, who has now co-authored the 12th edition of the same book with management guru Philip Kotler, points out that the book has undergone many changes keeping in mind the new business formats and consumers. He advocates a similar strategy for India "" one that focuses on innovation and increasing brand relevance. Keller, the E B Osborn Professor of Marketing at the Tuck School of Business at Dartmouth, has earlier taught at Stanford and the University of California, Berkeley. He is also the author of Strategic Brand Management. In India recently at the launch of the latest edition of the marketing bible, Keller spoke with Business Standard on the importance of building price parity and creating a differential factor for your brands. Excerpts:
What are the biggest changes since 1967, when Kotler first wrote Marketing Management?
The economic environment was so different. Back then, in the 1960s and 1970s, there was less globalisation, less or close to nil innovation in technology or products, and the means of communication were also restricted. For instance, many companies would use either the TV or radio as their single medium of communication.
But things are now different as companies are looking at expanding their reach almost every single day. The most important difference is that consumers have changed and they are far more vulnerable to new products than ever before. It's a very different market now. The 12th edition recognises these changes.
There is a lot more emphasis on technology and globalisation. The book dedicates a whole new section to connecting with customers, innovating changes and products. We have tried to reflect the reality of what managers need to do to survive in a fiercely competitive environment.
What are the key concerns of brand managers today?
Managers need to work on the key area, which is staying connected with consumers. This becomes more important with the entry of a new brand almost everyday. Thus, this calls for the next biggest challenge "" how to differentiate the brand.
These two issues lead to the third most important area "" pricing. Managers must be careful to identify the right price and value for their brands. In an attempt to do so, they must study their target audience and understand if consumers see a value for the price they pay.
Mere effective external communication will not help managers win the battle. They must also ensure that employees of the company know and understand the brand values and identity. This will ensure quality of work and timeliness.
How is the South Asian perspective on marketing different from that of other global managers?
While every market has a different culture, the retail formats, consumer spending habits and areas of distribution also vary strikingly from country to country. Thus, it is all about understanding the local flavour, consumption habits and competition. This helps the global brand to be more relevant in a new market.
For instance, Hindustan Lever's well-known sachetisation theory best explains the concept of product adaptation to suit the local needs of consumers. Colgate, too, in India has adopted the concept of local communication, which has helped make it synonymous with toothpaste for a very long time.
I think a large part of the challenge for global companies in India is to change the equation from price to value. Once managers define a value for their price, they will be able to rightly discriminate their brand and gain a high recall value. This will also help consumers understand good quality and the concept of value for money.
How must brand-building activities change as different audiences are targeted? To what extent can and should a firm adapt different messages for different segments?
It is all about keeping marketing and product development activities innovative, relevant and nurturing the changes at regular intervals. Everything a manager does around the brand must be timed perfectly to match the market and consumer requirements.
To effectively meet consumer demands, a manager must ensure that he strikes the right balance between continuity and change. A good marketing programme is one that identifies this balance and does not go too far on either end. This ensures that the brand does not lose its recall value by stagnating nor does it lose its identity by becoming too radical in terms of adapting change.
India is witnessing a boom in the entertainment sector with TV and radio sets buzzing with new channels and stations. In this scenario, where there is such an outpouring of information and entertainment, can customer relationships be segmented?
The media mix will only help understand and reach out to consumers across the spectrum. This would help the brand go further. I would say that if I have owned a brand for a long time, I would want to keep it strong by cutting across sections. A healthy media mix will only help do that.
However, managers have to be careful that they are consistent in their communication and do not kill the brand value by being overtly creative. Besides, new media of communication can help to retain old customers and attract new takers.
After the traditional media of communication, managers in India are now also looking at the Internet to promote their brands. How can managers effectively use the web platform in India?
Managers need to focus on audiences who are more likely to adopt technology as a medium of interaction. Because, surely, the technology will increase. It's important for managers to explore its potential and exercise the opportunity to experiment, as the medium is just about opening up to consumers in India.
Besides, the web can only be a part of the communication mix and not the primary focus for most managers. This will help customers and managers to understand and explore the importance of the Web and create a new brand experience. Brands like Axe [men's grooming products] have used the Internet to connect with customers through various marketing initiatives like axeland.com.
The strength of the Internet is that it is personal and can be customised to suit the requirements of every consumer. It further helps to track consumer purchase habits, likes and dislikes of consumers and so on.
Thus, the more managers connect with the youth and those who have the opportunity to access the Web, the more effectively and innovatively they will be able to use the Net to promote their brands.
Communication development seems the key word for most managers, but product or brand launches have taken a back-seat. Today, most brands are investing in brand extension. Is this a healthy trend?
I would prefer a strong mother brand or a parent brand that can leverage all other products that exist in the category. This will help to keep the competition away and perform better in a particular segment. But developing a strong sub-brand needs strong commitment and investment.
This should be done selectively, without diluting the core constituency of the main brand. Thus, building brand extensions will help connect to larger audience and connect with the big part of marketing.
