What is a Product? Kotler’s Five levels to a product: Generic ProductCORE BENEFITExpected Product Augmented Product Potential Product The Fundamental Need or Want that consumers satisfy by consuming the product or service Generic Product Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. Expected Product Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Augmented Product Additional product attributes, benefits, or related services that distinguish the product from competitors Potential Product All the augmentations and transformations that a product might ultimately undergo in the future

What is a Brand? Keller’s Definition: –A product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. Rational and tangible Symbolic, emotional and intangible The psychological response to a brand can be as important as the physiological response.

What is a Brand? Product = Commodity A product is a produced item always possessing these characteristics: Tangibility Attributes and Features Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits. Timothy D. Ennis, Ennis Associates, Inc

MANUFACTURERS ID to simplify handling or tracing Legal protection of unique features Signal of quality level to satisfied customers Means of endowing products w/unique associations Competitive Advantage Financial Returns CONSUMERS ID Product Source Assignment of responsibility to maker Risk reducer Search cost reducer Promise, bond, or pact w/make of product Symbolic Device Signal of Quality Why Does A Brand Matter?

Alternative Branding Models Company dominates Brands Company is equal to Brands Brands dominate the Company American Express (cards) BMW (Motorcycles) Colgate (Total toothpaste) Disney (Films) General Electric (appliances) IBM (Technology) L’Oreal (Cosmetics) Sony (Electronics) Holiday Inn (Crowne Plaza) Anheuser Busch = Budweiser Campbell Soup = Godiva Chrsyler = Jeep Estee Lauder = Clinique Kraft = Maxwell House PepsiCo = Mountain Dew Time Warner = Warner Bros 3M = Scotch Tape Marriott = Courtyard Skol (Am Bev) Claridge Hotel (Savoy) Crest (P&G) Healthy Choice (Con-Agra) Hidden Valley Ranch (Clorox) Kleenix (Kimberly-Clark) Marlboro (Philip Morris) MCA Records (Universal Studios) Wranlger (VF Jeans) Kevin Clancy, Copernicus

Brand Imposing One’s Will On The Consumer Branding OLD SCHOOL THINKING DIPLOMA

“ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” - Kevin Roberts, Saatchi and Saatchi Branding

“ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” - Kevin Roberts, Saatchi and Saatchi Branding

TradeMark Branding Love * Mark Trust-Mark

Those Brands which are particularly well adapted to the environment and which thus, survive and flourish. POWER BRANDS Attached to Consumers Deep respect for the way products fit into Consumer’s lives = “Core” of Success

What is Brand Management? Brand = Primitive God –If we keep it’s laws –And pay regularly the tributes due (mainly advertising), fortune will smile on us – otherwise, disaster.

What is Brand Management? “You have to maintain and replenish a brand over time or it will die”

Brand Vision and Essence PRODUCT = Body BRAND = Mindset EQUITY = Roots ESSENCE = Brand’s Soul VISION = Brand’s DNA