Marketing 

Offering & Brand 
Management
The Offering Concept

 In abstract sense, offering consists of

the benefits or satisfaction provided to
target market by an organization
 Concrete offering consists of a
tangible product or service (a physical
entity) plus related services (delivery,
setup etc.) brand name(s), warranties,
packaging and the like
 Use of term “offering” rather than
product or service has numerous
benefits:
 The Offering Concept
1. By focusing on satisfaction and benefits
offered it establishes a conceptual
framework. This frame work is potentially
useful in analyzing competing offerings,
identifying the unmet needs and wants of
the target markets, and developing and
designing new products or services
2. It enables marketers to go beyond the
single tangible entity being marketed and
consider the entire offering or extended
products or services
3. Offerings illustrate not only the buyer needs
but also the type of customer group sought
and the means ( technology) of satisfying
their needs
 The Offering Concept
An “Offering” may consist of::
Tangible product or service
Related services (e.g., delivery and setup)
Brand name(s)
Warranties
Packaging
“Service-scape”
People
Process/Technology
Importance of the Offering

The ultimate profitability of

an organization depends

on its product or service

offering(s) and the strength

of its brand(s).
Basic Offering-Related
Decisions

Modifying the Offering Mix

Positioning Offerings

Branding Offerings
The Offering Mix (Portfolio)
The totality of a company’s offerings is
Consists
known of distinct
as its productoffering lines
or service offering
(product
mix mix width)
or portfolio

Each line consists of individual

offers or items (product line
depth)
The Offering Portfolio
Bundling – enhancing the offering
mix by providing two or more
products or service items as a
“package deal”

McDonald’s “value meal”

Garry’s vacation packages

IBM’s hardware, software, and

maintenance contracts
Modifying the Offering Mix
Major Decisions

Should the offering mix be modified?

If yes, what should be

added, modified, harvested,
or eliminated?
 Business Position
High Medium Low
Market Attractiveness

High Invest Invest protect

Medium Invest protect Harvest

Low protect Harvest Divest

Modifying the Offering Mix
Additions to the Offering Mix

How consistent is the new

offering with existing
offerings?

Does the organization have

the resources to adequately
introduce and sustain the
offerings?

Is there a viable market niche

for the offering?
Modifying the Offering Mix
Additions to the Offering Mix
How consistent is the new offering with existing
offerings?
Offering interrelationships- substitutes,
complimentary fits etc. must be taken into account.
Does the organization have the resources to
adequately introduce and sustain the offerings?

Cannibalization ?
Compatible with sales and
distribution competencies?
Modifying the Offering Mix
Additions to the Offering Mix

Is there a viable market niche

for the offering?
Is there a relative advantage
over existing competitive
offerings?
Does a distinct buyer group
exist that is not satisfied with
current offerings?
Modifying the Offering Mix
New-Offering Development Process

1. Idea generation/idea screening

employees, buyers, competitors
2. Business analysis forecasting sales,
costs, profitability
3. Market testing:laboratory or field
market tests
4. Commercialization full-scale
introduction of offering to market
New-Offering Development
Process
Idea Generation & Screening
1. Does the offering have a relative
advantage?
2. Is the offering compatible with buyers’
use or consumption behavior?
3. Is the offering simple enough for buyers to
understand and use?
4. Can the offering be tested on a limited
basis prior to actual purchase?
5. Are there immediate benefits from the
offering, once it is used or consumed?
New­Offering Development 
Process
Business Analysis
Sales Forecasts
Profitability Analysis
 Investment requirements

 Breakeven analysis

 Payback period

 Return on investment
(ROI)
New-Offering Development
Process
Test Marketing
Generate benchmark data for
assessing sales volume
Relative effectiveness of alternative
marketing programs to be examined
Incidence of offering trial by
potential buyers, repeat-purchasing
behavior, and quantities purchased
RISK: May result in a competitive
response
Modifying the Offering Mix
Life­Cycle Concept
Sales

Sales

Profits

Introduction Growth Maturity Decline

 Life Cycle concept
Early Stages of Life Cycle, management efforts focus on:
1. Stimulating trial of the offer by advertising, sampling and
obtaining distribution
Movement towards maturity stage is indicated by:
1. An increase in proportion of buyers who are repeat purchasers
(few new buyers or triers exist)
2. An increase in the standardization of production operations and
product service offerings
3. An increase in the incidence of aggressive pricing activities of
the competitors
Declining stage:
> Modifying, harvesting and eliminating offerings
Modifying the Offering Mix
Harvesting
Harvesting is the strategic management
decision to reduce the investment in a
business entity in the hope of cutting costs
or Improving cash flows.
Harvesting should be considered when:

1. The market for the offering is stable

2. The offering is not producing good profits
3. Market share is becoming difficult to
maintain
Modifying the Offering Mix
Elimination (Divestment)

Elimination is appropriate when the answer to

the following questions is “very little” or “none”:

1. What is the future sales potential of the offering?

2. How much is the offering contributing to the overall

profitability of the offering mix?
3. How much could be gained by modifying the offering?
4. What would be the effect on channel members and
buyers
Brand Equity & Brand Management

Brand Name
Brand Name
Any word,
Any word,“symbol”
“symbol”(design,
(design,sound,
sound,shape,
shape,
or color),
or color),or
or combination
combination of
ofthese
these
usedto
used toidentify
identifyan
anoffering
offering
andset
and setititapart
apartfrom
fromcompeting
competingofferings.
offerings.

Brand Equity
Brand Equity
Theadded
The addedvalue
valueaabrand
brandname
namebestows
bestowsononaa
product or
product orservice
servicebeyond
beyondthe
thefunctional
functional
benefitsprovided.
benefits provided.
Customer­Based Brand Equity Pyramid

Relationships:
Intense, active
What about you
loyalty
and me? Consumer
Brand
Resonance
Positive,
Response: What
accessible
about you? Consumer Consumer reactions
Judgments Feelings
Strong,
Meaning: What favorable, and
Brand
are you? Brand unique brand
Performance
Imagery associations

Deep, broad
Identity: Who are
Brand Salience brand
you?
awareness
Sub­Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES

SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Brand Equity and Brand Management
Branding Decisions

Assignone
Assign onebrand
brandname
nameto toall
allof
ofthe
theorganization’s
organization’s
offerings(LG,
offerings (LG,Nokia)
Nokia)
OR
OR
Assignone
Assign onebrand
brandname
nameto toeach
eachline
lineof
ofofferings
offerings
(Sears,Craftsman
(Sears, CraftsmanTools)Tools)
OR
OR
Assignindividual
Assign individualnames
namesto toeach
eachoffering
offering(P&G,
(P&G,
Unilever)
Unilever)
Thebranding
The brandingstrategy
strategyselected
selectedwouldwoulddepend
dependon on
consistencyof
consistency ofthe
theoffering
offeringmix.
mix.
IfIfthe
theofferings
offeringsarearerelated
relatedin interms
termsofofneeds
needsthan
thanaa
common(family)
common (family)name
nameisisfavored.
favored.AAcommon
commonbrandbrand
nameis
name isoften
oftenselected
selectedififthe
theorganization
organizationwishes
wishestoto
maintainitself
maintain itselfin
inaaproduct
productclass
classor orservice
serviceofferings
offerings
Brand Equity & Brand Management
Branding Decisions

Using a single brand name…

Advantage
Easier to introduce new offerings when the
brand name is familiar to buyers
Disadvantage
Can have a negative effect on existing offerings
if a new offering fails
Sub-branding…
…combining a family brand with a new brand. The
intent is to build on the favorable associations
consumers have towards the family brand while
differentiating new offering
Managing Brand Equity
Brand Growth Strategies

New Existing
products products

New New Brand 
New Brand  Fighting/Flanker
Fighting/Flanker
Brand Strategy
Strategy Brand
BrandStrategy
Strategy

Existing Brand
BrandExtension
Extension Line
LineExtension
Extension
Brand Strategy
Strategy Strategy
Strategy
 Managing Brand Equity
Line Extension Strategy

Addingofferings
Adding offeringswith
with the
thesame
samebrand
brandin
inaa
productclass
product classthat
thatan
anorganization
organizationcurrently
currently
serves…
serves…

Respondto
Respond to customers’
customers’desire
desirefor
forvariety
variety
Eliminate gaps
Eliminate gapsin
in the
theproduct
productline
line
Lowersadvertising
Lowers advertisingand
andpromotion
promotioncosts
costs

Mustconsider
Must considerpossibilities
possibilitiesof
of product
productcannibalism
cannibalism
andproliferation
and proliferation of
of offerings
offerings
 Managing Brand Equity
Brand Extension Strategy

The practice of using a current brand

name to enter a completely different
product class

Reduced risk due to brand equity

Success depends on perceptual fit with
the original product class
e.g., Yamaha makes motorcycles, sound
equipment, computer peripherals, and
musical instruments
Managing Brand Equity 
New Brand Strategy

Involves the development of a new brand

and a new offering for a product
class that has not been previously
served by the organization.

Most challenging
strategy
Most costly
e.g., Olpers by Engro
Managing Brand Equity
Flanker/Fighting Brand Strategy

Flanker Brand
Flanker Brand Strategy
Strategy
Involvesadding
Involves adding aanew
newbrand
brandon
on the
thehigh
high or
or
lowend
low endofofaaproduct
productline
linebased
basedon
onaaprice-
price-
qualitycontinuum
quality continuum (Trading
(Tradingup/down).
up/down).

FightingBrand
Fighting Brand Strategy
Strategy
Involvesadding
Involves adding aanew
newbrand
brandwhose
whosesole
sole
purpose isisto
purpose toconfront
confrontcompetitive
competitivebrands
brandsin
in aa
productclass
product classbeing
being served
servedby
byan
an organization.
organization.
(Omore’s“Desi”
(Omore’s “Desi”introduced
introducedto
tocounter
counterWalls’
Walls’
“Badami”).
“Badami”).
Managing Brand Equity 
Co­branding

Process Co-branding
Process Co-branding
Pairing two
Pairing two brand
brand names
names of of two
two
manufacturers on
manufacturers on aa single
single
product
product
e.g. Sony
e.g. Sony Ericsson;
Ericsson; Intel-HP
Intel-HP
Managing Brand Equity 
Co­branding

Communication Co-branding
Communication Co-branding
Pairing two
Pairing two brands
brands of
of two
two
manufacturers as
manufacturers as aa single
single
offering
offering
e.g. Pepsi
e.g. Pepsi && KFC;
KFC; SCB
SCB && PIA
PIA