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Unit 2

Brands
http://www.dwgoogle.cn/articles/655.html

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Teaching & Learning Objectives

To enable Ss to talk about brands

To familiarize Ss with vocabulary related to

brands

To develop Ss listening and reading skills

To improve Ss meeting techniques

To cultivate Ss problem-solving ability

To enhance Ss business writing techniques

by writing a memo

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OVERVIEW

Starting up: Favorite Brands

Vocabulary: Brand Management

Listening: What is branding?

Reading: Fashion Piracy

Discussion: Three Promotions

Skills: Taking part in Meetings

Case Study: Caferoma

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What is brand?

A brand is a product, service, or concept thatis publicly distinguished from other products,services, or concepts so that it can be easily

communicated and usually marketed. A brandname is the name of the distinctive product,service, or concept. Branding is the process ofcreating and disseminating the brand name.Branding can be applied to the entire corporateidentity as well as to individual product andservice names.

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Brands are usually protected from use by others bysecuring a trademarkorservice markfrom an authorizedagency, usually a government agency. Before applyingfor a trademark or service mark, you need to establish that

someone else hasnt already obtained one for your name.Although you can do the searching yourself, it is commonto hire a law firm that specializes in doing trademarksearches and managing the application process, which, inthe United States, takes about a year. Once youve

learned that no one else is using it, you can begin to useyour brand name as a trademark simply by stating it is atrademark. After you receive the trademark, you can usethe registered symbol after your trademark.

What is brand?

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Brands are often expressed in the form oflogos,

graphic representations of the brand. In computers, a

recent example ofwidespread brand application was

the I ntel I nside label provided to manufacturersthat use Intels microchips.

A companysbrands and the publics awareness of

them is often used as a factor in evaluating a

company. Corporations sometimes hire market

research firms to study public recognition of brand

names as well as attitudes toward the brands.

What is brand?
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Here is the famous advertising copywriter and

ad agency founderDavidOgilvys definition

of a brand:

The intangible sum of a productsattributes: its name, packaging,and price, its history, its

reputation, and the wayits advertised.

What is brand?
http://www.hiall.com.cn/hiall_2008_wiki/index.php?title=Image:Ogilvy_t.jpg

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David MacKenzie Ogilvy

(June 23, 1911

July 21, 1999), was a notableadvertising executive. He has often beencalled The Father of Advertising. In 1962,Timecalled him the most sought-after

wizard in todays advertising industry. Hewas known for a career of expanding thebounds of both creativity and morality.

David Ogilvy

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Quotation

The most distinctive skill of

professional marketers is their

ability to create, maintain,protectand enhancebrands.

P. Kotler, American marketing guru

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Philip Kotler

Philip Kotler (born 27 May 1931 in Chicago) is the S.G.

Johnson & Son Distinguished Professor of International

Marketing at the Kellogg School of Management at

Northwestern University. He received his masters degree atthe University of Chicago and his Ph D at Massachusetts

Institute of Technology, both in economics. He did

postdoctoral work in mathematics at Harvard University and in

behavioral science at the University of Chicago.
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He was selected in 2001 as the #4 majormanagement guru by the Financial Times(behind Jack Welch, Bill Gates, and PeterDrucker,) and has been hailed by theManagement Centre Europe as the worldsforemost expert on the strategic practice of

marketing. In 2008, the Wall Street Journallisted him as the 6th most influential person onbusiness thinking.

Philip Kotler
http://en.wikipedia.org/wiki/Image:Philip_Kotler_at_brandsmart_2007_in_Chicago.jpg

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Philip Kotler

Kotler has consulted many major U.S. and foreign

companies, including IBM, Michelin, Bank of

America, Merck, General Electric, Honeywell, and

Motorola - in the areas ofmarketing strategy,planning and organization, and international

marketing.

He presents seminars in major international citiesaround the world on the latest marketing

developments to companies and other organizations.
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Starting up

A. List some of your favorite brands and

answer the following questions:

Are they international or national brands?

What image and qualities does each one have?

Do the products have anything in common?

How loyal are you to the brands you havechosen?

If you dont buy branded goods, explain why.

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Starting up

B. What are the advantages of branded

goods fora) the manufacturer

b) the consumer

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Advantages for the manufacturer

Having a product which is instantly recognisable and

thus more likely to be bought

Being able to associate specific qualities with the

brand, e.g. value for money, safety, prestige

The possibility oflaunching related products under

the same (established) brand

Greatercustomer loyalty

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Advantages for the consumer

A reliable productyou know what youre

getting for your money

High prestige brands give you an opportunity

to enhance your standing

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Top 10 Global BrandsSource:Interbrand/Citibank 1999

1. Coca-Cola 2. Microsoft3. IBM 4. General Electric5. Ford 6. Disney7. Intel 8. McDonalds9. AT & T 10. Marlboro

Companies ranked according to:

Weight(market share) 35%

Breadth(cross section of society reached) 30%Depth(brand loyalty) 20%

Length(brand-stretching ability) 15%

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The influence or dominance

that a brand has over itscategory or market (morethan just market share)

Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND

WEIGHT

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The stretch or extensionthat the brand hasachieved in the past or islikely to achieve in thefuture (especially outsideits original category).

AssessingBRANDPOWER

POWERBRANDS

Interbrand

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The breadth of franchise

that the brand has achieved

both in terms of age spread,

consumer types andinternational appeal.

AssessingBRANDPOWER

POWERBRANDS

Interbrand

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AssessingBRANDPOWER

POWERBRANDS

Interbrand

BRAND

DEPTH

The degree of commitment that

the brand has achieved among itscustomer base and beyond. The

proximity, the intimacy and the

loyalty felt for the brand.

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AssessingBRANDPOWER

POWERBRANDS

Interbrand

BRAND DEPTH

BRAND WEIGHT

POWER

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Best Global Brands 2008
http://localhost/var/www/apps/conversion/tmp/scratch_2/Background%20Knowledge/BEST%20GLOBE%20BRANDS(2008).dochttp://www.interbrand.com/index.aspx?langid=1000http://localhost/var/www/apps/conversion/tmp/scratch_2/Background%20Knowledge/BEST%20GLOBE%20BRANDS(2008).doc

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Vocabulary:Brand Management

luxurybrand

classicbrand

brand awareness brand image brand stretching brand loyalty brand leader

brand manager

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A. Match the definitions to the word

partnerships with the word brand .

1. A brand associated with expensive, high quality

products

2. The person responsible for planning and managing

a branded product

3. The brand with the largest market share

4. A famous brand with a long history

luxurybrand

brandmanager

brandleaderclassic brand

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5. The ideas and beliefs which consumers have

about a brand

6. The tendency of a customer to continue

buying a particular product

7. Using a successful brand name to launch a

product in a new category

8. The knowledge which consumers have of a

brand

brand image

brandloyalty

brandstretching

brand awareness

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What is Branding?

Branding is the activity of givingbrand names to products, developingpeoples awareness of them etc.

Listen to an authentic interview with Lynne

Fielding, a marketing specialist, and do

the exercises.

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A. Listen to the first part of the interview and

complete the extract with the words below.

money name differentiate synergy quality competitors

What is branding and why do we need brands?

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 addvalue to products. Its a _________ effect whereby one plus one

equals three. But customers must believe they get extra value for

_________.

namedifferentiate competitors

qualitysynergy

money

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differentiate v .to recognize or express the

difference between things or people

differentiate between(and)

differentiate sth/sb from

synergyn. the extra energy, power, success,

etc that is achieved by two or more people orcompanies working together, instead of on their

own

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BRANDS

Stand-along or___________ brands

Corporate or________ brands

Ariel

----------------

----------------

----------------

Heinz

----------------

----------------

----------------

individual family

Haagen Daz

Direct Line Insurance

Malboro

VirginMarks and Spencer

Levis

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C. Listen to the last part and complete

the summary.

1. Customers want:

a) _____________ b) ____________

c) ____________________

2. Customers like to:

a) rely on the _____________ guaranteed by the companyb) __________ products.

c) __________ with brands.

newbrands choicedifferentproducts

qualitylevelstrustidentify

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Reading:Fashion Piracy

A. Pre-reading:

Before you read, discuss these questions.

1. Do you own a product which is an illegal

copy of a well known brand? If so, what is it?

Where did you buy it? How much does it

cost?

2. How can manufacturers protect their brands

from piracy (illegal copying)?

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B. Match the words and phrases with the definitions.

1. global offensive

2. counterfeiter

3. copyright abuse

4. a network

5. merchandise6. corporate

strategy

7. logo

8. licensing rights

9. rip off

10. restructure

a) plans of a company to achieve its objectives

b) agreements which allow a company to make and

sell a registered product locally

c) taking strong action all over the world

d) a person who copies goods in order to trick

people

e) copy someone elses work, e.g. their designs,without permission

f) a large amount of people or organisations working

together as a system

g) goods for sale

f) change the way something is organisedg) the symbol of a company or other organisation

h) sell illegal copies of a brand as if they are the real

thing

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1. global offensive c 2. counterfeiter d 3. copyright abuse e

4. a network f

5. merchandise g 6. corporate strategy a7. logo i

8. licensing rights b 9. rip off j 10. restructure h

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C. Read the article quickly to find out:

1. which Calvin Klein products are commonly

copied.

2. why the problem is getting worse.

3. how the company is dealing with it.

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1. Which Calvin Klein products are

commonly copied

T-shirts, jeans and baseball caps.

http://www.haibao.cn/brand/1283/

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2. Why is the problem getting worseBecause Calvin Klein has become a

more well-known brand, and is

therefore more profitable to copy.


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3. How is the company dealing with it

By establishing a network of

employees and external specialists.

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D. Read the article and answer thequestions.

1. What was Calvin Kleins attitude to

counterfeiting in the past?2. Why has the company changed its way of

dealing with counterfeiters?

3. What has the company done to change theway its business operates and to increase itssize?

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1. What was Calvin Kleins attitude to

counterfeiting in the past?

It took a passive approach.

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2. Why has the company changed its

way of dealing with counterfeiters?

Because of the increase in

counterfeiting and because it

reduces the companys sales anddamages its brand image.

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3. What has the company done to change theway its business operates and to increaseits size?

It has expanded its business outsideNorth America, increased spending onadvertising and signed licensing deals

with partners for whole regions ratherthan individual countries, the previouspractice.

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Language review:Past simple and present perfect

A. Memo completion.

1. launched 2. increased

3. have fallen 4. have copied5. has become 6. organised

7. have found 8. have seized

9. contacted 10. informed11. have had 12. have lost

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Case 1 Macdonalds

Why do you think this promotion was

unpopular with Macdonalds customers?

How do you think Macdonalds dealt with the

situation?

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Case 1 Macdonalds

The promotion was unpopular because it gave amisleading impression of the price. When the price ofthe french fries and drink at the full price were

taken into account, the discount on the whole mealamounted to only about 5%.

McDonalds withdrew the promotion and cancelled thecampaign. It also announced a major reorganisation inits management structure, scrapping the 40-year-oldtradition of centralised management in Illinois, USA,and appointing local managers instead.

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Case 2 Pepsi

What prize do you think John Leonard is

claiming from Pepsi Cola?

What did he do to claim the prize?

What do you think Pepsi Cola have describedhis claim as frivolous?

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Case 2 Pepsi

John Leonard claimed a Harrier Jump Jet bybuying 7,000,000 Pepsi Stuff Points at l0each: a cost of $700,000 or about 400,000for a machine that normally costs several

million dollars. Pepsi described his claim as frivolous

because the advertisement was meant as ajoke. However, when they later screened the

advertisement on national TV in the USA, thenumber of points needed to claim the HarrierJet was increased from 7 million to 700million.

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Case 3 Irish Tourist Board

Why do you think the Irish people disliked the

logo so much?

Was the minister right to get rid of the logo?

Which logo do you prefer?

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Case 3 Irish Tourist Board

Many people felt there was no need toget rid of the shamrock, which has beenthe symbol of Irish tourism for the

past 30 years. They also found itdifficult to work out what the newsymbol was and interpreted it inhundreds of ways, for example: two

sumo wrestlers preparing to fight; twocrabs meeting; two monsters; a vikingship.

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Skills:Taking part in Meetings

Build up a profile of a company, hold a

meeting to speculate about what may be

causing it to lose sales and brainstorm

possible solutions (to improve its sales and

its brand awareness amongst its target

consumers).

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BackgroundBrand Caferoma

Owned by Pan European Food and Drink (PEFD)

Imageexclusive, Italian style, coffee for

gourmets

Pricing high

Product

characteristics

strong full-bodied flavour, slight bitter

taste

C S

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ProblemsCaferomas share of the European quality ground coffeemarket has declined by almost 25%, reasons are:

Brand loyalty: consumers becoming less loyal to brands and

prefer low-priced coffee products Price: supermarkets selling similar products under their own

label at much lower prices

Copycat products: at prices 30% to 40% lower than

Caferomas price; having cut into Caferomas market share Brand image: no longer conveying feeling of excitement

and enthusiasm, not giving the impression of up-to-date andcontemporary

C St d

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Possible Solutions Repositioning the product

Pricing

Advertising

Multiple brands

Own label products

A new product

Stretching the brand

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A i t

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Assignment

Writing

Write a memo for the attention of Caferomas

Managing Director, summarising what actionyou agreed to take at the meeting to solve

Caferomas problems and explaining your

reasons.

unit 2.pptl

Documents