Placeholder Image

Subtitles section Play video

  • Hi everybody, welcome to www.engvid.com, I'm Adam.

  • In today's video, we're going to have a bit of a business English lesson, and we're going

  • to focus on marketing.

  • But marketing is a very broad area of business.

  • So, we're going to focus more specifically on a couple of things.

  • We're going to look at brand and branding, and we're going to look at little bit at promotion

  • after a couple of minutes.

  • So, let's start talking about what is a brand, what is a product, what is the relationship

  • between these things.

  • What's the relationship between companies and consumers, etc.

  • So, first of all, what is a brand?

  • For most people, if you ask most marketers, they will give you very different answers,

  • but all of them work more or less in the same area.

  • A brand is an image or an identity.

  • It's the image that a company wants the consumers to have, or it's the image that consumers

  • do have, for better or worse.

  • Sometimes, the image that the company wants the consumers to have is not the image that

  • they actually do have.

  • In which case, they need to do a lot of work, which is called branding.

  • Which we'll talk about in a second.

  • Now, a product is the actual thing that the company is selling.

  • It could be an actual physical thing, like a product directly.

  • It could be a service; it could be a combination of these things.

  • And it's very important to understand that brand and product are not the same thing.

  • So, I'm going to mention a bunch of companies as examples, but let's start with a brand.

  • I think most people know what Porsche is, or Porsche, depending how you want to say

  • it.

  • And the most famous product that Porsche sells is the 911, or the Boxer, whatever you want

  • to call it.

  • Different times, different names.

  • The 911 is the car.

  • It's the type - the particular model of car.

  • But when somebody thinks of Porsche, of course they may think of the 911, but they also might

  • think of other things.

  • So, the brand is the full identity, in terms of what the company sells - the 911, plus

  • a few other models.

  • What the company stands for.

  • So, when people think "Porsche", they think rich people.

  • They think luxury.

  • They think unaffordable to most people, right?

  • So, something that makes you a little bit special.

  • But that's exactly the image that the company wants you to have, right?

  • That's what their brand is all about.

  • And these days, branding is extremely important, especially with the new generations.

  • The Millennials and, soon enough, the Gen Zs, who care about different things than the

  • Gen Xers and the Baby Boomers, the older members of society.

  • So, companies are now struggling to understand the new generation and they're trying to rebrand.

  • So, I'm actually going to put this here.

  • Rebrand means change the way the way they brand themselves.

  • They change the image they're trying to portray.

  • Because young people care more about the environment and climate change.

  • And they care more about ethical business practices.

  • And they care more about sharing the wealth and things like that.

  • They don't want luxury items.

  • They don't want diamonds, they don't want Porsches.

  • They want everybody to be happy and health and peaceful.

  • Which is a good thing.

  • Not so good for companies that are trying to sell a particular product.

  • So, brand and product, two different things.

  • Think of another example.

  • Let's think about McDonald's.

  • McDonald's is a brand, and Big Mac is a product.

  • When I think - or when most people think of McDonald's, everybody will have a different

  • idea.

  • And when they think of products, everybody will choose a different product.

  • So, some people will think "Big Mac", some people will think "McChicken", some people

  • will think the sundae, the ice cream sundae that they sell.

  • Everybody has a different favorite product, but most people will have a very similar idea

  • of McDonald's itself.

  • Fast food, hot, cheap, delicious, or disgusting.

  • There's really not much of a middle ground.

  • Some people will think of Ronald McDonald, you know, the clown that is the mascot of

  • McDonald's.

  • Because Ronald McDonald houses, at least in Canada, they do a lot of charity work.

  • So, people have a very good image of McDonald's here.

  • Of course, they make a lot of money, but they also help people with that money.

  • And they provide jobs, etc.

  • So, brand and product.

  • Now, branding means thinking a lot about how to create that image.

  • So, one of the things they need to think about is the logo, because the first association

  • that people make with a company is the logo.

  • So, if you think of McDonald's, the first thing you think of is the golden arches.

  • Or, as you're driving along the street and you're a little bit hungry and you see the

  • two arches, the golden arches, right away you know there's' food there.

  • There's McDonald's, there's hamburgers or whatever else you like.

  • Starbucks.

  • When you think of Starbucks, you think of that green circle with the lady inside and

  • the weird fish hair.

  • But then you think of Exxon.

  • Exxon, again, I'm not sure everybody knows this company.

  • It's a big oil company.

  • But in North America, when people think "Exxon", they don't necessarily have a very good image.

  • Why?

  • Because however many years ago, there was a big accident.

  • One of the tankers carrying their oil crashed into an iceberg and spilled all the oil in

  • the ocean.

  • So, people might think that Exxon is an irresponsible company, or that it - they just care about

  • money.

  • They don't care about nature or the animals or whatever, right?

  • So, branding is very important.

  • Obviously, the name is very important.

  • McDonald's, this was the family name of the two brothers who started the company and it

  • just grew and stayed.

  • Starbucks - very deliberate thinking.

  • Exxon - very deliberate thinking.

  • The name is what's going to stick in the mind.

  • It has to roll off the tongue, so very, very important.

  • Colors.

  • Certain colors are associated with certain emotions or reactions, right?

  • For example, red - again, this is also very cultural.

  • Red, in some cultures, is a very good color for business.

  • In some cultures, it's a very bad color.

  • Green - very like, nature and calm and clean.

  • All these things are very important.

  • And of course, juxtapositions.

  • Juxtaposition means how you place items next to each other.

  • Do you put the name on the top, on the bottom, on the side?

  • Do you put the two images facing each other, if that's what you have?

  • Do they look up and down?

  • How you place things in your logo, in your brochures, in your advertising things, all

  • of these things are very, very important in terms of branding.

  • Now, what you want to create is brand loyalty.

  • So, not only do you want brand recognition, which is what branding does.

  • It makes it easy to recognize - I'll just do it like that, a little bit mixed caps,

  • but that's okay.

  • They want you not only to recognize the company, but they want you to stay with that company.

  • They want you to like the company and, of course, the product.

  • So, brand loyalty.

  • The best way to measure brand loyalty is word of mouth.

  • How many people are telling their friends about this company?

  • And they're telling their friends, and their friends.

  • Not only is word of mouth the best advertising, it's also the best measure of brand loyalty.

  • It means also that the customer or consumer is not going to the competition.

  • They come back to the same brand every time.

  • This is especially common in food items.

  • Like, if you go to a supermarket, you can go to the shelf and you want milk, let's say.

  • If you go to a Canadian supermarket, for example, you will see six different brands, six different

  • companies selling milk.

  • Most people will buy the exact same one every single time.

  • Because they like the milk, and they like the company.

  • They trust the company.

  • And that's what brand loyalty is mostly about - trust.

  • Then, you also have to think about positioning.

  • So, part of branding is actually positioning.

  • Where - which part of the market do you want your company to be associated with?

  • Or your product associated with?

  • Do you want people to think of your company or your product as budget items?

  • Or do you want them to think of them as luxury items?

  • So, let's look at Louis Vuitton, for example.

  • I can go and buy a bag anywhere, even a leather bag, for $20, let's say.

  • But, if I go to Louis Vuitton, I can spend maybe $2000 on a bag.

  • But if I'm thinking of Louis Vuitton bag as a luxury item that I can be proud of and walk

  • in the street and people will look at me, maybe I will spend that money.

  • If all I need is something to carry my groceries home from the supermarket, then budget is

  • all I need.

  • So, what do you want your product to represent?

  • What do you want your company to represent?

  • That's positioning.

  • You can be premium.

  • Premium means like, a little bit better quality.

  • So, people automatically think "better quality".

  • You can be niche, so this pronunciation "niche", like "ee" sound.

  • Niche means very, very specialized, right?

  • So, you have a very particular part of the market that not many people are filling.

  • Not many companies are trying to be there.

  • So, you have very little competition.

  • And you can be exclusive.

  • To position yourself as being exclusive means that not everybody can have your product.

  • Either it's too expensive or it's just not accessible.

  • Very, very few people have it and those people somehow feel proud because they were able

  • to buy this product, right?

  • And then they will come back and buy more of this product.

  • Again, they can show off to other people.

  • And especially in the day of the internet and social media, people like to show the

  • things they buy.

  • It's just things, but it has a certain image and it creates a certain image of a person.

  • And the companies understand this, and they want the person to feel that they're exclusive,

  • that they're in the luxury market.

  • And they manufacture or they promote their products as such.

  • Okay?

  • So, these are just some of the things we're going to look at.

  • And now, we're going to think about how these companies promote themselves and their products.

  • Okay, so now, we're going to look a little bit more at how they promote, how companies

  • promote themselves in order to build a brand image and, of course, make money.

  • That's what it's all about.

  • So, the first thing they need to do is do some market research.

  • They need to study the demographics of an area.

  • Now, demographics is a measure of the types of people in a particular area, including

  • race, ethnicity, nationalities if there's a lot of immigrants.

  • They need to think about ages, what's the most common age?

  • What's the mobility?

  • Are they people moving in, are people moving out?

  • They need to think about the median income.

  • What is the average person in this area make, in terms of salary or income?

  • And how much disposable income do they have?

  • So, disposable income is the income that is left after you've paid all of your bills.

  • So, you get a certain amount of money every month from your employer.

  • You have to pay your mortgage or your rent.

  • Buy some food, pay for electricity, internet, all these things.

  • And then you have a little bit of money left over.

  • That money you can buy things with.

  • You can dispose of, so that's why it's called disposable income.

  • So, all of this makes up your target audience.

  • The company needs to decide who do they want to target.

  • Who do they want to try to sell to, and whether that fits within the demographics of an area.

  • So, that's your market research.

  • Then, you have to basically start or figure out how to get market penetration.

  • This is especially if you're going into a place where you don't already have basically

  • a visibility or a standing.

  • So, penetration, to penetrate means to enter.

  • So, and another thing they want to do.

  • If they're already in the market, they want to try to corner the market.

  • They want to basically take out the competition and have the strongest presence for their

  • product or for their industry.

  • So, I'm just going to give you a whole bunch of vocabulary here.

  • If they're in a market, and part of cornering the market is increasing market share.

  • So, for example, if you think about a market as a pie chart like this - that's not the

  • clearest, but let's say this is my company.

  • These are my competitors.

  • I want a bigger piece of the pie.

  • So, what I need to do is figure out how to go from there to - and then make these guys

  • smaller and now this is me.

  • I've increased my market share.

  • And the more I do it, now I'm starting to corner the market.

  • Okay?

  • So, that's the mission, that's the goal of any marketing department.

  • Now, how do they do this?

  • Obviously, there's advertising - TV commercials, radio commercials, newspaper ads, magazine

  • ads.

  • But then there's also something called product placement.

  • Now, if you go to any sporting event - let's say you go to a hockey game.

  • Around the boards of the ice, you'll see companies advertising their products.

  • That's one way to place a product.

  • If you think about - carefully think about TV shows that you like.

  • Let's take the TV show "Friends".