Branding

Marketing Management Branding

Product 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A product can be quickly outdated.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 More Important?

Sales DeclinesSlow Growth – Need Sustaining Sales or New

MarketsChanging Buying Patterns and Customer WantsIncreasing Competition, including New ProductsIncreasing Marketing and Sales Expenditures.Understanding the 7 P’s: People

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

What is a Brand?

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

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

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

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

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

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

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

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

Model Proliferation & Brand Identification

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

• 1995 vs. 2005 Models of Cars• Cars: 480 591• Trucks: 430 999• Total: 910 1590

What is a Brand? & Brand Identification

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

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

The marking of livestock. Artists signing their work.

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

Most important is consistency—globally too. 

What is a Brand? & Brand Identification

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

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

The marking of livestock. Artists signing their work.

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

Most important is consistency—globally too. 

What is a Brand? & Brand Identification -2-

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? & Brand Identification -3-

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

What is a Brand? &Brand Identification -4-

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

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

Nothing else.A brand can convey: Attributes + Benefits + Values + Culture + PersonalitySeller’s promise to deliver a specific set of

features. Brand equity is the value a brand adds to the

product.

Turning or Translating Brand Awareness

Into Brand Insistence.

AIDA=

Awareness Interest Desire Action

Brand Awareness or Brand Insistence

Branding

Major Macroenvironment Forces and Trends …..Broad EnvironmentDemographicEconomicNatural/ EcologicalTechnologicalPolitical/ LegalSocial/ Cultural

Marketing and Branding

Products vs. BrandsLook at Marketing Process:Analyzing Marketing OpportunitiesSegmentation, Targeting and PositioningDeveloping Marketing Strategies and 7P’sPlanning Marketing ProgramsExecuting, Managing and Evaluating Marketing

Efforts

Marketing Flows

Physical FlowTitle FlowPayment FlowsInformation FlowPromotion FlowSuppliers, Intermediaries, Transporters, Wholesalers,

Dealers, Retailers, Banks, Marketing Firms,

Advertising Agencies, Media, Customers, Users

Marketing and Branding

• Most Purchased: Nation’s Number One Food3% of Grocery SalesGrown, Cut, Separated, Sorted, Cleaned,

Labeled, Packaged, Shipped, Handled With Care.

Stickers

Potatoes

Marketing and BrandingWine

1980 2000 2500 Wholesalers/Distributors 250 250 Wineries 2500*

1,400 different brands of Chardonnay

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

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

White, Red, Rose

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

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

wine producing nation in the world. WSJ 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

Wine

Merchandising and EventsDistributionLiquor by the Law

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

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