YA Brands and branding MEAD Brand equity ‘A brand is a name given to a product of group of products so that they can be easily recognized. “The most distinctive power of professional marketers is their ability to create, maintain, protect and enhance ~ strengthen the powcr of — brands, says Philip Kotler” Here are some frequent combinations with ‘brand’. These are some of the issues in branding ~ the art and science of using brands: ofa brand think of when they thi image ‘what peop! loyalty the degree to which people continue to buy a brand awareness the degree to which people know about a brand brand identity what a brand means, represents, etc. recognition a bre mace the value of a brand to its owners, as sometimes shown on a firm's balance sheet | Note EA The combinations with brand are given, 2 Brand positioning and differentiation A firm c: characteristics and benefit High price per ounce ng its position a brand by emphasi in relation to other brands - this is brand positioning. A company low can position its products in a particular way in in calories relation to each other andlor to competing products ~ product positioning ~ or it can position itself in relation to other companies. ‘This can be represented on a positioning map. Low price per ounce Here is an example of a positioning map for different brands of breakfast food. Differentiation is when a company designs a product in a way that distinguishes it from competitors’ brands and communicates the comparative benefits to customers in its sales documentation, advertising, etc. For example, Air New Zealand ran a series of advertisements with scenes ‘filmed recently in our cabins’. By showing these authentic scenes, the airline wanted to differentiate itself as gemuincly more caring towards customers, more human, ete. Brand stretching ‘A flagship brand is the most important brand owned by an organization - for example, “Coke” = the most famous of the many soft drink brands owned by Coca-Cola. A generic brand is one used on a variety of different products. For example, the brand name ‘Nestlé is used on all food products the company owns, even if another brand name is also used on some of the products. Brand stretching or brand extension is when a company uses an existing brand name for new types of product. Consumers are expected to associate some of the same characteristics with the new product ~ think of the product in the same ways — but there are limits to this. Brand stretching can lead to brand dilution, making the brand less powerful, and thus can damage the core — main ~ brand. *Philip Kotler and Kevin Keller: Marketing Managemtnt, Pearson, 2008, 62 Business Vocabulary in Use AdvancedMatch the two parts of these sentences containing expressions from A and B opposite. 1 We saw Formula 1 motor racing a image evokes food dripping with sour as a cost-effective opportunity of cream and cheddar cheese. increasing our brand bb recognition over the past few years, but 2 Taco Bell’s strong brand the name change makes sense now because 3 Simon and Sullivan (2007) define AT&T needs to have a single, unified brand brand. 4 Pharmaceutical companies sold ¢ awareness worldwide. prescription drugs at college health 4 identity is to do with more aggressive, more centers at large discounts so as to fashionable, more exciting, sportier cars grab customers at a young age to than competing Inxury brands. build brand © equity as the profits from branded products 5 Cingular has done a tremendous over and above the profits that would job of building brand result from the sale of unbranded products. 6 It’s true thar BMW's brand £ loyalty that might last a lifetime. Look at B opposite. Complete cach sentence with the correct form of the word in brackets. 1 Las Vegas has successfully (position) itself as an attractive destination for conventions. 2 SGlis (position) the Altix as a workhorse that will run with a minimum fuss rather than as a breakthrough machine designed to set supercomputer records. 3 The brand (position) has shifted with a new marketing strategy, significantly enhancing the fashionability of the Burberry brand. 4 Superior products and processes provide a means to (differentiate) the corporation from its competitors. 5 The term* > (differentiate) is preferable because it throws the emphasis on the need to be ‘better’ than rival products not just in some general way but in precisely specified ways. 6 The marketers of all these different brands of vodka will say, Well, ours tastes better” or “Ours is special this way or that way’ they're all trying to (differentiate) their brand. Look at © opposite. Was each of these brand extensions successful, do you think? Give reasons for your thinking. 1 Ivory soap extended to dishwashing liquid and gentle care clothes washing detergent. 2. Bic pens extended to perfume using the ‘small disposable pocket items’ association, 3 Coke extended to New Coke. 4 Dole pineapple juice extended to fruit juice, fruit salad and frozen fruit bars. 5 Woolite fabric wash extended to carpet cleaner spray. 6 Campbell soups extended to spaghetti sauce. Over to you ae ae Ben aon aa RSS Sea cg are its flagship brands? Are there any examples of brand extension? Business Vocabulary in Use Advanced 63