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PEST analysis method and examples, with free PEST template The PEST analysis is a useful tool for

understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT analysis, and Porter's Five Forces model, be used to review a strategy or position, direction of a company, a marketing proposition, or idea. Completing a PEST analysis is very simple, and is a good subject for workshop sessions. PEST analysis also works well in brainstorming meetings. Use PEST analysis for business and strategic planning, marketing planning, business and product development and research reports. You can also use PEST analysis exercises for team building games. PEST analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors). PEST analysis template Other than the four main headings, the questions and issues in the template below are examples and not exhaustive - add your own and amend these prompts to suit your situation, the experience and skill level of whoever is completing the analysis, and what you aim to produce from the analysis. Ensure you consider the additional PESTELI/STEEPLED headings, and any others you feel are relevant, but avoid building these into the final analysis model unless you gain some strategic planning or presentation benefit from doing so. If helpful refer to a list of these other 'headings', for example: Ecological/ Environmental, Legislative/or Legal, Demographic, Ethical, Industry Analysis. Apply some strategic consideration and pressure to the points you list under these 'additional' headings. Ask yourself what the effects of each will be on the 'big four' (Political, Economic, Social, Technological). Often your answers will persuade you that the original four-part PEST model is best and that using a more complex series of headings makes it more difficult to complete the analysis fully and strategically. The analysis can be converted into a more scientific measurement by scoring the items in each of the sections. There is are established good or bad reference points - these are for you to decide. Scoring is particularly beneficial if more than one market is being analysed, for the purpose of comparing which market or opportunity holds most potential and/or obstacles. This is useful when considering business development and investment options, ie, whether to develop market A or B; whether to concentrate on local distribution or export; whether to acquire company X or company Y, etc. If helpful when comparing more than one different market analysis, scoring can also be weighted according to the more or less significant factors. (insert subject for PEST analysis - market, business, proposition, etc.) political

economic

ecological/environmental issues current legislation home market future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market lobbying/pressure groups international pressure groups wars and conflicts

home economy situation home economy trends overseas economies and trends general taxation issues taxation specific to product/services seasonality/weather issues market and trade cycles specific industry factors market routes and distribution trends customer/end-user drivers interest and exchange rates international trade/monetary issues

social

technological lifestyle trends demographics consumer attitudes and opinions


competing technology development research funding associated/dependent technologies

media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues

replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing, patents intellectual property issues global communications

More on the difference and relationship between PEST and SWOT PEST is useful before SWOT - not generally vice-versa - PEST definitely helps to identify SWOT factors. There is overlap between PEST and SWOT, in that similar factors would appear in each. That said, PEST and SWOT are certainly two different perspectives: PEST assesses a market, including competitors, from the standpoint of a particular proposition or a business. SWOT is an assessment of a business or a proposition, whether your own or a competitor's. Strategic planning is not a precise science - no tool is mandatory - it's a matter of pragmatic choice as to what helps best to identify and explain the issues. PEST becomes more useful and relevant the larger and more complex the business or proposition, but even for a very small local businesses a PEST analysis can still throw up one or two very significant issues that might otherwise be missed. The four quadrants in PEST vary in significance depending on the type of business, eg., social factors are more obviously relevant to consumer businesses or a B2B business close to the consumer-end of the supply chain, whereas political factors are more obviously relevant to a global munitions supplier or aerosol propellant manufacturer. All businesses benefit from a SWOT analysis, and all businesses benefit from completing a SWOT analysis of their main competitors, which interestingly can then provide some feed back into the economic aspects of the PEST analysis.

Domestic vs International Marketing Marketing is the efficient and effective management and utilization of a companys resources to meet the consumers demands and the companys objectives. It involves selling the companys products to satisfy the needs of consumers. It includes planning, conception and execution of ideas, pricing, promotion, and distribution of a companys products with the purpose of obtaining the companys objectives and satisfying the consumers. Marketing can be done within a local or domestic market or across national borders or in the international market. Here are some of the different features of Domestic Marketing and International Marketing: Domestic Marketing Domestic marketing is the selling of a companys products within a local financial market. It deals with only one set of competition and economic issues which make it more convenient to do. There are no language barriers in domestic marketing and obtaining and interpreting data on local marketing trends and consumer demands is easier and faster to do. It helps the company make decisions and develop

marketing strategies that are more effective and efficient. The risks are also lesser with domestic marketing and it needs lesser financial resources. Local markets are not as broad as the international market though and most companies are aiming at doing business globally. International Marketing International marketing is the promotion and sale of a companys products to consumers in different countries. It is very complex and requires a huge amount of financial resources. Every country has its own laws on business and a company that aims at entering into business in another country must first know about them. Consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers. International marketing requires more time and effort, not to mention its being very risky too. The international market is very uncertain and a company must always be ready for changes that may suddenly occur. It requires a higher level of commitment to succeed in an international market. Summary 1. Domestic marketing is the production, promotion, distribution, and sale of goods and services in a local market while international market is the production, promotion, distribution, and sale of goods and services in a global market. 2. Domestic marketing is less risky and easier to conduct while international marketing is more risky and more complex. 3. Domestic marketing requires lesser financial resources while international marketing requires huge financial resources. 4. Domestic marketing deals with only a single market while international marketing deals with several different countries and markets. 5. Although both use all the basic marketing principles, international marketing is more challenging and requires more commitment from the company because of the uncertainty and differences in laws and regulations in the global market while domestic marketing deals only with the laws and regulations of one country. 6. Domestic marketing deals only with one set of consumers while international marketing deals with different types of consumers with different tastes. 7. In domestic marketing, the company can have the same policies and strategies while international marketing requires different strategies in the promotion of their products. Global marketing is more complex, and must take into consideration numerous factors, including but not limited to:
Language and translation: While some countries share similar languages, every country has nuances of language that must be considered before marketing globally. English, for example, is a language spoken in the United States, Canada, the United Kingdom, and other countries, yet certain words mean certain things. Spanish is another language shared by millions worldwide, yet the Spanish spoken in Mexico differs from the Spanish spoken in Spain. Be sure to share marketing pieces with native speakers in the countries you target, even if the language is the same as your domestic market. You can avoid laughable mistakes and serious marketing blunders by having someone review marketing pieces. Cultural considerations: As with language, cultures vary worldwide and marketing pieces must reflect cultural nuances accordingly. Some cultural differences are quite dramatic, while others are more subtle. In the United States, advertisements depicting scantily clad models sell everything from shaving products to soft drinks. In more conservative cultures, such advertisements would be offensive or even banned. Some cultures value abstract, clever advertisements, while others prefer direct messages. In addition to checking linguistic differences, it's wise to use a service that will also examine the cultural context of your marketing campaigns to avoid gaffes. Spending money on such a service may seem like an extravagance, but it will save money later by helping you avoid costly advertising and marketing mistakes. Many translation companies also offer cultural evaluations of marketing pieces. Price and payment methods: Pricing products for a global marketplace can be tricky. In addition to online sellers needing currency converters or payment processing systems that accept multiple currencies, sellers must be aware of pricing sensitivities by country, by product and by market. Before launching your product into any global market, be sure to

investigate the competition and competitive pricing models. Make sure your intended customers can afford your products. You may need to price them different depending on whether or not you are selling domestically or globally. Marketing methods and the media mix: Some marketing methods, such as websites and print advertisements, are used in most countries. Other methods, like direct mail, are new. Many countries with large rural populations, such as China and India, may not have as robust a mail service as industrialized countries. Other countries may rely more heavily on radio or television rather than printed messages to share new and information. Be sure to know and understand the audience in the countries you are targeting before investing in any media. As with all aspects of marketing, knowing the audience for your products and services as well as you know yourself is the key to success. Distribution methods and shipping concerns: Worldwide shipping must take into consideration costs, time delays, and country restrictions. Each country has its own laws governing what goods may be imported. Companies must comply with all importation laws, and must be willing to invest the time into learning the various rules and regulations concerning exports and imports. If your company is located in the United States and you are shipping globally, check the U.S. Postal Service's website to learn about any restrictions. The site offers guidance on restricted goods and services and other considerations.

Advantages
The advantages of global market we can introduce our product by using advertising:

Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices Helps to establish relationships outside of the "political arena" Helps to encourage ancillary industries to be set up to cater for the needs of the global player Benefits of eMarketing over traditional marketing

Disadvantages

Differences in consumerneeds, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment, some of which may conflict with those of the home market Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement. Differences in the administrative procedures and product placement can occur.

Limitations
Universities may encounter a multitude of problems as they go forward with their strategic planning process. This section discusses several of these difficulties and offers ways to minimize or avoid them. POTENTIAL PROBLEMS Strategic planning is an involved, intricate, and complex process that takes an organization into the uncharted territory. It does not provide a ready to use prescription for success; instead, it takes the organization through a journey and helps develop a framework and context within which the answers will emerge. Literature and research has documented extensively the possible problems that may arise during the process. Being aware of these issues and prepared to address them is essential to success: organization's strategic planning effort may fail if these potential pitfalls are ignored. To increase universities' awareness, this section reviews some of these limitations.

Commitment One of the major challenges of strategic planning is ensuring commitment at the top, because in some ways, strategic planning reduces executive decision-making power. It encourages involvement throughout the organization, and "empowers" people to make decisions within the framework defined by the strategic planning process. As a result, this shifts some of the decision making from the executive office to the participants. Commitment of the people throughout the university "grows out of a sense of ownership of the project" (Mintzberg, 1994, p. 172). Such commitment is essential to success. Strategic planning implies organizationwide participation, which can only be achieved if people believe that their involvement counts, and that they will benefit from the process. Inflexibility of plans and planning Strategic planning might inhibit changes, and discourage the organization from considering disruptive alternatives (Mintzberg, 1994, p. 178). Planning might inhibit creativity, and "does not easily handle truly creative ideas" (Mintzberg, 1994, p. 180). A conflict lies with a desire to "retain the stability that planning brings to an organization ... while enabling it to respond quickly to external changes in the environment" (Mintzberg, 1994, p. 184). Control Strategic planning, if misused, might become a tool for gaining control over decisions, strategies, present, future, actions, management, employees, markets, and customers (Mintzberg, 1994, pp. 201-202), rather than a comprehensive and integrated instrument for bringing the organization to its desired future. Public relations Strategic planning may be used as a tool to "impress" "influential outsiders" (Mintzberg, 1994, p. 214), or to comply with requirements for strategic planning imposed from the outside, such as accreditation requirements. Objectivity Strategic planning dismisses intuition and favors readily available, interpretable "hard" data (Mintzberg, 1994, p. 191), and assumes that all goals are "reconcilable in a single statement of objectives" (Mintzberg, 1994, p. 193). Politics Strategic planning might increase "political activity among participants" (i.e. faculty and administration, or individual participants), by increasing conflict within the organization, reinforcing a notion of centralized hierarchy, and challenging formal channels of authority (Mintzberg, 1994, pp.197, 200).

Disadvantage of marketing strategy in mnc


The market penetration strategy can be highly effective for some organizations and industries. However, it does not work for all products or services as market penetration typically relies on utilization of low prices to generate more product demand to increase market share. In addition, there are five important considerations that should be explored by organizations before pursuing this growth strategy.

1. Production Costs

If your organization is not in a position to cut profit margins or lower your cost of production, market penetration may not help increase sales and profit. Another point to consider is the size of your organization. Typically, smaller or younger organizations are not in a position to lower production costs when attempting to complete against larger, more established competitors. 2. Company Image Organizations with multiple product/service lines may want to avoid the market penetration strategy. Utilizing this strategy on only some of an organization's product/service lines may backfire, especially if some of the product/service lines are considered luxurious. For example, if the lower cost product or service becomes commodity-like, customers will become more likely to purchase the more affordable product/service, causing the organization's luxury reputation to deteriorate. 3. Industry Prices The implementation of the market penetration strategy by one organization within an industry can induce a cycle of price matches by competing organizations that may result in lower industry-wide revenues. Once a price war begins all competing organizations must continue to lower prices to outmatch the competition. This creates a vicious cycle that ends with all organizations offering their products and services at a very low profit margin. 4. Inneffective This strategy may not be effective in all industries, especially those where low-cost differientiation strategies are already being employed. As a result, it may be completely impractical to compete based on low-cost with a low-cost industry leader. 5. Saturation The market penetration strategy works well for highly consumable products and services like grocery items. Using this strategy for less frequently consumed products and services like cell phones or laptops would result in the market becoming saturated. If one of these five disadvantages is a potential outcome from implementation of a market penetration growth strategy, your organization should consider another option. However, if your organization is in a position to utilize this growth strategy, it poses the least amount of risk for growth. Has your organization experienced one of these disadvantages associated with the market penetration growth strategy? If so, please share your story below.

What Is A Marketing Audit?


A marketing audit is a comprehensive, systematic,independent and periodic evaluation of a company's marketing assets. It is a effective tool in reviewing the competence of a marketing strategy, analyzing the objectives, policies and strategies of the company's marketing department as well as the manner and the means employed in attaining these goals. Because of the constantly varying business environment, marketing audit is frequently required, not only at the beginning of the planning process, but along with the implementation stage, providing also ground for evaluating possible future courses of action. Marketing audit on a regular basis is a strong reference point, reflecting evolution in external business environment, internal experience and strategy development. The marketing audit focuses on three key headings:

The external marketing environment

The internal marketing environment Evaluation on the current marketing plan

External environment consists of economic, political and legal factors and concentrates on clients and competition. Marketing audit of the external surroundings analyses the customers, their needs and how to meet them, their behavior and decisions, perception of products and brands, segmentation, targeting and positioning on the market. The nature of competition is also studied, concerning its concentration, profitability, strengths and weaknesses, plans and strategies. New entrants on the market are also studied as well as the substitute products, the influence of supplier. The cultural nature of the external environment consists of education levels and standards, religion and beliefs, as well as lifestyle and customs. Demography plays a key role in marketing audit of the consumers, reflecting on growth distribution, age, evolution of technology and information systems as well as marketing communication and media. The external economic conditions consist of indicators as unemployment rates, inflation levels, interest rates, economic growth, taxation and average disposable income. Political and legal landscaping concern laws, regulations, minimum levels of taxes or wages and maximum levels of prices or quotas. Internal environment focuses on the resources the company has at hand as labor, finance, equipment, time and other factors of production. It also analyses the marketing team concerning structure, efficiency, effectiveness, correlation with internal functions and other organizations. The internal marketing planning process, it's accuracy and actuality, the product portfolio, new products, pricing and distribution are areas the marketing internal audit is concerned in. It also focuses on market share, sales, profit margins, costs and effectiveness of marketing mix. The marketing audit studies also the current marketing plan, focused on objectives, strategies and the marketing mix used to achieve these goals. It also evaluates budgeting, staffing, training , developing, experience and learning. The current marketing plan concerns also the market share, financial targets as profit and margins, cash flow, debt and other indicators that need to be balanced. There are several approaches that can be used, for example SW OT analysis for the internal environment, as well as the external environment. Other examples include PEST(political-economic-social-technological) and Five Forces Analyses, which focus solely on the external environment. Using SWOT a company lists its advantages and disadvantages, strengths and weaknesses compared to its competitors or similar products providers. It also includes an analysis of the external factors that could help or hinder company's chance of success, as well as an evaluation of internal practices and operations. A five force analysis is similar to SWOT, but is used to evaluate an individual product or business rather than an entire marketing strategy. Using this approach, the study reviews similar subjects covered in a SWOT analysis, eventually dividing the results in five groups labeled as following :

Power of buyer Threat of entry Competitive rivalry Power of suppliers Threat of substitutes.

Political-economic-social-technological (PEST) is another audit study also known as a STEP (change in the order of letters) study. This audit focuses mainly on the factors influencing the external environment, usually factors out of company's internal control. This study analyses political climate, economic growth, social environment and technological evolution in the area where the product will be delivered. Its similarity to SWOT consists of dividing these results in opportunity and threats. In conclusion, a marketing audit does not necessarily audit the current activity of the business, but reviews all the areas that are crucial to the success of the company ,both internal and external and tries to align these.

Only considering these results and using them in planning the next marketing strategy, a business can grow and become stronger.

What is a Marketing Audit?

The marketing audit is basically a structured analysis and review of your current marketing activities carried out through an examination of your marketing strategies, tactics and objectives. The audit is also undertaken to highlight problem areas and identify opportunities with a view to recommending a plan of action to improve the overall marketing performance for your company. When to use Marketing Audits? The Audit consists of two key areas; the external audit and the internal audit and should normally be undertaken, at the very least, on an annual basis as part of your overall business planning and objectives. The marketing audit also proves to be an extremely useful tool when contemplating market entry as it allows your management team to assess the attractiveness of the market in which it seeks to enter. External Audit The external audit takes into consideration the overall MACRO environment such as political, economic, social/cultural, technological, environmental and legal factors that may or may not affect your business activities. It also encompasses your competitive environment known as the MESO environment, i.e. what and who are you competing against and how could this threaten your current market share and position. By considering a variety of factors such as; substitutes that could replace your product or service, changes in consumer lifestyles and values; market size, growth and profits; major market segments, their expected growth rates and which segments provide you with the greatest opportunity to meet your objectives, the external audit and analysis allows you to: Identify future events Identify threats and opportunities Identify strategic uncertainties in the market Identify any drifting or deviations from your original plan, that may occur Internal Marketing Audit This is your opportunity to put your own business under the microscope do you know as much about your own situation as you should? This internal audit takes a close examination of your current business situation, how profitable is your company and how this may affect your marketing effectiveness and marketing mix. Also, what are your marketing objectives? Are these clearly identified and stated and if so, are they consistent with your overall company objectives and appropriate for the companys competitive position, resources, and opportunities? The internal marketing audit therefore focuses on the following areas: Strategy is it realistic? Organisational structure how does it operate and does it work? Systems focus on the efficiency of the planning system Productivity are the products profitable and is the organisation operationally efficient? Functions examines the details of the marketing tools So what does a Marketing Audit and analysis achieve? The thorough audit and analysis of your marketing activities gives you the opportunity to objectively review what youre currently doing and are you doing it right? Based on this review you can then identify the next steps forward in implementing and maintaining a solid marketing strategy.

Brand Extension Strategiesare frequently undertaken by the companies when they launch any new product.
The companies try to reap benefit out of their established Brand Name and Brand Equity. Although the Brand Extension Strategy can generate a positive impact, it also involves significant risks.

Brand Extension Strategy refers to the strategy in which a company uses the same Brand Name in order to promote products of different category. Many reputed companies of the world adopt Brand Extension Strategy with the aim of increasing Brand Equity. It is commonly found that, a company which has already established its brand name in the market for a specific product category, uses the same Brand Name at the time of launching a new product of different category. In this case, the new product easily develops an acceptance range as the customers are already familiar with the Brand Name. The success of this Brand Extension Strategy depends on the extent of customers' association with the Brand Image. In the case, where Brand Loyalty is significantly present among the customers, there are strong chances that the new product will be able to gain substantial market share. So, it is very clear that there are certain benefits of Brand Extension Strategy. If a company launches a new product with a new Brand Name then, the gaining significant market presence becomes a time consuming affair as the firm is required to establish the new brand in the market through a completely new way of Brand Positioning. Establishment of a new brand in the market not only requires time but also involves great expense. The Brand Extension Strategy can help the companies in saving both time and money. Moreover, this strategy lowers the financial risk of launching a new product as the new product is marketed using the established Brand Equity of the parent brand. The customers' already existing perception about the brand helps the company in marketing the new product. But it should be mentioned here that along with the benefits there are certain risks associated with Brand Extension Strategy. A wrong Brand Extension Strategy can negatively affect the Image of the parent Brand. Poor communication programs undertaken for promoting the new product can devaluate the Brand Equity. It is surprising but true that, the failure rates of Brand Extension Strategies are higher than the success rates.

Brand positioning strategy is about finding a right place for a brand in market place as well
consumer mind. A consumer should easily identify that for a given need or want this is the brand. If brand fails to do this, it simply becomes just another product or commodity on supermarket or mall shelf. So for successful brand positioning, following points are of utmost importance for companies; target consumer, main competitors, point of similarity with competitors and point of difference with competitors. So, to identify target consumer we must narrow down target market. A market comprises of cluster of individual with similar behavior, referred to as segments. These segments can be defined on basis of personal consumption profile, which includes marital status, consumption of product, usage rate of product and expectation from product. Another is demographic which includes age, sex, income level, race and family. Further segmentation can be done on location, if consumer, that is whether they are local or global. Other segmentation can be done on basis of emotional profile, which includes personal belief and values, chosen lifestyle, religious affiliation etc. Another market which is important is business market. Segmentation of business market is starts with product class, meaning target industry (chemical, agriculture etc). Another segment is buying decision, that is, through tender process, bidding process. By end customer (government, not profit organization etc). Finally segmentation is done on basis of company profile, which includes financial strength and geographical location. Knowing your competitor is very essential for survival in market . SWOT analysis is definitely good starting point. Competition may not be coming from the same product class but maybe from substitute, such as, tea v/s coffee. The point here is that not to narrow down competition too much as to lose focus. In recent time apparel industry has facing competition from consumer electronics industry, as people are willing to spend buck on iPod, HDTV to make style statement and not clothes. Point of difference could be defining in terms of the way consumer thinks for a given brand . These are the points which will make the brand stand out from competition. Point of difference is like unique selling proposition and this difference can be in form of appearance, predictable performance, quality, better customer service. For example Wal-Mart, faces competit ion not only from Target but also from Macys and Shaws. But point of difference is the product range it can offer at competitive prices compared to other stores.

Points of similarity are common traits essential to make sure that consumer understand the product. It helps in enforcing a simple point of identifying product within product class. This becomes important especially if brand is in extension mode and looking to enter another category. This is more prevalent in consumer goods industry, such as Old Spice earlier it was focus on shaving product but later moved to grooming products like deodorants. Brand positioning is very important step in establishing customer based brand equity. Target market, Knowing competitors, Point of difference and Point of similarity together add to strategic branding process.

Brand equity is a critical part of building a business, and companies that successfully build one
understand just how important it is to the bottom line. However, it takes time, patience, and a great deal of effort to build positive brand equity as youll learn in my new series, B R A N D E QU IT Y B A SI C S . Ive come across many definitions of B R A N D E QU I T Y throughout my education and career. Lets take a look at some good definitions from a couple of great resources. First, the American Marketing Association offers the following definition of brand equity:
T H E VALUE OF A B RAND . F RO M A CO NS UM ER P ERSP ECTI VE , B RAND EQ UI TY I S B AS E D O N
CO NS UM ER ATTI TUDES A B O UT PO S I TI VE B RAND ATTRI B UTES AND F AVO R AB LE CO NS EQ UENCES OF B RAND US E .

American Marketing Association

Branding expert David Aaker defined brand equity back in 1991 as: A S ET OF AS S ETS AND LI ABI LI TI ES LI NK ED TO A B RAND , I TS NAM E AND S YM BO L , TH AT ADDS TO O R S UB TRACTS F ROM TH E VALUE P RO VI DED BY A P RO DUCT O R S ERV I CE TO A F I RM AND / O R TO TH AT FI RM S CUS TO M ERS . David Aaker Brand Equity Definition Both of the above definitions are excellent, but if you put them together, you get an even better definition of brand equity. With that in mind, Id define brand equity as follows: T H E TANG IB LE AND I NTA NG IB LE VALUE THAT A B RAND P RO VI DES PO S I T I VELY O R NEG ATI VELY TO AN O RG ANI ZATI O N , I TS P RO DUCTS , I TS SERVI CES , AND I TS BO TTO M - LI NE DERI VED FRO M CO NS UM ER K NO W LEDG E , P ERCEP TI O NS , AND EXP ERI ENCES W I TH TH E B RA ND . Susan Gunelius

This definition hits the three main points that define brand equity: Tangible and intangible value: This can be tangible value such as revenues and price premiums or intangible value such as awareness and goodwill.

Positive or negative effects: The organization, products, services, and bottom line can benefit or suffer from brand equity. Consumer catalysts : Brands are built by consumers, not companies. Therefore, brand equity is built by consumers too. Brand Equity Benefits Positive brand equity can help a company in a variety of ways. The most common is the financial benefit which enables a company to charge a price premium for that brand. For example, the Tiffanys brand has enough equity that a price premium isnt just accepted, its EXP ECTED . Positive brand equity can also help to expand a company through successful brand extensions and expansions. And not only can brand equity help increase sales and revenues, but it can also help reduce costs. For example, there is little need for awareness promotions for a brand that has deep, positive equity. Marketing budgets can be more strategically invested in initiatives that will drive short-term results. A company with strong brand equity is also positioned for long-term success because consumers are more likely to forgive bumps in the road when they have deep emotional connections and loyalties to a brand. Positive brand equity helps a company navigate through macro-environmental challenges far more easily than brands with little or negative brand equity can. 5 Stages of Brand Experience Brand equity is typically the result of brand loyalty, and with brand loyalty comes increased market share. In fact, there are 5 stages of brand experience that lead to positive brand equity: Brand awareness: Consumers are aware of the brand. Brand recognition: Consumers recognize the brand and know what it offers versus competitors. Brand trial: Consumers have tried the brand. Brand preference: Consumers like the brand and become repeat purchasers. They begin to develop emotional connections to the brand. Brand loyalty: Consumers DEM AND the brand and will travel distances to find it. As loyalty increases so do emotional connections until there is no adequate substitute for the brand in the consumers mind. Once consumers reach the brand loyalty stage, your work isnt done. The challenge is not only building brand equity to reach widespread loyalty, but also to sustain that loyalty and positive brand equity for years to come.

Measurement of Brand Equity.


1. Clarify Brand Equity Perspective Brand equity can be viewed from several different perspectives. The hard-line perspective is that of financial outcomes which examine price premium. That is, how much more will a consumer pay for a product or service that is branded over a product or service that is generic? A softer perspective is that of brand extension where consideration is given to the value that a brand lends to the introduction of other products, or considers the reverse dynamic of the impact of a new product or service on the existing brand. This following steps address a third perspective customer-based. 2. Determine Brand Equity Research Goals Brand equity market research falls into one of three camps: Tracking, exploring change, and/or extending brand power. Market research that focuses on tracking makes comparison among competitive brands or products against a benchmark. When exploring change is the research goal, customer brand attitude is tapped regarding branding decisions that might result in repositioning or renaming products or services. A deeper examination of extending brand power is carried out when substantive additions to a brand are considered. Each of these research goals requires a different tact. 3. Understand Customer Brand Attitude A customer-based perspective in the measurement of brand equity focuses on the experiences that consumers have with a brand. The stronger the brand, the stronger the customer's attitude toward the products or services associated with the brand. When

customers experience a product or service, they gauge overall brand quality and tend to infer certain brand attributes. If these experience measures are positive and endure over time, brand loyalty typically results. Today, customers can -- and do -- easily communicate the strength of their brand attitude to others. 4. Identify Brand Equity Components to Measure Brand awareness, brand reach, and brand image association are aspects of brand equity that may not be closely associated with consumer experience. These measures of brand equity may reflect the impact of traditional advertising campaigns, and the influence of social or interactive media. Brand awareness is an indicator of how branding efforts spotlight a product or service. Brand reach indicates how far and wide that spotlight shines. And brand image association reveals what the brand promises and what it stands for in the eyes of consumers. 5. Measure Perceived Brand Differentiation Product differentiation is a lynchpin for brand loyalty, confidence in a brand, and the potential for brand switching. Customer perceptions about brand differentiation tend to be strongest when actual product or service experience has occurred, but certainly brand differentiation is not immune to the influence of advertising. Differentiation may float on product or brand recommendations in social media rather than any personal experiences with a brand. Because differentiation is so susceptible to social influence, it lends itself to measurement across multiple media channels. 6. Qualitative and Quantitative Approaches to Brand Equity Data Ideally, brand equity measurement will include both qualitative and quantitative approaches. Focus groups can provide a good forum for exploring customer perceptions and motivation. Conjoint analysis can reveal key consumer decisionmaking processes. Effective measurement of brand equity is critical to the development of brand strategy and ultimately supports return-on-investment analysis. Which brings us full circle, back to the financial outcomes perspective on brand equity.

Brand Recallis the extent to which a brand name is recalled as a member of a brand, product or
service class, as distinct from brand recognition. Common market research usage is that pure brand recall requires "unaided recall". For example a respondent may be asked to recall the names of any cars he may know, or any whisky brands he may know. Some researchers divide recall into both "unaided" and "aided" recall. "Aided recall" measures the extent to which a brand name is remembered when the actual brand name is prompted. An example of such a question is "Do you know of the "Honda" brand?" In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called "top of mind") has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase.

Unit 4
The marketing planning process involves both the development of objectives and specifications for how they will be accomplished. There are five basic steps in the process in this process. 1. Determination of Organizational Objective The basic objectives, or goals, of the organization are the starting point for marketing planning. They serve as the foundation from which marketing objectives and plans are built. These objectives provide direction for all phases of the organization and serve as standards in evaluating performance. Soundly conceived goals should be S.M.A.R.T specific, measurable, attainable, realistic and time-specific. 2. Assessing Organizational Resources

Planning strategies are influenced by a number of factors both within and outside the organization. Organizational resources include capabilities in production, marketing, finance, technology, and personnel. By evaluating these resources, organizations can pinpoint their strengths and weaknesses. Strengths help organizations set objectives, develop plans for meeting objectives, and take advantage of marketing opportunities. Resource weaknesses, on the other hand, may inhibit an organization from taking advantage of marketing opportunities. 3. Evaluating Risks and Opportunities Environmental factors competitive, political, legal, economic, technological and social also influence marketing opportunities. The emergence of new technologies or innovations may open new opportunities for under-marketed products. The marketing environment may also pose threats to marketing opportunities. For example, a new genetically engineered drug may be developed with the potential to become a $1 billion-ayear product. But a government agency may delay requests to market the drug due to regulations. 4. Marketing Strategy The net result of opportunity analysis is the formulation of marketing objectives designed to achieve overall organizational objectives and develop a marketing plan. The marketing planning effort must be directed toward establishing marketing strategies that are resource efficient, flexible, and adaptable. The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment. 5. Implementing and Monitoring Marketing Plans The overall strategic marketing plan serves as the basis for a series of operating plans necessary to move the organization toward accomplishment of its objectives. At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations.

Swot analysis/Tows matrix 1. Strengths - Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc. Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue. Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc.

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Advantages of SWOT Analysis SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors. SWOT Analysis helps in strategic planning in following mannera. b. c. d. e. f. g. h. It is a source of information for strategic planning. Builds organizations strengths. Reverse its weaknesses. Maximize its response to opportunities. Overcome organizations threats. It helps in identifying core competencies of the firm. It helps in setting of objectives for strategic planning. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out.

SWOT Analysis provide information that helps in synchronizing the firms resources and capabilities with the competitive environment in which the firm operates. SWOT ANALYSIS FRAMEWORK

Limitations of SWOT Analysis

SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances as very simple because of which the organizations might overlook certain key strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the significance of these four aspects, but it does not tell how an organization can identify these aspects for itself. There are certain limitations of SWOT Analysis which are not in control of management. These includea. b. c. d. e. Price increase; Inputs/raw materials; Government legislation; Economic environment; Searching a new market for the product which is not having overseas market due to import restrictions; etc.

Internal limitations may includea. b. c. d. Insufficient research and development facilities; Faulty products due to poor quality control; Poor industrial relations; Lack of skilled and efficient labour; etc

The process set out above includes strategy formulation and its implementation, what has been referred to as strategic management process. The same process can be applied to both strategy and policy. The figure suggests the various elements of strategy formulation and process and the way they interact among themselves. Accordingly .the various elements are organizational mission and objectives, environmental analysis, corporate analysis, identification of alternatives, and choice of alternative. Up to this stage the formulation is complete. However, i mplementation is closely related with formulation because it will provide feedback for adjusting strategy. A brief discussion of each element will be helpful to understand the problems involved in each. 1. Organizational mission and objectives - are the starting point of strategy formulation. As discussed earlier, mission is the fundamental unique purpose of an organization that sets it apart from other organizations and objective is the end result, which an organization strives to achieve. These together provide the direction for other aspects of the process. Environmental Analysis - The second aspect of the process is the environmental analysis. Since the basic objective of strategies is to integrate the organization with its environment, it must know the kind of environment in which it has to work. This can be known by environmental analysis. The process of environmental analysis includes collection of relevant information from the environment, interpreting its impact on the future organizational working, and determining what opportunities and threats-positive and negative aspects-are offered by the environment. The environmental information can be collected from various sources like various publications, verbal information from various people, spying, and forecasting. The process of environmental analysis works better if it is undertaken on continuous basis and is made an intrinsic part of the strategy formulation. Corporate Analysis - While environmental analysis is the analysis of external factors, corporate analysis takes into account the internal factors. These together are known as SWOT (strengths, weaknesses, opportunities and threats) analysis. It is not merely enough to locate what opportunities and threats are offered by the environment but equally important is the analysis of how the organization can take the advantages of these opportunities and overcome threats. Corporate analysis dis-closes strengths and weaknesses of the organization and points out the areas in which business can be undertaken. Corporate analysis is performed by identifying the factors, which are critical for the success of the present or future business of the organization, and then evaluating these factors whether they are contributing in positive way or in negative way. A positive contribution is strength and a negative contribution is a weakness. Identification of Alternatives - Environmental analysis and corporate analysis taken together will specify the various alternatives for strategy. Usually this process will bring large number of alternatives. For example, if an organization is strong in financial resources, these can be used in many ways, taking several projects. However, all the ways or projects cannot be selected. Therefore, some criteria should be set up to evaluate each alternative. Normally the criteria are set in the light of organizational mission and objectives. Choice of Strategy - The identification and evaluation of various alternatives will narrow down the range of strategies that can seriously be considered for choice. Choice is deciding the acceptable alternative among the several which fits with the organizational objectives. Normally at this stage, personal values and expectations of decision-maker play an important role in strategy because he will decide the course of action depending on his own likings and disliking. This happens because in one way the organizational objectives reflect the personal philosophy of individuals particularly at the top management level. Implementation - After the strategy has been chosen, it is put to implementation, that is, it is put into action. Choice of strategy is mostly analytical and conceptual while implementation is operational or putting into action. Various factors which are necessary for implementation are design of suitable organization structure, develop-ing and motivating people to take up work, designing effective control and information system, allocation of resources, etc.

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When these are undertaken, these may produce results, which can be compared in the light of objectives set, and control process comes into operation. If the results and objectives differ, a further analysis is required to find out the reasons for the gap and taking suitable actions to overcome the problems because of which the gap exists.

MNCs branding strategy In todays global marketplace, MNCs need to set up effective branding strategies in order to be competitive. Depending on the structure of the company and the products offered, MNCs can use different strategies. There are certain characteristics that will affect the type of strategy chosen. In order to reach economies of scale and scope, many MNCs standardize their branding- and marketing activities. However, MNCs are often required to adapt to local preferences and cultures. The purpose of this thesis is to

investigate the branding strategies of MNCs in international markets. Two research questions were addressed: how can the branding strategies of MNCs in international markets be described and how can the factors determining MNCs choice of branding strateg ies in international markets be described. Two qualitative case studies of well-known MNCs, Procter& Gamble and Sony Ericsson were conducted; the first an example of a company with a product brand strategy and the latter one with a corporate brand strategy. Our findings show that MNCs use either a product brand strategy, or a corporate brand strategy. However, there may be mixtures of the two types, but emphasis is typically on one of them. A product brand strategy is characteristically used when a company offers multiple products within different business segments, and when there are several different target groups. With a corporate brand strategy, the corporate name and the brand are the same. There is typically a master brand which has the same name as the corporation, and which may have additional sub-brands. It was found that the factors determining the branding strategy in international markets are stakeholder interests, corporate image and reputation, market complexity, as well as marketing costs. Multibrand strategy Many companies opt for Multi Brand Strategy in order to generate economies of scale by using the basic advantages of the strategy. But it cannot be denied that Multi Brand Strategy can fail due to poor management and due to adoption of unprofitable business models. Multi Brand Strategy refers to a marketing strategy under which two or more than two similar products of a firm are marketed under Different Brand names. In most of the cases, these products are competing ones and are marketed under the Brand Names which are completely unrelated. Several companies take up this Multi Brand Strategy, as the strategy offers some advantages: First of all, by adopting Multi Brand Strategy, a company can obtain greater space in the market, where little space is left for the competitor business houses. Secondly, by promoting similar products under different Brand Names, a company can fill up the Price Gaps and Quality Gaps of the target market. In this way, the market can become saturated with the similar products of the same company.

In every market, there are some customers who frequently change brands in order to experiment with products of different brands. By adopting the trick of Multi Brand Strategy, a company can serve effectively to these Brand Switchers. When a company undertakes Multi Brand Strategy, the managers of the company are bound to operate efficiently as internal competition is generated at a high degree. The decision of a company in adopting Multi Brand Strategy, depends on the success of the initial brand. If the initial brand becomes successful, then through franchising and retailing, a company can develop a second brand without generating much expense. The Franchises can promote both the primary and secondary brand through same advertisement. The marketing department of the company, can market the different multi brand products just in the way an agency works for multiple clients. All these advantages of Multi Brand Strategy can generate economies of scale. But, it should be mentioned here that, in spite of all the advantages of Multi Brand Strategy, there are risks too which can challenge the success of this kind of strategy. It has been observed that, in most of the cases, Multi Brand Strategy fail because of poor management and wrong choice of business model. What is Branding The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem. The objectives that a good brand will achieve include: Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact. Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot.

A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without. Types of Branding Building strong and lasting relationships with customers and the communities in which the businesses reside as well as with their own employees seems to be (or should be) the focus of many companies. Just as there are many branding techniques, there are also many different uses for branding. Here are the seven common types of branding. Corporate Branding Making the promise of quality products, service, and delivery to customers. The intent is to attract new customers and create loyalty in past customers. Corporate branding is nothing new; its been around as long as competition between businesses has existed. Employer Branding Focusing on employees to understand the vision, mission, goals, products, and services of the company. It is designed to educate employees in order for them to uphold the corporate brand to their customers. (While employer branding may be required and essential to a competitive business, it neither aligns an employees goals and values with a companys, nor d oes it apparently help in retaining employees as indicated by the continuing efforts to reduce turnover.) Cause Branding Attempting to attract customers by associating the company with a cause or purpose that potential customers would find beneficial to their personal goals or in line with their values. This might be a percentage contribution of company sales to charitable organizations or donations to nature and wildlife preservation councils. Co-Branding Becoming more familiar to the consumer all the time. These include, for example, mini-marts attached to gas stations, banking facilities within grocery stores, and Laundromats attached to anything from bowling alleys to family entertainment centers. This branding falls in the one-stop shopping category. Spirit Branding Hit the consumer mar ket big time by selling soft drinks with the slogan of Id like to teach the world to sing . . . . Its that get a good feeling from using our product approach. The world looks brighter and things just go better when you s tart your morning off with our product. Community Branding Showing the collective good a company can do for the community in which it and its employees reside. This branding can include company and employee outreach programs to help the needy, support the elderly, contribute to public education, or provide emergency relief and jobs for the unemployed. Its a promise to the people in the community that this company will be a beneficial partner to them. Culture branding Another method of branding, branding to employees may be something new to consider in waging war against sagging morale and high employee turnover. Culture branding is making promises to employees concerning their working environment and relationship to their leaders and managers. In this case, promises are different fr om guarantees and opportunities in that they are offered free of encumbrances other than taking advantage of them through either purchase and use or employment agreement. Types of brand Product -The most common brand is that associated with a tangible product, such as a car or drink. This can be very specific or may indicate a range of products. In any case, there is always a unifying element that is the 'brand' being referred to in the given case. Individual product -Product brands can be very specific, indicating a single product, such as classic Coca-Cola. It can also include particular physical forms, such as Coca-cola in a traditional bottle or a can. Product range -Product brands can also be associated with a range, such as the Mercedes S-class cars or all varieties of Colgate toothpaste. Service -As companies move from manufacturing products to delivering complete solutions and intangible services, the brand is about the 'service'. Service brands are about what is done, when it is done, who does it, etc. It is much more variable than products brands, where variation can be eliminated on the production line. Even in companies such as McDonald's where the service has been standardized down to the eye contact and smile, variation still occurs. Consistency can be a problem in service: we expect some variation, and the same smile every time can turn into an annoyance as we feel we are being manipulated. Service brands need a lot more understanding than product brands.

Organization-Organizations are brands, whether it is a company that delivers products and services or some other group. Thus Greenpeace, Mercedes and the US Senate are all defined organizations and each have qualities associated with them that constitute the brand. In once sense, the brand of the organization is created as the sum of its products and services. After all, this is all we can see and experience of the organization. Looking at it another way, the flow also goes the other way: the intent of the managers of the organization permeates downwards into the products and the services which project a common element of that intent. Person-The person brand is focused on one or a few individuals, where the branding is associated with personality. Individual -A pure individual brand is based on one person, such as celebrity actor or singer. The brand can be their natural person or a carefully crafted projection. Politicians work had to project a brand that is attractive to their electorate (and also work hard to keep their skeletons firmly in the cupboard). In a similar way, rock stars who want to appear cool also are playing to a stereotype. Group -Not much higher in detail than an individual is the brand of a group. In particular when this is a small group and the individuals are known, the group brand and the individual brand overlap, for example in the way that the brand of a pop group and the brand of its known members are strongly connected. Organizations can also be linked closely with the brand of an individual, for example Virgin is closely linked with Richard Branson. Event -Events have brands too, whether they are rock concerts, the Olympics, a space-rocket launch or a town-hall dance. Event brands are strongly connected with the experience of the people attending, for example with musical pleasure or amazement at human feats. Product, service and other brands realize the power of event brands and seek to have their brands associated with the event brands. Thus sponsorship of events is now big business as one brand tries to get leverage from the essence of the event, such as excitement and danger of car racing. Geography -Areas of the world also have essential qualities that are seen as characterizations, and hence also have brand. These areas can range from countries to state to cities to streets and buildings. Those who govern or represent these geographies will work hard to develop the brand. Cities, for example, may have de-facto brands of being dangerous or safe, cultural or bland, which will be used by potential tourists in their decisions to visit and by companies in their decisions on where to set up places of employment. Important of branding Prior to launching an advertising campaign or developing a marketing strategy, it is crucial that you determine your brands identity. Simply put, a brands identity is its singular personality that serves to identify a company or business and distinguish it from its competitors. Although branding has become a buzzword popularized by entrepreneurs, ma ny people still have trouble grasping what the term means. So what is branding, exactly? Branding is successfully creating a brand identity that will not only make your business more appealing in comparison to your competitors, but it will also convince consumers that in a sea of prospects, your business is the only one capable of satisfying their needs. Many different components can go into developing a brand, including eye-catching designs and a unique name; however, a brand encompasses more than just a logo. Its what clients take away from the experience of working with you. Its what your company stands for and is known for within your market. Coming up with a brand means coming up with what your company promises to deliver, whether thats perfectly seasoned gourmet pizzas or impeccably tailored shirts. Branding includes the overall style of your company and the meaning it has to clients. Ideally, it would motivate people to buy your products or use your services. If you dont define your brand, you create the possibility that someone else will do it for you, including your competitors. Defining you brand allows you to controlor at least influencehow others perceive you. An effective brand marketing strategy minimizes your companys chances of fading into the background and solidifies your reputation as a veritable force to be reckoned with. Strong branding demonstrates that a company aspires to something greater than just business as usual. By raising your status from a basic commodity to a brand, consumers will be willing to pay a premium for your services or products. Ultimately, branding is perhaps most essential because it increases the chances that people will remember you, even as the battle for consumers attention (and money) rages on. A fully-developed brand identity will push your business to the forefront of consumers minds, making them more likely to recognize you, enlist your services, and remain loyal long after the conclusion of your

professional relationship. It takes a lot of time to build (and maintain) these valuable customer relationships. Let me give you a few examples of successful branding: Coca Cola: The majority of people instantly recognize this brand. Their logo, the Christmas songs, TV commercials, ads and cans are a part of the Coca Cola branding strategy. This brand has been around for decades, allowing its message to go from generation to generation, and all of Coca Colas efforts have paid off. Wouldnt you agree it is quite hard to imagine a world without Coca Cola? McDonalds: Remember when you were a kid and going to McDonalds was a treat? Of course you do! This is why you will probably take your (future) children to come and have a quick bite here every once in a while. McDonalds introduced Happy Mea ls for children, including a small toy in every meal box. A smart move, given the fact that competitors soon offered similar deals. Furthermore, they incorporated the word Mac/Mc into their product names, like McNuggets or the famous Big Mac. These decisions have had major influence on the way customers perceive the brand. Apple: Apple has found a way to become one of the most popular brands in the world by branding themselves successfully. Mac computers arent for just anyone, nor are the iPad or the iPhone. The late Steve Jobs was known for his way of presenting new products to the public and used his black turtleneck sweater as part of his strategy. Even the use of putting an i in their product names is all part of Apples branding strategy. The designs of the products, the campaigns and product launches are all in sync with Apples style and its branding. You can say that these companies have become experts in business branding, based on their successes. Branding could be perceived as part of marketing or as a separate component, but it is definitely closely related to marketing. Before you start diving into concepts to market your business, make sure you have determined a brand identity and are aware of all the aspects that come with brand management.