Unit 1 Brands

UNIT 1-BRANDS_CLASS PRACTICE_MATERIAL

Author: S.R.D. / BE2_summer semester 1

WHAT_IS _A_BRAND?

“What’s in a name? That which we call a rose by any other name would smell as

sweet.”

(William Shakespeare)

In the business context, the answer on the same question is quite different. According

to Hans G. Gueldenberg, CEO of Nestlé Deutschland “names are road signs that help

people find orientation in the jungle of supply.”

In today’s world, ‘name sells’. For instance, a car is a car and the its purpose is

commuting from point A to B. Nevertheless, when a car is a Mercedes or a BMW, the

perception changes. It’s not viewed just as a mode of transport but it’s attached to

one’s status or prestige. And that’s exactly what a brand does. It not only gives

recognition to the company but helps customers create an identity for themselves.

As said by Jeff Bezos, CEO of Amazon.com, “A brand for a company is like a

reputation for a person. You earn reputation by trying to do hard things well.”

According to American Marketing Association (AMA), brand is a “name, term,

sign, symbol, or design, or a combination of them, intended to identify the goods

and services of one seller or group of sellers and to differentiate them from those

of competition”. For a customer, a brand is all the emotions and ideas associated

with a product or service that creates a distinct customer experience. It includes

all things real or perceived, rational or emotional, physical or sensory, thought or

felt, whether in form or function, planned or unplanned. The power of the brand

depends on how well a product can invite the customers and how long can it reside

in their minds.

Other ways to define a Brand

1st definition

A brand is a name, term, symbol, design, or combination of these elements that is

intended to identify the goods or services of a seller and differentiate them from their

competitors.

2nd definition

A brand is the intangible sum of a productʹs attributes: its name, packaging, and

price, its history, its reputation, and the way itʹs advertised.

3rd definition

“Branding is a practice…that has always existed above and beyond all other

business strategies. It is an organizing principle so broad yet so defining that it can



shape and direct just about everything a company does, and, most important, how it

does it.” Scott Bedbury, A New Brand World

4th definition

Brands are sponges for content, for images, for fleeting feelings. They become

psychological concepts held in the minds of the public, where they may stay forever.

As such you can’t entirely control a brand. At best you can only guide and influence

it.

Branding is a powerful message that speaks to who we are, what we want and who

we want to be.

Brands humanize the product or service and give it a personality all its own.

THE_NEED_FOR_BRANDING OR WHAT_MAKES_BRANDS_SUCCESSFUL

Earlier, branding included logos and advertisements. But nowadays, brand is much

more than a name or a logo. A brand is no longer just about image projection. It is

about the company as a whole. Branding distinguishes a company, product or

service from the rest and creates a lasting impression on the consumers.

To be able to deliver the expected quality, successful brands put a strong emphasis

on the following:

• Reputation = a brand always reflects a certain image in public

• Customer Service = relation to customers after they purchase a brand

• Promise to customers = whether a brand will meet customers’ expectations

• Price of the product = one of the major factors in customers’ purchasing decision

• Attitude = of the product; what kind of image it sells

• Logo = graphic representation or symbol of the brand’s image and message

• Product line = how a product is improved in time

A brand is not just a logo, ad campaign, spokesperson or slogan. Rather a brand is a

product of the millions of experiences a company creates with employees, vendors,

reporters, communities, and customers—and the emotional feelings these groups

develop as a result of their experiences.

In order to maintain their brands successful, companies need to:

Use web‐based social networking to exchange information (social media sites –

Twitter, Facebook, LinkedIn…) since marketing on those sites is on the constant

increase as is social networking online. Studies have shown that people connected on



those sites spend more money online than an average buyer. In today’s uncertain

economic conditions, business owners are finding it necessary to become even more

creative in order to successfully brand their products and services. Money is tighter

in many households due to job loss and/or reduced wages. As a result, consumer

expectations are rising as they seek newer and more advanced tools to meet their

desire for the latest and best, despite financial limitations.

Enable fast consumer feedback. Today, information travels faster than a few

decades ago and companies need to adjust their marketing strategy to the new

tendencies in communication. That means advertising in the media used by the

younger generations and adjusting their customer service operations to fit the latest

technological development (open forums and chat lines, invite consumers to send

text messages, etc.).

Anticipate customers’ needs. A basic business principle has always been that the

most successful businesses are those that know how to anticipate their customers’

needs, and then fill them. In some ways, narrowing rather than expanding one’s

brand has become the target of today’s marketplace due to conservative spending

and meeting the wants and needs of customers who are able to pay.

Narrow the brand instead of expanding it (in times of recession consumers spend

conservatively and focus their attention on meeting the basic day‐to‐day needs so

they look for products that will meet those needs).

Create web site with precise product information.

Brand should be truly reflected in the logo and the tagline (=a slogan or phrase

that captures the essence of a brand’s promise to consumers).

Use a variety of advertising methods – newsletters, tote bags(given away at

events, promotions and openings), personal phone calls, direct marketing (leaflets

in the post)

Organise seminars and webinars

Upload personal details and contact information on the web page to speed up

information flow.



Inspire customer interaction – post surveys, open forums, invite customers to

blog.

Offer customer testimonials – personal statements make product or service

Provide excellent customer service

WHAT_IS_BRAND_MANAGEMENT?

Brand management is the process of creating and sustaining brand equity. Brand

management includes–developing a strategy that successfully sustains or improves

brand awareness, strengthens brand associations, emphasises on brand quality

and utilisation. It represents a sophisticated business process to maintain the

unique mix of physical attributes and intangible values that distinguishes one brand

identity from the other.

Therefore, brand building and brand management have become critical issues for

firms competing within industries. Over the last decades, brand evolved from a

simple product attribute to that of a value creator for the entire firm. A brand can

be anything – a person, product, country, company, etc.

Brand management is not just about building brands, but also managing and

establishing them. Marketers should consider maintaining healthy and vital brands

and firms need to pay attention to brand building. They should not neglect

important issues related to brand leveraging, identification, and protection.

Successful brand is an important strategic marketing tool for a firm. Effective

brand management includes constant endeavour of a firm to choose the ways for

realising the brand potential and enhance its value. As a result, it can create

sustained competitive advantage and a successful strategic positioning through

continued investment in quality, communication and customer relationships. The

basic message to management is that brand is an instrument,

not only a goal and, if it used efficiently, it causes creation of

valued intangible assets – customer capital.

TYPES_OF_BRANDS

There are six types of brands – Product, Service, Organisation, Person,

Event and Geography.

1. Product Brands – The brand that is associated with a tangible product, such as

a car or a drink. This can be very specific or may indicate a range of products. It is

further divided into individual product (Ex: Coca‐Cola) and product range (Ex:

varieties of Colgate toothpaste).



2. Service Brands – The brands that deliver complete solutions and intangible

services besides manufacturing products. Service brands are about what is done,

when it is done, who does it, etc. It is much different than product brands, where

variation can be eliminated on the production line. Even in companies such as

McDonald’s where service has been standardised down to eye contact and smile,

variation still occurs.

3. Organisation Brands – Organisations are brands, whether it is a company that

delivers products and services or some other group. Thus, Greenpeace, Mercedes

and the US Senate are all defined organisations and each have qualities associated

with them that together constitute the brand.

4. Person as brand – Person brand is focused on one or a few individuals and is

associated with personality.

• Individual – A pure individual brand is based on one person, such as a

celebrity actor or a singer. The brand can be a person with a carefully

crafted projection (eg. politicians)

• Group –In particular, when this is a small group and the individuals are

known, the group brand and the individual brand overlap. For example,

the brand of a pop group and the brand of its known members are strongly

connected (eg. The Beatles).

5. Event – Events have brands too, whether they are rock concerts or the Olympics.

Event brands are strongly connected with the experience of the audience, for

example, musical pleasure.

6. Geography – Areas of the world also have essential qualities that are seen as

characterisations, and hence also have brand. These areas can range from countries

to states to cities to streets and buildings. Those who govern or represent these

geographies, develop the brand (e.g. Japan, US).

TRANSFORMATION_OF_A_BRAND_TO_AN_EXTRAORDINARY_BRAND

Most of the companies manage to build brands. But, the question is – What is the

secret of the long life of such brands? There are companies that have established

brands which are loved by the customers and have been for decades. Such brands

become icons.

Iconic Brands

Iconic brands are part of our culture. They are easily recognised

by their logo. These brands spend a lot of money on marketing to keep their image



perfect. These iconic brands are top of mind brands and often win a bigger market

share. For example, McDonald’s, Microsoft, Dell, Coke, Pepsi, and American

Airlines have a significant place not just in the market, but also in the consumer’s

minds. But, there are few phenomenally extraordinary brands that build an

everlasting relationship with the customers. They ideally are called cult brands.

Cult Brands

Cult brands understand that their brand belongs to the customer.

Only the customer’s voice counts. A successful cult brand embraces its customers

by anticipating their basic human and spiritual needs. As a consequence, cult

brands achieve a level of customer loyalty unprecedented in traditional business.

These brands have no substitutes. Examples are: Oprah, Linux, Southwest

Airlines, IKEA, Harley Davidson, Apple, Star Trek, Volkswagen

Beetle, Cuban Cigars. They are profitable even in unfavourable market conditions

because of the powerful relationships they have with their customers.

CORPORATE_BRANDING

Corporate branding refers to a company applying its name to a product. The

product and the company name become the brand name. The company can advertise

several of its products under a single brand name in a practice referred to as family

branding or umbrella branding.

By using corporate branding with a successfully marketed product, a company can

familiarize consumers with its products and may create brand loyalty. If the public

likes one product from this company, then they may seek out the brand name when

buying other products. Corporate branding is usually only successful if the company

is well known and sells reputable products with a positive image. One of the

disadvantages of corporate branding is that the company can become identified with

only one type of product.

To consumers, corporate branding represents a level of quality that they have come

to expect from the company. They will expect every product with the same brand

name to have the same level of quality that they are familiar with. The company can

increase sales by comparing one of their more popular products with a similar

product by another company, showing sales figures to back up their promise. The

value of the brand is determined by the profits the products have made. If profits are

high, then the manufacturer is able to charge more for their product.

When applying corporate branding to a product or products, companies need to

follow a few guidelines. A corporate brand should be easy to recognize and attract

attention. It should also be legally protectable and suggest the company or product

image.



Ideally, the brand should be easy to pronounce and easy to remember. A premiere

brand product typically costs more to purchase than an economy brand. Consumers

are paying for the name and the quality of product that name guarantees.

There are a few extensions to corporate branding. One brand name may be used for a

number of products in family branding, or all the products may be given different

brand names in a practice called individual branding.

When large retailers buy goods in bulk and then put their own brand name on them,

this is called store branding, label branding, or private branding.

Co‐branding is when two or more manufactures combine to sell their products.

When a company sells the right to use their brand name to another company for use

in another location or for non‐competitive purposes, this is called brand licensing.

Corporate branding has the ability to make a product very successful. If the brand

name has a track record of a guarantee of quality, then there are huge amounts of

money to be made by using the name. However, just one shoddy product under the

brand name may cause bad word of mouth, affecting sales of all the other products

under the same name and causing irreversible damage to the company.

On the other hand, if a company launches a successful brand, which in time achieves

high sales numbers and proves its high brand value, then consumers tend to show

loyalty to other similar products made by the same manufacturer.

**ATTENTION**NEW VOCABULARY**

o Track record: a record of achievements or performance;

an executive with a good track record.

o Premiere brand: the most valuable and the most expensive brand of all other

similar brands in the category.

o Economy brand: cheaper version of a brand by the same company or cheaper

brand by other producer.

o Shoddy: cheap, poorly built, made of bad materials;

*shoddily ‐ In a shoddy manner, lacking quality and done poorly, usually in a

cheap and low quality way.

o Irreversible /ɪr.ɪvɜ.sɪ.bl ̩/:not possible to change; impossible to return to a previous

condition

Smoking has caused irreversible damage to his lungs.

o Word of mouth / by word of mouth: in speech but not in writing.

All the orders were given by word of mouth so that no written evidence could be discovered

later.

o Brand value: the amount that a brand is worth in terms of income, potential

income, reputation, prestige, and market value. Brands with a high value are



regarded as considerable assets to a company, so that when a company is sold a

brand with a high value may be worth more than any other consideration.

STORE_BRANDS

Certain brands of products that are only available at a particular store, usually a

chain store, are called store brands. Store brand products are often available for a

discounted price, and are popular with those trying to keep their spending to a

minimum. In some stores, they can even make up 40 to 50 percent of the total sales,

and may be 15 to 50 percent cheaper than the national name brand products.

Store brands are usually similar in quality to the name brand products, although

some food products may be of a slightly lesser quality. Paper and personal products

usually perform just as well, if not better, than name brand items. The packaging for

store brand items is usually very close in resemblance to name brand merchandise,

with the same colours often used for both products. Stores will often put their store

brand on the shelves right next to the comparable name brand product, encouraging

shoppers to quickly and easily compare the prices and ingredients of the two items.

The manufacturers of name brand products are very often the manufacturers of

similar store brand products. This does not necessarily mean that the recipes used for

the two products are the same. In other cases, the products may be made

individually by a manufacturing plant owned by the store chain itself. By comparing

the ingredient lists from the products of national and store brands, consumers can

decide how similar the two products really are, and if the difference in price is worth

the possible difference in quality.

Store brands allow stores to sell products for a better value than many of the name

brand items. There are several reasons for this, but the main one is that store brand

products do not need the advertising that national brands do. The stores do not

create special marketing campaigns for these products. They are often included in

fliers and specials, but very little extra money is spent on advertisements. This saves

the company, and consumers, a lot of money.

Consumers have very different opinions on store brands. Some are very loyal to

certain name brand products, and refuse to try cheaper alternatives. To others, the

money saved is more than worth any reduced quality. Many people, however, fall

somewhere in the middle. There are some products that they feel are worth the

money for getting name brand quality, such as cereal or paper towels, but are more

than willing to use the cheaper alternatives for other items, such as condiments,

desserts, and dairy products. The quality of many store brand products has

improved greatly over the past decade, making it easier for consumers to get the

quality they expect for a more reasonable price.



READING: OUTSOURCING PRODUCTION, p.8 (Course book)

What is outsourcing?

Business process outsourcing is what happens when one company decides to hire

another company to handle certain business activities.

When business process outsourcing first began, it was restricted to the payroll

process. Today, many businesses still outsource their payroll processes; however,

there are many other processes that are being outsourced.

Business process outsourcing is an intricate process for companies. When companies

decide they want to use outsourcing, they must select a vendor and create contracts.

Companies then transition that part of their business smoothly to the new company.

Some of the main business processes of companies that are being outsourced include

human resources functions, financial processes, administration processes, call centre

and customer service activities. When a company decides to use business process

outsourcing, they normally create a contract with another company that establishes

the length of time for which the business process will be outsourced. Larger

corporations establish outsourcing contracts that last for multiple years and can cost

millions of dollars.

Most business process outsourcing involves hiring a company in another country to

handle the work. This is also called offshore outsourcing because a segment of the

business is eliminated in the home country for financial reasons. Offshore

outsourcing has grown in controversy because of the economic and political

implications involved in this practice.

Corporations that choose business process outsourcing to move jobs overseas often

look into transferring their business processes to countries that have substantially

lower currencies. Most of the corporations that are using business process

outsourcing are located in Europe, Asia, and the United States.

Some of the most popular countries that profit substantially from business process

outsourcing are China, India, and the Philippines. These countries are especially

popular for outsourcing and are able to make substantial financial gains and

improve their economy and overall quality of life.

Business process outsourcing is becoming a primary method in which companies can

communicate with other nations for their benefit. Unfortunately, outsourcing often

has a negative effect on the home countryʹs economy.

The main outsourcing purpose is cutting production cost by transferring jobs to

lower paid foreign workers. The growing unemployment rate worldwide is related

to this outsourcing trend.

The negative effects of outsourcing are obvious. As western workers lose their jobs to

cheaper overseas labour, their spending must reduce to minimum level of surviving.

This, in turn, will reduce sales and services in domestic national, thereby affect other

people incomes.



When many people losing their jobs as a result of outsourcing, there are fewer

payroll tax receipts and fewer contributions to Social Security and Medicare.

Government revenues mainly depend on income and sales tax. Reduction in these

areas adds to more payments going for unemployment benefits which will result in

increasing government spending.

Article “Made in Europe”: find terms that match these meanings:

1. A trade name of a company that produces a brand of clothing.

2. Raise, move upwards

3. The difference between the sales and the production costs including the

overheads.

4. Countries with lower currency value and cheap labour.

5. Facilities that belong to the company that produces certain goods.

6. A business deal or document giving permission to somebody to produce

something under their name.

7. To make new again, to reestablish.

8. The value of goods when they reach the store.

9. Of a high social class, preferring extremely high standards.

10. The best or the most important store idea, building, product, etc. that an

organization owns or produces.

1. 11. (when talking about companies and banks) based in a different country

with different tax rules that cost them less money.

11. Very near. 12. Place where the production takes place.

13. Public representation or perception of a product.

KEY: 1. Fashion label; 2.To lift; 3. Gross margin; 4. Low‐cost markets; 5. Company‐

owned plant; 6. Licensing arrangement; 7. Renew; 8. Retail value; 9. Snob; 10.

Flagship store; 11. Offshore; 12. Round the corner; 13. Manufacturing location;

14. Brand image.

“Made in Europe”: Are these statements true or false? Explain.

All the top super luxury brands are outsourcing their production.

Coach has been shifting their production to low‐cost markets for some years.

Burberry decided not to outsource their production to Asia but to keep it all in

England.

Sanyo opened a flagship store in Ginza to satisfy its snob customers who demand

Burberry products ‘made in Europe’.

The Japanese believe that quality products are exclusively made in Japan.

The CEO of Prada believes that their goods have to be ‘made in Italy’ to maintain

high quality standards and to express Italian style.



CASE_STUDY: CAFEROMA

BACKGROUND FACTS

o Caferoma is a well‐known coffee brand made by a company called PEFD, based in Torino, Italy

o Brand image: Italian‐style coffee, exclusive product for people who love ground coffee, has strong taste, costs more than every other brand of ground coffee in

the market.

PROBLEMS THAT THE BRAND IS FACING IN THE LAST COUPLE OF YEARS

o Market share has declined () by almost 30% o Consumers have become less loyal to brands and more price conscious (they are rather buying economy brands than premiere brands)

o Supermarkets are selling own‐label brands at much lower prices o There are lot of ‘copycat’ products – cheaper Italian‐style brands that have established themselves as a strong competition to high‐end brands like

Caferoma.

o Caferoma’s brand image seems to be outdated, no longer exciting and new.

DESCRIBING CAFEROMA’S PROBLEMS BY USING THE DATA IN GRAPHS

1. Caferoma’s market share has declined substantially in the last year.

2. In comparison with Caferoma, top five European coffee brands have increased

their market share significantly.

3. Other coffee brands on the market have been holding their market position

strongly, showing no significant increase in market share.

4. Supermarket own‐label brands are also maintaining their market share stable

showing no changes in the last year.

5. When compared to the situation two years ago, it is evident that Caferoma

reduced its sales in the last year.

6. The strongest decrease in sales is evident in the percentages of sales in

supermarkets where sales of Caferoma fell by almost 20 percent.

7. Sales in hotels also show a slight decrease by less than 10 percent, although

the situation is not as serious as in supermarkets.

8. Although the sales in restaurants and specialist shops had been low even two

years ago, in the last year they showed a slight increase in sales, particularly

specialist shops which report a moderate increase of slightly over 10 percent in

the last year.



POSSIBLE SOLUTIONS

o Repositioning the product – changing the brand image to appeal to different market segments.

o Reduce the price – to reach the medium price range. o Create new advertising campaign – relaunch the brand. o Sell Caferoma under different brand names at lower prices o Allow supermarkets to sell Caferoma under their own brand labels o Create a new product under the Caferoma brand – introduce instant coffee or decaffeinated coffee under the Caferoma brand name.

o Allow makers of coffee equipment to use Caferoma brand on their goods for a licensing fee – goods like cafetieres, percolators, coffee machines, cups, coffee

mugs, sugar bags, etc.

LISTENING 1.6: Listen to the conversation between Caferoma’s Marketing

Manager and the Sales Director and fill in the gaps in the text below:

MM: Marketing Manager

SD: Sales Director

MM: Pietro, can I ……………………… with you? I’ve just been talking to Gina

Delassi, Majestic’s new Purchasing Manager. They are going to

……………………………….. with us. They won’t change their mind.

SD: That’s fifty percent of our business: we can’t …………………………………

What reason did they give for ………………………….. ?

MM: Café Velvet has just ……………………………………………. and Majestic’s

Head Chef is ……………………………… it. They are ………………..Café Velvet in

all their hotels.

SD: Are you talking to other…………………………….. ? Any idea on who we can

get to ……………………..our product? We need to …………………………………..

about our new campaign.

MM: Our department has already …………………………. a shortlist of possible

……………………………………..and we have …………………………………….. to

target supermarkets. We aim to put these plans………………………………… next

week.

SD: Don’ t forget to ……………………..other hotel chains.

KEY: have a word / cancel their contract / afford to lose them / cancelling / launched

a new advertising campaign / endorsing / introducing / hotel chains / endorse / talk

to the supermarkets / brainstormed / celebrity names / drawn up an action plan /

before the board / survey.



CASE STUDY: Caferoma - VOCABULARY Copycat adjective [only before noun] that copies sb else’s successful idea, design, etc: strong sales of established and copycat drugs Reposition verb (Marketing) to present a product in a new way so that it will attract more or different customers The parent company intends to reposition the brand as sportswear, rather than fashion. repositioning noun Percolator an appliance in which coffee is percolated (made in a container in which hot water passes through coffee) Sales outlet = retail store A place of business for retailing goods to consumers. Focus group A form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service, concept, advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members. Value for money An economic assessment by the public sector as to whether a project/product represents value for money; the optimum combination of cost and quality to provide the required service. Compete (verb) /kəmpit/ = equal; rival; match; to try to be more successful than someone or something else It's difficult for a small supermarket to compete against/with the big supermarkets. Both girls compete for their father's attention. Competitive, Competitory involving competition or competitiveness; “competitive games"; "to improve one's competitive position'' Decline (verb) /dɪklaɪn/ = go down; slump; worsen; To gradually become less, worse, or lower His interest in the project declined after his wife died. The party's popularity has declined in the opinion polls. Ground (coffee) Coffee made into small bits, very much like powder.

Conscious (adjective) /kɒn.t ʃəs/ = noticing, being aware of somehing; to notice that a particular thing or person exists or is present I think she's very conscious of being the only person in the office who didn't have a university education.



He gradually became conscious (of the fact) that everyone else was wearing a suit. Price-conscious (adjective) knowing how much things cost and avoiding buying expensive things price-conscious shoppers Label a piece of paper or other material which gives you information about the object it is fixed to Remember to put some address labels on the suitcases. Washing instructions should be on the label.

Label (noun) = company a company which produces goods for sale, the goods themselves, or the company's name or symbol Her favourite designer label (= maker of expensive clothes) is Armani. Their own-label vegetarian products have been a huge success. The group have just signed (= arranged to record) with a new record label. Listening 1.6 Endorse (AmE spelling also indorse) (Marketing) to say in an advertisement that you use and like a particular product or service so that other people will want to buy or use it: We decided to use a celebrity to endorse our restaurant. ; products endorsed by loyal customers Draw sth up to make or write sth that needs careful thought or planning: to draw up a plan/list/contract

VOCABULARY PRACTICE

1. Use the words below to complete the sentences 1‐5.

demand / consumers / respond to / factors / consumer tastes / decision making /

complementary / advertisers /

1. Producers and ……………………. use a variety of methods to try to influence …………………………………… and preferences, and through that, demand.

2. Tastes and preferences and the price of substitute and ……………………….. products influence …………………………… for goods and services.

3. Distinguishing fact from opinion in advertising enhances

consumer…………………………….. .

4. People ……………………………advertising in various ways.



5. ………………………… make better choices when they understand and consider the ………………………. that influence their demand for goods and

services.

**ATTENTION! o Complements are products that are used or consumed in combination with one another,

such as hamburgers and hamburger buns, peanut butter and jelly, and loose leaf paper

and 3‐ring binders.

o Substitutes are products that can replace one another, such as apple juice

and orange juice, butter and margarine, and pencils and mechanical pencils.

KEY: 1. advertisers; consumer tastes; 2. complementary; 3. decision making; 4.

respond to; 5. Consumers; factors;

2. Match the terms on the left with their definitions on the right.

1.brand essence a. How a brand is presented to

differentiate it from a competing brand.

2. brand image b. The use of the brand names from two

different companies on the same

product.

3. brand parity c. The result of a customer’s decision to

always buy a particular brand.

4. brand positioning d. A word, phrase or symbol that

represents a company or identifies a

product and is registered to protect

against its use by another party.

5. brand equity e. The most fundamental aspect of a

brand. It is often possible to express this

in a single word or phrase

6. brand loyalty

f. The part of the brand that can be

expressed verbally as words, letters or

numbers

7. brand name

g. The marketing strategy in which

every product in a company’s range has

its own brand name.

8. co‐branding

h. How a brand is perceived in the

minds of customers and what they

associate with it.

9. trademark

i. The value that a brand name and

symbol adds to a product of service.



10. power brand

j. How a product is similar to that of a

competitor.

KEY: 1‐e; 2‐h; 3‐j; 4‐a; 5‐i; 6‐c; 7‐f; 8‐b; 9‐d; 10‐g;

DISCUSSION ACTIVITY

a. Name a product that is advertised by a celebrity.

b. Why do companies use celebrities in ads?

c. Name a product that is endorsed by an authority, such as a doctor, a pharmacist,

a nutritionist, a mechanic, a teacher, a police officer, and so on.

d. Why do companies use authorities in ads?

e. Name a product advertisement that focuses on a claim that everyone else

consumes the product.

f. Why do companies advertise in this way?

g. Name a product advertisement that compares the quality of similar products.

h. Why do companies advertise in this way?

ANSWERS

b. They think that celebrity ads will influence consumer tastes and preferences for the

product, and, therefore, increase consumer demand for the product.

c. toothpaste, pain relievers, food supplements, frozen foods, teaching aids for

children, anti‐calc machine powder, etc.

d. They think that an endorsement by an authority will influence consumer tastes

and preferences for the product, and, therefore, increase consumer demand for the

product.

e. Levi jeans, Guess, video game systems, various toys, washing‐up liquids, fabric

softeners, etc.

f. They think that the ad will influence consumer tastes and preferences; consumers

will want what everyone else has, and the demand for the product will increase.

g. Cars, pain relievers, other over‐the‐counter medications, stain removers, washing‐

up liquids, home and furniture equipment.

h. If consumers think the quality of one product is higher than another, they will

substitute one product for another, and the demand for the high‐quality product will

increase.



LISTENING, COURSE BOOK, P.7

Why brands matter

Complete the passage below with the terms you heard on the audio track.

Brands are all about ………………… .You know what a ………………………., what

it means, whatʹs it going to ……………………… and you actually trust it to deliver

time and time again. So in a world of…………………………………., a brand can

give you something to ………………………..– itʹs a kind of …………………….. in

the darkness.

You can …………………. that we donʹt need brands, that weʹd all

…………………………..in a world where nothing is branded and we all wear

……………………………… and buy oats out of sacks and have no choice over who

we ……………………………..or what TV channels we watch. And I think one thing

about brands is they add a lot of ………………………………………. and fun, as well

as giving you ………………………………….things.

KEY:

1.trust; 2. brand is about; 3. deliver; 4. endless choice; 5. fix on; 6. beacon (like a ray of

light that shows you the way in the dark); 7. argue; 8. be better off; 9. blue overalls (a

working suit in one piece worn when doing physical work to keep dirt away from

your clothes); 10. bank with; 11. colour and enjoyment; 12. the power to choose.

GLOSSARY OF NEW TERMS

COLLOCATIONS WITH ‘BRAND’: Brand (noun)

a name given to a product or a group of products so that it can be easily recognized.

(e.g. I have bought one of the leading brands of computers.)

Brand name (noun) a name the manufacturer gives a product; the product is sold under its brand name (e.g. Drugs can be sold under different brand names across the EU. When it comes to soft drinks, Coca-Cola is the biggest selling brand name in Britain.)

Own brand (own label) (noun) products which have the trademark or label of the shop which sells them, especially a supermarket chain. They are normally cheaper than other popular brands.



(e.g. This range is substantially cheaper than any of the other own brands available.) Brand awareness/ brand familiarity/brand recognition

degree to which people know a brand (e.g. The strategic strong point of Harley Davidson’s marketing plans is the strong brand recognition enjoyed by their products. Brand awareness provides customers with a degree of reassurance.)

Brand promise what people (clients, consumers, end-users) expect from a brand.

Brand essence The most fundamental aspect of a brand. It is often possible to express this in a single word or phrase.

Brand parity How a product is similar to that of a competitor.

Co-branding The use of the brand names from two different companies on the same product.

Power brand The marketing strategy in which every product in a company’s range has its own brand name.

Brand preference when consumers prefer one brand to another.

Brand image

all the ways in which people think about a brand OR how a brand is perceived in the mind of the customers and what they associate with it.

Brand equity

the value of a brand to its owners, as shown on a firm´s balance sheet OR the value that a brand name and symbol ads to a product or service.

Branding refers to the image or impression that a company creates for its products, usually through advertising. (e.g. As we enter the 21st century, companies are placing greater emphasis on branding and marketing. French Connection, the fashion retailer is a good example of how skilful branding can invigorate trading.)

Brand positioning

a firm can position a brand by emphasizing its characteristics and benefits in relation to other brands. Firms create a positioning map to show how different brands are positioned in relation to one another (e.g. in the case of breakfast cereal a firm creates a positioning map to demonstrate how their brand compares to other varieties of cereal that already exist at the market, in price, energy value, calories, etc.)



Brand differentiation when a company designs a product in a way that distinguishes it from competitors´ brands and communicates the comparative benefits to customers in its sales documentation, advertising, etc. (For instance, a UK mobile phone company ran a campaign addressed to the ´hard-nosed businessman´. This was an effort to differentiate its business services from those for private users and from business services from less-targeted services offered by other mobile phone companies).

Brand stretching

Or brand extension is when a company uses an existing brand name for new types of product. Marketers say that this can go too far and lead to brand dilution (– making the brand less powerful.) (e.g. A good example of brand stretching is when tobacco companies use non-tobacco products such as the Marlboro Classic clothing range to promote a particular brand of cigarette.)

Stretching (verb) 1. to make money last longer or buy more than planned

(e.g. The sale of the entertainment division would clear the company´s stretched balance sheet).

2. (Marketing) + an object

if a company stretches a brand, they use a successful brand name to sell new types of products or services. IDIOMATIC EXPRESSION: At full stretch: using as much energy as possible, or the greatest possible amount of supplies (e.g. We have been working at full stretch).

Brand architecture

This means creating „brand realm“ - the sphere or “space” in which the brand exists.

Determining brand realm is a systematic way of organizing the identity of the different

products, messages, or elements of an organization so that people both within and outside of

the business understand how its clients or customers are being served. Brand realm also

provides a solid framework for a business to manage future opportunities so that the new

ventures are strengthened by their association with the value and equity invested in current

activities.

The advantage of having a solid brand realm is that it’s easier and less expensive to add to the

equity of an existing, strong brand than launching a new effort.

Brand realm gives structure to—and communicates the relationships between the company

including its divisions, business units, joint ventures, as well as its products and services, all

with the objective of adding value to the brand.

It is designed around the needs and interests of external audiences rather than internal ones.



**Trademark** A word, phrase or symbol that represents a company or identifies a product or is registered to protect against its use by another party.

COLLOCATIONS WITH ‘PRODUCT’:

Product launch

the introduction of a product to the market Product lifecycle

the length of time people continue to buy a product

Product range the set of products made by a company

Product placement when products are used in films or TV programmes

Product endorsement the use of a well-known person to advertise a product (e.g. Sports stars earn a lot of money every year from product endorsements, especially for high-profile sports equipment and soft drinks.)

COLLOCATIONS WITH ‘MARKET’

Market leader The best-selling product or brand in the market. Market follower The second best-selling product or brand in the market. Market positioning The process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Market research The process of obtaining information about what consumers want and need. Market segment A group of customers of similar age, income level, and social class; a sample group of potential product users. Market share A percentage of sales of a product in a particular market. Market value The price which a seller might reasonably expect to get for goods, services or securities on the open market



WHEN DESCRIBING DIFFERENT PRODUCTS WE USE PHRASES LIKE:

Value for money (refers to the relationship between a product´s quality and its price): how much sth is worth compared with its price (e.g. We are constantly on the lookout for products that offer the best value for money.) Top of the range (adjective) (for various types of products): the most expensive of a group of similar products (e.g. I have acquired a top-of-the range computer.). Mid-range (adjective) (for various types of products): not the cheapest or most expensive, not the best or worst, etc. (e.g. mid-range DVDs; to increase sales in the mid-range market) Stylish (adjective) attractive or well arranged (e.g. stylish clothes; stylish furniture) Reliable (adjective) Something or someone that is reliable can be trusted or believed because they work or behave well in the way you expect Is your watch reliable? reliable information Gideon is very reliable - if he says he'll do something, he'll do it. Opposite: unreliable Reliability (noun) /rɪlaɪәbɪl.ɪ.ti/ Rolls-Royce cars are famous for their quality and reliability. Reliably (adverb) /rɪlaɪә.bli/ I am reliably informed that you have been talking about resigning Luxurious (adjective) /lʌgʒʊә.ri.əs/ very comfortable and expensive They have a very luxurious house. We spent a luxurious weekend at a country hotel.

Durable (adjective)/djʊә.rə.bl ̩/ =lasting; long-lasting; long-lived; able to last a long time without becoming damaged The machines have to be made of durable materials. The resolution calls for a durable peace settlement. Durability (noun) Timeless (adjective) = not limited having a value that is not limited to a particular period but will last forever a timeless book/play/film/classic timeless values/questions Rothko's paintings have a timeless quality. Timelessly (adverb) Timelessness (noun)



Inexpensive/ (adjective) /ɪn.ɪkspent .sɪv/ = cheap not costing a lot of money It's an inexpensive perfume. Fashionable (adjective)/fæʃ.ən.ə.bl ̩/ popular at a particular time a fashionable nightclub/restaurant fashionable ideas/clothes Fashionably (adverb) /fæʃ.ən.ə.bli/ fashionably dressed Well-made (adjective) 1. skilfully built or constructed: a well-made sofa. 2. strongly built; well-built: sturdy, well-made youngsters. Cool (adjective) informal Very good; fashionable; hip

Course book, pp. 6, 7: LISTENING: 1.1; 1.2 Hype (noun) refers to the media coverage (television, radio, etc.) telling the public about a product or a service and about how good or important it is. (e.g. marketing/media hype; Despite all the hype surrounding the new model of the palm computer, sales have been slow. Hype (verb) (informal: hype sth (up)) to advertise sth in a way that you exaggerate its good qualities, in order to attract greater attention of the public. (e.g.The opening of the new wing of the Faculty was hyped up in the media as an important event.) Inflated (adjective) (often referring to prices being too high): very high; much higher than normal or reasonable. (e.g. Customers no longer want to pay highly inflated prices for luxury items. Future forecasts were based on inflated expectations about the rise in Internet sales.)

Bank (usually used as a noun but it can be a verb) [+ object]: to put money into a bank account (e.g. She is believed to have banked nearly $20 million for the movie. [without object] to have an account with a particular bank

Deliver (this word has numerous meanings in various contexts, but the following meaning results from the context the word is used in here):



to produce, provide or achieve sth that people expect or that will benefit sb/sth (e.g.The company delivered strong financial results last year; We are committed to delivering real value to shareholders)

Course book, p. 8: Reading: Outsourcing production Outsourcing (noun) the process of arranging for sb outside a company to produce goods or provide services for that company the outsourcing of catering; cost savings from IT outsourcing; outsourcing contracts/deals outsource (verb) (e.g. We outsource all our maintenance operations.) synonym of outsourcing is subcontract and the opposite is:

Insourcing (noun) the process of producing goods or providing services within a company rather than buying them from outside (e.g. The company has benefited from the insourcing of services previously performed from outside suppliers. insource (verb) We insource our training.

Low-cost (or: lower-cost) (adjective, usually before noun) costing less than others (e.g. Easy Jet is a successful low-cost airline. Sony has switched all assembly operations to lower-cost countries.; Philips has announced the launch of a new low-cost range of kitchen appliances.) Offshore (adjective) based in a different country (refers to the idea that certain countries have less strict laws and lower taxes than some other countries, such as the USA) (e.g. China has become the largest offshore supplier of computer components to US companies.) Offshore (verb) to move part of your company’s operations to a foreign country, for example to reduce the cost of labor (e.g. It is believed that around $25 million may have been offshored in the last 3 years. Our company has offshored approximately one half of its operations to Middle East countries.) Offshore (adverb) (e.g. In the recent decades we have witnessed many multinationals moving their production and assembly lines offshore.)



Skills, page 11, Listening 1.5 Customer base (also consumer base, less frequent) noun [C, usually sing.] all the people who buy or use a particular product or service We need to appeal to a wider customer base. ; End point or level that is the highest or lowest in a particular range These two products are from opposite ends of the price range.; We are aiming at the premium (= very expensive) end of the market. the bottom/high/low/top/upper end the budget/cheap/expensive/premium end Price range noun [usually sing.] a group of prices that are close together, often within fixed limits There are a lot of choices for PCs in this price range. the higher/lower/middle price range the amount that a person can afford to pay for something The apartment was way out of my price range. To get a sale – to sell also: make/lose a sale: I'm willing to lower the price in order to make a sale. Role play, page 11, exercise D: The case of Jonson Overpriced too expensive; costing more than it is worth: Their goods are high quality but overpriced. overpriced shares opposite: Underpriced cheap; costing less than it is worth underpriced exports/stock Market segment (Marketing) a group of possible customers who are similar in income, age, habits, etc Schools are a growing market segment. products produced for one particular group of customers Their strongest market segment is in small notebook computers. Aim verb o try or plan to achieve sth We are aiming at/for 2 000 new customers by next year. ; They aim to increase sales by 20%. ; The government is aiming at a 50% reduction in unemployment. aim sth at sb (usually be aimed) to produce sth that meets the needs of a particular group of customers or tries to influence them The new airfares are aimed at business travellers. ; a marketing campaign aimed at teenagers synonym TARGET



Floor the area in a factory, shop/store, stock exchange, etc. where things are made, displayed or traded The new stores will increase our floor space by 45%.

PORTFOLIO ASSIGNMENTS FOR UNIT 1

1. RESEARCH ASSIGNMENT

You are the managing director of a company which manufactures an extremely

well‐known and popular brand of soft drink. Your branding includes not only the

name of the drink, but also distinctive packaging. You have advertised your

product extensively, and have a large share of the soft drink market. However,

you are well aware that there is a great deal of competition in your sector of the

market. It means that you need to work more on building brand awareness about

your product.

Use the questions below to create a point‐by‐point advertising strategy for your

brand of soft drink so that it will stand out from the tough market competition. You

can use images, pictures, graphs or any other method that may help you to describe

how you plan to boost the sales of your brand.

a) What is the name of your company?

b) What is the name of your product?

c) Describe your product.

d) Describe your packaging.

e) Where do you sell your product?

f) How much do you charge for your product?

g) Where do you advertise your product?

h) Who are your major competitors?

i) How do you compete against your competitors, i.e. price, unique product, taste,

unusual advertising methods etc.?

Take a virtual tour at the Coca‐Cola Internet Site and get ideas on how to promote

a soft drink:

http://www2.coca‐cola.com/ourcompany/discovertheworldofCoca‐Cola



2. CASE STUDY ASSIGNMENT (based on the case study in your Course books)

After discussing the Caferoma brand in class, you need to write an e‐mail to

Caferomaʹs Managing Director, Mario Cumino and explain what course of action you

agreed on during the meeting with your marketing team. Use the ideas offered in the

Course book.

To help with your e‐mail writing task, there is a Phrase Bank posted on the web,

containing phrases and expressions used in writing. Download that document,

you may need it for your future assignments.

You can also consult the Writing file on page 133 in your Course books.

Documents

Unit 1 Brands