Product vs. BrandProduct vs. Brand

A product is something that is made in a factory

A brand is something that is bought by a customer.

A product can be copied by a competitor.

A brand is unique.

A product can be quickly outdated.

A successful brand is timeless.

Why is Marketing Becoming Why is Marketing Becoming More Important? More Important?

Sales DeclinesSales Declines Slow Growth – Need Sustaining Sales or New Slow Growth – Need Sustaining Sales or New

MarketsMarkets Changing Buying Patterns and Customer WantsChanging Buying Patterns and Customer Wants Increasing Competition, including New ProductsIncreasing Competition, including New Products Increasing Marketing and Sales Expenditures.Increasing Marketing and Sales Expenditures. Understanding the 7 P’s: People Understanding the 7 P’s: People

(Target/Customer), (Target/Customer), Planning, Product/Service Development, Pricing, Planning, Product/Service Development, Pricing, Place/Distribution, Promotion, and Partners/Alliances.Place/Distribution, Promotion, and Partners/Alliances.

What is a Brand?What is a Brand?

It’s the company’s definition of what they have It’s the company’s definition of what they have to offer.to offer.

A brand is a product that has a personality. A brand is a product that has a personality. A promise to the customer.A promise to the customer. What the customer knows about your specific What the customer knows about your specific

product. It’s your image. product. It’s your image. How the company or product is perceived?How the company or product is perceived?

What is a Brand?What is a Brand? A set of product perceptions by the consumer. A set of product perceptions by the consumer. It is a personality developed over time. It is a personality developed over time. A brand signifies a relationship with the A brand signifies a relationship with the

customer. customer. It is the company’s most valuable asset. It’s It is the company’s most valuable asset. It’s

also the main differentiator, the best defense also the main differentiator, the best defense against price competition, and the key to against price competition, and the key to customer loyalty. customer loyalty.

Competitors can copy your features and Competitors can copy your features and benefits, but they can’t steal your brand.benefits, but they can’t steal your brand.

It’s a promise. But it must be backed up by It’s a promise. But it must be backed up by performance.performance.

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Model Proliferation & Brand Model Proliferation & Brand IdentificationIdentification

BMW= BrandBMW= Brand 3-Series = Nameplate3-Series = Nameplate 325i, 325iX, 325Ci coupe, 325i, 325iX, 325Ci coupe, 325Ci convertible, 325 wagon and 330i 325Ci convertible, 325 wagon and 330i

1995 vs. 2005 Models of Cars1995 vs. 2005 Models of Cars Cars: 480 591Cars: 480 591 Trucks: Trucks: 430430 999999 Total: 910 1590 Total: 910 1590 AutoWeek 11/2005AutoWeek 11/2005

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What is a Brand? & What is a Brand? & Brand IdentificationBrand Identification

A A brandbrand is much more than a name—it’s a is much more than a name—it’s a symbol, trademark, logo, term, sign, design or symbol, trademark, logo, term, sign, design or combination, which distinguishes a product from combination, which distinguishes a product from others. others.

Sets a company’s products apart from Sets a company’s products apart from competition. It’s the perception of the product in competition. It’s the perception of the product in the minds of the consumersthe minds of the consumers

The marking of livestock. Artists signing their The marking of livestock. Artists signing their work. work.

Your first opportunity is in the name. Easier to Your first opportunity is in the name. Easier to order and remember.  order and remember.  

Most important is consistency—globally too. Most important is consistency—globally too. 

What is a Brand? & What is a Brand? & Brand IdentificationBrand Identification

A A brandbrand is much more than a name—it’s a is much more than a name—it’s a symbol, trademark, logo, term, sign, design or symbol, trademark, logo, term, sign, design or combination, which distinguishes a product from combination, which distinguishes a product from others. others.

Sets a company’s products apart from Sets a company’s products apart from competition. It’s the perception of the product in competition. It’s the perception of the product in the minds of the consumersthe minds of the consumers

The marking of livestock. Artists signing their The marking of livestock. Artists signing their work. work.

Your first opportunity is in the name. Easier to Your first opportunity is in the name. Easier to order and remember.  order and remember.  

Most important is consistency—globally too. Most important is consistency—globally too. 

What is a Brand? & What is a Brand? & Brand Identification -2-Brand Identification -2-

Examples: Examples: 1.    Batteries: DieHard contains a promise of long use. Sears has Craftsman, DieHard, Homart and Kenmore.

2.    Mercedes promises well-built, prestigious, safety, performance.

3.    Co branding/Dual branding: "Intel inside."

What is a Brand? & What is a Brand? & Brand Identification -3-Brand Identification -3-

More Examples: More Examples: 4.    Need to keep it fresh. Look at Coca-Cola.

Its image is as fresh today as when it started. It’s not luck. It’s careful nurturing and development of the brand.Can exploit brand equity with brand extensions, if there is value.

5.    Look at licensing. Need control over who uses your brand. Sunkist.

Why? Lowers marketing costs, greater trade Why? Lowers marketing costs, greater trade leverage, can charge higher price, defense against leverage, can charge higher price, defense against price competition, more easily launch line price competition, more easily launch line extensions.extensions.

What is a Brand? &What is a Brand? &Brand Identification -4-Brand Identification -4-

Salt is in bright-colored packages. Salt is in bright-colored packages. Oranges are marked. Labeled. A guarantee of Oranges are marked. Labeled. A guarantee of

quality. quality. BMW paid $60 million for the Rolls Royce name. BMW paid $60 million for the Rolls Royce name.

Nothing else.Nothing else. A brand can convey: A brand can convey: Attributes + Benefits + Values + Culture + PersonalityAttributes + Benefits + Values + Culture + Personality Seller’s promise to deliver a specific set of features. Seller’s promise to deliver a specific set of features. Brand equity is the value a brand adds to the Brand equity is the value a brand adds to the

product. product.

Turning or Translating Turning or Translating Brand Brand AwarenessAwareness Into Into

Brand Insistence.Brand Insistence.AIDA= AIDA=

Awareness Interest Desire ActionAwareness Interest Desire Action

Brand Awareness or Brand Awareness or Brand InsistenceBrand Insistence

BrandingBranding

Major Macroenvironment Forces and TrendsMajor Macroenvironment Forces and Trends ……..Broad Environment..Broad Environment DemographicDemographic EconomicEconomic Natural/ EcologicalNatural/ Ecological TechnologicalTechnological Political/ LegalPolitical/ Legal Social/ Cultural Social/ Cultural

Marketing and BrandingMarketing and Branding

Products vs. BrandsProducts vs. Brands Look at Marketing Process:Look at Marketing Process: Analyzing Marketing OpportunitiesAnalyzing Marketing Opportunities Segmentation, Targeting and PositioningSegmentation, Targeting and Positioning Developing Marketing Strategies and 7P’sDeveloping Marketing Strategies and 7P’s Planning Marketing ProgramsPlanning Marketing Programs Executing, Managing and Evaluating Marketing Executing, Managing and Evaluating Marketing

EffortsEfforts

Marketing FlowsMarketing Flows

Physical FlowPhysical FlowTitle FlowTitle FlowPayment FlowsPayment FlowsInformation FlowInformation FlowPromotion FlowPromotion FlowSuppliers, Intermediaries, Transporters, Wholesalers, Suppliers, Intermediaries, Transporters, Wholesalers, Dealers, Retailers, Banks, Marketing Firms, Dealers, Retailers, Banks, Marketing Firms, Advertising Agencies, Media, Customers, UsersAdvertising Agencies, Media, Customers, Users

Marketing and BrandingMarketing and Branding

Most Purchased: Nation’s Number One FoodMost Purchased: Nation’s Number One Food 3% of Grocery Sales3% of Grocery Sales Grown, Cut, Separated, Sorted, Cleaned, Grown, Cut, Separated, Sorted, Cleaned,

Labeled, Packaged, Shipped, Handled With Labeled, Packaged, Shipped, Handled With Care. Care.

StickersStickers

Potatoes Potatoes

Marketing and BrandingMarketing and Branding

WineWine 19801980 20002000 2500 2500 Wholesalers/DistributorsWholesalers/Distributors 250250 250 250 WineriesWineries 2500*2500*

1,400 different brands of Chardonnay1,400 different brands of Chardonnay

16.8% of wine drinkers 16.8% of wine drinkers consume 88% consume 88% of the wine sold.of the wine sold.

3,700 wineries in 2004. But only 13.4% of California’s 800 3,700 wineries in 2004. But only 13.4% of California’s 800 wineries had distribution in all 50 states. wineries had distribution in all 50 states.

White, Red, RoseWhite, Red, Rose

60% increase in Red, from one media 60% increase in Red, from one media event.event.

Pinot Noir sales up 147% since movie “Sideways”Pinot Noir sales up 147% since movie “Sideways” U.S. is on track to overtake France and Italy as top wine U.S. is on track to overtake France and Italy as top wine

producing nation in the world. producing nation in the world. WSJ 2/05WSJ 2/05

19601960

17%17%

73%73%

10%10%

19701970

24%24%

50%50%

26%26%

19801980

54%54%

26%26%

20%20%

19901990

68%68%

18%18%

14%14%

20002000

57%57%

36%36%

7%7%

WhiteWhite

RedRed

RoseRose

WineWine

Merchandising and EventsMerchandising and Events DistributionDistribution Liquor by the LawLiquor by the Law

Marketing of Beef, Veal, Pork, Lamb, Marketing of Beef, Veal, Pork, Lamb, Chicken, Turkey, FishChicken, Turkey, Fish

In Pounds (LBS) US Per Capita ConsumptionRetail WeightSource: USDA

From the National Cattlemen’s Beef Association:US Produced 25% of world’s beef supply.US Agriculture recommends 5-6 ounces of cooked meat a day.Beef is 6% of total grocery store sales.

BeefVealPorkLamb & MuttonChickenTurkeyFish

196063.4

561.3

4.227.96.3

10.3

197084.62.456

2.936.98.1

11.7

198076.61.5

57.3

1.446.610.512.4

199067.41.1

49.8

1.560.918.4

15

200069.60.7

54.1

1.184.117.814.8

Marketing of Beef, Veal, Pork, Lamb, Marketing of Beef, Veal, Pork, Lamb, Chicken, Turkey, FishChicken, Turkey, Fish

National Cattlemen’s Beef AssociationNational Cattlemen’s Beef Association Beef. It’s what for Dinner.Beef. It’s what for Dinner. Pork. The Other White Meat.Pork. The Other White Meat. Big Texan Steak Ranch in Amarillo.Big Texan Steak Ranch in Amarillo. Ostrich on British Airways.Ostrich on British Airways. The Turkey Store. The Turkey Restaurant.The Turkey Store. The Turkey Restaurant. McDonald’sMcDonald’s

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