Product vs.

Brand
A product is something that is made in a factory A product can be copied by a competitor. A brand is something that is bought by a customer. A brand is unique.

A product can be quickly outdated.

A successful brand is timeless.

Why is Marketing Becoming More Important?

Sales Declines Slow Growth Need Sustaining Sales or New Markets Changing Buying Patterns and Customer Wants Increasing Competition, including New Products Increasing Marketing and Sales Expenditures. Understanding the 7 Ps: People (Target/Customer),
Planning, Product/Service Development, Pricing, Place/Distribution, Promotion, and Partners/Alliances.

What is a Brand?
Its the companys 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. Its 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 companys most valuable asset. Its 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 cant steal your brand. Its a promise. But it must be backed up by performance.

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2001 By Default!

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 AutoWeek 11/2005

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2001 By Default!

What is a Brand? & Brand Identification

A brand is much more than a nameits a symbol, trademark, logo, term, sign, design or combination, which distinguishes a product from others. Sets a companys products apart from competition. Its 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 consistencyglobally too.

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What is a Brand? & Brand Identification

A brand is much more than a nameits a symbol, trademark, logo, term, sign, design or combination, which distinguishes a product from others. Sets a companys products apart from competition. Its 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 consistencyglobally too.

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

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 -3More Examples:

4. Need to keep it fresh. Look at Coca-Cola. Its image is as fresh today as when it started. Its not luck. Its 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 higher price, defense against price competition, more easily launch 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 + Personality

Sellers promise to deliver a specific set of features. Brand equity is the value a brand adds to the product.

Brand Awareness or Brand Insistence

Turning or Translating Brand Awareness Into Brand Insistence.

Awareness AIDA= Interest Desire Action

Branding

Major Macroenvironment Forces and Trends ..Broad Environment Demographic Economic Natural/ Ecological Technological Political/ Legal Social/ Cultural

Marketing and Branding

Products vs. Brands Look at Marketing Process: Analyzing Marketing Opportunities Segmentation, Targeting and Positioning Developing Marketing Strategies and 7Ps Planning Marketing Programs Executing, Managing and Evaluating Marketing Efforts

Marketing Flows
Physical

Flow Title Flow Payment Flows Information Flow Promotion Flow

Suppliers, Intermediaries, Transporters, Wholesalers, Dealers, Retailers, Banks, Marketing Firms, Advertising Agencies, Media, Customers, Users

Marketing and Branding

Most Purchased: Nations Number One Food 3% of Grocery Sales Grown, Cut, Separated, Sorted, Cleaned, Labeled, Packaged, Shipped, Handled With Care. Stickers

Potatoes

Marketing and Branding

Wine
1980 2000
Wholesalers/Distributors Wineries

2500 250

250 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 Californias 800 wineries had distribution in all 50 states.

White, Red, Rose

1960 White 17% 1970 1980 1990 2000 24% 54% 68% 57%

Red
Rose

73%
10%

50%
26%

26%
20%

18%
14%

36%
7%

60%

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

increase in Red, from one media event.

Wine
Merchandising
Distribution Liquor

and Events

by the Law

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

In Pounds (LBS) US Per Capita Consumption
Retail Weight Source: USDA
Beef Veal Pork Lamb & Mutton Chicken Turkey Fish
1960 63.4 5 61.3 4.2 27.9 6.3 10.3 1970 84.6 2.4 56 2.9 36.9 8.1 11.7 1980 76.6 1.5 57.3 1.4 46.6 10.5 12.4 1990 67.4 1.1 49.8 1.5 60.9 18.4 15

2000 69.6 0.7 54.1 1.1 84.1 17.8 14.8

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

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

National

Cattlemens Beef Association Beef. Its what for Dinner. Pork. The Other White Meat. Big Texan Steak Ranch in Amarillo. Ostrich on British Airways. The Turkey Store. The Turkey Restaurant. McDonalds

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2001 By Default!

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