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Changing the way you operate:
They say that “Change is the only constant” and in the world of marketing this concept is the basis of planning the kind of work that any organization will undertake.
Various companies start with a goal in mind but have to change their paths because they understand the need to diversify (read change). Those that fail to do so, mostly end up dead. In fact, out of the companies that featured in the Forbes 100 in 1917, only 18 could stay there till 1987. The downfall can, in part be blamed on their obstinacy of not bringing about a change in the way they worked.
Bringing about a change in the organization may be easier said than done. The top management should find a way to blend in the changes they plan to introduce into their organization. A change in the way an organization works is feasible only if the benefits to stakeholders outdo the risks and costs of bringing in that change. Employees may resist change and it is up to the top management to align the vision and mission in order to implement the change, keeping in mind the concerns of the people who matter.
Nokia a major mobile device producer did not start out to produce mobile phones instead it started out as a paper manufacturer in 1865. Established by Fredrik Idestam on the banks of the Tammerkoski rapids, Nokia moved from producing paper to hydroelectricity before starting to manufacture mobile devices. Nokia has, over the years, proved that change is what gets you moving.
The rate of change inside the organization should exceed the rate of change in the industry, only then can a company can prosper and stay alive.
“God, give us grace to accept things that cannot be changed, courage to change what should be changed and the wisdom to distinguish the one from the other”
-Reinhold Niebuhr
Branding
A few days ago, I was contemplating whether to buy a Mac or a normal windows PC. The question would have been less baffling if I had less money or if I had no choice :D.
Think about how easy would it be for you when you walked into a barista and asked for a coffee, no need to answer if you wanted it black or with milk, sugar or no sugar, cream or without cream. How good would it be if they gave you everything and you used whatever you wanted to :D.
The question made me think about a very important concept of marketing called “Branding”.
We are all familiar with the term Brand but little do we know that everything around us has a brand value, even ourselves. There is one thing that differentiates one person or thing from the other which may be exploited as the thing/person’s brand value.
All cars cannot be a Ferrari!!!
When talking of Brands, it is also important to know how to keep the brand alive. It is important, hence, for brand managers to think of what extensions to give to a product/product name. Should it be a line extension of launching a new product in the same category, should a company go for a brand extension of introducing a new category or should a company foray into the unknown territory by moving into a totally new industry? While it may be a good idea to extend the line of existing products a brand manager should be careful because the new product can bring about a decline in sales of the older products while may not bring in additional profit. Line extensions make sense when the company can benefit from customer loyalty.
Brand Extension and Brand Stretch are a riskier and trickier. I may like to wear a Benetton t-shirt but would I like to buy laptop that goes by the same name, not really! Also the question of renaming the brand comes up when it comes to brand stretch that explains why Levi’s named its cotton trousers Dockers rather than calling it Levi’s cottons. So why did Levi’s do it, because it gave them the opportunity to establish a new brand image.
Quality is no longer a discriminating factor; it used to be, not anymore. It may create a tad bit of a difference but not enough to get a firm grip on the market. It is the after sales service, customer relationship management and USP of the brand.
Finally, a brand does not sell because of less cost, better quality or higher costs of the competitor. It sells on goodwill and customer retention. Try to work out how you get you can do that, and you’ve got yourself a “BRAND”.
P.S: I bought the Mac
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Think about how easy would it be for you when you walked into a barista and asked for a coffee, no need to answer if you wanted it black or with milk, sugar or no sugar, cream or without cream. How good would it be if they gave you everything and you used whatever you wanted to :D.
The question made me think about a very important concept of marketing called “Branding”.
We are all familiar with the term Brand but little do we know that everything around us has a brand value, even ourselves. There is one thing that differentiates one person or thing from the other which may be exploited as the thing/person’s brand value.
All cars cannot be a Ferrari!!!
When talking of Brands, it is also important to know how to keep the brand alive. It is important, hence, for brand managers to think of what extensions to give to a product/product name. Should it be a line extension of launching a new product in the same category, should a company go for a brand extension of introducing a new category or should a company foray into the unknown territory by moving into a totally new industry? While it may be a good idea to extend the line of existing products a brand manager should be careful because the new product can bring about a decline in sales of the older products while may not bring in additional profit. Line extensions make sense when the company can benefit from customer loyalty.
Brand Extension and Brand Stretch are a riskier and trickier. I may like to wear a Benetton t-shirt but would I like to buy laptop that goes by the same name, not really! Also the question of renaming the brand comes up when it comes to brand stretch that explains why Levi’s named its cotton trousers Dockers rather than calling it Levi’s cottons. So why did Levi’s do it, because it gave them the opportunity to establish a new brand image.
Quality is no longer a discriminating factor; it used to be, not anymore. It may create a tad bit of a difference but not enough to get a firm grip on the market. It is the after sales service, customer relationship management and USP of the brand.
Finally, a brand does not sell because of less cost, better quality or higher costs of the competitor. It sells on goodwill and customer retention. Try to work out how you get you can do that, and you’ve got yourself a “BRAND”.
P.S: I bought the Mac
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