Brand Elements Brand elements are devices, which can be trademarked, that identify and differentiate the brand.

Most strong brands employ multiple brand elements. Nike has the distinctive swoosh logo, the empowering Just o !t slogan, and the Nike name from the "reek winged goddess of victory. Marketers should choose brand elements to build as much brand e#uity as possible. $he test is what consumers would think or feel about the product if the brand element were all they knew. Based on its name alone, for instance, a consumer might e%pect &nack'ell(s products to be healthful snack foods and )anasonic $oughbook laptop computers to be durable and reliable. Brand Element Choice Criteria $here are si% criteria for choosing brand elements. $he first three*memorable, meaningful, and likable*are brand building. $he latter three*transferable, adaptable, and protectable*are defensive and help leverage and preserve brand e#uity against challenges. 1) Memorable: +ow easily do consumers recall and recogni,e the brand element, and when*at both purchase and consumption- &hort names such as $ide, .rest, and )uffs are memorable brand elements. 2) Meaningful: !s the brand element crediblenames such as fro,en entrees. 3) Likable: +ow aesthetically appealing is the brand element- 2 recent trend is for playful names that also offer a readily available 341, like 5lickr photo sharing, 'akoopa social networking, and Motorola(s 4674 and 4284 cell phones. 4) Transferable: .an the brand element introduce new products in the same or different categoriesoes it add to brand e#uity across geographic boundaries and market segments- 2lthough initially an online book seller, 2ma,on.com was smart enough not to call itself Books 94(3s.$he 2ma,on is famous as the world(s biggest river, and the name suggests the wide variety of goods that could be shipped, an important descriptor of the diverse range of products the company now sells. oes it suggest the corresponding category and a product ingredient or the type of person who might use the brand- .onsider the inherent meaning in ie/+ard auto batteries, Mop 0 "lo floor wa%, and 1ean .uisine low/calorie

) !da"table: +ow adaptable and updatable is the brand element- $he face of Betty .rocker has received more than seven makeovers in :; years, and she doesn(t look a day over <=. #) $rotectable : +ow legally protectable is the brand element- +ow competitively protectable-Names that become synonymous with product categories*such as 7leene%, 7itty 1itter, Jell/6, &cotch $ape,>ero%, and 5iberglass*should retain their trademark rights and not become generic.

%e&elo"ing Brand Elements Brand elements can play a number of brand/building roles. !f consumers don(t e%amine much information in making product decisions, brand elements should be easy to recall and inherently descriptive and persuasive. $he likability of brand elements may also increase awareness and associations. $he 7eeblerelves reinforce home/style baking #uality and a sense of magic and fun for their line of cookies? Michelin(s friendly tire/shaped Bibendum helps to convey safety for the family. 6ften, the less concrete brand benefits are, the more important that brand elements capture intangible characteristics. Many insurance firms use symbols of strength for their brands @the 4ock of "ibraltar for )rudential and the stage for +artfordA, security @the good hands of 2llstate and the hard hat of 5ireman(s 5undA, or some combination @the castle for 5ortisA. 1ike brand names, slogans are an e%tremely efficient means to build brand e#uity. $hey can function as useful hooks to help consumers grasp what the brand is and what makes it special, as in 1ike a "ood Neighbor, &tate 5arm !s $here, Nothing 4uns 1ike a eere, .iti Never &leeps, Bvery 7iss Begins with 7ay for the Ceweler, and 'e $ry +arder for 2vis rental cars. But choosing a name with inherent meaning may make it harder to add a different meaning or update the positioning.

%) $ackaging : )acking and packaging plays a very important role in modern markets. )acking means to cover the goods. &uch goods are covered for handling, transporting and delivering it to consumer. !t is the process of covering and wrapping goods. !t is very important for the delivery of the goods. Meaning : )ackaging is an important activity. )ackaging is called as a silent salesman. !t is an inevitable element in the marketing function. )ackaging is the process of covering goods with a package. !t is done for the purpose of delivering the goods to the customers. !t is a promotional device for increasing the sales of the firm. !t is an important activity in the marketing function, so it re#uires careful consideration by the management. 2 good packaging indicates a combination of the designer(s creative skill and the product, marketing and sales knowledge of the manufacturer(s management team. %efinition : 'illiam () *tanton : Packaging is the general group of activities in product planning which involves designing and producing the container or wrapper for a product. )ackaging is an important display and techni#ue. !t is a very vital salesmanship aid. !t creates a better chance of being sold in the market.

+unctions of $ackaging or !d&antages of $ackaging : a) $rotection : $he basic function of packaging is to protect the goods in transit or in storage. !t protects the products from various kinds of damages. !t adds to the #uality of the product by providing reasonable protection against breakage. b) Cleanliness and $urit, : )ackaging ensures cleanliness and purity of the product. Many goods are packed in airtight containers. c) Con&enience : !t provides the convenience in handling the goods. !t provides storage convenience, convenience in use etc. d) %urabilit, : !t provides durability of the product. e) !ttracti&eness : )ackaging gives attractiveness to goods or products. !t is useful in advertising. f) -dentification : !t becomes easy to identify a particular product or good with the help of packaging. g) .inds of $ackaging : $here are different types of packaging. 1) .onsumer )ackaging, 2) 5amily )ackaging, 3) $ransit )ackaging, 4) Multiple )ackaging,

) 4euse )ackaging. E) Labelling : Meaning and %efinition : Business and +inance %ictionar, : Anything whether a piece of paper, printed statement, imprinted metal, leather etc. which is either a part of, or attached to some items of merchandise or its package describing the nature of the product, the content of the package or indicating destination, origin or price. 2 label is a small slip affi%ed on the product. !t denotes the nature, date, contents etc. of that product. !t is affi%ed on the package. !t is a printed material on the slip affi%ed on the package. &uch labels are regarded as a medium through which the manufacturer gives essential information about his product to the customers. 1abels should give buyers accurate and up/to/date information of the contents and necessary guidance regarding the use of the product. !t gives information regarding the product of the seller. 3nder )ackaged .ommodities @4egulationA 6rder, DE;= the manufacturer should indicate the details regarding the identity of the product, its contents, weight, si,e, colour, date of manufacture, date of e%piry, instructions to use etc. 2 label gives all such type of information according to the provisions of the )ackaged .ommodities @4egulationA 6rders. 1abelling is an integral part of product planning and development. !t is a part of product. !t is also a part of a package or it may be attached directly to the product. 1abelling has social significance also. +unctions of Labelling : 1) -dentification Becomes Eas, : ue to the labels affi%ed to the product it becomes easy to identify the product. !t offers definiteness to the product. 2) %etailed -nformation is $ro&ided : !t stresses the standard and other special features of the product which are advertised. !t is helpful to encourage production of #uality products only. 3) -nstructions to /se0 Content0 'eight : !t is helpful for the manufacturer to give the information about his products to the consumers and he can also give the clear instructions about the proper use of the product. 4) Commission of Middlemen is 1mitted : $he price of the product is printed on the label. &o it helps to avoid under variations in the prices by the middleman. $hus, the prices of the products are maintained. ) +acilitates in Building 2elation : !t provides method for the manufacturer by which a contact and relation with the customer is established. #) +acilitates to Maintain *tandardisation 3*ocial 2es"onsibilit,) : !t encourages to produce only standardised and #uality products. .inds of Labels : 'illiam J. &tanton has classified the labels into four categories. $hey are as follows F 1) Brand Label :

$hese labels are e%clusively used for popularising a particular brand name of the product. Manufacturer of cosmetics use this kind of labels. $hey are interested in their products e.g. cigarettes, soaps, creams etc. 2) 4rade Label : !t gives emphasis on standards or grades. $his is used as an indirect method of product identification e.g. clothes, tea etc. 3) %escri"ti&e Labels : $hese are the labels which are descriptive in nature. &uch labels are illustrative in nature and they e%plain the various uses of the product. &ome household products have such type of labels. 4) -nformati&e Label : !t gives the ma%imum possible information about the product. !t may contain the characteristics of a product and the method of using it properly. @e.g. medical, surgical, etc., products.A !d&antages of Labelling : 1) 5el" in Cam"aign : !t is helpful for the advertising campaign of the organisation. 2) !&oidance of $rice 6ariation : !t avoids the price variations because the price of the product is published on the label. 3) !ssessment of *u"eriorit, : !t is helpful for the customers to assess the superiority of a product. 4) !ssurance of 7ualit, : !t is an assurance of the standard and #uality of the product. !t helps to raise the prestige of the product and its manufacturer. ) $re&ention of +alse Claims : !t helps to prevent false claims. $he features of the products are given on the labels. #) -nformation about the $roduct : $he customers can get the information about the product, advantages of product before use. &o it is helpful for the customers to compare it with other products in the market. 8) /se of Labels as 4ift Cou"ons : $hese labels are used as gift coupons by some manufacturers. $hey advertise to collect and present a specified number of labels to registered dealer and to get a free gift. %isad&antages of Labelling : 1) Cost -ncrease : !t results in increasing the cost of the product. $he manufacturer has to bear the additional e%penditure for it. 2) 9o /se for -lliterates : !t is useless for the illiterate people. 3) Bre&it, of %escri"tion : $he description given on the label is brief, so it is of limited use to the customers.

$he price a business charges needs to take account of, and be consistent with, the obCectives of the business. Businesses are free to set their prices and discount their goods and services as they see fit, but they must set their prices independently of their competitors. )rice setting process starts with understanding of the company and marketing obCectives. 2 firm determines the price for its product after evaluating various factors.

+actors to consider :hen *etting $rice: $here are several factors a business needs to consider in setting the priceF

1) 1b;ecti&es :
'hat are the marketing obCectives of the firm-

2) Com"etitors :
$his is really important. .ompetitor strength influences whether a business can set prices independently, or whether it simply has to follow the normal market price

3) Costs :
2 business cannot ignore the cost of production or buying a product when it comes to setting a selling price. !n the long/term, a business will fail if it sells for less than cost, or if its gross profit margin is too low to cover the fi%ed costs of the business

4) The *tate of the Market for the $roduct :

!f there is a high demand for the product, but a shortage of supply, then the business can put prices up.

5) The *tate of the Econom, :

&ome products are more sensitive to changes in unemployment and workers wages than others. Makers of lu%ury products will need to drop prices especially when the economy is in a downturn

6) The Bargaining $o:er of Customers in the Target Market :

'ho are the buyers of the producto they have any bargaining power over the price set2n individual consumer has little bargaining power over a supermarket @though they can take their custom elsewhereA. +owever, an industrial customer that buys substantial #uantities of a product from a business may be able to negotiate lower or special prices.

7) Legislation in the Market :

&ome businesses operate in markets where prices are regulated by government legislation G e.g. the rail industry

8) 1ther Elements of the Marketing Mi< :

!t is important to understand that prices cannot be set without reference to other parts of the marketing mi%. $he distribution channels used will affect price G different prices might be charged for the same product sold direct to consumers or via intermediaries. $he price of a product in the decline stage of its product life/cycle will need to be lower than when it was first launched

*te"s in $rice *etting: $he value of a product indicated in terms of money or money(s worth is price. $o arrive at a correct price, following steps should be studied F a) !nal,sing Market Conditions : !t should be noted that price is changing, comparative and situational element. !t keeps on changing according to market conditions. $herefore, it is necessary to analy,e these conditions. $he fluctuations in price levels depend on demand for the product, production life cycle, policies of "overnment, prices offered by competitors and the policy of management to boost up the sale of a particular product. 5or e.g. $o boost up the sale of )epsi, )epsi manufacturers reduced its price considerably. BaCaC 2uto 1td. reduced the price of its H stroke vehicle Bo%er by 4s. HIII and increases the prices of its scooter, branding names are .hetak and &uper. b) -dentif,ing Limits : $here are certain factors which limit the prices of the product fi%ed up by a company or a firm. 6ne has to consider these constraints to take logical decision for pricing of the product such as "overnment rules and regulations, customer(s attitude towards a product, pressure created by competitors, cost of production, negotiations with trade unions etc. By minimising production cost and making successful negotiations with trade unions, lower limits can be set for the price. +owever, there is great impact of consumer perceptions and prices offered by competitors on the price of the product. c) Establishing 1b;ecti&es : 2 company can achieve its predetermined obCectives by taking practicable and accurate decisions in respect of pricing. Normally, an organisation can achieve the goals like boosting up sales #uota, establishing monopoly in a particular market, undertakes e%pansion and diversification proCects, etc.

d) !nal,sing $rofit E<"ectations : )rofit is a reward for accepting risk and uncertainty in business operations. !t is a difference between price and cost. $he manufacturer should always bear in mind purchasing power of mass especially, the ability of purchasing the products of economically weaker sections of the society. 5or e.g. $he manufacturers of 2kai and 2iwa have reduced prices of JD inches .olour $elevisions by = to K thousand 4upees as compared to B)1, Lideocon, $homson. $he reduction in the prices by these companies attracts the attention of economically poor section of the society. Now / a / days, one can e%perience a ma%imum turnover of 2kai and 2iwa in slum areas. !n short, higher price reduces the profit potential and the lower price increases it as per the e%pectations of businessman. e) +i<ing u" -nitial $rice Le&el : Now / a / days, there is mushroom growth of products and services. $here is a growing pressure of competitors and market conditions on price of the product. $herefore, a businessman or a company newly entering into production activity should set the initial price level as low as they can. 5or e.g. 2mul Butter .ompany has brought a range of !ce .ream products three years back in market, the initial price of chocobar was 4s. ;, small cup of vanilla 4s. <, mango 4s. H. &imilarly, Mahanagar $elephone Nigam 1imited @M$N1A entering into mobile has announced the rate of incoming call 4s. D.;I per minute and outgoing call 4s. J.;I per minute to capture the market. f) !d;usting $rices : $he last step is to adCust the prices in response to a particular situation or changing market situation. 5or e.g. Maruti 3dyog 1td. is set to drop prices of its Maruti &u,uki and Maruti Lan by 4s. JJ,III and now / a / days, most disputed Bnron is set to drop the price of electricity per unit to 4s. H as a result of reduction in the price of Naptha @raw material re#uired for the production of electricityA. $roblems in *etting $rices Bvery firm faces problems in setting prices for its products and services. Many times, it may be #uite a task for a firm to decide on the pricing function. 'e will list below the general types of situations that pose a challenge in setting pricing functions. 1) $roblem for 9e: Entrant in *etting $rice: 5or a new entrant in a market, price setting is a problemM task. 5or e%ample, a firm desires to enter the detergent market which has already attained maturity and many players are

operating business. 'hat NpriceN should the new entrant set-. !f it sets a high price, it may not generate enough demand. !f it sets a low price, it may not be enough to recover costs. +ence, a new entrant will face the problem of setting right price. 2) 9eed to 4enerate !lternati&e 1"tions : 'hen the competitor @close rivalA initiates a price change, how should one react- $he price change may mean a cut in price or increase in the e%isting price. !f it is a price cut then the firm has to react fittingly. 6therwise, the competitor may pull away customers. +ence, the firm has to generate alternative options to react in a way that would enable it to retain customers. &uppose, the competitive firm increases its price, then hold your price at the current level and analyse what has led to competitor(s price increase. !n either case, a firm has to generate options to meet the competitorNs price change. 3) Com"ulsi&e 2ate Cut from $rofit: 'hen circumstances force the initiation of a price cut, a firm has to meet the price cut even if this cuts into profit. 5or e%ample, when a government agency applies a price control measure on specific goods, the firm cannot ignore it. !t should show compliance. 4) $roblem in setting $ricing *tructure : 'ith products that have interrelated costs and use the same raw materials and components, a firm faces the problem of pricing. 5or e%ample, a two/wheeler @motor cycleA manufacturer makes several types of motor cycles with different power capacities @ccA. +e uses the same materials and components for different vehicles which have interrelated costs. +ence, it is a problem to decide the price of different motor cycles. "enerally, vehicle cc, design and style are used as criteria for pricing of two/wheeler(s. ) $roblem in Entering into a $articular *egment: 'hen a firm wants to enter into a particular segment with a new model of already e%isting products, pricing becomes a problem. 5or e%ample, Maruti 3dyog 1td came with a new variant of its mid/si,e car NBsteem L>, to enter into mid/si,e car segment recently. $he new variant mid/si,e car OBsteem 1>!O has to fight competitive models like N5ord !konN, N6pel .orsaN and N+yundai 2ccentN in the mid/si,e car segment. 2ll these competitive models are sold within the price range of 4s =PK lakhs. $hen, what price should Maruti 3dyog set for its

new NBsteem 1>!(- &urely, this price would add to the e%citement at the entry level in the p mid/si,e car segment.