PRODUCTS & BRANDS
PRODUCTS vs BRANDS
• PRODUCT –anything capable of satisfying a
want and need
• BRAND – a product that is distinguished from
those of competitors by a name, sign, symbol,
design, etc.
HOW MANY WORD PARTNERSHIPS
CAN YOU MAKE?
__________
__________
__________
__________
__________
BRAND
__________
__________
__________
__________
__________
MANAGER PREFERENCE
LOYALTY
CLASSIC LUXURY IMAGE ESTABLISHED
SWITCHER STRETCHING AWARENESS
RECOGNITION
• BRAND AWARENESS
• The degree to which potential customers recognize and know
about the product
• BRAND LOYALTY
• When customers consistently buy the same product over time
WHAT IS BRANDING AND
WHY DO WE NEED BRANDS?
Complete the text with the following words:
MONEY NAME
DIFFERENTIATE
SYNERGY
QUALITY
COMPETITORS’ VALUE
A brand can be a ____________, a term or a symbol. It is
used to ____________ a product from ____________
products. The brands guarantee a certain ____________
level. Brands should add ____________ to products.
It’s a ____________ effect whereby one plus one equals
three. But customers must believe they get extra value
for____________.
• Read MK, p. 60
• Do comprehension questions &
vocabulary , p. 60-61
MARKETING
Aim of marketing is:
consumer develop needs
goals price
• To ____ products that will satisfy the _____of the
consumers
• ____ them right
• let the _____ know about the existence of the
product
• doing all of this to reach the ____ that the
organization set out for itself
Aim of marketing is:
To develop products that will satisfy the needs of
the consumers
Price them right
let the consumer know about the existence of
the product
doing all of this to reach the goals that the
organization set out for itself
• Can you give some examples of products you
use that you didn’t know you wanted until
someone produced them?
• (Google, Facebook, eBay)
Marketing is......
• Customers
needs
things
• Marketing means anticipating and creating
________: producing useful _________
__________ didn’t know they wanted until you
produced them.
Marketing is......
• Marketing means anticipating and creating needs:
producing useful things customers didn’t know
they wanted until you produced them.
Selling concept vs. Marketing concept
• Fill in the missing words:
wants buy persuaded
fill
sold
make
sell
• The “selling concept” assumes that resisting consumers
have to be ________ by energetic hard-selling
techniques to ______ non-essential goods or services.
Products are _____ rather than bought.
• The “marketing concept”, on the contrary, assumes
that the producer’s task is to find _____and _____
them. You don’t ______ what you make, you ______
what will be bought.
Selling concept vs. Marketing concept
• The “selling concept” assumes that resisting consumers
have to be persuaded by energetic hard-selling
techniques to buy non-essential goods or services.
Products are sold rather than bought.
• The “marketing concept”, on the contrary, assumes that
the producer’s task is to find wants and fill them. You
don’t sell what you make, you make what will be
bought.
TARGETING & POSITIONING
•
•
•
•
To whom?
Price?
Where?
How is it different from other products or
services?
1. Targeting
market segmentation
gender, age, income, lifestyle,
level of education, location, marital
status, culture
marketers will choose their target market
= segment of the market they want to aim for
= process called targeting
niche marketing
• companies concentrate their efforts on a small
segment of the market
E.g. groups of customers whose needs
are not being met at the moment
(Bio&Bio chain of healthy food)
What else marketers do?
• carry out/do/conduct market research or
customer research to identify needs of the
target market
• try to predict new trends and crazes in
advance
• create needs that do not exist yet
2. Positioning
Are you the newest? The best?
The cheapest?
The most convenient?
The best value?
The coolest?
The most prestigeous?
Do you offer the most features?
Decide on a positioning strategy
• Differentiation from competitors: how different
you are from other products
• Value proposition: what value do you offer?
• Product dimensions: what do you do?
• top-of-the-range, value for money, more or less
reliable than the competing brand, etc.
• how customers see the product compared with
the other brands on the market
Marketing mix
• basic product is developed - product is adjusted
to the needs of the target market
• the marketing mix (four Ps) is set
1. helps get the right product
2. at the right price
3. through the right distribution channels or place
to the right customers
4. This helps choose the right communication
channels or promotion
1. Product
a good quality product + product features must
be appealing to the target market
Components:
Packaging
the product’s life cycle
brand
PRODUCT LIFE CYCLE
INTRODUCTION
GROWTH
MATURITY
DECLINE
THE PURPOSE OF EACH STAGE
INTRODUCTION
• develop BRAND AWARENESS; market skimming or penetration
GROWTH
• develop BRAND PREFERENCE and attract brand-switchers
• promotion: emphasize your competitive differences
• maintain steady growth and increase market share
MATURITY
• the market becomes saturated and there is limited for further growth →
prevent the competition from penetrating the established market share;
defend your market share
• maintain BRAND LOYALTY and BRAND IMAGE
• extend the cash cow stage for as long as possible by using further
tactics
DECLINE
• the main decision: when to WITHDRAW from the market?
• the sales still contribute towards fixed costs, but further investment, such
as advertising, is not likely to pay back
2. Pricing
• decide on the pricing policy
• Adjust prices to the market
• constantly monitor and sometimes change
prices
Successful pricing policy = good value for money
PRICING
Set prices
Charge a price
Prices go down
Price sensitive
Prices increased
Psychological pricing
Odd prices
Price war
Lower prices
MK, p. 66
3. Place
• Distribution channel
the route the product travels from themanufacturer
to the consumer
MK p. 66
4. Promotion
the way a business communicates with its customers
(which communication channel is used)
Four main promotional tools:
1. sales promotions
2. personal selling
3. public relations and sponsorship
4. Advertising
For services three more Ps can be added:
• People - behaviour of a salesperson
• Process - method or system of offering a
service (how: sales, after-sales service)
• Physical evidence - where the service is
delivered from