Differentiation and Branding

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Differentiation and Branding
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The Market Fighting Sameness With Distinction
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Promotion seeks to shift the Demand Curve
D2
D2
D1
D2
D1
D1
C. both to the right and more inelastic
B. to the right
A. to be more inelastic
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The Differential Marketing Approach
Several well-prepared marketing mixes
Total market
Primary target market segment
the marketing organization
Men
Women
Malboro marketing mix
Men (and some women)
Philip Morris
Virginia Slims marketing mix
Women
Merit marketing mix
Low-tar cigarette smokers (men women)
More Light marketing mix
Women Low-tar cigarette smokers
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The Art of Marketing is the Art of Brand Building

• If You Are Not a Brand, You Are a Commodity
• Then Price is Everything and the Low Cost
  Producer is the Only Winner

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Branding Definitions

• Brand any name, term, symbol, sign, design, or
  unifying combination of these that identifies one
  product from another competitive product
• Brand Name the verbal part of the brand
• Logo a brand name or company name written in
  a distinctive way (short for logotype)
• Trademark a legally protected brand name or
  brand mark. A registered trademark gives a
  marketer proprietary rights to a symbol or name
• Service Mark provides the same identifying
  function for services that a trademark provides
  for goods. It also can be legally protected by
  registration
• Generic Names describe a product or an item that
  is part of our standard vocabulary

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Are Brands Important to People?
People have given their babies such names as
Nike, Harley, and Pepsi. We are still waiting for
Rolex and Marlboro
A Beirut hostage, when released, made his first
request May I have a Heineken?
A Tyneside beer drinkers final wish was to have
his ashes mixed with his favorite beer and
scattered in the grounds of the brewery
In Russia, the symbol of the U.S is not the
statue of liberty but McDonalds and Coca-Cola
You can buy a Harley Davidson motorcycle, Harley
clothing, Harley cigarettes, Harley beer, and eat
at Harleys in New-York
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An Overview of Branding Decisions
Brand- sponsor decision
Brand- name decision
Brand- strategy decision
Brand- repositioning decision
Branding decision
Should the brand be reposi- tioned?
What branding strategies should be used?
What names should be put on the products?
Who should sponsor the brand?
Should a brand be developed for the product?

• Brand
• No brand

• Manu-
• facturers
• brand
• Distribu-
• tors
• (private)
• brand
• Licensed
• brand

• Individual
• brand
• names
• Blanket
• family
• names
• Separate
• family
• names
• Company/
• individual
• names

• Line
• extension
• Brand
• extension
• Multi-
• brands
• New
• brands
• Cobrands

• Brand
• reposi-
• tioning
• No brand
• reposi-
• tioning

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Everything Can Be Branded

• Consumer Products
• Absolut Vodka, Barbie Doll, Kleenex
• Industrial Products
• Pentium Chip, HP LaserJet, Dupont Nylon
• Services
• Avis, Federal Express, Disney, Club Med, Weight
  Watchers
• Retailers
• Marks Spenser, Boots, Walgreens, Home Depot

• Corporation
• Motorola, Harvard Business School, Benetton
• People
• Calvin Klein, Yves St.Laurent, Barbara Streisand
• Places
• Birmingham, Europes Meeting Place
• Commodities
• Bananas (Tequita), water (Evian), chicken (Perdue)

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Types of Brands
Manufacturers Brands
Distributors or Private Brands
Generic Products
Name is owned and advertised by the manufacturer
No-Name product in plain package with dark
lettering
Name is owned and advertised by intermediary
Craftsman Tools
Kenmore Appliances
Black Decker tools
Whirpool Appliances
DOG FOOD
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Brand Name Criteria
Short and distinctive Toys R Us
Easy to remember and pronounce One-A-Day Vitamins
Invokes a positive connotation Soft n Silky
Suggests product function Dust Buster
Communicates attributes benefits Jiffy Cake
Mix
Suggests an image Passion Cologne
Communicates something about user Lone Star Beer
Avoids linguistic traps Exxon (word had no prior
meaning)
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Building a Brand

• Determine who is using the brand and the brand
  associations.
• Determine who is using the competitors brands
  and the brand associations.
• Decide more clearly on the target audience for
  your brand.
• Decide on the brand identity.
• Make sure that the offering is superior in
  delivering on the promise
• Develop a symbol, logo, colors, emotional
  material. Deliver the same brand associations in
  all media and in all contacts.

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Everything Communicates Something About the Brand

• Do you have a different impression of the
  electric shaver if it is priced at 25 or 75?
• Do you have a different impression of a soup if
  it is stocked on the lowest shelf and is given
  only a few facings and the cans are dusty?
• Do you have a different impression of a suits
  quality if it is carried by Sears vs. Saks?
• Do you have a different impression of a
  well-advertised Canon copier if it doesnt start
  during the demonstration?

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Words Owned by Companies
Word
Company
Safety
Volvo
BMW
Driving
Mercedes
Engineering
Michelin
BFGoodrich
Uniroyal
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"Women don't buy brands.
They join them."
Faith Popcorn, EV Evolution
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Dimensions of Brand Personality

• The set of human characteristics associated with
  a brand. It enables a customer to express his or
  her own self, or ideal self, on specific
  dimensions of the self through the use of the
  brand

Brand Personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
Down-to earth Honest Wholesome Cheerful
Daring Spirited Imaginative Up-to-date
Reliable Intelligent Successful
Upper class Charming
Outdoorsy Tough
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How Brand Names Affect the Demand for Twin
Automobiles

• Twin Pair Abbreviation
  Model Years Observations
• Dodge Colt/Mitsubishi Mirage colt 1985-1992 69
• Hyundai Excel/ Mitsubishi Precis excel 1988-1992
  49
• Mercury Tracer/Mazda 323 tracer 1988-1989 15
• Chevy Spectrum/Isuzu I-Mark spectrum 1986-1988
  43
• Chevy Nova/Toyota Corolla nova 1986-1988 25
• Geo Prizm/ Toyota Corolla prizm 1989-1993 21
• Olds Calais/Buick Skylark calais 1985-1991
  220
• Dodge Omni/Plymouth Horizon omni 1985-1990 65
• Dodge Shadow/Plymouth Sundance shadow 1989-1991
  40
• Ford Tempo/Mercury Topaz tempo 1985-1993 84
• Full Sample 631
• The Buick twin of the Oldsmobile Calais had
  several model names over the course of the sample
  period Buick Somerset Regal (1985 model year),
  Skylark/Somerset (1986-88 model years) and
  Skylark (1989-91 model years)