T2-1 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Topic 2

An introduction to marketing and the concept

of brand

T2-2 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Topic overview The meaning of brand The difference between rational and emotional

brand values Introduction to terms such as rational and

emotional brand values, attributes and personality in branding

The four choices involved in developing a brand strategy

Co-branding and brand equity

T2-3 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

What is marketing? Marketing involves finding out about the:

– target market (who a company will sell to)

– product or service (what they plan to sell)

– price (at what price)

– placement (where)

– promotion (how they will promote their product or service)

T2-4 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Communicating the brand to the consumer As far as the consumer is concerned ‘all ads

are brand ads’ (Batey 2002, p. 90). Organisations must design their

communication with purchasers so that they are likely to purchase and re-purchase products.

Communication of the organisation’s brand is very important.

T2-5 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Activity 1 Complete activity 1 on p. 252 of your textbook.

T2-6 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

What is a brand? A brand refers to a name, term, symbol or

design, or a combination of these, that identifies a product. ‘A brand includes the use of a name, a trademark, and practically all other means of product identification.’ (Quester, McGuiggan, Perreault & McCarthy 2005, p. 275).

T2-7 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Rational and emotional brand values According to Batey (2002, p. 85), a brand

offers a long-lasting appeal that is made up of rational brand values and emotional brand values.

Rational brand values are made up of attributes and tangible benefits.

Emotional brand values are made up of personality and intangible benefits.

T2-8 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Explaining key vocabulary Attributes are concerned with the product; its

functions and physical characteristics. Tangible benefits can be defined by asking:

What will it do for me? What are the consequences of these attributes that make the brand desirable?

T2-9 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Explaining key vocabulary (cont.)

Personality can be defined by thinking about the brand as if it was a person and asking what kind of person it would be.

Intangible benefits can be defined by answering the question: What feelings are evoked by the brand? What are the end emotional rewards I can expect from using the brand?

T2-10 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Activities 2 and 3 Complete activities 2 and 3 on pp 254–257 of

your textbook.

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Branding strategy Once an organisation has decided on whether

to brand or not it needs to develop an appropriate strategy. A company has four choices for brand strategy (adapted from Armstrong & Kotler 2003, p. 296): – line extensions

– brand extensions

– multibrands

– new brands.

T2-12 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Branding strategy (cont.) Line extensions—different items in a product

category under the same brand name (e.g. Dannon yoghurts introduced fat-free, economy size and new flavours).

Brand extensions—Mattel extended the Barbie doll brand to furnishings, electronics, books, CAT machinery and work wear .

T2-13 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Branding strategy (cont.) Multibrands—additional brands in same

category to suit different cultures or countries (e.g. Proctor and Gamble sell ‘Tide’ in the US and ‘Ariel’ in Europe).

New brands—Companies such as Matsushita in Japan have created new brands owned by them, such as Panasonic and National.

T2-14 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Co-branding ‘The practice of using the established brand

names of two different companies’ (e.g. Mattel and Coca-Cola co-marketed a Barbie soda drink (Armstrong & Kotler 2003, p. 295)).

T2-15 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Activity 4 Complete activity 4 on p. 257 of your textbook.

T2-16 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Brand equity Quester et al. (2005, p. 279) describe brand

equity as ‘the value to a company of the brand’s overall position in the market’.

These writers explain that if a high number of satisfied customers insist on a particular brand, retailers will naturally want to stock the brand and equity will therefore be high.

The true value of a brand is based on the extent to which it has high brand loyalty, name awareness, perceived quality and other assets such as patents and trademarks.

T2-17 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Brand equity (cont.) Aaker’s (1991, p. 270) model of brand equity

shows that a number of assets determine the value of the brand to both the organisation and the customer.

Marketing professionals learn how these assets vary between brands so that customers come to prefer one brand over another. This preference gives one product or service a competitive advantage over another (Aaker 1991, p. 270).

T2-18 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Activity 5 Complete activity 5 on p. 258 of your textbook.

T2-19 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Summary Marketing involves consideration of the target

market, the product or service, the price, placement and how the product will be promoted.

Organisations must communicate effectively with purchasers so that they are likely to keep purchasing the product (Batey 2002, p. 90).

T2-20 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Summary (cont.) According to Batey (2002, p. 85), a brand is

made up of rational and emotional brand values.

Rational brand values are made up of attributes and tangible benefits

Emotional brand values are made up of personality and intangible benefits.

T2-21 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Summary (cont.) Attributes are concerned with the functions

and physical characteristics of a product. Tangible benefits relate to what it is the

product does for the purchaser that makes it desirable.

Personality is concerned with working out the kind of person a brand would be.

Intangible benefits explore the desirable feelings evoked by the brand.

T2-22 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Summary (cont.) Developing a brand strategy involves making

choices about line extensions, brand extensions, multibrands and new brands.

A company may also co-brand by combining two established brand names.

Quester et al. (2005, p. 279) describe brand equity as ‘the value to a company of the brand’s overall position in the market’.

T2-23 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Summary (cont.) The true value of a brand is based on how

loyal customers are, name awareness and perceived quality.

Aaker (1991, p. 270) showed how various assets determine the value of the brand to both the organisation and the customer.

Customers prefer one brand over another depending on these assets (Aaker 1991, p. 270).

T2-24 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

References Aaker, D.A. 1991, Managing brand equity, The

Free Press, New York. Armstrong, G. & Kotler, P. 2003, Marketing. An

Introduction, 6th edn, Prentice Hall, New Jersey. Batey, I. 2002, Asian branding: a great way to fly,

Prentice Hall, Singapore. Keller, K.L. 2003, Strategic brand management,

Pearson Education, New Jersey. Quester, P., McGuiggan, R., Perreault, W.,

McCarthy, E. 2005, Marketing: creating and delivering value, 4th edn, McGraw-Hill, Sydney.