Second Teaching Unit / Fourth Learning environment

Essential reading

Advertising and branding

Content

1 International logistics and competitiveness

2 Branding

3 Advertising

Keywords: advertising, branding, competitiveness, international logistics.

1. International logistics and competitiveness
Surely you have heard about competitiveness, it’s a concept that many companies are using to
measure their level of consumer acceptance. But what is competitiveness? According to Cann
(2016) is “the set of institutions, policies and factors that determine the level of productivity of
a country”. Competitiveness is related to economic growth and prosperity, which turns into high
income levels and human welfare.

¿Did you know that… ...?

Colombia is ranked 61 out of 138 countries in the Global
Competitiveness Report.

Logistics and innovation are two of the pillar areas in which Colombia is not doing well, according to
the Global Competitiveness Report 2016 - 2017 issued by the World Economic Forum. International
logistics, therefore, become a relevant tool in generating competitiveness. Atkinson (2013) states
that “the true definition of competitiveness is the ability of a region to export more in value added
terms than it imports” (2). In this sense, logistics become the key to competitiveness starting by the
creation of added-value to products, in order to be different from others and to make customers
prefer your product.

Why do you think Mario Hernández is a competitive company? They design and produce added-value
products that make customers feel they are using exclusive products, they sell status not just a simple
leather product.

For a company to design a competitive logistics’ strategy, it is necessary to have three elements,
which are exposed on the following figure. It is also important that every area of the company gets
involved in this process.

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 Competitive supplier

Competitive logistic
strategy
Competitive and innovative
teamwork

Competitive distribution
and marketing strategy

Figure 1. Elements of a competitive logistic strategy

Source: designed by the author

Michael Porter (1991) stated that companies can be competitive by being leaders in costs or by
differentiation. Both strategies involve international logistics processes. Nowadays, products have a
shorter life cycle, so logistics processes have to be adapted rapidly to this new phenomenon.

To know more...
Logistics connects buyers and sellers across the globe and provide
companies access to national and international markets (Lehmacher, 2016).

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2. Branding
The concept of branding can be applied for companies or products, since it’s a process in which
a company creates and maintains a brand throughout the years. Branding is the way customers
perceive your company or your product. Can you think about a recognized brand and what it makes
you feel? In Colombia, there are brands like Arturo Calle, Onda de Mar, Agua Bendita, Leonisa in the
apparel sector or Juan Valdez in the coffee sector.

Branding includes not only a name, but also a special emotional value, logo, label, slogan, and the
development of a strong marketing plan. In the development of this marketing plan you have to be
aware of your real target or customer, since not everyone buys the same products.

Branding equity or branding development has become a competitive strategy among the companies,
to the point of investing a large part of their budget in marketing research before launching the
brand’s strategy. Before starting the branding process, it is important to evaluate the corporate
values, as well as it’s mission and vision so that the strategy doesn’t go against the corporate image
and values. That is part of the branding characteristics.

But, why is branding an important process within a company? Simple, because through a correct
branding process the company can be competitive obtaining customers loyalty and profit. Branding
is the image of the company in terms of quality, customer service, on time delivery, and corporate
responsibility. After learning the importance of branding in a company, the key questions you have to
ask yourself are how can a Company create branding? What are the elements to consider? Meldini
(2015) explains five elements of branding, which are exposed and explained on the following figure.

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 Refers to the creation of the name of the brand or product, like Zara,
Naming
Naming Ferrari or Tommy Hilfiger.

Corporate
Corporate It referes to symbols, logos, colors, and everything you use to identify a
identity
identity company, like the alligator of Lacoste or the three stripes of Adidas.

It´s usually associated with the top of mind. This means the level of
remembrance customers have with a brand. Why some people go directly to
Positioning
Positioning
the supermarket to buy Colgate toothpaste over Oral B or viceversa?
Because they have the product positioned in their minds.

Brand
Brand It is closely related to the positioning element. If a customer feels
loyalty
loyalty satisfied with a product they will be loyal to it.

Brand
Brand It refers to the management of the branding process.
architecture
architecture

Figure 2. Elements of branding

Source: designed by the author

Finally, you have to take into account that there are two types of branding strategies, an emotional
one and a strategic one.

1 Emotional
branding
2 Strategic
branding

Brand value Sustainable packing and

packaging/ technology
Trends
Function/ production
process

Figure 3. Branding strategies

Source: designed by the author

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Nowadays, customers are becoming more demanding in terms of environmental preservation, for that
reason companies are now creating branding by showing them that their processes and packing are not
affecting the ecosystems.

3. Advertising
The concept of advertising deals with the marketing process of communicating or promoting the
product or brand. Normally you can see billboards all over the road while you are on your way to work,
this is a typical advertising strategy.

Nevertheless, companies are starting to incorporate information technology to their advertising

strategy, and, thanks to this, now you can receive offers and promotions to your cell phone or your
e-mail (see figure 4). You can also find advertisement while watching your favorite TV show or listening
to your favorite radio station.

Mobile marketing
Email marketing

Figure 4. Types of Advertising

Source: designed by the author

You have to be careful when you do an advertisement campaign, because people can misunderstand
your slogan, logo or images. When creating marketing strategies for different markets, it’s necessary to
adapt your advertisiment campaing according to the type of customer and their values and believes.

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Advertising is the last step in the marketing process and has to include creativity and a reasonable
profit, but most important, it must attract customers to buy your products and become loyal to them.

Figure 5. Laundry detergent advertising poster

Source: Vectorpocket(2017)

Finally, the branding process, as part of a marketing process, can’t be created without taking into
account the logistics process. Can you imagine Apple designing the advertising campaing for the
Iphone X without being certain if the cellphones were going to be manufactured on time?

Summarizing...
Having a great product is not enough!

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References
Atkinson, R. D. (2013). Competitiveness, Innovation and Productivity: Clearing up the Confusion.
Washington, United States: The Information Technology & Innovation Foundation.

Cann, O. (2016, September 27). What is competitiveness? World Economic Forum. Retrieved from
https://www.weforum.org/agenda/2016/09/what-is-competitiveness/.

Lehmacher, W. (2016, August 2). Is this the key to successful global trade? World Economic Forum.
Retrieved from https://www.weforum.org/agenda/2016/08/logistics-key-to-successful-global-
trade/.

Meldini, A. L. (2015). Branding emocional para deseos personales. Retrieved from http://fido.palermo.
edu/servicios_dyc/proyectograduacion/archivos/3499.pdf.

Persson, G. (1991). Achieving Competitiveness Through Logistics. The International Journal of Logistics
Management, (2)1. 1-11.

References of Figures
Vectorpocket, (2017). Laundry detergent advertising poster [Vector]. Retrieved from https://www.
freepik.com/free-vector/laundry-detergent-advertising-poster_1472100.htm

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 TECHNICAL INFORMATION

Module: Logistics and International Marketing

Second Teaching Unit: Introduction and basic concepts
Fourth Learning environment: Logistics chain
and competitiveness

Author: Sandra Chicas Sierra

Advisor: Juan Felipe Marciales Mejía

Graphic Designer: Cristian Navarro
Assistant: Ginna Quiroga

This material belongs to the Politécnico Grancolombiano.

Total or partial reproduction is prohibited.

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