Overview
This lecture covers the concepts of brand, branding, products, and promotion in business marketing, emphasizing how companies create and maintain a brand image and position themselves in the market.
Brands vs. Products
- A brand is the image or identity that a company wants consumers to associate with it.
- A product is the actual item or service sold by the company.
- Brand and product are distinct; brand is about perception, product is about the tangible offer.
- Example: Porsche (brand) and 911 (product), McDonald's (brand) and Big Mac (product).
Branding Elements & Strategies
- Branding is the process of creating and managing the company's image.
- Important branding elements include the logo, company name, colors, and visual juxtapositions.
- A company may rebrand to change its image for new customer values or markets.
- Brand loyalty means customers consistently choose the same brand and trust it.
- Brand recognition is when people easily identify a brand based on its imagery or name.
- Word of mouth is a key indicator and driver of strong brand loyalty.
Market Positioning
- Positioning is selecting which market segment or status (budget, premium, niche, exclusive) a brand or product targets.
- Niche means serving a very specialized market with few competitors.
- Exclusive positioning makes a product accessible only to a few, maintaining its prestige.
- A brand's positioning affects its customers' perceptions and purchasing decisions.
Promotion & Market Penetration
- Companies use market research to study demographics (age, income, etc.) and define their target audience.
- Market penetration is the process of entering and establishing a presence in a new market.
- To "corner the market" means dominating the competition and increasing market share.
- Market share is the company’s portion of total sales in a particular market.
Promotional Techniques
- Advertising includes TV, radio, newspapers, and magazines.
- Product placement puts products in movies or TV shows for visibility.
- Celebrity or influencer endorsements use well-known people to recommend products.
- Organic growth is when products gain popularity naturally, often through word of mouth.
Key Terms & Definitions
- Brand — the identity or image associated with a company.
- Product — the actual item or service a company sells.
- Branding — the activity of creating and managing a brand image.
- Rebrand — to change a company’s brand image.
- Brand loyalty — repeated purchase and preference for the same brand.
- Brand recognition — easy identification of a brand by its attributes.
- Positioning — defining how a brand or product is perceived in the market.
- Niche — specialized, small segment of the market.
- Market penetration — entering and establishing a presence in a new market.
- Market share — company’s sales as a proportion of the total market.
- Product placement — featuring products in entertainment for exposure.
- Endorsement — public support from celebrities or influencers.
- Organic growth — natural increase in product popularity.
- Demographics — statistical characteristics of a population.
- Disposable income — income left after paying all bills and necessities.
Action Items / Next Steps
- Take the quiz on www.engvid.com to check your understanding of these marketing terms and concepts.