- [Instructor] Welcome to part two
of the video lecture on brand.
So we will do a number of these in class,
but I want you to think about,
as you see these brands: What do they stand for?
What is their promise?
What do you know that you're getting
when you buy one of these products?
So I'm just gonna flip through each one
and we will go through class.
Feel free to pause it,
and jot down ideas so you're ready to discuss it in class.
But here's one.
Here's another one.
What do you know what you're getting
when you get this on a product?
What are these folks known for? What are you getting?
What's the promise?
And ponder this
and this.
Here are three well-known Vermont brands.
Well, what are they known for? What's the promise?
What do you know that you're getting
when you're buying something from each of these?
I wanna spend just a little bit more time on the name,
which is the first of the brand elements,
and maybe the very first thing that you consider
when you're developing a brand.
So what should you name your business?
And then what other brand elements go along with that?
And you'll notice
that many businesses are named after their founders,
such as Ford and Calvin Klein.
Can you think of any other examples?
So here's some suggestions for a good name
that it should suggest the benefits and function.
That Home Depot is somewhere where you buy hardware,
things to work on your home.
Best Buy hopefully offers a good product.
It should fit the image.
There should be no legal restrictions.
So certainly,
if I start to sell
a soda called Coca-Cola,
or anything that sounds anything like that,
I'm going to be getting a letter from their legal team
very fast saying, "Don't do that."
It should be easy to pronounce.
And remember,
it can have emotional appeal.
Like here's an example of Grandma's cookies.
Maybe other family members may not have
such a positive emotional appeal,
but Grandma's seems like that's on pretty safe ground,
hopefully for most of us.
And it should translate well.
So especially if you're going to sell it overseas,
make sure that it isn't anything like confusing,
or contradictory
or offensive in a language
where you hope to sell.
And there's, I don't know if it's actually,
I've heard that this really isn't a completely true story,
but the idea that Chevy had a car
called the Nova, the N-O-V-A.
And when they tried to sell it
in a Spanish-speaking country,
it says nova, which means it won't run or it won't go,
which is a bad name.
But anyway, it's more of an example than
a sort of truthful story.
But I think,
hopefully
you get my point.
So I want you to think about brand equity.
So here I'm thinking the word equity has many meanings.
Some is, means fairness.
So like gender equity or
racial equity.
That's not what I'm speaking about.
Here I'm speaking in terms of value.
Like if you get a home equity loan,
it means that there's value in your home
that you could sell your home right now
for more than the amount of your existing mortgage.
So you've built up equity
and sometimes a bank will let you borrow against that.
But you can think of it here as:
What is the value that the brand adds to the product?
What does that brand name,
what does it do for the product?
So it is sort of the sum of the value,
the trust, the perceived value, et cetera,
and one way that you could maybe measure this is
how much more are people willing to pay
for a branded product?
And we see that
on the grocery store shelf.
So you'll see a box of
Kellogg's Raisin Bran, say,
and then you'll see a box
of Hannaford's or the sort of locals there,
like house brand.
And they are basically made from the same ingredients
in the same factory in the same way, same recipe,
but one of them
receives a lot of marketing support.
One does not.
So you can think about that,
that the extra price that you pay is what you're paying
for the brand.
So these are the strategies.
So you wanna forge strong, favorable,
unique consumer associations,
and here are the four steps.
So first you wanted to develop awareness.
You want people to know that you exist
and to associate it with the attributes and the benefits
and the promise that your product or service brings.
So think about how did you become aware of these entities?
and we'll discuss it in class.
Next is the meaning. What does it stand for?
Both what is sort of its practical value
and what sort of like imagery or abstraction goes along?
And basically, what is the promise? What are you getting?
What are you known for?
Here are two well-known products that Vermont are known for.
That we're known for having outstanding maple syrup
and outstanding cheese.
So both, we want them to think, "Oh, this is high quality.
It's superior,"
as well as sort of the feeling that you get
from the State of Vermont,
this beautiful state with its mountains,
its farms, it's clean, it's, you know, pro-environment.
And like, hopefully,
people will associate
those emotions with these product as well.
Then we hope for a response:
that they
try it,
they buy it, they like it,
and they'll be buy it again.
And in the long run,
they become that sort of loyal customer
who are the backbone of your business.
And in an ideal world,
it will begin to resonate,
that people will have an active loyalty.
They'll have a psychological bond.
They'll be known like, "I am a Mac user,"
or, "I'm a Ford driver."
That they really sort of start to identify with that.
One way of thinking about it is:
do people wear your logo on clothing?
You know, so you see Harley-Davidson shirts,
you might see Apple shirts,
but will they really start to identify like,
"This is my product?
I am a loyal Harley motorcycle rider,
and I have shirts,
and you know,
leather jackets that have their logo on it."
Another way of thinking about this is know, like, and trust.
So first, we want them to know us.
Know that we exist, know that we are out there,
then they want us to like us.
"Mm, that was good. I liked that.
I bought their thing, it worked well.
It was what I was hoping for.
It made me be happy," et cetera.
And finally, trust.
"I can trust that next time I buy it, I'm going to like it.
I know what I'm getting. They keep their promise."
So I wanna show you these in class.
Please watch these and we will discuss them.
This is what we did.
What's a brand. Why it's important.
And we talked about brand elements and brand equity.
That is the end of this lecture.
Please do the assessment and we'll discuss it in class.
And thank you.