Product vs. Brand

1. Product vs. Brand A product is something that is made in a factory A brand is something that is bought by a customer. A brand is unique. A product can be copied by a competitor. A product can be quickly outdated. A successful brand is timeless.

2. 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.

3. 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?

4. 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.

5. 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: 430999 • Total: 910 1590 AutoWeek 11/2005

6. 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. 

7. 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. 

8. 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."

9. 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.

10. 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.

11. Brand Awareness or Brand Insistence Turning or Translating Brand Awareness Into Brand Insistence. AIDA= Awareness Interest Desire Action

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

13. 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

14. 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

15. 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

16. Marketing and Branding Wine 19802000 • 2500 Wholesalers/Distributors250 • 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.

17. White, Red, Rose • 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 White Red Rose 1960 17% 73% 10% 1970 24% 50% 26% 1980 54% 26% 20% 1990 68% 18% 14% 2000 57% 36% 7%

18. Wine • Merchandising and Events • Distribution • Liquor by the Law

19. Marketing of Beef, Veal, Pork, Lamb, Chicken, Turkey, Fish In Pounds (LBS) US Per Capita ConsumptionRetail WeightSource: USDA • 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.

20. 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