Today

• My email- mg@watercooler.at

• Project briefing

• Print out lecture notes from web site

• Registration

• What is brand management

• Marketing environment & competitive advantage

Course objectives

• Appreciation of brand management

• Project is important– learning by doing

– realistic scenario

• Theoretical frameworks but case studies are important

• Every week we will discuss brands

Grading

• Final examination 60%

• Project 40%

•  Grades will be from 1 to 5, with 5 as Fail

• If you are coming out as say 2.5 , I will use class participation / Project to move grade up / down

Absences!

• Email me before lecture!

• IF and only if, you get email back from me then you are excused.

• If you are ill then you must bring doctor’s note

• 3 times absent means automatic fail

• Your grade will suffer if you do not attend !

Reading the book

• Read the Summary first• Quick read & highlight• Web site for the book- www.booksites.net/kotler• Register & then search under ‘Find your Professor

, then Groves , then my prof’s files.• Case studies on website.. Read them• Case studies in book .. Read them• Business magazines eg. Business

Week,FT,Economist

Topics that may be covered- comments ?

Class session Topic Chapters

Graded work

1 Marketing environment & Competitive advantage

4,12

2 Market planning & market assessment 3,8 3 Market segmentation, targeting & positioning 9,10 4 Channel management 21 5 Brand vision & Product Strategy 13 6 Product strategy 13,14 7 Relationship Marketing 11 8 Integrated marketing communication ( IMC) 18 9 International brand management 5 10 Exam Exam

What Is Marketing?

• Product

• Place .. Channels of distribution

• Promotion and advertising

• Pricing

–all for PROFIT

What do Brand Managers do ?

Product-packaging and design NPD,new packs

Promotion and advertising-promotions, PR, advertising

Pricing- for promotions Distribution- opportunities, but not selling

What do you remember ?

Doing is

Best !What do you remember ?Read 20%Hear 30%See 40%Say 50%Do 60%Experience by reading, 90%hearing,seeing, saying , & doing

Spontaneous awareness

• Write down the name of a professional sports team

• Write down the name of a professional soccer team

• No conferring !

• Pass to the front

The marketing environment- Ch 4

MICROENVIRONMENTAL FORCES

CompanyCustomersIntermediaries

SuppliersCompetitorsPublics

MACROENVIRONMENTAL FORCES

PoliticalCulturalEconomic

DemographicTechnologicalNatural

Distributors

• Way to the market. What is between you are the final consumer / customer ?

• How strong are they? How important to your brand?

• Will be involved in selling , marketing, merchandising, delivering your brand

Types of distributor

Consumer goods Supermarkets

PC‘s Distributors, stores

Holidays Travel agents

Films Cinemas

Insurance Broker

Web based Physical distributors

The de Chernatony Five-forces Brand Audit Model

Tutorial 3 OHT 3.8

The macro environment- Ch 4

Spending patternsEconomic

ECONOMIC ENVIRONMENT

Baby boom

DEMOGRAPHIC ENVIRONMENT

PopulationFamily Education

NATURAL ENVIRONMENT

Energy costs Intervention

TECHNOLOGICAL ENVIRONMENT

RegulationImprovement

R&DOpportunityChange

Raw materials Pollution

POLITICAL ENVIRONMENT

Interest groupsEnforcementLegislation

CULTURAL ENVIRONMENT

ShiftsSubculturesValues

Spontaneous awareness

• Top of mind awareness

• Prompted awareness- researcher reads list and consumer says if they are aware of the brand

• TOM critical for `impulse´´ brands eg soft drinks, snacks

Manchester United- a great brand

• Revenue of €260m up 18 % over 2002• Profit of €60 m in 2003• Nike contract worth €32m• Global sponsors Nike, Vodafone,• Alliance with NY Yankees • 2.5 m replica shirts sold ( 40% outside UK)• Premier League Champions 8 from last 11

years

Competitive advantage- Ch 12

Competitive advantage-who are my

competitors?• What market am I in ?• Include substitutes ?• Coca-Cola.. Avoids competitor myopia

– Carbonated soft drinks?– Soft drinks?– Non –alcoholic beverages ?– Alcoholic drinks?– Hot drinks?– Tap water?– Share of stomach 2 %

VALUE ANALYSIS: COMPETITIVE ADVANTAGE

PerformanceComparison

ImportanceMonitorMajor attributes

COMPETITIVE POSITIONS

Middle-of-the-roadDifferentiation Focus

Cost leadership

Profitability

Reduce capital cost

Productivity

Reduce fixed cost

Reduce variable cost

Change product mix

Increase price

Add value

Win competitor’s custom

Volume

Buy competitors

Increase usage rate

New segments

New markets

Innovation

Reduce costs

Increase margins

Compete

Create

For next week

• Print out lecture notes from web site

• Buy book

• Registration

• Get in group for project

• Read Ch 4 case study on web page- McDonalds in India