fintech services and consumer durables.
  • Understand the role of marketing and brand strategy in enhancing brand equity

Product/Brand Positioning, Pricing, and Distribution

Brand positioning which is dependent on meeting customer needs cannot be separated from pricing strategy and distribution strategy

Typically brand positioning is relative to the market/customer segment being targetted and also to the competitors in the same market/customer segment

Brand positioning wrt Pricing Strategy:

  1. Mass market – low price
  2. Niche market – high price

Both these pricing strategies would lead to a different perspective of the brand in the minds of the customer

Brand positioning wrt Distribution Strategy:

  1. Product available in small store
  2. Product available in a mall

Both these distribution channels would lead to a different perspective of the brand in the minds of the customer

Also, customer engagement and satisfaction is important for brand positioning

Brand benefits are different across the value chain:

Manufactures/Service partners are interested in:

  • Customer Loyalty
  • Price protection from brand
  • Shareholder value

Retailers/Distributors are interested in:

  • Velocity/Turnover
  • Better margins
  • Return on Investment

Customers are interested in:

  • Trust/Reputation
  • Choice and service
  • Quality and Performance

Objectives of Marketing Managers: Brand Strength and Customer Value

  • Awareness, image, reputation
  • Perceived risk
  • Trust
  • Product and Service Quality

Objectives of Brand Managers: marketing performance and customer consequences

  • Price premium vs share premium
  • Customers’ willingness to wait
  • Customer loyalty and retention
  • Trial of extensions to other products
  • Speed of market penetration (time premium)
  • Referrals

Objectives of Corporate Managers: Brand Value and Financial Value

  • Cash flows and profits
  • Risk and vulnerability
  • Barrier to competition

Innovating Beyond the Product

Innovation efforts are majorly focused on Product Performace. But other factors should be also in focus since Product Performace has the least impact on Brand Positioning

Success factors of Products:

Brand value, customer engagement, and distribution channels have to be in focus to improve customer experience

Building Brand

  • Communicate the value to the customer
  • Build trust with the customer
  • Customers should get peace of mind while interacting with the brand

For example, Tanishq build trust by providing a certificate of authentication and a return policy, thus derisking the customer’s decision

Brand Triangle:

Four Pillars of Brand Health:

  1. Differentiation: A brand’s ability to capture attention in the cultural landscape. Relates to premium margins and pricing power
  2. Relevance: How appropriate and meaningful a brand is to consumers. Relates to market penetration.
  3. Esteem: How highly regarded a brand is. Relates to brands delivery on its promise
  4. Knowledge: The depth of understanding people have of a brand. Relates to customers’ experience

Differentiation and Relevance are correlated

Esteem and Knowledge are correlated

The BAV Calculator is a tool that you can play around with and map different companies to notice where they belong within the pillars of branding.

Example: Building the brand of ESPN and how they changed their price with improvement in their branding value

Management of B2B and B2C Brand Simultaneously

The end consumer has to be consumed that they are getting value from the brand.

For example, Microsoft sells Office for both B2C and B2B

Evolution of Online Market: E-networks management is the final frontier

Leverage B2C loyalty for adding value to B2B business by giving B2C customer discounts, and access to products they need.

25 Case Studies of Digital Customer Experience in Banking Apps and Fintech

India Stack for FinTech

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Note: These are notes from the ISB Executive Education – Product Management program for my personal consumption.

In case you are looking for a Product Management course, I would highly recommend joining this cohort-based course.

PS: You can connect with me for review or referral discount (link for referral discount)

ISB-Product-Management-Certificate-Saurabh-Singh
ISB-Product-Management-Certificate-Saurabh-Singh

Opinions are my own and not the views of my employer (if any)

When I am not working/watching movies/reading books/traveling, you can reach me via my Twitter/LinkedIn or you can contact me here

Categories: Product Management