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Unit 2
Brands
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Teaching & Learning Objectives
To enable Ss to talk about brands
To familiarize Ss with vocabulary related to
brands
To develop Ss listening and reading skills
To improve Ss meeting techniques
To cultivate Ss problem-solving ability
To enhance Ss business writing techniques
by writing a memo
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OVERVIEW
Starting up: Favorite Brands
Vocabulary: Brand Management
Listening: What is branding?
Reading: Fashion Piracy
Discussion: Three Promotions
Skills: Taking part in Meetings
Case Study: Caferoma
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What is brand?
A brand is a product, service, or concept thatis publicly distinguished from other products,services, or concepts so that it can be easily
communicated and usually marketed. A brandname is the name of the distinctive product,service, or concept. Branding is the process ofcreating and disseminating the brand name.Branding can be applied to the entire corporateidentity as well as to individual product andservice names.
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Brands are usually protected from use by others bysecuring a trademarkorservice markfrom an authorizedagency, usually a government agency. Before applyingfor a trademark or service mark, you need to establish that
someone else hasnt already obtained one for your name.Although you can do the searching yourself, it is commonto hire a law firm that specializes in doing trademarksearches and managing the application process, which, inthe United States, takes about a year. Once youve
learned that no one else is using it, you can begin to useyour brand name as a trademark simply by stating it is atrademark. After you receive the trademark, you can usethe registered symbol after your trademark.
What is brand?
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Brands are often expressed in the form oflogos,
graphic representations of the brand. In computers, a
recent example ofwidespread brand application was
the I ntel I nside label provided to manufacturersthat use Intels microchips.
A companysbrands and the publics awareness of
them is often used as a factor in evaluating a
company. Corporations sometimes hire market
research firms to study public recognition of brand
names as well as attitudes toward the brands.
What is brand?
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Here is the famous advertising copywriter and
ad agency founderDavidOgilvys definition
of a brand:
The intangible sum of a productsattributes: its name, packaging,and price, its history, its
reputation, and the wayits advertised.
What is brand?
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David MacKenzie Ogilvy
(June 23, 1911
July 21, 1999), was a notableadvertising executive. He has often beencalled The Father of Advertising. In 1962,Timecalled him the most sought-after
wizard in todays advertising industry. Hewas known for a career of expanding thebounds of both creativity and morality.
David Ogilvy
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Quotation
The most distinctive skill of
professional marketers is their
ability to create, maintain,protectand enhancebrands.
P. Kotler, American marketing guru
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Philip Kotler
Philip Kotler (born 27 May 1931 in Chicago) is the S.G.
Johnson & Son Distinguished Professor of International
Marketing at the Kellogg School of Management at
Northwestern University. He received his masters degree atthe University of Chicago and his Ph D at Massachusetts
Institute of Technology, both in economics. He did
postdoctoral work in mathematics at Harvard University and in
behavioral science at the University of Chicago.
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He was selected in 2001 as the #4 majormanagement guru by the Financial Times(behind Jack Welch, Bill Gates, and PeterDrucker,) and has been hailed by theManagement Centre Europe as the worldsforemost expert on the strategic practice of
marketing. In 2008, the Wall Street Journallisted him as the 6th most influential person onbusiness thinking.
Philip Kotler
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Philip Kotler
Kotler has consulted many major U.S. and foreign
companies, including IBM, Michelin, Bank of
America, Merck, General Electric, Honeywell, and
Motorola - in the areas ofmarketing strategy,planning and organization, and international
marketing.
He presents seminars in major international citiesaround the world on the latest marketing
developments to companies and other organizations.
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Starting up
A. List some of your favorite brands and
answer the following questions:
Are they international or national brands?
What image and qualities does each one have?
Do the products have anything in common?
How loyal are you to the brands you havechosen?
If you dont buy branded goods, explain why.
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Starting up
B. What are the advantages of branded
goods fora) the manufacturer
b) the consumer
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Advantages for the manufacturer
Having a product which is instantly recognisable and
thus more likely to be bought
Being able to associate specific qualities with the
brand, e.g. value for money, safety, prestige
The possibility oflaunching related products under
the same (established) brand
Greatercustomer loyalty
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Advantages for the consumer
A reliable productyou know what youre
getting for your money
High prestige brands give you an opportunity
to enhance your standing
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Top 10 Global BrandsSource:Interbrand/Citibank 1999
1. Coca-Cola 2. Microsoft3. IBM 4. General Electric5. Ford 6. Disney7. Intel 8. McDonalds9. AT & T 10. Marlboro
Companies ranked according to:
Weight(market share) 35%
Breadth(cross section of society reached) 30%Depth(brand loyalty) 20%
Length(brand-stretching ability) 15%
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The influence or dominance
that a brand has over itscategory or market (morethan just market share)
Assessing BRAND POWER
POWER BRANDS
Interbrand
BRAND
WEIGHT
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The stretch or extensionthat the brand hasachieved in the past or islikely to achieve in thefuture (especially outsideits original category).
AssessingBRANDPOWER
POWERBRANDS
Interbrand
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The breadth of franchise
that the brand has achieved
both in terms of age spread,
consumer types andinternational appeal.
AssessingBRANDPOWER
POWERBRANDS
Interbrand
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AssessingBRANDPOWER
POWERBRANDS
Interbrand
BRAND
DEPTH
The degree of commitment that
the brand has achieved among itscustomer base and beyond. The
proximity, the intimacy and the
loyalty felt for the brand.
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AssessingBRANDPOWER
POWERBRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
POWER
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Best Global Brands 2008
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Vocabulary:Brand Management
luxurybrand
classicbrand
brand awareness brand image brand stretching brand loyalty brand leader
brand manager
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Vocabulary: Brand Management
A. Match the definitions to the word
partnerships with the word brand .
1. A brand associated with expensive, high quality
products
2. The person responsible for planning and managing
a branded product
3. The brand with the largest market share
4. A famous brand with a long history
luxurybrand
brandmanager
brandleaderclassic brand
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Vocabulary: Brand Management
5. The ideas and beliefs which consumers have
about a brand
6. The tendency of a customer to continue
buying a particular product
7. Using a successful brand name to launch a
product in a new category
8. The knowledge which consumers have of a
brand
brand image
brandloyalty
brandstretching
brand awareness
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Listening: What is branding?
What is Branding?
Branding is the activity of givingbrand names to products, developingpeoples awareness of them etc.
Listen to an authentic interview with Lynne
Fielding, a marketing specialist, and do
the exercises.
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A. Listen to the first part of the interview and
complete the extract with the words below.
money name differentiate synergy quality competitors
What is branding and why do we need brands?
A brand can be a _______, a term or a symbol. It is used to
____________ a product from ____________ products. The
brands guarantee a certain __________ level. Brands should addvalue to products. Its a _________ effect whereby one plus one
equals three. But customers must believe they get extra value for
_________.
namedifferentiate competitors
qualitysynergy
money
Listening: What is branding?
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differentiate v .to recognize or express the
difference between things or people
differentiate between(and)
differentiate sth/sb from
synergyn. the extra energy, power, success,
etc that is achieved by two or more people orcompanies working together, instead of on their
own
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BRANDS
Stand-along or___________ brands
Corporate or________ brands
Ariel
----------------
----------------
----------------
Heinz
----------------
----------------
----------------
individual family
Haagen Daz
Direct Line Insurance
Malboro
VirginMarks and Spencer
Levis
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C. Listen to the last part and complete
the summary.
1. Customers want:
a) _____________ b) ____________
c) ____________________
2. Customers like to:
a) rely on the _____________ guaranteed by the companyb) __________ products.
c) __________ with brands.
newbrands choicedifferentproducts
qualitylevelstrustidentify
Listening: What is branding?
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Reading:Fashion Piracy
A. Pre-reading:
Before you read, discuss these questions.
1. Do you own a product which is an illegal
copy of a well known brand? If so, what is it?
Where did you buy it? How much does it
cost?
2. How can manufacturers protect their brands
from piracy (illegal copying)?
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B. Match the words and phrases with the definitions.
1. global offensive
2. counterfeiter
3. copyright abuse
4. a network
5. merchandise6. corporate
strategy
7. logo
8. licensing rights
9. rip off
10. restructure
a) plans of a company to achieve its objectives
b) agreements which allow a company to make and
sell a registered product locally
c) taking strong action all over the world
d) a person who copies goods in order to trick
people
e) copy someone elses work, e.g. their designs,without permission
f) a large amount of people or organisations working
together as a system
g) goods for sale
f) change the way something is organisedg) the symbol of a company or other organisation
h) sell illegal copies of a brand as if they are the real
thing
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Reading:Fashion Piracy
1. global offensive c 2. counterfeiter d 3. copyright abuse e
4. a network f
5. merchandise g 6. corporate strategy a7. logo i
8. licensing rights b 9. rip off j 10. restructure h
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Reading:Fashion Piracy
C. Read the article quickly to find out:
1. which Calvin Klein products are commonly
copied.
2. why the problem is getting worse.
3. how the company is dealing with it.
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1. Which Calvin Klein products are
commonly copied
T-shirts, jeans and baseball caps.
Reading: Fashion Piracy
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2. Why is the problem getting worseBecause Calvin Klein has become a
more well-known brand, and is
therefore more profitable to copy.
Reading: Fashion Piracy
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Reading:Fashion Piracy
3. How is the company dealing with it
By establishing a network of
employees and external specialists.
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Reading:Fashion Piracy
D. Read the article and answer thequestions.
1. What was Calvin Kleins attitude to
counterfeiting in the past?2. Why has the company changed its way of
dealing with counterfeiters?
3. What has the company done to change theway its business operates and to increase itssize?
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Reading:Fashion Piracy
1. What was Calvin Kleins attitude to
counterfeiting in the past?
It took a passive approach.
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Reading:Fashion Piracy
2. Why has the company changed its
way of dealing with counterfeiters?
Because of the increase in
counterfeiting and because it
reduces the companys sales anddamages its brand image.
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Reading:Fashion Piracy
3. What has the company done to change theway its business operates and to increaseits size?
It has expanded its business outsideNorth America, increased spending onadvertising and signed licensing deals
with partners for whole regions ratherthan individual countries, the previouspractice.
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Language review:Past simple and present perfect
A. Memo completion.
1. launched 2. increased
3. have fallen 4. have copied5. has become 6. organised
7. have found 8. have seized
9. contacted 10. informed11. have had 12. have lost
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Discussion: Three Promotions
Case 1 Macdonalds
Why do you think this promotion was
unpopular with Macdonalds customers?
How do you think Macdonalds dealt with the
situation?
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Case 1 Macdonalds
The promotion was unpopular because it gave amisleading impression of the price. When the price ofthe french fries and drink at the full price were
taken into account, the discount on the whole mealamounted to only about 5%.
McDonalds withdrew the promotion and cancelled thecampaign. It also announced a major reorganisation inits management structure, scrapping the 40-year-oldtradition of centralised management in Illinois, USA,and appointing local managers instead.
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Discussion: Three Promotions
Case 2 Pepsi
What prize do you think John Leonard is
claiming from Pepsi Cola?
What did he do to claim the prize?
What do you think Pepsi Cola have describedhis claim as frivolous?
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Case 2 Pepsi
John Leonard claimed a Harrier Jump Jet bybuying 7,000,000 Pepsi Stuff Points at l0each: a cost of $700,000 or about 400,000for a machine that normally costs several
million dollars. Pepsi described his claim as frivolous
because the advertisement was meant as ajoke. However, when they later screened the
advertisement on national TV in the USA, thenumber of points needed to claim the HarrierJet was increased from 7 million to 700million.
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Discussion: Three Promotions
Case 3 Irish Tourist Board
Why do you think the Irish people disliked the
logo so much?
Was the minister right to get rid of the logo?
Which logo do you prefer?
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Case 3 Irish Tourist Board
Many people felt there was no need toget rid of the shamrock, which has beenthe symbol of Irish tourism for the
past 30 years. They also found itdifficult to work out what the newsymbol was and interpreted it inhundreds of ways, for example: two
sumo wrestlers preparing to fight; twocrabs meeting; two monsters; a vikingship.
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Skills:Taking part in Meetings
Build up a profile of a company, hold a
meeting to speculate about what may be
causing it to lose sales and brainstorm
possible solutions (to improve its sales and
its brand awareness amongst its target
consumers).
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Case Study: Caferoma
BackgroundBrand Caferoma
Owned by Pan European Food and Drink (PEFD)
Imageexclusive, Italian style, coffee for
gourmets
Pricing high
Product
characteristics
strong full-bodied flavour, slight bitter
taste
C S
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Case Study: Caferoma
ProblemsCaferomas share of the European quality ground coffeemarket has declined by almost 25%, reasons are:
Brand loyalty: consumers becoming less loyal to brands and
prefer low-priced coffee products Price: supermarkets selling similar products under their own
label at much lower prices
Copycat products: at prices 30% to 40% lower than
Caferomas price; having cut into Caferomas market share Brand image: no longer conveying feeling of excitement
and enthusiasm, not giving the impression of up-to-date andcontemporary
C St d
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Case Study: Caferoma
Possible Solutions Repositioning the product
Pricing
Advertising
Multiple brands
Own label products
A new product
Stretching the brand
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A i t
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Assignment
Writing
Write a memo for the attention of Caferomas
Managing Director, summarising what actionyou agreed to take at the meeting to solve
Caferomas problems and explaining your
reasons.
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