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Source: Leo Burnett Brand Consultancy
(G. Pandall, Kogan Page, pp. 3-8)
Questions to the text:
1. What do you personally think of these quotations used before the text? Do you agree or feel certain controversy as well as the author feels?
2. What do you think about the second quotation made by Judie Lannon? Do all brands have charisma? Should they?
3. Can you give other examples when a brand has and promotes a heroic image? (You can take examples from ad campaigns and TV commercials).
4. What do you think of ads of beer and heroic image? Who is the hero in commercials on Russian TV and other media?
5. Is a brand a product/service from the author’s point of view? What is your point of view?
6. How do brands emerge? What is the source from which they come into being?
7. Do you agree with the statement that brands’ success or failure in the market place depends on their functional quality?
8. What do the examples of Sunlight soap and Virgin prove?
9. Explain what the author meant by saying that a brand ‘has an existence that is more than an actual product or service: it has a life of its own”?
10. Comment upon the definitions of brands given by Stephen King and the others. What main idea unites all of them? What definition from the above-mentioned appeals to you most of all and why?
11. Why is it so difficult to formulate the ‘right’ definition of a brand?
12. How can a categorization of brand definitions under six headings help in understanding of brand essence?
13. What are the difficulties with less well established entities when they are becoming brands?
14. Can there really be a test showing whether this entity is a product or a brand? How is it possible to understand this?
15. What from the author’s point of view can signal the company that this entity is a brand? How can a company learn about this? What actions should it take in order to reveal this information?
16. What does the example with the failure to build a brand by a clearing bank prove? What conclusion is to be made?
17. Why can’t all products/services become brands?
18. Name main brand dimensions and discuss them.
19. What is the difference between ‘brand image’ and ‘brand identity’?
20. Comment upon Leo Burnett’s model. What dimensions are used in the model?
21. Under what circumstances will brand identity be strong? What happens if any of dimensions has become weak? Can you think of the examples?
Exercises:
Ex. 1. Choose the best word to fill each gap:
THE ROLE OF BRAND IMAGE
Although brand image is not the only ________1 why certain products are successful, it is an extremely important part of an overall marketing strategy. In fact, many manufacturers ______2 such a high value on their brands that they employ legal experts to _______3 them from misuse by imitators and counterfeit traders. In addition, companies _______4 employees with handbooks which _________5how their logos should be used – for example the size and colour of graphics and suitable ways of displaying the product.
Originally the brand was little more than a graphic that helped people to ______6 a particular product. But as advertising developed it grew in ________7. As the famous brands became ______8 with quality in the minds of consumers, manufacturers found they could _______9 top prices for these products in order to recover some of the heavy _______10 of advertising. As firms realized their potential value, brands quickly became registered trade marks. Today, branding is widespread and is used to sell both products and services.
Most companies ___________11 to achieve multiple appeal with their brands. This means that the brands appeals to people of different age groups and lifestyles. The problem for brand manufacturer is how to keep old customers and at the same time to ________12 new ones.
A powerful brand is good for sales, but first this has to be ________13 and then maintained through a continuous __________14 of image design and advertising. If multiple appeal _____15 than regular evaluation of the brand will show this and should _______16 in the product being redesigned or the advertising being changed.
1 A reason B factor C influence D cause
2 A present B place C settle D rest
3 A avoid B control C support D protect
4 A provide B give C deliver D arrange
5 A appoint B specify C assign D prefer
6 A relate B realise C identify D connect
7 A advantage B concern C benefit D importance
8 A extended B associated C fixed D attached
9 A charge B instruct C order D bill
10 A payments B costs C amounts D earnings
11 A pursue B guide C aim D direct
12 A join B earn C bring D attract
13 A thought B created C supposed D caused
14 A method B performance C attempt D process
15 A fails B defeats C breaks D loses
16 A produce B lead C result D act
Article 4.
Developing a brand identity that lasts
Before you read
Discuss these questions.
1. Think of two brands that have a memorable name, logo and design. What makes them work for you? What image and message do they communicate to their customers?
2. What are the advantages of having a strong brand name, logo and design?
Reading
A. Understanding the main points
Read the article and choose the best option to complete each statement.
1. For continued success, it is/isn’t enough to focus marketing on creating a strong brand.
2. Duracell has achieved/is still working towards its objective of becoming the top brand for batteries.
3. The main message the brand wants to convey to consumers is that it will last a long time/is well deigned.
4. The Duracell image and message has changed a lot/stayed the same over many years.
5. The brand has/hasn’t succeeded in becoming well known all over the world.
6. Duracell’s, name, design and message highlight the product’s attractive appearance/benefits for consumers.
B. Understanding details.
Scan the article quickly to find information to complete these notes.
Brand name: ___________ Former brand owner: ___________
Current brand owner: _________ Launch date: _________
Competitors: __________ Main consumer benefit: ________ Design features: ________
Answer the following questions.
How did the brand identity contribute to the brand’s growth?
What three lessons can other companies learn from Duracell about developing a brand identity?
Duracell and its longer-lasting looks
By Meg Carter
Launching a product is one thing; keeping the product ahead of the competition is the next big challenge. As technology allows manufacturers to match their competitors’ latest ideas ever faster, creating a powerful brand and effectively managing it over time is essential to ensure a lasting competitive advantage.
To be a business success, an idea needs not only to be better than its competitors’, it needs to be seen to be better. And it needs to be protected from competition by communicating its strengths and points of difference through visual pointers such as logo, design and packaging.
In the case of Duracell, now part of the Gillette Company, innovative branding has helped it maintain its position as the world’s leading manufacturer of high-performance alkaline batteries for the best part of 40 years.
The brand was developed in the US in 1963, which its then parent company, PR Mallory, wanted to introduce a new battery and challenge the dominance of Eveready, the former market leader.
PR Mallory used brand consultants Lippincott to create a brand identity for the new battery, and in 1964, Duracell was launched. The battery soon overtook Eveready to become the world’s biggest-selling alkaline battery brand – a position the business still maintains in the face of the recent and rapid rise of supermarkets’ cheaper, own-label products.
Lippincott’s advertising brief in 1963 was to create a new brand that would help Mallory become market leader and that would also be strong enough to carry new product lines. The solution was to position the product as an energy source, and to do this by focusing on the battery’s major consumer benefit – its longer life. This inspired the Duracell name, which was created to communicate the concept of endurance, and the product’s distinctive black, white and copper design.
The key elements of the Duracell brand identity are the distinctive name and logo, the colour scheme and the brand’s positioning as the most enduring alkaline batteries on the market. These three elements provided a platform for future growth as the company extended into related products such as lithium, silver-oxide and zinc-air batteries, as well as lighting products such as torches. It was also powerful enough to turn Duracell into a globally recognized consumer brand. Since its introduction in 1964, the brand identity has been the inspiration for advertising for the brand.
Duracell offers a number of lessons for brands today. The first is the importance of thinking beyond the product itself. Focusing on the product’s benefits rather than the product itself gave Duracell a much stronger position in the international marketplace. The second is the power of a strong brand name. Finally, the design solution created a new ‘visual’ language that became synonymous with the idea of an enduring source of energy.
Vocabulary
A Understanding expressions
Choose the best explanation for each phrase from the article.
1. ‘… keeping the product ahead of the competition…’
a) making sure the product stays competitive
b) making sure the product continues to be more successful than other competing products
2. ‘…. challenge the dominance of Eveready…’
a) fight against Eveready’s position of power in the market
b) question whether Eveready is still a power in the market
3 ‘… to communicate the concept of endurance… ’
a) the idea of lasting over long periods of time
b) the idea of being unbreakable
Definitions
Match these words and phrases from the article with their meanings
| 1. launching | a) the basis on which something can be developed |
| 2. competitive advantage | b) closely connected to |
| 3. communicating | c) was the motivation for |
| 4. branding | d) became more successful |
| 5. overtook | e) something that helps you be more successful than others |
| 6. inspired | f) how people think about a product in relation to a company’s other products and other competing products |
| 7. positioning | g) introducing something new |
| 8. platform | h) sharing information with others |
| 9. synonymous with | i) activity of giving brand names to products, developing people’s awareness of them, etc. |
Word search
Find adjectives or adjectival phrases in the article which fit these meanings.
1. using new methods and ideas
2. most important
3. working in a superior way to others
4. different tot others and easy to recognize
5. lasting for long time
6. know all over the world
Word partnerships
Match these words to make noun-noun partnerships from the article
| 1 market | a) brief |
| 2 brand | b) products |
| 3 own-label | c) identity |
| 4 advertising | d) brand |
| 5. consumer | e) leader |
Match each noun-noun partnership from Exercise 1 with the correct meaning
a) products sold by a particular shop and have the name of that shop on them
b) a name, symbol and design that defines and differentiates a company’s products or service
c) a document which gives details about how a product will be advertised
d) a brand that is sold direct to consumers, rather than to businesses
e) product with the largest share of the market
Sentence completion
Use words from Exercises C an D to compete these sentences.
1. A strong b______ i________ will give you an e______ marketing advantage, so it’s important to get it right.
2. Tesco, the l______ UK supermarket chain, is facing increasing competition. As a result, it has reduced the branded products it sells and is selling more o_____-l_______p______.
3. Kodak produced h_______-p_______ cameras and was the m_______l_______ in the photographic film market, but since the arrival of digital cameras, it has lost its way.
4. What we need is d______ and i_______ advertising that will appeal to the youth market. I’ve given Touch Glow the a_______b_______. Let’s hope they come up with some creative ideas.
Over to you
Choose a brand and make notes for each of these points
- Identify who the target audience is and what their wishes and desires are.
- Select two unique benefits that make the brand distinctive and attractive to consumers
- Explain who the main competitors are and what advantages your chosen brand has over their brands.
2. Think of a company that has successfully changed its brand identity, (e.g. Accenture). Discuss the reason for recreating the identity and how it has been communicated across the company and to the wider world.
Section II.
MARKETING
Article 5.
“International Marketing”
Pre-reading discussion:
1. What is international marketing?
2. Why will companies enter into international marketing? Give at least 6 reasons.
3. Which reasons are the most important ones?
4. What are the key factors differentiating domestic and international marketing?
5. What benefits can a company get entering a foreign market?
6. What problem does a company face trying to enter a foreign market?
7. What is the simplest way for a company to enter a foreign market?
8. Do companies prefer entering a foreign market with the existing product or launching a new one in a new market? What are the reasons for that?
Read and translate the texts and answer the questions to the text below.
International marketing combines multiple disciplines, but is mainly focused upon marketing goods and services across geographical boundaries, of entering foreign markets, or sustaining marketing and sales efforts within foreign countries and of coordinating marketing activities in multiple countries and regions.
Each practitioner faces a hierarchy: global, international, regional, local and intriguing interplay between them. International marketing is one of the most problematic areas: striving for global, regional and local relevance and balance as well as economies of scale and brand.
Segmentation is particularly difficult: are customers to be segmented on a country-by-country basis, or are they more appropriately grouped across geographic boundaries based on their common needs and wants?
Products - can they be standardized for international markets or do they need to be customized and adapted to each geographical market?
The nature and methods of international marketing will also vary greatly depending on whether the company is addressing industrial or consumer products or services.
Often international marketing moves by degrees to become global marketing, by tracking the space of international expansion of the overall company and its activities: this can begin with small scale exporting and develop into full overseas acquisitions. Indeed, the task of the marketer relative to international expansion has become even more complex, because as the level and scale of overseas expansion grows, the marketing becomes increasingly dependent upon a network of agents, alliances, collaborations, suppliers, sometimes joint venture partners, sometimes full acquisitions.
Once the company’s international strategy and goals are formulated, the process of international marketing planning begins. As always, a good starting point is to use dedicated market research to understand the geographical target. This is primarily a measure of market attractiveness: growth, size, GNP and general economic situation, strategic location, accessibility, experience in similar markets, social, legal, language and cultural understanding, risks of entering such as political volatility, friendliness of government (national or pan-regional) to business, business risk and competitive and currency risks.
The next stage is the evaluation of the costs of entry into these markets: investment, control, risk and return. Then the whole range of marketing planning begins in each country, with the appropriate level of marketing mix selected for each marketplace. Key decisions relate to adapting the right mix for the right country are:
Product – can it be used in standard form or does it need to be customized?
Distribution – what level of coverage and density, type of channel for the specific country and the distribution logistics?
Prices – how are these to be determined for the local market and in what currency?
Promotion – what is the most appropriate media channel and type of direct promotion in the given culture?
It is also important for the marketing team to have a culturally diverse group with experience in international marketing rather than taking a team that have been successful in one geography and taking it to another.
(Ch.Doyle, pp.256-257)
Answer the following questions to the text:
1. Give the definition of the IM. Do you know any other definitions related to IM?
2. Why does the author claim that IM is “one of the most problematic areas” in marketing?
3. On what basis can segmentation be conducted?
4. Why is it so difficult to conduct segmentation in IM?
5. What product decisions can be made in IM?
6. How can methods of IM vary?
7. Discuss the process of going global. What stages does a business usually pass through? What is the role of marketer in this process?
8. At what stage should a business start the process of marketing planning?
9. What should be measured and analyzed in the course of market research? Why is supposed to be a “good starting point”?
10. What steps should be undertaken at the next stage of going global?
11. What key decisions should to be made and why?
12. What managerial decisions connected to cultural diversity are to be taken?
13. Do you agree that a team involved in IM activity should be culturally diverse with experience in international marketing rather than not but successful in one particular geographical market?
Exercises:
Ex. 1 Give the definitions to the underlined words.
Ex. 2 Read the following extract. As you read it, complete Chart 1.
The simplest way to enter a foreign market is through exporting. The company may passively export its surpluses, or it may make a commitment to expand exports to a particular market. In either case the company produces all its goods in the home country though it may make changes to them for the export market. There are two types of exporting: indirect and direct. Indirect exporting means working through independent middlemen such as agents and dealers. Indirect exporting can be done with little investment and therefore involves less risk. Mistakes can be made but they shouldn’t be too costly.
Direct exporting involves setting up an export department or even an overseas branch which actively uses the company’s own employees. This will give the seller more presence and control in the market but obviously means heavier investment.
A second method of entering a foreign market is through joint ventures with foreign companies. There are three types of joint venture:
Licensing is the simplest way for a manufacturer to produce its goods in the foreign market. The company enters into an agreement with a licensee offering the right to use a manufacturing process, trademark, patent or other item of value for a fee or royalty. Once again the company gains entry into the market at little risk but there are potential disadvantages. The company has less control over the licensee than if it had set up its own production facilities. If the licensee is very successful, the company has given up the potential for large profits and, if and when the contract ends, it may find it has created a competitor.
Another option is contract manufacturing. This means contracting with foreign manufacturers to produce the product. It has the drawback of less control over the manufacturing process and the loss of potential profits on manufacturing. On the other hand, it offers the company the chance to get off to a quicker start and take on less risk. There is also the opportunity to form a partnership or buy out the local manufacturer later.
Joint ownership ventures consist of the company joining with foreign investors to create a local business in which they share joint ownership and control. Joint ownership may make sense for political or economic reasons. Sometimes foreign governments make joint ownership a condition for entry. It also has certain drawbacks. Above all, there is the danger of disagreement over crucial issues such as investment and marketing. One firm may want to put money back into the company while the other wants to take it out.
Besides exporting and joint ventures, there is also the possibility of direct investment – in other words developing foreign-based assembly or manufacturing facilities. If the foreign market is large enough, local production facilities offer many advantages. The company may have lower costs in the form of cheaper labor, raw materials and transport/distribution. The company will gain a better image in the host country because it creates jobs. It also develops a deeper relationship with government, customers, suppliers and distributors. Finally, by direct investment, the company keeps full control over investment and marketing policies. The main disadvantage is that the firm faces many risks such as devalued currencies, declining markets or even government takeover.
(J. Comfort & N. Brieger, Longman, p.103-105)
| Method of entry | Types | Advantages | Disadvantages |
| 1. Export | 1.1. 1.2. | ||
| 2. Joint venture | 2.1. 2.2. 2.3. | ||
| 3. Direct investment | 3.1 3.2 3.3 |
Chart 1
Answer the questions to the extract:
1. What are the three main ways of entering a foreign market? Name them.
2. What is exporting?
3. What ways of exporting are used in international marketing?
4. Discuss the advantages and disadvantages of both of them.
5. What is the essence of joint venturing?
6. Name the types of joint venture.
7. Explain the essence of licensing. What are the advantages of licensing and what are the dangers of this type of entering a foreign market?
8. Is there any difference between licensing and franchising? What is similar? What is broader?
9. Discuss contract manufacturing as a way of entering a foreign market.
10. What are the advantages and disadvantages of this method?
11. What is meant by joint ownership ventures?
12. Under what circumstances does it make sense to enter a foreign market by using joint ownership ventures with foreign investors?
13. What is the third major way of entering a foreign market?
14. Discuss the benefits of this way of entering a foreign market.
Ex. 3. Complete the phrase by matching the word/expression on the left with its best association on the right:
1. to break into a. on the ground
2. to learn from b. your mistakes
3. to look c. a feel for
4. to rely less d. a market
5. to have a e. budget
6. conservative f. a presence
7. to establish g. in detail
8. someone h. customers
9. it counts i. on agents
10. a much reduced j. for a lot
Ex. 4. Complete the following sentences with an appropriate form of make or do:
Ex. 5. Discuss the following in mini-groups of 3-4 students:
Ex. 6.
A. Fill in the missing words in the table:
| Verb | Agent | General noun |
| 1. market | marketer | |
| 2. distribute | ||
| 3. | competition | |
| 4. | advertising; advertisement | |
| 5. | supplier | |
| 6. | sponsor | |
| 7. consume | ||
| 8. produce | ||
| 9. | analyst | |
| 10. | researcher | |
| 11. import |
B. Complete the sentences below with words from the word table:
1. Marketers m___________ p________ to customers.
2. Advertisers a__________ to c____________.
3. Market analysts a__________ the performance of s_________ and the behavior of c_________.
4. The opposite of export is ___________.
5. The opposite of demand is __________.
6. C________ is good for consumers.
7. S__________ is a form of a ______________.
Ex. 7. For each definition choose the correct word or phrase:
1. Providing money to cultural or sorting activities in exchange for advertising rights.
a) promotion b) grant aid c) sponsorship
2. A business which specializes in giving advice and support to companies about marketing and markets.
a) marketing consultancy b) counseling service c) company analysts
3. An economy which allows open and reasonably free exchange between private companies.
a) command economy b) conservative economy c) free market economy
4. A market in which there are too many suppliers producing similar products.
a) saturated market b) buyers’ market c) heavy market
5. A market in which there are few suppliers producing goods that a lot of people want to buy.
a) weak market b) sellers’ market c) light market
6. A company which sells more of a particular type of product than its competitors.
a) trend setter b) multinational c) market leader
7. A person who uses their specialist knowledge of a specific market to try to explain what has happened and predict what will happen.
a) market analyst b) forecaster c) market broker
8. A specific promotional activity over a limited period of time.
a) campaign b) season c) trend
9. The activity of moving goods from the producer to the consumer.
a) selling b) distribution c) orientation
10. The activity of selling goods to other countries.
a) multinational b) exporting c) exchange distribution
11. The proportion of the total market which one company controls.
a) dominion b) market place c) market share
12. What a company or organization says it intends to do for its customers/clients and the community.
a) corporate mission b) strategic plan c) corporate image
Ex. 8. Fill each gap in the sentences with the correct word from the box:
| away back by into off on on to |
Article 6.
Marketing in Challenging Times
Before you read discuss these questions.
1. How does an economic slowdown affect consumers' purchasing habits? Is it the same for business customers?
2. What can a company do to survive in difficult economic conditions? Make notes for each of these points.
market research advertising spend distribution pricing product portfolios
3. In difficult times, marketing budgets often get cut. Is this a good idea? Why? / Why not?
Reading
Understanding the main points
Read the article and answer these questions.
1. What is the purpose of the article? Choose the best option.
a) to inform readers about the challenges of surviving in difficult times
b) to give readers guidelines about how to survive
c) to persuade readers to change their marketing strategy
2. What gives you this impression?
These are the headings for the main ideas in the article (1-6). Choose one of the headings for each idea.
Adjust pricing tactics Adjust product portfolios Focus on market share
Support distributors Research the customer Maintain marketing spend
Understanding details
Read the article again and answer these questions.
The writer gives five examples of how consumer behaviour can change in difficult economic conditions. What are they? (paragraph B)
The article includes four suggestions that will help companies get the best results with a reduced advertising budget. What are they? (paragraph E)
How can companies make sure their distributors continue to stock their full range? (paragraph G)
What short-term pricing tactics does the writer suggest to make products more attractive to customers? (paragraph H)
Surviving tough marketing times
By John Quelch
A Companies should keep these points in mind when making marketing plans for difficult economic conditions.
1 ______________________________
В Don't cut the budget for market research. You need to know more than ever how consumers are reacting to a downturn. Consumers take longer searching for consumer products and negotiate harder for price reductions. They are more willing to delay purchases, trade down to less expensive models or buy less.
С Must-have features of yesterday are today's can-live-withouts. Brands that are trusted are especially valued and can still launch products successfully, but interest in new brands and categories declines.
2 _____________________________.
D This is not the, time to cut back on advertising. It is well documented that brands that increase advertising during an economic slowdown, when competitors are reducing their advertising, can improve market share and profits. And they can do this at lower cost than during good economic times.
E Brands may be able to negotiate better advertising rates. If you have to reduce your marketing spend, try to maintain the frequency of advertisements by changing from 30-35 to 15-second advertisements, replacing radio with television advertising, or increasing the use of direct marketing, which gives more immediate sales impact.
3 _______________________________
F Marketers must recalculate demand for each item in their product lines as consumers trade down to models that are good value, such as cars with fewer options. In tough times, multipurpose goods have advantages over specialised products, and weaker items in product lines should be cut. Gimmicks are out; reliability, safety and performance are in.
4 _______________________.
G Carrying large amounts of stock is risky. So offer financing and better returns policies to motivate distributors to carry your full product line. This is particularly true with new products that are still unproven. Be careful about moving to low-priced distribution channels. This can damage existing relationships with distributors and the image of your brand. However, it may be also a good time to drop weaker distributors.
5 _________________________.
H Customers will be looking around for the best deals. It may not be necessary to cut list prices, but you may need to offer more temporary price promotions, such as special offers or reductions. It may also be useful to give better discounts for quantity.
6 __________________________.
I In all but a few technology categories where prospects for future growth are strong, companies are in competition for market share and, in some cases, survival. To stay competitive, look carefully at your cost structure. This will ensure that so any cuts or consolidation activities save the most money with the least impact on customers.
J Successful companies do not abandon their marketing strategies in times of economic uncertainly, they just need to adapt them.
FT
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