What is a Product?• Kotler’s

Five levels to a product:

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

The Fundamental Need or Want that consumers satisfy by consuming the product or service

Generic ProductBasic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.

Expected ProductAttributes and Characteristics that buyers normally expect and agree to when they purchase a product

Augmented ProductAdditional product attributes, benefits, or related services that distinguish the product from competitors

Potential ProductAll 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

OLDSCHOOL

THINKINGDIPLOMA

“ 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

BrandingLove * 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 = BodyBRAND = MindsetEQUITY = Roots

ESSENCE = Brand’s SoulVISION = Brand’s DNA