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Product vs. Brand: A Product Is Something That Is Made in A Factory A Brand Is Something That Is Bought by A Customer
Product vs. Brand: A Product Is Something That Is Made in A Factory A Brand Is Something That Is Bought by A Customer
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.
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!
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!
Why? Lowers marketing costs, greater trade leverage, can charge higher price, defense against price competition, more easily launch line extensions.
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.
Branding
Major Macroenvironment Forces and Trends ..Broad Environment Demographic Economic Natural/ Ecological Technological Political/ Legal Social/ Cultural
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
Potatoes
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.
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
Wine
Merchandising
Distribution Liquor
and Events
by the Law
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.
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!