PRODUCTS UNIT 11

WHAT IS THE DIFFERENCE BETWEEN A PRODUCT AND A BRAND? PRODUCT - anything capable of satisfying a want or a need BRAND - a product that is distinguished from those of competitors by a name, sign, symbol, design, etc.

PRODUCTS OR BRANDS? HOW MANY DO YOU RECOGNIZE?

WHICH OF THE FOLLOWING CAN BE CONSIDERED AS CROATIAN BRANDS?

HOW ABOUT THIS ONE?

List some of your favourite brands. Then answer these questions. 1 Are they international or national brands? 2 What image and qualities does each one have? 3 Give three examples of brands to which you are loyal, i.e.which you regularly buy without thinking about it. Why are you loyal to them? 4 Are there any products for which you have no brand preference or loyalty, but are a brand-switcher? 5 Can you think of any products for which the name of the brand is totally unimportant, so that you do not even notice it? 6 If you don’t buy branded goods, explain why. 7 What are the advantages of branded goods for: a) the manufacturer? b) the consumer?

HOW MANY WORD PARTNERSHIPS CAN YOU MAKE? __________ __________ __________ BRAND __________ __________ MANAGER PREFERENCE LOYALTY CLASSIC LUXURY IMAGE SWITCHER STRETCHING AWARENESS ESTABLISHED RECOGNITION

WHICH WORD FROM THE PREVIOUS LIST IS ILLUSTRATED BY THESE PICTURES?

BRANDING – INTRODUCTION http://www.youtube.com/watch?v=vOT07BUo9jY&feature=fvwrel Does it work better than your regular classes?

HOW DO YOU COMMENT ON THIS QUOTE? ‘The most distinctive skill of professional marketers is their ability to create, maintain, protect and enhance brands.’ P. Kotler, American marketing guru

DID YOU KNOW? Despite the current economic climate, the value of the top 100 brands has increased 2% since last year, to $2 trillion - a marginal increase of 1.7 percent.

WHICH ARE THE TOP TEN BRANDS AT THE MOMENT WHICH ARE THE TOP TEN BRANDS AT THE MOMENT? COMPARE THE CURRENT LIST TO THE 2015 RANKINGS.

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 ____________.

PRODUCTS AND BRANDS – Pre-reading task – True or False? People, places and organizations cannot be considered as products. Product line is the same as product mix. Slogans distinguish products and services from their competitors. B2B and B2C are different types of brands. Companies always include their names in their products. Corporate branding is connected with branded products sold to companies and corporations. Pringles is the name of the company which produces potato crisps. Brand cannibalism refers to the destruction of competing brands. The worth of a brand is never greater than a company’s physical assets.

PRODUCTS AND BRANDS – Reading, MK, p. 60 1 MATCHING Read the text and write a brief HEADING for each paragraph. 2 COMPREHENSION Why do the companies' product mixes regularly change? Why do companies brand their products? What is the difference between corporate branding and individual branding? Why do the big soap powder producers have a multi-brand strategy? Why can the market value of companies be much higher than the value of their tangible assets?

PRODUCT LINE OR PRODUCT MIX?

PRODUCTS AND BRANDS – Vocabulary, MK, p. 61 places of business for selling goods to customers (shops, stores, kiosks, etc.) ______________ a group of closely related products sold to the same customer groups and marketed through the same outlets ______________ all the different products, brands and items that a company sells ______________ businesses that sell goods or merchandise to individual consumers ______________ a graphic image or symbol specially created to identify a company or a product ______________ wrappers and containers used to enclose and protect a product ______________

PRODUCTS AND BRANDS – Vocabulary, MK, p. 61 the extent to which consumers are aware of a brand, and know its name ______________ the extent to which an activity provides financial gain ______________ surfaces in a store on which goods are displayed ______________ the sales of a company expressed as a percentage of total sales in a given market ______________ consumers who buy various competing products rather than being loyal to a particular brand ______________ the standard pattern of sales of a product over the period that it is marketed ______________

WORD PARTNERSHIPS – Which words are missing? product l_________ product m_________ product l________ c________ g _________ /d _________ sales brand r_________ c_________ branding i_________ branding B _______ - to - B _______ marketing B _______ - to – C _______ marketing m______-b______ strategy brand c_________ brand-s_________ brand v_________ market s_________ p_________ assets t_________ assets market v_________

WORD PARTNERSHIPS – Which words are missing? Business - to - Customer marketing multi-brand strategy brand cannibalism brand-switcher brand value market share physical assets tanginle assets market value product line product mix product life cycle growing/declining sales brand recognition corporate branding iindividual branding Business - to - Business marketing

DISCUSSION: Brands and attitudes 1 What attitude would you associate with the following brands? Apple BMW Harley-Davidson Ikea Louis Vuitton MTV Nike Sony 2 Which brands do you have an emotional attachment to, because they represent your attitudes and feelings?

"All the world’s a stage, And all the men and women merely players "All the world’s a stage, And all the men and women merely players. They have their exits and their entrances, And one man in his time plays many parts, His acts being seven ages." As You Like It, William Shakespeare

THE PRODUCT LIFE CYCLE THE MARKETING CONCEPT – the sales of a product has different stages WHAT DOES IT SHOW? The pattern of consumer demand for a product over time, and accordingly the product’s pattern of sales over the period that it is marketed. THE MAIN STAGES introduction growth maturity decline

STAGES OF THE PRODUCT LIFE CYCLE

THE PURPOSE OF EACH STAGE INTRODUCTION develop b__________ a__________; pricing strategies → market skimming or penetration GROWTH develop b__________ p___________ and attract brand-switchers promotion: emphasize your c___________ d___________ maintain steady growth and increase m_________ s__________ MATURITY the market becomes s___________ and further growth is limited → prevent the c___________ from penetrating the established market share; defend your market share maintain b___________ l___________ and BRAND IMAGE extend the cash cow stage for as long as possible by using further tactics DECLINE the main decision: when to w___________ from the market? the sales still contribute towards fixed costs, but further investment, such as a___________, is not likely to pay back

THE PURPOSE OF EACH STAGE INTRODUCTION develop BRAND AWARENESS; pricing strategies → 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 further growth is limited → 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

THE DURATION OF EACH STAGE likely to vary WHICH FACTORS AFFECT THE DURATION OF EACH STAGE? product type market conditions uncontrollable elements such as consumer trends and competitor behaviour

STAGES OF THE PRODUCT LIFE CYCLE – IN MORE DETAIL...