Anglais Langues et Affaires

 Departments directly linked to production Creating, manufacturing, and selling. Less easy to externalize activity.
 Support departments: not directly involved in the supply of the product of the service to the customers but are
necessary, can be externalized

SUPPORT:
HUMAN RESOURCES :

 Recruitment and selection

 Training and development of the employees.
learning things, getting better and fulfilled. It’s the job of RH, to help workers be happy or happier in their jobs.
 Employee relations: conflicts
 Grievance (doléance) procedures and disciplinary matters (to be punish if you do something wrong).
 Health and safety matters: Establishing procedure or checking that safety procedure are put in place.
Conduct statistic to check if the number of people who are on sick leave is too high.
 Redundancy procedures: the company cannot afford you any longer for economic reasons

INFORMATION TECHNOLOGIES (IT)

 Programming
 Creating and maintaining the company’s website
 Technical support
 Administration

Ex: in a small company, this department could be externalised, else, internalized

LEGAL DEPARTMENT

 Particularly develop in international companies

 Providing legal advice and guidance
 Prosecution (poursuite) of cases in courts and litigation management
 Documentation preparation and drafting (elaboration)

ORGANISATION AND METHODS/ O&M

 Improving an organization’s efficiency and control
 A consultative service to management: because they have a fresh outlook
 Now often called: Business Analysis, Project Management, Process Improvement or Internal/Business
Consultancy

PRODUCTION
Research and development (R&D)
 In charge of developing new products and processes or improving existing products and processes
 Manufacturing and testing prototypes before they are launched
PURCHASING DEPARTMENT

 Acquiring goods or services for the business (raw materials, spare parts, equipment, paper, electricity…)
 The ‘Purchasing Mix’ = quantity, price, quality, delivery

PRODUCTION DEPARTMENT

 Production planning and scheduling

1
 Control and supervision of the workforce
 Managing product quality
 Maintenance of plant and equipment
 Control of inventory
 Deciding best production methods and factory layout

MARKETING AND SALES DEPARTMENT – can be separated

 Researching what customers want

 Analysing how the business can satisfy the customers’ needs
 Organising sales. Choosing how a product is going to be put into market
 Arranging sales promotions
 Producing sales literature
 Advertising

ACCOUNTING AND FINANCES

 Record keeping of transactions/ a ledger (livre comptable).

 Preparing invoices/ accounts receivable.
 Paying suppliers/ accounts payable, paying wages
 Preparing financial statements balance sheet; Documents that summarizes how much a company has earned
and debts. The final line will tell us whether the company is earning money or losing. cash flow statement;
Money going through the company in and out. income statement (le compte de résultat); how the net revenue
transforms into net earnings, tell you the profitability.
 Preparing management accounting information and analysis

LOGISTICS/ PACKAGING/ SHIPPING DEPARTMENT

 Handling
 Warehousing, storage before shipping
 Inventory and packaging
 Dispatch, transportation, delivery

CUSTOMER SERVICE DEPARTMENT

 Providing information to the customers

 Handling problems and complaints from customers, investigating and finding solutions

Steps to product creation

1. Coming up with new ideas

 Because the company is looking for new products

 Because the customers want new products
 Departments involved: marketing, O&M, R&D, customer service
 How: brainstorm, mkt research, intuitions, suggestion boxes
2. Evaluating the ideas

 Short-list a few ideas

 Pros and cons/ advantages and drawbacks
 Budget
 Investment
2
 Feasibility
Departments involved: All + management team
3. Market evaluation
 Focus groups: you summon people who present the group of people that might be interested in this product.
 Market research: Market research ask people about their opinion.
 Make an even shorter list
Departments involved: Marketing dept

4. Analysis
 Business analysis
 Target market/ profit margin
 Production analysis
 Departments involved: Marketing dept+ organisation and Methods + R&D

5. Prototype and marketing

 Prototype: several different prototype
 Blueprint design (detailed map of the product):
 Testing, adjusting, feedbacks
 Departments: marketing, O&M, R&D, customer service
6. Market testing
 Dress rehearsal:
 Last minute adjustments
 Evaluation of sales
 Departments involved: indus. Production, marketing, O&M
7. Launch
 First production round (often limited location)
 Planning for release on the market
 Marketing campaign
 Departments involved:All production-linked departments

Marketing 2
Definition:

Marketing is the organization of the sale of a product, price, area + advertisement

Marketing is the action or business of promoting and selling products or services, market research and advertising.

Marketing Mix
 Also called the FOUR Ps : product, price, place, promotion

Target market for the product

 Market segmentation by:

o Geography particular area, particular culture
o Purchasing power (Disposable income, also known as disposable personal income (DPI); Discretionary
income is the amount of an individual’s income that is left for spending (luxury)
o Demographics (age, race and gender, sexual orientation, income, household size
o Psychographics ‘(values, opinions, lifestyle, personality, music tastes, religious beliefs

3
Designing the product
 Production costs: raw materials, qt, time, kinds of workers, production and equipment (machinery)
o Kind of production:
 Labour-intensive = requires a relatively high level of labour compared to capital investment
 Capital-intensive = requires a relatively high level of capital investment compared to the labour
cost

Useful vocabulary

 Job production = manufacturing limited items at the time, needs of only one customers (wedding dress)
 Flow production = mass production = huge quantity of the same items. Efficient in money saving but not
interesting for workers.
 Batch production (la production par lot) = when similar items are produced together

 Necessity to apply for a patent = a government authority or licence conferring a right or title for a set period,
 Intellectual Property Office (IPO) (UK)
 United States Patent and Trademark Office (USPTO)
If you apply for a patent in a country, it will give you production only in this
Patent Cooperation Treaty (PCT): you will be protected in more than forty countries that have signed it.
 European Patent Office (EPO): same rule but only for European countries.

 Assignment (cession) = a transfer by a party of all or part of its right, title and interest in a patent or patent
application. Whole world or only a part of the world
 Licencing (authorisation) = a transfer of a bundle of rights which is less than the entire ownership interest

Safety of the customer:

A manufacture has Legal liability – 2 conditions:
The product is/was defective
The consumer has exercised due care consumer must have used the product in a reasonable way.

 Duties of companies:
Monitoring the manufacturing process, predicting failures and misuse while designing the product
Informing the customers through instructions for use
Product recalls

Naming the product

 The first step of branding (=marque)
Have to create an identity for your product. Choosing well the name of your products is very important.
Exemples:
 Acronyms and initials (Mms,)
 Amalgam: invent it with names (Nabisco)
 Alliteration and rhyme: (YouTube, coca-cola)
 Descriptive or evocative: (Nike, amazon)
 Founder’s name or nickname
 Ingredients (Pepsi)
 Humour: (Yahoo, crocajack,)
4
 Personification (character) (Mr Moofle (M propre, green giants)
 Onomatopoeia (Twitter)
 Clever names: (Love Bits)

Trademark = a word, phrase, symbol, and/or design that identifies, Ex: bottle of coca cola
Copyright= protect works, of authorship,

PACKAGING AND LABELLING THE PRODUCT

 Goals:
o Protect and contain (preserve) the product
o Transport, display, inform of ingredients.
For example, for an eco-friendly consumer, it is useless to make a huge package in plastic. On the other
hand, If you are targeting the luxury market, the packaging has to be wonderful, huge…

You can then focus on colors

Black Power/sophistication/mystery/death Grey Maturity/security/stability

White Hope/simplicity/purity Green Life/growth/freshness
Red Love/danger/energy Orange Innovation/ideas/creativity
Yellow Caution/friendliness/intellect Purple Royalty/dignity/wisdom
Blue Peace/sincerity/integrity

The packaging is also the place where you’re going to write the information about the product. Legally,
there are rules about what has to be written on the packaging. The price, the name, the barre code…will be written
down. They should be accurate.

Don’t mislead people into believing that something from what it is really in the reality. The serving sizes are
important.

Packages shapes and sizes can also influence us in a wrong way. For example, a chips packaging

Jumbo sizes or economy sizes can also influence us. When you buy a bigger quantity, you think that it will be
cheaper than to buy in a smaller quantity (2 bottles of 2L instead of 4 bottles of 0,5L).

1) Place
 methods of transporting and storing goods, then making them available for the customer = logistics

There are 4 types of marketing channels:

PLACE: Direct selling

= no intermediary between direct sector and customers
Very often used in Business to Business transactions (B2B).

● Peddling (vente porte à porte)

● Party plan (B2C): when a representative from a company ask one of their customers to organize a party in
their home and invites another friend that may be interested in the product. In the end, most of them end up buying
something. Ex: Tupperware, clothing
● One-in-one demonstrations: Makes sense to offer an exclusive service.
● Internet sales
● Multi-level marketing: a salesperson is paid for selling and the sales of those he sponsors
● Single-level marketing: salesperson is paid only for the sales he/she makes him/herself.

5
ADVANTAGES OF DIRECT DISTRIBUTION

- Better control, on everything (prices, promotions), because you don’t have to deal with retailers
- Comfortable for customer (at home, trust)
- Shorter, cheaper to operate
-
Drawbacks:
- Expensive to set up, capital investment
- Difficult to operate on a large scale, because you might need a lot of people to function this way

Selling through intermediaries = indirect selling; farmers selling apples, retailers (supermarkets) or direct selling.

Dual distribution (direct selling + retailers) = Some company that use both because less expensive
Ex: McDonalds, owns restaurant = direct distribution. In other cases, mcdo uses licenses, most mcdo restaurants do
not really belong to them but to private individuals and rent mcdo.

Reverse channels = flow goes from customer to intermediary to beneficiary = collecting damaged, outdated or
unsold goods and bringing them back to the supplier or manufacturer. Ex = recycling
reverse distribution = Is reverse because this time it goes from the customer to the producer (recycling), you collect
thing that have been used and you send or give them to the producer

ADVANTAGES AND DRAWBACKS OF INDIRECT DISTRIBUTION

●Trust other companies: you have to trust company to deliver, display the goods.
● Other companies are experts, in other fields, you might find help in intermediaries
● No start-up cost
● Easy to manage
● Less control on the distribution of your product

PLACE
 Manufacturer to customer = direct selling. Farmer to consumers, bakery to consumers
 Manufacturer to retailer to customer, indirect selling
 Manufacturer to wholesaler to customers; Wholesalers with memberships (COSTCO)…
 Manufacturer to wholesaler to retailer to customer:
Advantage for the retailer = don’t need to have everything in stock can just ask the wholesaler in case.
 Manufacturer to agent to wholesaler to retailer to customer: the agent helps
The agent will be in charge to organize the sales from one person to another. For short-life products (meat)

Retail types by products:

● Convenience good: widely distributed and relatively inexpensive goods which are purchased frequently
● Consumable goods: People already know that they need this product, so you have to convince them that they
need this particular one. For ex food product, hygiene products (shampoo).
● Fast Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG): i.e. pasta/ rice
● Shopping good: occasionally bought by consumers Ex: Apple products.
 Hard goods or durable goods = cars, TVs and household appliances
 Soft goods (– less than 3 years) = textiles and goods made from them
 Speciality good = designer clothes, exotic perfumes, limited-editions cars, stunning designs

Different types of retail companies:

- Brick and mortar = physical shop
- Click and mortar = mix shop and sale on the internet.
6
 - Pure players =company sale only in internet
PLACE: Brick and mortar
Department store = Big stores, Lafayette, Harrods, 3 possibilities:
Counter = space not specifically identified, ex: place they sell jewellery, tags, one staff wearing brand
Corners = separated by maybe walls, it is just a square, there is an identification corresponding to a brand.
Shops-in-shop = separated clearly from the rest of the shop, it often looks like a real store.

Discount store = low price, but the quality is not low it still is perfect. (action..)
Warehouse store= you will not find everything but can find anything. Ex: Costco.
Variety store = extremely low costs products, you find things that are not related to another (Primark, Dollar store)
Demographic (ex high-end retailers) = located in area that corresponds to this type of pop.
Mom-and-pop: grocery shop, find the basic you need, manage by a couple family.
Specialty (US)/ speciality (UK) shop (High Low pricing strategy) Footlocker, the body shop
Hypermarket (EDLP = everyday low price) = big box store = superstore. EDLP: contrary of High Low strategy
Supermarket = you have low prices and during the sales it is not very interesting as the prices are already low.
(Hypermarket, the strategy is to offer low prices all the time. They are the cheapest.)
Boutique = concept stores. L’occitane perfume store but they sell only one brand, run by the brand itself.
General store: small, find in rural area, in it you find everything you need to live on in your daily life
Convenience stores: find it in city centres. You find a very limited amount of merchandise in a price higher than the
average but it is practical because it is close to where you live and it’s almost always open
Mall = shopping mall, groups of independent shop (often specially shop) large retail complex

“Category killer” = specialist, Ex: Fnac, they kill competition when they settle in one town.
Temporary retail = Pop-Up Shop/ Pop-Up-Store
Vending machines

PLACE: Pure player

Mail order: you received a catalogue, order on the internet
E-tailer (drop-shipping) when the company only sells trough the internet
Online marketplace: it is basically a store online; you order directly from the manufacturer.

Advantage
- low cost for the company
- Don’t have any stock, don’t need premises
- Don’t have to invest any money, you can have a huge range of product
- You can just delete something from your website if it doesn’t sell well
Drawback
- Trust with drop shipper (about the quality…)
- If you buy one by one (and you need a huge quantity), it will be more expensive
- Customers are not very pleased when they discover that it’s a drop-shipping system
Don’t need a lot of money you buy the products when you need them

- Lines are blurred:

- Check-out free shops (Amazon Go): video. Nearly all brick and mortar supplier have introduced a
website when you can buy. Everything that exist has to be on the website of Amazon. Decided to
creating shop all the time, because to be present everywhere. The target are yuppies (= young urban
professional) and young adults.

7
 - Covid: Click-and-collect, brick and mortar shops have had to turn to click and collect store. Even
small shops have done it even though they were not keen on buying things on the internet but it was
their only way to survive.

Inertia selling = Photographer take picture of yourself when you are in you room and require you to pay if you want
them  you didn’t ask for anything.

PLACE: inventory
Inventory = the raw materials, work-in-process (WIP) goods and completely finished goods that are considered to be
the portion of a business’s assets that are ready or will be ready for sale

Sales and Operations Planning (S&OP): organize how the raw materials will transform into finish goods. Minimize
the time between the moment you buy them and when they bring in money
On-hand inventory= Important for the retailer to have enough product. You can lose a customer because you don’t
have a huge inventory. Important to define how many products you have.
In-transit inventory= finished products being transported
Replenishment orders, when a certain number of products have been sold (barcodes scanned) it automatically
sends an order to the manufacturer

Important notions:
Responsiveness = having a big inventory with multiple sizes and colors
Process flow time / material flow time: the time that is spend between the moment the material enters the supply
chain and when the product is finished.
Throughput (débit): how long it takes for a finish product to be sold
Just In Time (JIT) inventory is a management system in which materials or products are produced or acquired only as
demand requires. Drawback: to depend a lot of your suppliers.
Just In Case inventory (JIC) = an inventory strategy in which companies keep large inventories on hand. You have to
invest money into space to stock your materials, but you are less dependent

Place: Transportation
- Road transport: lorries, trucks, semi-trailer trucks, vans, pick-up trucks
o Advantage: Cheap, flexible (you can change the route for example), carry heavy and large quantities of goods.
o Drawbacks: Pollution, you depend on weather, places that are not very practical, it can break down.

- Railway transport: freight (cargaison) trains ≠ passenger trains

o Advantage: Cheap, carry heavy and large quantities of goods to long distances.
o Drawbacks: Not flexible; you have a route; a station & a depart time to respect.

- Water transportation: boats ferries, barges, container carriers, container ships, tankers (oiling gas)
o Advantage: suited to carry a bulky products/ heavy & takes a lot of space.
o Drawbacks: very slow, it might take one or two months. It is not always possible

- Air transportation: freight planes

o Advantage: Quick transport
 Drawbacks: Little quantities, very expensive, almost always for luxury products.

- Drones: transportations mean of the future (Amazon in rural areas UK), in most of countries is forbidden in
urban areas, still an issue with the legislation.
Bicycles: eco-friendly (supermarkets, food places)

8
Containerisation for water and train transportation.
Sold in bulk(vrac), crates(boîte), cardboard (carton) boxes, packs, blister (ampoule) packs, snacks, canvas (toile)
bags.
Storage and distribution pallets (palette) / a forklift (transpalette) truck (to carry pallets)
Storage room for raw materials / warehouse (entrepôt/ magasin) for finished goods

Marketing 4

PRICE
- What is a fair price for a product?
Considers production cost + reasonable profit margin = selling price.

- Cost-plus pricing = cost price + profit margin, strategy.

- Uniform delivery pricing= STANDARD PRICE
- Zone pricing: different prices in different zones, according the area and the costs that it implies (transport
fees).
- Price skimming: Apple for example with iPhones prices that become lower year after year.
- Penetration prices, to have very low prices at the beginning to attract customers, and then to increase them
- Price discrimination or price differentiation: the same product or service is sold by the same enterprise, but in
different prices to different people, depending on the area, (students, seniors, children)
- Group pricing = volume discounts (member of a group, family tickets, student group) = happy hours/ seasonal
discounts, sale more. Volume discount = If you buy more you will have a discount, Happy hours = Goal  maximise
time when they have customers, Seasonal discount = in hotels, plane  important to try to attract people when you
do not have a lot of customers because you are still functioning and want to maximise your resources.
- Incoterms: it is a trade term published by the ICOC, used when estimating the prices of the delivery. Very
important because they are internationally used, less confusion.

Different techniques:

Price versioning = menu pricing, offering a product line by creating slightly diff product with slightly different
prices even though they are very similar = Consumer surplus: pay for added feature

Psychological pricing= price ending = odd prices are often perceived lower than they actually are

Economy pricing: fixing a price that is very low.

Product which packaging is simple => not costly.
Bundle pricing: when you sell different product together it cost less than separately

Price Anchoring = price reference in people’s head for ex when buying something out of the ordinary (fridge)

Yield management: is a way of changing / adapting the prices to the demand in order to maximise the order
and minimise the lost: lowering prices in middle of the week for planes

Premium pricing: type iPhone. You target consumers that can afford the price.

Questionable techniques:

Price war: It is when a company decrease its pricing to destroy the offers
Horizontal price-fixing: when companies selling same product agree on the prices. The fixed is high generally.
Vertical price-fixing: fixes the selling price of the product. The retailers must respect a certain price for the
product or fix a minimum price
Price gouging: (illegal) the extreme yield management. You should immediately increase your price. difficult to
define the limits = Taking advantage to a certain circumstance to increase the price (a natural disaster).
Surge pricing: The demand increases so prices too. Sometimes it is criticized. Ex : Uber

9
 The Office of Fair Trading (OFT) in the UK: in charge of advertising
The Federal Trade Commission (FTC) in the US: in charge of checking that there is no price fixing, fair prices

Other vocabulary:

● Allowance (allocation) = a price reduction, especially one granted in exchange for used merchandise.
● Seasonal discount
● High-Low pricing strategy: the normal price is high if you want the product immediately but at some point,
during the year the price will be reduced and there will be sales.
● EDLP (everyday low price)

PROMOTION

Objectives: depending on the product and the evolution cycle of the product, the objectives will be different.
● Building awareness: People need to know your product exists, rebranding, changing the brand/image of the
company.  inform customers about the company or the product.
● Creating interest: try to advertise some of the features that are different
● Providing information: How to use it, the unique features, the benefit.
● Stimulating demand: when the consumers are aware of the existence of the product for a long time, it’s no
longer attractive, give a discount.
● Differentiating the product (benchmarking): try to compare your product to competing product, and what
are the advantages and drawback (price, distribution policies, promotion tools…).
● Reinforce the brand (brands witching, brand hopping, loyalty):
Brand hopping: = customer that switches form brand to brand often, have no care for the brand at all (cheap ones or
available). Promotion push customers forward loyalty. Customers is difficult to keep because they are not interesting
on a specific product. If a customer is loyal is most likely to talk to other people

PRODUCT LIFE CYCLE: 4 stages

● introduction: when you launch the product, you must inform the public, lose money from the start,
promotional discount, voucher, coupon often used to promote, influence people to buy it. QUESTION MARK
● Growth: you start making money because you sell more and more product, invest in customer loyalty, during
this face, the product will start making some profit margin, STAR
● Maturity: the market will not increase anymore, do not have to invest anymore so you make a lot of money.
CASH COW
● Decline phase: sales will decrease regularly, promotions are used to increase the life of the product and
delay the moment where you have to withdraw the product from the market, DOG

Pull strategy: use advertising to attract people to your product, so that the potential customers try to look at your
product (online, different shops). Convince potential customers before they go to the shop
Push strategy: you will push the production in front of people, they see it so they will be able to buy it.
- towards the retailer: sales man goes to the retailers to offer conditions to display the product.
- inside the shop: articles are displayed in strategic places inside the shop. (chewing-gum in front of the cash desk)

MAJOR TARGETS OF PROMOTIONAL CAMPAIGNS

● Actual audience: already customers of the product but also target potential customers
● Influencers (Social influence Marketing SIM), attractive to children because children are often influenced.
10
79%  influenced by content shared by family and friends.
92% trust online recommendation of friends and family
47% millennials declare that their purchased are done because of social media influencers. (mainly youtubers)
● Distribution channel members: product found on the first page on the internet, the position of the product
on shelves
● Other companies: sometimes 2 companies join to manufacture one product common for 2 different brands
…
● Below the line, promotional methods under the direct control of the marketer  more natural and direct
● Above the line: press, radio and TV advertising that earns a commission for the advertising agency
● Public Relation: Participating in events, distributing samples to improve the relationship to the general
public,
● Sales promotion (special offer): reduction, promotions like 2x1.
Loyalty schemes/cards
● Personal selling: rent a booth on a trade fair, trying to establish potential customers.

Internet marketing
● Sponsorship: company will give money to a person/ organisation in exchange will use the logo.
● SEO: organising your website in order to be rent on the first page at the top.

● Social Media Optimisation SMO: trying to increase the awareness of the brand, by using SM
● Affiliate marketing: idea of creating partnership with other companies, including your link in the websites
and vice versa. (shoes and bags)
● Search engine marketing: mix of sed and seo: pay to appear on the first page on Google
● AdSense advertising. Pop up related to your last search (flies, restaurants, hotels to Barcelona.)
● Pay Per Click (PPC): each time someone clicks on the link you are getting paid:
● E-newsletters had to be adopted to the customers, used to keep the relation between customers and
company going, brain loyalty

Different parts of an advertisement

- Headline or catchphrase
- Illustration/ photo/ picture
- Copy: text that is written, to have time to read the copy
- Slogan: the same for every product or brand  things that you remember, identity of the product
- ID of the company: brand name + logo
AIDA principle:
- Grab their Attention
- Build their Interest
- Create the Desire
- Persuade them to take Action

Guerrilla marketing = surprise and/or unconventional interactions in order to promote a product or service, relies on
personal interaction and has a smaller budget

PRODUCT:
Core product = dominant benefit or satisfaction that a customer expects from a good or service he or she buys.
Actual product which is the physical product that you can touch
Augmented product = differentiate from other products and increase the price of the product.
Example of strategies: Nespresso

- Product concept/name
- Core/actual/augmented product
- A portmanteau word
11
 - Nestlé + Espresso

The product concept/name is interesting because Nestlé, the Nespresso owner, and espresso. The
core/actual/augmented product is being able to drink coffee and in an easy way. That’s the principle.

The pricing strategy is a premium pricing strategy because it is expensive, think you pay less because good deal with
the capsules which are not quite expensive (machine is)

People feels like they are part of a community. They want to make you feel special.

Augmented product

- Breakdown assistance: if your machine breaks down you have a breakdown assistance
- Collection of used capsules (to be recycled)

Branding
Brand building: product, services and retail. When trying to rebuild the first thing is to define a brand. What do you
want people to think of when they hear the name of your brand? You have to think of the target? try to position the
brand

Brand identity(symbols): the image that a brand wants to convey, project in customers mind, imagery, logos,
slogans. A strong brand activity = brand recognized by people for its type of product

Brand image(positive/negative): image people have of the brand. Opinion people have on their mind of the brand.

Brand personality (emotions) might be created by the brand. People buy more than the product. You have a brand
identity that is going to push forward certain aspect of your brand. Ex: dove  simple and pure, good for health
products. The emotional quality = purity.

Most important choice: brand essence. The profile of the brand. Using symbols, emotions = essence. It should be
unique, change the logo but you will never change your brand essence.

Ex: when you buy an expensive perfume, they give you a bag with the name on it not because it’s practical but so
that you can travel with it and show everyone that you bought from them.
Logos can be recognized from a far distance, even by children who can’t read yet.

Product portfolio = product range= product mix, all the product that are sold

Product line: group of products sold by a same brand that work in a similar manner. Sold to the same customer
group and marketed in the same way. Ex: Nike, different lines of clothing, shoes.

Line filing vs line stretching=

filing: segments of the population not targeted. (Shampoo for curly hair, dry hair, normal hair…).
stretching: when you want to target different categories of the population, not according to their characteristics
but according to how much they are ready to pay.

Brand value/equity= it is the value people associate with the brand.

Value for money= The product you buy is worth the money you spend for it.
Umbrella branding = family branding, different product under the same brand, the idea is that any product having
the same name as the other share the same quality.

12
Co-branding (composite or ingredient) two brand joins to create a product. Advantage: share resources, each brand
participates, reduce costs, the risk is shared, bring supporters of the two brands. Disadvantages: if not successful
both are impacted, negative in customers mind if a brand that is known for its luxury associate with a cheaper brand.

Brand recall: this is what comes come to mind when asked about a particular brand.
Brand recognition: recognize products shown to you
Brand fatigue: After a while people might be bored of a special product or brand

PROBLEMS WITH 4Ps MODEL

One of its major flaws is that, the 4Ps forget about the customers, they aren’t at the core of the strategy.

SWOT ANALYSIS

Swot acronym
- Strengths: competitive edge that other don’t have
- Weakness (faiblesse): what are the problems, skill leader, benefit from the experience of your employees,
- Opportunities: is there a real opportunity in the market, weak or no competitor in a certain market
- Threats (menace): you have to adapt your product, no longer use specific things
8P:
People=workers
Productivity= quality of delivery
Physical evidence= visible traces of business
Process= customer’s experience

Maslow’s pyramid, the hierarchy of needs

There are some techniques used to tackle this pyramid as

 Storytelling= to convince people you base your arguments on daily life with real or fictional characters.

 Story making= the brand creates a story in which it helps customers to success.

 Brand journalism= an article written by the brand sent to a journalist, establishing a partnership with
him/her.

 Cultural branding= the idea of symbols

 Branded entertainment= a brand creating entertainment (videogames, movies, cartoons…).

13
  User generated content= the idea of asking the customers to share with the brand their own materials,
photos… (ex: #IloveTCL). The interest is that you’re going to trust more something produced by someone like
you and not only by a brand. It permits to have different point of views and it’s extremely cheap for the
company.

 Philanthropy; Cause/Value marketing= all the marketing actions that will push forward the fact that the
brand is responsible, pays attention to the environment, changes in society…

14