CONCEPTS

A challenger brand is a company or product brand in an industry that is not the category leader. They can neither be called a market leader nor a niche brand. There are famous challenger brand stories in: Mobile segment: OnePlus One trying to convert the Apple and Samsung users to One plus. The company has […]

Line Extension A product line extension is the use of an established product brand name for a new item in the same product category. Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavours, forms, colours, added ingredients and packet sizes. For

The BCG growth share matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting group in the early 1970’s. It is based on the observation that a company’s business units can be classified into four categories based on combinations of “Market Growth” and “Market Share” relative to the largest competitor. The

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation. Introduction This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the

To succeed in today’s competitive marketplace, companies must be customer-centered. Companies must know how to create value for customers and build a profitable customer relationship. For this, the customer-driven market strategy must be followed. SEGMENTATION: Market Segmentation is the process of dividing a market up into distinct groups of buyers who have different needs, characteristics

Brand is the major enduring asset of the company outlasting the company’s specific products and facilities. They represent the consumer’s perceptions and feelings about the product and its performance. Brand Equity is the differential effect that knowing the brand name has on the customer response to the product and its marketing. Companies can create brand

Customer Equity Customer equity is a result of customer relationship management. It is made up of three components. Brand Equity – Brand equity is the customers subjective and intangible assessment of the brand above and beyond its objectively perceived value. In essence, on the name of a brand, a customer might be ready to pay more value

Market segmentation is a marketing concept which divides the complete market setup into smaller subsets comprising of consumers with a similar taste, demand and preference. Following are the steps of Segmentation:- 1 – Define the market The first step in creating market segments is to clearly define the market of interest. For instance, for a

Perceived customer value points out that success of a product is largely based on whether customers believe it can satisfy their needs. Hence delivering this value becomes the motto of marketers. Customer Perceived Value = Total Perceived Benefits – Total Perceived Costs           Example: While buying a car, the expected reactions

The GE/Mckinsey 9 cell matrix, named after General Electronics was first developed by Mckinsey. The objective of this matrix is to assess the industry attractiveness and competitive strength of strategic business units. Factors affecting the industry attractiveness are market growth rate, market size, demand variability, market profitability etc and all these factors are external to