Product vs.

Brand

A product is something A brand is something that is

that is made in a factory bought by a customer.

A product can be copied A brand is unique.

by a competitor.

A product can be quickly A successful brand is

outdated. 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 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.
Slide 5 © 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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Slide 6 © 2001 By Default!

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.
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 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 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
 Seller’s 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.
AIDA=
Awareness 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 7P’s
 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: Nation’s 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
 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

1960 1970 1980 1990 2000

White 17% 24% 54% 68% 57%
Red 73% 50% 26% 18% 36%
Rose 10% 26% 20% 14% 7%
 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
 Wine

 Merchandising and Events

 Distribution
 Liquor by the Law
 Marketing of Beef, Veal, Pork, Lamb,
Chicken, Turkey, Fish
In Pounds (LBS) US Per Capita Consumption
Retail Weight
Source: USDA 1960 1970 1980 1990 2000
Beef 63.4 84.6 76.6 67.4 69.6
Veal 5 2.4 1.5 1.1 0.7
Pork 61.3 56 57.3 49.8 54.1
Lamb &
Mutton 4.2 2.9 1.4 1.5 1.1
Chicken 27.9 36.9 46.6 60.9 84.1
Turkey 6.3 8.1 10.5 18.4 17.8
Fish 10.3 11.7 12.4 15 14.8

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

 National Cattlemen’s Beef Association

 Beef. 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
Slide 21 © 2001 By Default!

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