Product vs.

Brand
A product is something
that is made in a factory

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outdated.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 successful brand is
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 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.
2001 By Default!
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Slide 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: 430 999
Total: 910 1590 AutoWeek 11/2005
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Slide 6
What is a Brand? &
Brand Identification

A brand is much more than a nameits a
symbol, trademark, logo, term, sign, design or
combination, which distinguishes a product
from others.
Sets a companys products apart from
competition. Its 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 consistencyglobally too.
What is a Brand? &
Brand Identification

A brand is much more than a nameits a
symbol, trademark, logo, term, sign, design or
combination, which distinguishes a product
from others.
Sets a companys products apart from
competition. Its 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 consistencyglobally 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. Its not luck. Its 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
Sellers promise to deliver a specific set of
features.
Brand equity is the value a brand adds to the
product.

Turning or Translating
Brand Awareness Into
Brand Insistence.

AIDA=
Awareness Interest Desire Action
Brand Awareness or
Brand Insistence
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 7Ps
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: Nations 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 Californias 800
wineries had distribution in all 50 states.



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


1960
17%
73%
10%
1970
24%
50%
26%
1980
54%
26%
20%
1990
68%
18%
14%
2000
57%
36%
7%

White
Red
Rose
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
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.
Beef
Veal
Pork
Lamb &
Mutton
Chicken
Turkey
Fish
1960
63.4
5
61.3
4.2
27.9
6.3
10.3
1970
84.6
2.4
56
2.9
36.9
8.1
11.7
1980
76.6
1.5
57.3
1.4
46.6
10.5
12.4
1990
67.4
1.1
49.8
1.5
60.9
18.4
15
2000
69.6
0.7
54.1
1.1
84.1
17.8
14.8
Marketing of Beef, Veal, Pork, Lamb,
Chicken, Turkey, Fish
National 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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Slide 21