Product vs. Brand Product vs.

Brand
A product is something
that is made in a Iactory
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outdated.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 successIul brand is
timeless.
is Marketing Becoming is Marketing Becoming
More Important? More Important?
Sales Declines Sales Declines
Slow Growth Slow Growth Need Sustaining Sales or New Need Sustaining Sales or New
Markets Markets
Changing Buying Patterns and Customer Wants Changing Buying Patterns and Customer Wants
ncreasing Competition, including New Products ncreasing Competition, including New Products
ncreasing Marketing and Sales Expenditures. ncreasing Marketing and Sales Expenditures.
Understanding the 7 P's: People Understanding the 7 P's: People
(Target/Customer), (Target/Customer),
Planning, Product/Service Development, Pricing, Planning, Product/Service Development, Pricing,
Place/Distribution, Promotion, and Partners/Alliances. Place/Distribution, Promotion, and Partners/Alliances.
at is a Brand? at is a Brand?
It's the company's definition of what they have It's the company's definition of what they have
to offer. to offer.
A brand is a product that has a personaIity. A brand is a product that has a personaIity.
A promise to the customer. A promise to the customer.
What the customer knows about your specific What the customer knows about your specific
product. It's your image. product. It's your image.
How the company or product is perceived? How the company or product is perceived?
at is a Brand? at is a Brand?
A set of product perceptions by the consumer. A set of product perceptions by the consumer.
It is a personaIity deveIoped over time. It is a personaIity deveIoped over time.
A brand signifies a reIationship with the A brand signifies a reIationship with the
customer. customer.
It is the company's most vaIuabIe asset. It's It is the company's most vaIuabIe asset. It's
aIso the main differentiator, the best defense aIso the main differentiator, the best defense
against price competition, and the key to against price competition, and the key to
customer IoyaIty. customer IoyaIty.
Competitors can copy your features and Competitors can copy your features and
benefits, but they can't steaI your brand. benefits, but they can't steaI your brand.
It's a promise. But it must be backed up by It's a promise. But it must be backed up by
performance. performance.
2001 By Default!
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Slide 5
Model Proliferation & Brand Model Proliferation & Brand
Identification Identification
BMW= Brand BMW= Brand
3 3- -Series = Nameplate Series = Nameplate
325i, 325iX, 325Ci coupe, 325i, 325iX, 325Ci coupe,
325Ci convertible, 325 wagon and 330i 325Ci convertible, 325 wagon and 330i
1995 vs. 2005 Models of Cars 1995 vs. 2005 Models of Cars
Cars: 480 591 Cars: 480 591
Trucks: Trucks: 430 430 999 999
Total: 910 1590 Total: 910 1590 AutoWeek 11/2005 AutoWeek 11/2005
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Slide 6
What is a Brand? & What is a Brand? &
Brand Identification Brand Identification
A A brand brand is much more than a name is much more than a name- -it's a it's a
symboI, trademark, Iogo, term, sign, design or symboI, trademark, Iogo, term, sign, design or
combination, which distinguishes a product combination, which distinguishes a product
from others. from others.
Sets a company's products apart from Sets a company's products apart from
competition. It's the perception of the product competition. It's the perception of the product
in the minds of the consumers in the minds of the consumers
The marking of Iivestock. Artists signing their The marking of Iivestock. Artists signing their
work. work.
Your first opportunity is in the name. Easier to Your first opportunity is in the name. Easier to
order and remember. order and remember.
Most important is consistency Most important is consistency- -gIobaIIy too. gIobaIIy too.
What is a Brand? & What is a Brand? &
Brand Identification Brand Identification
A A brand brand is much more than a name is much more than a name- -it's a it's a
symboI, trademark, Iogo, term, sign, design or symboI, trademark, Iogo, term, sign, design or
combination, which distinguishes a product combination, which distinguishes a product
from others. from others.
Sets a company's products apart from Sets a company's products apart from
competition. It's the perception of the product competition. It's the perception of the product
in the minds of the consumers in the minds of the consumers
The marking of Iivestock. Artists signing their The marking of Iivestock. Artists signing their
work. work.
Your first opportunity is in the name. Easier to Your first opportunity is in the name. Easier to
order and remember. order and remember.
Most important is consistency Most important is consistency- -gIobaIIy too. gIobaIIy too.
What is a Brand? & What is a Brand? &
Brand Identification Brand Identification - -2 2- -
amples: amples:
. Batteries: DieHard contains a promise of
Iong use. Sears has Craftsman, DieHard, Homart
and Kenmore.
2. Mercedes promises weII-buiIt,
prestigious, safety, performance.
3. Co branding/DuaI branding: "InteI inside."
What is a Brand? & What is a Brand? &
Brand Identification Brand Identification - -3 3- -
More amples: More amples:
. Need to keep it fresh. Look at Coca-CoIa.
Its image is as fresh today as when it
started. It's not Iuck. It's carefuI nurturing
and deveIopment of the brand.
Can expIoit brand equity with brand
extensions, if there is vaIue.
5. Look at Iicensing. Need controI over who
uses your brand. Sunkist.
? Lowers marketing costs, greater trade ? Lowers marketing costs, greater trade
leverage, can carge iger price, defense against leverage, can carge iger price, defense against
price competition, more easil launc line price competition, more easil launc line
etensions. etensions.
What is a Brand? & What is a Brand? &
Brand Identification Brand Identification - -4 4- -
SaIt is in bright SaIt is in bright- -coIored packages. coIored packages.
Oranges are marked. LabeIed. A guarantee of Oranges are marked. LabeIed. A guarantee of
quaIity. quaIity.
BMW paid $60 miIIion for the RoIIs Royce name. BMW paid $60 miIIion for the RoIIs Royce name.
Nothing eIse. Nothing eIse.
A brand can convey: A brand can convey:
Attributes + Benefits + VaIues + CuIture + PersonaIity Attributes + Benefits + VaIues + CuIture + PersonaIity
SeIIer's promise to deIiver a specific set of SeIIer's promise to deIiver a specific set of
features. features.
Brand equity is the vaIue a brand adds to the Brand equity is the vaIue a brand adds to the
product. product.
Turning or Translating Turning or Translating
Brand Brand Awareness Awareness nto nto
Brand nsistence. Brand nsistence.
ADA= ADA=
Awareness nterest Desire Action Awareness nterest Desire Action
Brand Awareness or Brand Awareness or
Brand Insistence Brand Insistence
Branding Branding
Major Macroenvironment Forces and Trends Major Macroenvironment Forces and Trends
...Broad Environment ...Broad Environment
Demographic Demographic
Economic Economic
Natural/ Ecological Natural/ Ecological
Technological Technological
Political/ Legal Political/ Legal
Social/ Cultural Social/ Cultural
Marketing and Branding Marketing and Branding
Products vs. Brands Products vs. Brands
Look at Marketing Process: Look at Marketing Process:
Analyzing Marketing Opportunities Analyzing Marketing Opportunities
Segmentation, Targeting and Positioning Segmentation, Targeting and Positioning
Developing Marketing Strategies and 7P's Developing Marketing Strategies and 7P's
Planning Marketing Programs Planning Marketing Programs
Executing, Managing and Evaluating Marketing Executing, Managing and Evaluating Marketing
Efforts Efforts
Marketing Flows Marketing Flows
Physical Flow Physical Flow
Title Flow Title Flow
Payment Flows Payment Flows
nformation Flow nformation Flow
Promotion Flow Promotion Flow
Suppliers, ntermediaries, Transporters, Wholesalers, Suppliers, ntermediaries, Transporters, Wholesalers,
Dealers, Retailers, Banks, Marketing Firms, Dealers, Retailers, Banks, Marketing Firms,
Advertising Agencies, Media, Customers, Users Advertising Agencies, Media, Customers, Users
Marketing and Branding Marketing and Branding
Most Purchased: Nation's Number One Food Most Purchased: Nation's Number One Food
3% of Grocery Sales 3% of Grocery Sales
Grown, Cut, Separated, Sorted, Cleaned, Grown, Cut, Separated, Sorted, Cleaned,
Labeled, Packaged, Shipped, Handled With Labeled, Packaged, Shipped, Handled With
Care. Care.
Stickers Stickers
Potatoes Potatoes
Marketing and Branding Marketing and Branding
Wine Wine
2 2
2500 2500 WhoIesaIers/Distributors WhoIesaIers/Distributors 250 250
250 250 Wineries Wineries 2500* 2500*
1,400 different brands of Chardonnay 1,400 different brands of Chardonnay
16.8% of wine drinkers 16.8% of wine drinkers
consume 88% consume 88%
of the wine sold. of the wine sold.
3,700 wineries in 2004. But only 13.4% of California's 800 3,700 wineries in 2004. But only 13.4% of California's 800
wineries had distribution in all 50 states. wineries had distribution in all 50 states.
ite, Red, Rose ite, Red, Rose
60% increase in Red, from one media 60% increase in Red, from one media
event. event.
Pinot Noir saIes up % since movie "Sideways" Pinot Noir saIes up % since movie "Sideways"
U.S. is on track to overtake France and ItaIy as top wine U.S. is on track to overtake France and ItaIy as top wine
producing nation in the worId. producing nation in the worId. WSJ 2/05 WSJ 2/05
1960 1960
17% 17%
73% 73%
10% 10%
1970 1970
24% 24%
50% 50%
26% 26%
1980 1980
54% 54%
26% 26%
20% 20%
1990 1990
68% 68%
18% 18%
14% 14%
2000 2000
57% 57%
36% 36%
7% 7%
White White
Red Red
Rose Rose
ine ine
Merchandising and Events Merchandising and Events
Distribution Distribution
Liquor by the Law Liquor by the Law
Marketing of Beef, Veal, Pork, Lamb, Marketing of Beef, Veal, Pork, Lamb,
Cicken, Turke, Fis Cicken, Turke, Fis
n Pounds (LBS) US Per Capita Consumption
Retail Weight
Source: USDA
rom the National Cattlemen`s BeeI Association:
US Produced 25 oI world`s beeI supply.
US Agriculture recommends 5-6 ounces oI cooked meat a day.
BeeI is 6 oI total grocery store sales.
Beef
VeaI
Pork
Lamb &
Mutton
Chicken
Turkey
Fish

63.4
5
61.3
4.2
27.9
6.3
10.3

84.6
2.4
56
2.9
36.9
8.1
11.7

76.6
1.5
57.3
1.4
46.6
10.5
12.4

67.4
1.1
49.8
1.5
60.9
18.4
15

69.6
0.7
54.1
1.1
84.1
17.8
14.8
Marketing of Beef, Veal, Pork, Lamb, Marketing of Beef, Veal, Pork, Lamb,
Cicken, Turke, Fis Cicken, Turke, Fis
National Cattlemen's Beef Association National Cattlemen's Beef Association
Beef. t's what for Dinner. Beef. t's what for Dinner.
Pork. The Other White Meat. Pork. The Other White Meat.
Big Texan Steak Ranch in Amarillo. Big Texan Steak Ranch in Amarillo.
Ostrich on British Airways. Ostrich on British Airways.
The Turkey Store. The Turkey Restaurant. The Turkey Store. The Turkey Restaurant.
McDonald's McDonald's
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Slide 21