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.

T2-11 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia 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.