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Lesson Planning GuideChapter 22Branding

Chapter ObjectivesAfter studying this chapter, students will be able to• explain the value of a brand.• distinguish between a corporate brand and a product brand.• list three ways branding helps the customer.• explain how branding helps the marketer.• describe how marketers create a positive brand image.• summarize ways that brand creators can protect their brands.• explain the purpose of developing your own personal brand.

Student Text OutlineIntroductory Text

I. What Is a Brand? A. Parts of a Brand B. Level of Brand C. Types of Brands

II. Branding and the Customer A. Identity B. Quality C. ConsistencyIII. Goals of Branding A. Unique Brand Identity B. Positive Brand Image C. Brand LoyaltyIV. Protecting a Brand

V. You as a Brand

Terms

brandbrand namelogoslogancorporate brandproduct brandmanufacturer brandprivate brandgeneric brand

benefi tpositioningbrand positionbrand loyaltytrademarkservice mark

Teaching ResourcesWB: Terms, Activity AMEH: Activity Buffet—Reading and VocabularyWB: Think Metric! Activity C (math)

TR: New Product, New Brand, Master 22-1 (project)

TR: Rollerblade’s Guidelines for Trademark Use, Master 22-2 (transparency)WB: Your Name—The Best Brand Name, Activity B

Review and AssessmentStudent TextReality Checks, pp. 263, 264, 265, 266, 268, 270, 271, 273Chapter Review, pp. 274–275

Review Concepts, Think Critically, Connect to Business, Explore Careers, Connect to the Internet

Teaching ResourcesWB: Terms, Activity ATR: Chapter 22 Test, Reproducible Test MasterMEH: Activity Buffet—Assessment, Content Review, and GamesEV: ExamView® Assessment Suite CD

262A

CH_22.indd Sec2:262CH_22.indd Sec2:262 7/2/2009 12:28:48 PM7/2/2009 12:28:48 PM

Business Administration and Marketing Performance Indicators

• Explain the nature of product/service branding. (PM:021/SP)• Build product/service brand. (PM:126/MN)• Describe factors used by marketers to position products/services. (PM:042/SP)• Develop strategies to position product/services. (PM:043/MN)

TM

DECADECA is the brand name of an association of marketing students. What is its logo? (See DECA Web site and publications.) Has that logo

changed since DECA was founded? (Yes. It used to have three diamonds with a wrapped package in the center, signifying a job well done.) What is DECA’s current slogan? (Developing future leaders in marketing, management, and entrepreneurship.) What other student organizations are available to students in marketing, business, and other careers? (BPA, FBLA, SkillsUSA) What are their logos and slogans? (Students can fi nd these on the Internet.) What is DECA’s unique brand identity? (Students may have personal reasons. Additionally, DECA is the largest CTSO supporting marketing, management, merchandising, and entrepreneurship courses in high schools and colleges. The DECA competitive events are aligned with curriculum standards that are industry-validated.)

262B


Instead of writing defi nitions, have students give an example for each term in the terms list. Have students share and compare their examples for each term. After the examples have been shared and compared, have students write the defi nition for the term, and compare it with the defi nition in the text.

• WB: Chapter 22 Terms, Activity A. Use this activity to preview or review terms.

• For more vocabulary activities, see Activity Buffet—Vocabulary in the MEH.

• Have students read the objectives and predict what they will learn for each one. Then ask them to list the vocabulary terms that most likely go with each objective.

• For more prereading and reading activities, see Activity Buffet—Reading in the MEH.

Vocabulary Builder

Resources

Prereading Activities

Do this activity before students start reading the chapter. Have students take out a sheet of paper, and number from 1 to 12 down the side. Say, “I will say the name of a type of product, and you write the fi rst brand name that comes to your mind.” Read the number and the type of product, but allow only a short pause between items. (1) Carbonated beverage (soda, pop), (2) car, (3) chocolate candy bar, (4) computer, (5) electronic game maker, (6) fast-food restaurant, (7) hotel, (8) ketchup, (9) magazine, (10) sunglasses, (11) potato chips, (12) water. After you are done, reread each product type. Have students name the brands, and count how many students named the same brand for each product type. Ask, “Why do you think so many students named the same brand for this product type?”

Introductory Activity

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22 BrandingBranding

After studying this chapter, you will be able to

■ explain the value of a brand.■ distinguish between a corporate brand

and a product brand.■ list three ways branding helps the

customer.■ explain how branding helps the

marketer.■ describe how marketers create a positive

brand image.■ summarize ways that brand creators can

protect their brands.■ explain the purpose of developing your

own personal brand.

Marketing Termsbrandbrand namelogoslogancorporate brandproduct brandmanufacturer brandprivate brandgeneric brandbenefitpositioningbrand positionbrand loyaltytrademarkservice mark

“Hand me a Kleenex®. I want Jell-O®.Please Xerox® this for me. I would like a Coke®.” It is likely that you have made at least one of the statements or some variation on them. What do Kleenex, Jell-O, Xerox, and Coke all have in common? Each of these words is a brand name that has become so powerful that the brand name is often used instead of the product category. Kleenex is a brand of disposable facial tissue. Jell-O is a brand of dessert gelatin. Xerox is a brand of photocopy machine. Coke is a brand of carbonated cola beverage.

The power of branding works in the reverse, too. If someone says personal media players, what brand name leaps


You might want to give students two minutes to name as many brand names as they can. After two minutes, go around the room and have each student name one brand. Continue going around the room until no one has a new brand to name. (Student response.)

WB: Think Metric! Activity C (math). Your students are likely to be part of the global economy, which uses the metric system. This worksheet gives students a feeling for the differences between conventional and metric measures, and provides ways for them to quickly get a feeling for the size of metric measurements.

If you have not yet done the Part 4 Activity, now would be a good time. Ask students, “Was ‘Dynamic Delights’ a good name for the new product? Why or why not? If you could have chosen a different name, what would you have chosen and why?”

Resource

Part Activity Revisited

Reality Check Answer

Chapter 22 Branding 263

immediately to mind? Apple iPod? Some other connections are chocolate bar—Hershey’s, overnight delivery—FedEx, and computer games—Nintendo. What do Apple, Hershey’s, FedEx, and Nintendo have in common? These companies have promoted their brands so successfully, that the company’s name is equivalent to the entire product category in customers’ minds.

The value of a brand is its ability to increase sales through brand recognition and brand loyalty, 22-1. Disney is one of the most valuable brands in the world. If the Disney brand had been for sale in the year 2008, it would have cost over $57 billion!

How many brand names can you list?

✓✓ Reality CheckReality Check

What Is a Brand?At its simplest, a brand is a mark or

design placed on a product to distinguish it from other products and to identify the owner of the brand. At its fullest level, the brand of a product encompasses all aspects of the product: its name, marketing mix (product, place, price, and promotion), personality, image, position in the minds of customers, and history. A brand is a way of communicating what the product is all about. It is also a way to distinguish the product from its competitors.

Parts of a BrandBrands have two parts: tangible and

intangible. The tangible parts of a brand are its name, its logo, and its slogan. The brand name is the name given to the product. A brand name consists of words, numbers, or letters that can be spoken. For example, Nike is the name for a brand of athletic shoes. A logo is the picture, design, or graphic image that is associated with a brand, 22-2. The logo is often the symbol of the brand. The Nike “swoosh” is the logo for the Nike brand. The logo can include the brand name. For example, the logo of Coca Cola is the design of the letters used in the brand name. A logo is sometimes called a brand mark. A tradecharacter is a logo or brand mark that has

22-1

What would shopping be like with no brand names?

22-2

The American Marketing Association logo includes a stylized version of the letters AMA.

Reprinted with permission of the American Marketing Association (www.MarketingPower.com)


Have students collect examples of brands, including brand names, logos, and slogans. Organize students into groups, and have each group make a poster that shows a variety of brands, with the brand parts labeled. Have each group present their poster and describe the tangible and intangible parts of each brand.

(Student response. Old Navy; fun, young, in style, reasonable price.)

You might want to use this as an activity. Go around the room and have students name brands. After each brand, have students say whether it is a corporate brand or a product brand. (Student response. Old Navy is a corporate brand. McDonald’s is a corporate brand; Big Mac is a product brand.)

Cooperative Learning



Part 4 Product Dynamics264

been given human characteristics. The Jolly Green Giant, the M&Ms, and the Keebler elves are all trade characters.

A slogan is a phrase or sentence that sum-marizes some essential aspect of the product. Nike’s slogan is “Just do it.” A slogan is sometimes called a tag line. A slogan that is set to music is called a jingle. Companies may change their slogans over time.

The intangible parts of the brand are its image, personality, and ability to infl uence customers to buy it. Nike’s image is excellence in sports. Its “personality” is that of a person who is exciting, spirited, “cool,” and dedicated to doing his or her personal best. The use of top athletes in Nike advertising, such as Tiger Woods, reinforces this image and personality. Through advertising and other promotional activities, the Nike brand has developed a great ability to infl uence customers to buy it.

Name one of your favorite brands. What are the image and personality of this brand?


Level of BrandThere are two levels of brands: corporate

and product. A corporate brand is the brand that represents the whole company. For example, Nike is actually a corporate brand. A product brand is the brand of a specifi c product. For example, Air Jordan is the brand of a specifi c Nike product. Both corporate brands and product brands can have brand names, logos, and slogans. Some brand names are the same for the corporation and the product. For example, Coca-Cola is the brand name of a company and of a specifi c product. The Coca-Cola Company has product brands in addition to Coca-Cola, for example Diet Coke and Sprite.

Name one of your favorite brands. Is it a corporate brand or a product brand?


Types of BrandsThere are three types of brands:

manufacturer, private, and generic, 22-3. A manufacturer brand is a brand created by a manufacturer for its own products. Manufacturer brands are also called nationalbrands or regional brands. Most of the brands you are familiar with are manufacturer

22-3

Clothing usually comes in two types of brands: manufacturer’s brand and private (or store) brand.


Go around the room and have students name brands. After each brand, have students say whether it is a manufacturer, private, or generic brand. (Student response. Sony Playstation—manufacturer; RadioShack Answering Machine—private brand; generic paper towels—generic.)

Work with the Math instructor on a project to compare the costs of generic, private, and manufacturer brands. Have students collect the brand names and prices for the same product but different brand types. Have them calculate the difference and percentage difference in price. Which type of brand is most and least expensive?

Have students imagine themselves in a grocery store where none of the products is branded. Have them describe how they would fi nd the products they want.

Review the meaning of the terms brand, brand name, logo, slogan, corporate brand, product brand, manufacturer brand, private brand, and generic brand. Answer questions 1–5 under Review Concepts and questions 1–4 under Think Criticallyat the end of the chapter.


Math

Activity

Review It Now


brands. Diesel clothing, Cover Girl make-up, and Lay’s Potato Chips are all manufacturer brands. Manufacturers sell their brands through wholesalers, and ultimately to retailers, such as department stores and grocery stores.

Resellers often develop their own products. (Resellers include retail stores, distributors, and wholesalers.) A brand owned by a reseller is called a private brand.Private brands are also called store brands, distributor brands, dealer brands, or private label brands. For example, Abercrombie & Fitch carries private brand jeans in its stores. You can buy only Abercrombie jeans at an Abercrombie & Fitch store. You cannot buy any other brands at Abercrombie & Fitch, and you cannot get Abercrombie jeans at any other retailer.

If you want to buy jeans by a manufacturer, such as Diesel, Lee, Levi Strauss, Guess, or Baby Phat, you must go to a retailer, such as Sears, Macy’s, or J.C. Penney. You cannot buy Abercrombie jeans at Sears, Macy’s, or J.C. Penney.

A generic brand is a product that is not branded. Generic brands are usually packaged in black and white packages and just have the name of the product category on the box. For example, a generic brand of facial tissue would just say “facial tissue” in black letters on the black and white package. Generic brands are generally lower in price than similar branded products, in part, because no money has been spent on advertising them. Grocery stores may carry generic products, such as baking soda, paper towels, and canned fruits. Many medicines are also available in generic forms.

Think about products that you buy. Do you buy manufacturer, private, or generic brands? Give an example of each, and explain your reason for buying that product and type of brand.


Branding and the Customer

Imagine standing in the aisle of breakfast cereals at your local grocery store. Now imagine that none of the cereals has a name. All cereals are packaged in a white box. The only way to tell one cereal from the other is to read the ingredients on the box. It would probably take you a long time to fi nd the cereal you want.

Now imagine how it really is. The cereals are grouped by their manufacturer, for example, Kellogg’s, General Mills, and Post. Each of these corporations has a distinct corporate brand. Each cereal has a specifi c brand name and distinctive package design, 22-4. These distinct names, packaging, and brand identities help you locate and buy the cereal you want.

22-4

Brand names, along with distinct logos and package designs, help the customer locate the product he or she wants to buy.

Photo courtesy of IGA, Inc.


How does packaging contribute to the identity of a product? Have students give examples. (Coke—distinctive design on can and way the name is written.)

Review the meaning of quality. (The level of excellence in a product.) Have students describe the three levels of quality. (Premium—the highest level in excellence and price; moderate— the middle range of excellence and price; value—adequate excellence and lowest price.)

Organize students into groups. Have each group develop a list of brand names that indicate each of the following quality levels: premium, moderate, and value. You might assign each group a different product category, such as automobiles, chocolate, clothing, hotels, restaurants, shoes.

(Student response. Branding helps me when I’m not sure what to buy and I see a brand I know; I usually buy that brand. Some brands denote quality so I just always buy them. When I don’t know what to buy, I discuss what I need with my friends; and then they will recommend something by the brand name.)

Critical Thinking

Activity




Branding does three things for the customer: (1) identifi es the product; (2) provides assurance of quality; and (3) provides assurance of consistency.

IdentityBranding gives a product an identity.

The tangible aspects of a brand, that is, the brand name, logo, slogan, and packaging, make a product look different from its competitor. Coke is the “real thing” in a red and silver can with a wave. Pepsi is for a “new generation” in a blue and red can with a circle.

Branding gives the customer a way to distinguish one product from another. When you fi nd a product you really like, it is easier to fi nd again if you remember its brand name, logo, or package design, 22-5. Also,

if you want to tell your friends about it, the brand name gives you a way to do so.

QualityFor the customer, assurance of quality

and consistency are among the main benefi ts of buying brands. Customers vary in the level of quality they want in various products. For example, pens come in a variety of quality and price levels, from a simple, inexpensive ballpoint to an elegant, expensive fountain pen. For a student, the simple, inexpensive ballpoint pen is the quality and price level desired. The Bic brand pen, which sells for under a dollar, provides the quality that a student needs at an appropriate price. However, a successful executive might prefer an elegant fountain pen with platinum trim. For the executive, the Montblanc brand, which might sell for over $300, represents the quality she needs at a price she is willing and able to pay.

ConsistencyConsistency means that the product is

the same whenever and wherever you buy it. For example, when you buy a McDonald’s hamburger, you know exactly what you will be getting. You know that you will get the same hamburger, no matter which McDonald’s restaurant you visit.

Consistency is also important for services. If you stay in a Hilton hotel anywhere in the United States, you know that you will be getting clean, comfortable, reasonably priced accommodations.

Does branding help you when you buy products? Give an example. Remember that goods, services, and ideas can be branded.

✓✓ Reality CheckReality Check22-5

The brand name gives a company and a product an identity. You can ask for Reebok athletic shoes by name to distinguish them from other brands of athletic shoes.

© 2004 Photo courtesy of Reebok International Ltd.


Ask, “Why do you think branding is so important to marketers?” (A good brand can infl uence customers to buy it.) When do you think a marketer should start developing the brand identity for a new product? (As early as possible in the product’s development.)

Ask, “What is a product benefi t?” (The need-satisfying ability of a product.) Organize students into groups. Have groups generate a list of brands (or use the list already generated for the brands by quality level). For each product, have them list the benefi ts of that product. Make sure to distinguish between benefi ts and features. Also have students categorize the benefi t as functional, emotional, or self-expressive. (Super 8 Motel—clean, inexpensive place to sleep, functional; Ritz Carlton—luxurious place where I feel like royalty, self-expressive.)

Organize students into groups. Have groups organize lists of brand names based on the three categories of benefi ts: functional, emotional, and self-expressive. Have groups share their lists with the class. (Functional—Scoops chips are easy to eat; emotional—Hallmark cards because giving them makes others happy; self-expressive—Lexus car, tells others that I can afford a luxury car.)

Critical Thinking




Goals of BrandingFor the marketer, the power of a brand is

its ability to infl uence purchasing behavior. Branding helps marketers promote and sell the product. Marketers use branding to achieve the following goals: (1) create a unique brand identity; (2) create a positive image of the brand; and (3) develop brand loyalty. Branding is often considered part of promotion. However, branding should be considered in every decision made for the marketing mix, starting with the product decisions. The brand is affected by the choices made for product, place, price, and promotion.

Unique Brand IdentityMarketers often use product features

to sell a product. For example, a computer might have the fastest processor available. A beauty salon might have the best process for coloring hair. However, product features can easily be copied by the competition. As a result, product features are rarely unique. In order to make a brand stand out from the competition, marketers need to use other aspects of a product to distinguish it from the competition.

What are those other aspects? One aspect consists of the benefi ts that the customer gains from using the product. A benefitis the need-satisfying ability of a product. Customers buy benefi ts, not features. Many marketers have more success promoting the benefi ts rather than the features of their products. Another aspect is the visual symbol of the product. Benefi ts and visual symbols can be used to distinguish a product from its competition.

Product BenefitsProduct benefi ts are generally in three

categories: functional benefi ts, emotional benefi ts, and self-expressive benefi ts. These

benefi ts are based on the human needs discussed in Chapter 17 and shown in Maslow’s hierarchy, Figure 17-2.

Functional benefi ts meet physical and safety needs. Functional benefi ts are often related to the features of a product such as design or location. For example, the design of M&M candies makes them easy to eat because they “melt in your mouth, not in your hand.” The location and hours of a 7-Eleven store make it easy for you to get to at any time.

Emotional benefi ts meet acceptance and esteem needs. Customers experience emotional benefi ts when the features of the product create positive feelings. For example, wearing Nike athletic shoes makes you feel healthy and capable. Using Maybelline cosmetics makes you feel vibrant and attractive.

Self-expressive benefi ts meet esteem and self-actualization needs. Customers experience self-expressive benefi ts when use of the product expresses the consumer’s self-image, 22-6. For example, driving a

22-6

Purchase of a product can add to a person’s sense of self-esteem and self-confi dence.


Organize students into groups. Have students look for brands of services. Have each group fi nd at least three. Have them analyze their visual symbols and look for the metaphor (if there is one). Have the group evaluate whether the visual symbols and metaphor work. Have groups present their brands to the class.

(Student response. Wendy’s hamburgers. Benefi t—freshly made hamburgers to order; Symbol—A smiling little girl with pigtails; the metaphor compares the Wendy’s restaurant to a happy girl, implying that you will be happy when you eat at Wendy’s.)


Invite the art teacher to talk to your students about graphics and visual symbols. Discuss creativity and how visual artists develop ideas for logos, metaphors, and visual images. Have the teacher lead the class in developing some visual images for existing or made-up brands.


Art


Volkswagen Beetle shows that you are a young, fun person. Using an Apple computer shows that you are a creative, individualistic type. Wearing Sean John clothing (P. Diddy’s new clothing line) shows that you are cool and keep up with the latest trends.

Visual SymbolsOne of the most powerful aspects of a

brand is its visual symbol. The visual symbolis the graphic design; it may include the brand name, logo, or slogan. (Often the slogan is set to music. Then the music also becomes part of the brand’s “visual” symbol, even though it is actually an aural symbol.)

Visual symbols often work best when they evoke some aspect of the brand. Part of the reason that the Nike swoosh is so effective is that it evokes a sense of movement and power. Part of the reason that McDonald’s golden arches are so effective is that they remind you of the M in McDonald’s. Many of these visual symbols are recognized around the world.

Visual symbols often gain their effectiveness by using metaphor. A metaphoris a comparison between two unlike objects or ideas, for the purpose of implying a similarity between them. For example, athletic shoes do not actually have anything in common with a wave or a swoosh. However, the Nike swoosh implies that if you wear Nike shoes, you will feel powerful like a wave or a blast of wind.

Metaphor is especially useful in developing brands for services. Services are intangible. Visual symbols are used to make the intangible benefi ts of a service visible. Allstate Insurance Company created one of the most successful visual symbols based on a metaphor: two hands and the slogan “You’re in good hands.” The metaphor compares Allstate Insurance to being taken care of by a good friend or family member. The symbol of this good person is the logo of two hands, 22-7. This metaphor, expressed

by the logo and slogan, creates the unique identity for the Allstate Insurance brand. Allstate uses these visual symbols in their advertising to promote their brand as reliable and caring.

Name a brand that you use often. What kind of benefi ts does this brand give you? What is the visual symbol of this brand? What is the metaphor in the symbol?


Positive Brand ImageDeveloping a unique brand does not

make a positive brand image. Positive brand image is developed over time by promotion and by customer experience with the product. Two types of activities help build a positive brand image: positioning and social responsibility.

PositioningPositioning consists of the actions

marketers take to create a certain image of a product in the minds of customers. Brands

22-7

Services often use a metaphor to make the concept of their service visual. Allstate uses two hands to show that you are taken care of when you use Allstate Insurance.

Courtesy of Allstate, used by permission


Ask, “What is your image of the Scion car company and Scion cars?” (Student response.) Ask, “What caused you to have this impression?” (Student response.) Then have students read about Scion in the text and look at the photos in text Figure 22-8. Have students analyze how the photos support the slogan, “United by Individuality.” How do the wording and the images support this slogan? (Student response.)

Review the information that you have gathered about your country. What product would you like to sell there? Remember it can be a good, service, or idea. Describe the product in your IBP notebook. What image will it have? How can you create that image? What position do you want it to have in the minds of the customers? Develop a name for your product and record it in your notebook.

Organize students into groups. Have each group make a list of words to describe images that they might have of a company or product, such as trendy, prestigious, old-fashioned, great value, reliable. Have them make four of them into headings on a sheet of paper. Have them list under each heading brands that convey that image. Students might also think of either high schools or colleges, and organize them by the image and position the schools have in their minds.

Critical Thinking

InternationalBusiness Project



can convey images such as prestige, value, or trendiness. The 4Ps—product, place, price, and promotion—and customer experience create the brand’s image. Brand position is the image that a brand has in the mind of the customer. In other words, positioning is what marketers do. Marketers use positioning to fi nd a place for the product in the marketplace and to distinguish the product from its competitors. The actual position is how the customers see the product. The positioning and the actual position of the product are the same, if the marketing has been successful.

Often those images are hard to change. For this reason, marketers usually decide the position of their products when they fi rst plan them. Once the marketer decides on the image desired, the marketing mix is developed to create that image in customers’ minds.

For example, it wasn’t long after the year 2000 that Toyota, the automaker, knew it did not have a market share of young buyers. Toyota wanted to develop a new brand of car with strong appeal to young, trend-setting “Generation Y” (or millennial) consumers. Motivated by a desire for innovation, high style, fuel economy, and quality, these millennial consumers also want reliability for an affordable price. Initially sold in California and then nationwide, in 2004 Toyota unveiled its fi rst new brand since the Lexus in 1989—the Scion.

With emphasis on engaging Generation Y consumers and those teens and “tweens” who have strong infl uence with their parents, the Scion maker developed a forward-thinking marketing mix. Setting the image of Scion as a “hip” affordable car, the Scion lineup comes in a well-equipped basic trim package. It sells for a “no hassle” list sticker price with such features as high-tech stereo equipment. The marketing slogan “United by Individuality,” builds brand unity as buyers easily personalize their cars to fi t their lifestyles with dealer add-on accessories.

Building community is key to Toyota’s brand positioning. By using such unconventional marketing schemes as Internet promotions and Scion-centered social networking Web sites, Toyota builds customer relationships and draws Scion owners together.

Social ResponsibilityThe image of the corporation is part

of the image of the brand. People like companies that are socially responsible. For this reason, many companies participate in visible community and charitable events, 22-9. For example, Sony Music Entertainment provides support to Boys & Girls Clubs of America, City Kids, Rock the Vote, the UJA Federation, the Rainforest Foundation, the Congressional Black Caucus Foundation, the

22-8

Scion continues to attract young buyers with its trendy features and easy customization.

Courtesy of Toyota Motor Corporation


Why do companies want customers to know about their participation in socially responsible activities? (To project an image of a caring, concerned company, which may make customers want to do business with them.)

How can you be socially responsible in the country you chose? How can you show that you are socially responsible?

Are any sports stadiums or other public arenas in your area named for companies? List the names, the kind of building and what activities take place there, why you think the company wanted its name on that building, and your image of the company. (Student response. U.S. Cellular Field, Chicago, ballpark; baseball games, to get exposure to people who watch baseball, cell phone company.)

(Student response. Olympic Games—VISA (credit card), Coca-Cola (beverage), Kodak (cameras), UPS (delivery service), Adidas (athletic shoes). Worldwide exposure of brand and products at an event with great prestige and viewed by millions of people around the world.)

Critical Thinking

InternationalBusiness Project

Critical Thinking



National Urban League Annual Convention, the Congressional Hispanic Caucus, and the Asian American Legal Defense and Education Fund.

One of the hottest areas in marketing right now is obtaining “naming rights” for new sports stadiums and other public places. Many companies pay millions of dollars for the privilege of placing their corporate brand on a new sports arena.

For example, Conseco, Inc., is an Indiana-based insurance company. The city of Indianapolis built a new sports arena. Conseco paid $90 million for the privilege of having its name on this arena for twenty years. By having its name on this arena, Conseco is promoting its brand as one that supports sports and the economic well-being

of the state of Indiana. People who attend events at the Conseco Fieldhouse will have a positive image of the Conseco insurance company. This positive image may lead some people to think of Conseco when they need insurance.

Think of a sporting event that you recently attended or watched on TV. Name some of the corporations that sponsored the event. What brands were they promoting? Why do you think these corporations sponsored this event?


22-9

To project an image of a caring company, many companies contribute to community events and charities, such as Little League.


(Student response. Crest toothpaste — my mother always bought Crest so I use it.)

TR: New Product, New Brand, Master 22-1 (project). Students design and build (or build a prototype of) a new product and its packaging, including the brand name, trademark, and slogan.

Make a list of products to which you have no brand loyalty and explain why. (Student response. Facial tissue, eggs, hand soap. There is not much difference among the various brands, so I just buy the cheapest.)

Review the meaning of the terms benefi t, positioning, brand position, and brand loyalty. Answer questions 6–8 under Review Concepts and questions 5–6 under Think Critically at the end of the chapter.


Resource

Critical Thinking

Review It Now

If students have not already done so, have them decide which DECA event they want to compete in. Have them write down the name of the event and the career cluster. Have them read The DECA Guide to determine if there is a corporate sponsor for their event. If there is no specifi c sponsor, have students fi nd an event that has a sponsor. Have students make a copy of the logo. Have them research the company and write a paragraph on its main product, purpose, and image. Then have them write whether the logo projects that image.


Brand LoyaltyResearch has shown that it is less

expensive to keep current customers than to fi nd new customers. One of the advantages of a strong brand is that it inspires brand loyalty. Brand loyalty is a situation in which the customer will buy only a certain brand of a product. Brand loyalty results in repeat purchases and more profi ts. If the brand is not available, the customer will search for the brand or not buy the product at all. For example, in the automobile category, some people will only buy Fords. In the soft drink category, some people will only buy Mountain Dew. Brand loyalty occurs when the brand meets customer needs and when marketers have created a strong relationship between the customer and the brand.

Are you loyal to certain brands? Name a brand and explain why you are loyal to it.


Protecting a BrandA brand is only valuable if your

competitors cannot copy it. To prevent a brand from being copied, the brand creator can register the brand with the U.S. Patent and Trademark Offi ce (USPTO). Trademarkis another term for brand; it refers to the word, phrase, symbol, or design, or a combination of words, phrases, symbols, and designs that identifi es and distinguishes the source of goods. A service mark is the same as a trademark, except that it identifi es and distinguishes the source of a service.

Technically, the creator of a brand and its trademark or service mark has rights in the trademark based on its usage. Anyone can use the symbols TM for trademark or SM for service mark. These symbols notify

the people who see the trademark or service mark that the creator claims exclusive rights in the brand and its trade or service mark.

However, to provide stronger protection, the creator can register the trade or service mark with the USPTO. There are many requirements that a trade or service mark must meet in order to be registered. The main requirement is that no one else has registered that same trade or service mark in the same industry. Once a trade or service mark has been registered, the symbol ® can be used with the mark, 22-10. Registration of the brand means that your right to the brand is protected by U.S. law. If anyone else uses your brand, you can sue him or her for trademark or service mark infringement. The symbol ® is used mostly on the product itself, packaging, and promotion by the company. There is no legal requirement to use the ®.

Have you ever said, “Hand me a Kleenex”? Did you mean to ask specifi cally for Kleenex brand tissue, or did you mean any facial tissue that was handy? In some product categories, one brand becomes so popular, that customers begin to use the brand name instead of the generic name.

22-10

The symbol ® means that the trademark or service mark is protected by U.S. law.

Photo courtesy of Cadbury-Schweppes America’s Beverages, Inc.



A generic name is the general name for an entire product category. Kleenex is a brand in the generic category of disposable facial tissues. Generic names cannot be registered as trademarks. The words disposable facial tissue cannot be trademarked. A brand name, such as Kleenex, can be registered with the USPTO.

If a brand becomes so popular that people use the brand name instead of the generic product name, the brand name may lose its trademark protection. When a brand name becomes a generic name, the brand name is in effect killed as a trademark. That brand name no longer has trademark protection and can be used by anyone. Many generic names started as brand names. Examples include escalator, granola, tarmac, and zipper.

Many current brand names are often used generically. Examples include Band-Aid, Pepsi, Kleenex, and Xerox. The generic usage attests to the popularity of the brand. On the other hand, the generic usage makes it possible that the brand might lose its trademark protection, which would be a great loss to the trademark owner. To help distinguish the brand from the generic category, marketers often use the word brandalong with the brand name or trademark. For example, Kleenex is often advertised as “Kleenex brand tissue.”

One brand that is working very hard to keep its name from becoming generic is Rollerblade, Inc. Rollerblade® is a brand of in-line skates. To protect the brand name, the Rollerblade company requests that you do not use the word Rollerblade as a generic term for in-line skates, 22-11, 22-12. Their guidelines apply to all brand names.

You as a BrandMany of the most famous and popular

brand names are the names of people who developed the brands. Examples include

Ford, The Ritz-Carlton, and Jennifer Lopez. When people think of these brand names, they get a complete and specifi c image of the products that the names represent. Ford is a quality-driven brand of American automobiles and trucks. The Ritz-Carlton is a luxury hotel. Jennifer Lopez is an “over-the-top” celebrity.

Imagine your name as your brand, and you as the product. When the principal of your school hears your name, what image comes to his or her mind? What image would you like him or her to have of you?

In the competitive world of job searches, the concept of branding is the new hot approach. Job candidates develop themselves as a brand. The purpose of developing your own personal brand is the same as the purpose of a product brand: to distinguish you from the rest of the competition and to make the potential employer want to buy your product (that is, hire you).

22-11

The Rollerblade brand has become very popular. Because Rollerblade was the fi rst in the market with this type of skate, people tend to forget that “Rollerblade” is a brand name.

Photo courtesy of Rollerblade USA.

What might happen if there were no USPTO and no way to protect brand names and trademarks? (Student response. People would use other people’s ideas as their own and thus benefi t from someone else’s hard work or creativity. Eventually, no one would want to put out the effort to create new brands and products because there would be no benefi t in it if someone else could use it.)

Write the name of your favorite celebrity. Why do you like or admire this person? Does he or she use his or her name as a brand? What does that brand stand for? Does this person sell merchandise with his or her name or number on it? If yes, describe the merchandise. Would you buy it? Why or why not?

Work on building up self-esteem for all students. When discussing a name as a brand, have students list their strengths. Students who have been labeled as having a learning disability might fi nd it diffi cult to see positive qualities in themselves since learning is not always easy for them. Help them see their strengths in areas other than academics, such as drawing or the ability to make people laugh.

Critical Thinking

Journal Writing

Meeting Special Needs



Assume that your name is your brand. What is your unique brand identity? Do you have a positive brand image? What is your slogan?


Rollerblade’s Guidelines for Trademark Use

Trademarks are proper adjectives and therefore should be capitalized and should be followed by the generic terms they describe.

WRONG: rollerblade, rollerblades RIGHT: Rollerblade® brand in-line skates

Because trademarks are not nouns, they should not be used in the plural or possessive form. Instead, pluralize the common nouns they describe.

WRONG: Rollerblades RIGHT: Rollerblade® brand in-line skates

Trademarks are never verbs.

WRONG: rollerblading RIGHT: in-line skating, skating

Slang terms of trademarks should be avoided.

WRONG: blade(s), blader(s), bladingRIGHT: in-line skate(s), in-line skater(s), in-line skating, skate(s), skater(s), skating

22-12

The Rollerblade company prints guidelines for proper use of its trademarked names on its Web site. These guidelines apply to all trademarks.

Courtesy of Rollerblade USA, used by permission. www.Rollerblade.com

TR: Rollerblade’s Guidelines for Trademark Use, Master 22-2 (transparency). This transparency shows text Figure 22-12. Ask students to provide additional examples of trademarks whose use, like Rollerblade, should follow these guidelines.

(Student response.) Students can record their answers in their journals. Encourage students to give the questions in the Reality Check some thought. Additional questions: What is unique about you? What image do you project? What do people think when they see you? What image would you like to project? What saying or slogan describes you?

WB: Your Name—The Best Brand Name, Activity B. Students analyze brands named after people and brands not named after people. They then imagine that their name is the name of a product, and answer related questions.

Review the meaning of the terms trademark and service mark. Review questions 9–10 under Review Concepts at the end of the chapter.

Resource


Resource

Review It Now


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Chapter 22 ReviewChapter 22 Review

Remember This

■ The value of a brand is its ability to increase sales through brand recognition and brand loyalty.

■ A corporate brand represents the corporation. A product brand represents a specifi c product.

■ Branding helps the customer by (1) identifying the product, (2) assuring quality, and (3) assuring consistency.

■ Branding helps the marketer promote and sell the product by creating (1) a unique identity, (2) a positive image, and (3) brand loyalty.

■ A positive brand image is developed over time through promotion and customer experience with the brand.

■ Brand creators use several ways to prevent competitors from copying their brands.

Review Concepts

1. What is the difference between a brand name and a logo?

2. What are the intangible parts of a brand? 3. Explain the difference between a

corporate brand and a product brand. 4. List the three types of brands. 5. Store brand is another term for what type

of brand? 6. Why might a customer become loyal to a

brand? 7. What do marketers use to create a unique

brand identity? 8. What is the difference between

positioning and brand position?

9. How can the creator of a brand protect the brand?

10. How could a brand name become a generic name? Give an example.

Think Critically

1. Why do marketers bother with the expense and effort involved in creating a brand?

2. Why do some marketers set their slogans to music?

3. List three brands that you think are the most successful. Identify whether each one is a corporate brand or a product brand. Explain why each brand is successful.

4. Name a corporate brand. Then list three product brands that the corporation sells.

5. Why would it be helpful to marketers to decide the branding of a product when they make the product decision and before they make decisions about the other three Ps?

6. What does social responsibility have to do with creating a brand? What are some ways that employees can reinforce a company’s image?

Connect to Business

1. Think about your workstation or your favorite store. What are the brand name, logo, and slogan? What is the image of the brand in customers’ minds?

2. Visit a supermarket and choose an aisle in the store. Name one of the product categories in that aisle. List all

1. A brand name consists of words, numbers, or letters that can be spoken. A logo is the picture, design, or graphic image that is associated with the brand.2. Its image, personality, and ability to infl uence customers to buy the product.3. The corporate brand represents the entire company. A product brand is the brand of a specifi c product.4. Manufacturer, private, and generic.5. Private brand.6. Consistency and quality of the product.7. Product benefi ts (functional, emotional, and self-expressive) and visual symbols.8. Positioning is what marketers do to create a brand’s position in the customer’s mind. Brand position is the actual position that the brand has in the customer’s mind.9. Register the brand with the U.S. Patent and Trademark Offi ce.10. Examples may vary. If a brand becomes so popular that people use the brand name instead of the generic product name, the brand name may lose its trademark protection. Zipper.

Review Concepts Answers


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the manufacturer, private, and generic brands for that product category. Compare the weight or items per package, item price, and unit price.

3. Choose a corporation that makes consumer products, such as Liz Claiborne, Inc. or Procter & Gamble. Use library resources or the Internet to research the company’s brands. Make a poster or use presentation software to show the company’s brands. Include the brand name, logo, and slogan for each brand. Were you surprised by any of the brands that the company owns?

Explore Careers

1. The person responsible for a specifi c brand is called a brand manager. Use library resources and the Internet to fi nd out what a brand manager does. Search a job search Web site, such as www.monster.com, for jobs as a brand manager. Choose a job that appeals to you. What are the qualifi cations for the job? What does a person in the job do? Would you like this job? Explain why or why not.

2. Designers are essential in many areas of marketing. Graphic designers often work with the development of logos for brands, as well as other aspects of brand development and advertising. Read about graphic designers in the article “Designers” in the Occupational Outlook Handbook, available in libraries or online at www.bls.gov/OCO/. Search a job search Web site for jobs as a graphic artist.

Choose a job that appeals to you. What are the qualifi cations for the job? What does a person in the job do? Would you like this job? Explain why or why not.

Connect to the Internet

1. Use a search engine to fi nd companies that design logos. Use the keywords “logo design.” Find at least one company that displays examples of logos they have designed. The examples can usually be found at a link called “Portfolio” or “Samples.” Select and print the logo you like the best. Name and/or describe the company or product for which the logo was designed. Label the parts of the logo. Explain why you like it. Do you think the logo creates a unique and memorable identity for the company or product? Explain your answer.

2. Visit the Web site of the U.S. Patent and Trademark Offi ce (www.uspto.gov).Under the Trademark header, click the link for “Search.” Then click the link for “New User Form Search.” Enter the name of a famous brand. Explore the registrations that appear and then answer these questions. Who owns the trademark? Is the trademark for words only or words and a drawing/stylized characters? What is the trademark for (that is, what type of good or service)? Is this the fi rst registration? What is the date and number of the current registration? Who else has applied for this trademark?

MEH: Activity Buffet—Content Review, Games, and Vocabulary. Use activities from these buffet categories to review chapter content and vocabulary.

Select from various assessment options: Chapter 22 Test, Reproducible Test Master in the TR; Activity Buffet—Assessment in the MEH; and ExamView® Assessment Suite CD.

Resources Review

Resources Assessment

Encourage students to think of their names as a brand they will have throughout their lives. Ask, “What do you need to do to make sure that your brand name remains good? What might happen to spoil your brand name? What might you do to improve your brand name?”

Lifelong Learning


http://www.monster.com

http://www.bls.gov/OCO/

http://www.uspto.gov

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