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- [Instructor] Welcome to part two

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of the video lecture on brand.

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So we will do a number of these in class,

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but I want you to think about,

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as you see these brands:
What do they stand for?

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What is their promise?

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What do you know that you're getting

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when you buy one of these products?

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So I'm just gonna flip through each one

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and we will go through class.

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Feel free to pause it,

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and jot down ideas so you're
ready to discuss it in class.

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But here's one.

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Here's another one.

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What do you know what you're getting

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when you get this on a product?

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What are these folks known
for? What are you getting?

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What's the promise?

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And ponder this

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and this.

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Here are three well-known Vermont brands.

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Well, what are they known
for? What's the promise?

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What do you know that you're getting

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when you're buying something
from each of these?

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I wanna spend just a little
bit more time on the name,

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which is the first of the brand elements,

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and maybe the very first
thing that you consider

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when you're developing a brand.

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So what should you name your business?

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And then what other brand
elements go along with that?

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And you'll notice

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that many businesses are
named after their founders,

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such as Ford and Calvin Klein.

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Can you think of any other examples?

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So here's some suggestions for a good name

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that it should suggest
the benefits and function.

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That Home Depot is somewhere
where you buy hardware,

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things to work on your home.

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Best Buy hopefully offers a good product.

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It should fit the image.

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There should be no legal restrictions.

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So certainly,

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if I start to sell

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a soda called Coca-Cola,

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or anything that sounds
anything like that,

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I'm going to be getting a
letter from their legal team

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very fast saying, "Don't do that."

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It should be easy to pronounce.

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And remember,

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it can have emotional appeal.

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Like here's an example
of Grandma's cookies.

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Maybe other family members may not have

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such a positive emotional appeal,

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but Grandma's seems like
that's on pretty safe ground,

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hopefully for most of us.

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And it should translate well.

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So especially if you're
going to sell it overseas,

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make sure that it isn't
anything like confusing,

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or contradictory

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or offensive in a language

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where you hope to sell.

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And there's, I don't
know if it's actually,

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I've heard that this really
isn't a completely true story,

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but the idea that Chevy had a car

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called the Nova, the N-O-V-A.

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And when they tried to sell it

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in a Spanish-speaking country,

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it says nova, which means
it won't run or it won't go,

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which is a bad name.

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But anyway, it's more of an example than

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a sort of truthful story.

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But I think,

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hopefully

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you get my point.

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So I want you to think about brand equity.

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So here I'm thinking the word
equity has many meanings.

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Some is, means fairness.

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So like gender equity or

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racial equity.

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That's not what I'm speaking about.

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Here I'm speaking in terms of value.

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Like if you get a home equity loan,

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it means that there's value in your home

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that you could sell your home right now

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for more than the amount
of your existing mortgage.

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So you've built up equity

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and sometimes a bank will
let you borrow against that.

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But you can think of it here as:

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What is the value that the
brand adds to the product?

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What does that brand name,

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what does it do for the product?

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So it is sort of the sum of the value,

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the trust, the perceived value, et cetera,

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and one way that you could
maybe measure this is

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how much more are people willing to pay

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for a branded product?

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And we see that

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on the grocery store shelf.

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So you'll see a box of

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Kellogg's Raisin Bran, say,

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and then you'll see a box

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of Hannaford's or the
sort of locals there,

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like house brand.

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And they are basically made
from the same ingredients

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in the same factory in
the same way, same recipe,

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but one of them

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receives a lot of marketing support.

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One does not.

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So you can think about that,

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that the extra price that
you pay is what you're paying

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for the brand.

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So these are the strategies.

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So you wanna forge strong, favorable,

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unique consumer associations,

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and here are the four steps.

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So first you wanted to develop awareness.

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You want people to know that you exist

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and to associate it with the
attributes and the benefits

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and the promise that your
product or service brings.

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So think about how did you
become aware of these entities?

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and we'll discuss it in class.

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Next is the meaning.
What does it stand for?

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Both what is sort of its practical value

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and what sort of like imagery
or abstraction goes along?

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And basically, what is the
promise? What are you getting?

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What are you known for?

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Here are two well-known products
that Vermont are known for.

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That we're known for having
outstanding maple syrup

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and outstanding cheese.

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So both, we want them to think,
"Oh, this is high quality.

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It's superior,"

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as well as sort of the
feeling that you get

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from the State of Vermont,

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this beautiful state with its mountains,

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its farms, it's clean, it's,
you know, pro-environment.

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And like, hopefully,

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people will associate

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those emotions with these product as well.

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Then we hope for a response:

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that they

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try it,

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they buy it, they like it,

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and they'll be buy it again.

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And in the long run,

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they become that sort of loyal customer

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who are the backbone of your business.

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And in an ideal world,

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it will begin to resonate,

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that people will have an active loyalty.

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They'll have a psychological bond.

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They'll be known like, "I am a Mac user,"

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or, "I'm a Ford driver."

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That they really sort of
start to identify with that.

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One way of thinking about it is:

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do people wear your logo on clothing?

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You know, so you see
Harley-Davidson shirts,

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you might see Apple shirts,

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but will they really
start to identify like,

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"This is my product?

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I am a loyal Harley motorcycle rider,

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and I have shirts,

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and you know,

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leather jackets that
have their logo on it."

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Another way of thinking about
this is know, like, and trust.

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So first, we want them to know us.

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Know that we exist, know
that we are out there,

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then they want us to like us.

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"Mm, that was good. I liked that.

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I bought their thing, it worked well.

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It was what I was hoping for.

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It made me be happy," et cetera.

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And finally, trust.

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"I can trust that next time I
buy it, I'm going to like it.

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I know what I'm getting.
They keep their promise."

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So I wanna show you these in class.

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Please watch these and
we will discuss them.

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This is what we did.

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What's a brand. Why it's important.

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And we talked about brand
elements and brand equity.

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That is the end of this lecture.

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Please do the assessment and
we'll discuss it in class.

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And thank you.