ENTREPRENEURSHIP 2ND Quarter Reviewer

LESSON COVERAGE
1 Marketing Mix (7Ps) 4. PROMOTION
2 Product Refers to the “marketing communication used
to make the offer known to potential
3 Place customers and persuade them to investigate
4 Price it further.” Promotion elements include
5 Promotion advertising, public relations, direct selling, and
6 People sales promotions.
7 Positioning
8 Brand Name 5. PEOPLE
Essential in the marketing of any product or
service. In the professional, financial, or
LESSON 1 Marketing Mix (7Ps) hospitality service industry, people are not
produces, but rather the products themselves.
MARKETING MIX
Also known as the four P’s broad levels of marketing, 6. PROCESS
decision namely Product, Price, Place, and Promotion, it Refers to “the set of activities that results in
is a foundation concept in marketing. It is defined as the delivery of the product benefits.” A process
“set of marketing tools that the firm uses to pursue could be a sequential order if tasks that an
its marketing objectives in the target market.” employee undertakes as a part of their job. It can
represent sequential steps taken by a number of
THE 7PS various employees while attempting to complete
1 Product a task. Some people are responsible for
2 Price managing multiple processes at once.
3 Place
4 Promotion 7. PHYSICAL EVIDENCE
The lasting proof that the service has happened,
5 People in terms of buying a physical product, the physical
6 Process evidence is the product itself. According to Booms
7 Physical Evidence and Bitner’s framework, “physical evidence is
the service delivered and any tangible goods
1. PRODUCT that facilitate the performance and
Refers to what the business offers for sale communication of the service.” Physical
and may include products or services. Product evidence is important to customers because the
decisions include the “quality, features, benefits, tangible goods are evidence that the seller has
style, design, branding, packaging, services, (or has not) provided what the customer was
warranties, guarantees, life cycles, investments, expecting.
and returns.”
EMERGENCE OF THE MARKETING MIX: 4 P’s
2. PRICE and 7 P’s CONCEPTS
Refers to decisions surrounding “list pricing,
discount pricing, special offer pricing, credit - The origins of the four Ps can be traced to the
payment or credit terms.” Price refers to the late 1940s.
total cost for customer to acquire the product,
and may involve both monetary and - Prof. James Culliton: coined the term
psychological costs such as the time and marketing mix.
effort extended in acquisition.
- Prof. Neil Borden: published a retrospective
3. PLACE article detailing the early history of the 4 P’s.
It is defined as the “direct or indirect channels to
market, geographical distribution, territorial - In 1981, Boom and Bitner proposed a model
coverage retail outlet, market location, of 7 P’s, comprising the original 4 P’s (plus
catalogues, inventory, logistics, and order process, people, and physical evidence), as
fulfillment.” Place refers either to the physical being more applicable for services marketing.
location where a business carries out Since then, there have been a number of
business or the distribution channels used to different proposals for a service marketing
reach markets. mix.

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LESSON 2 Product
MARKETING STRATEGY
PRODUCT To be successful, a firm must possess one or more
Is anything that can be offered for satisfaction. It may competitive advantages that it can leverage in the
be an idea, a physical entity (a good), a service, or any market in order to meet its objectives. A competitive
combination of the three. Product is the bundle of advantage is something that the firm does better than its
satisfaction which the buyer receives as the result of a competitors that give it an edge in serving customers’
lease or purchase. needs and/or maintaining mutually satisfying relationships
with important stakeholders.
It included the physical good or service itself (its form,
taste, smell, color, and texture), the function of the product FOUR PRINCIPLES OF POSITIONING STRATEGY
in use, the package, the label, the warranty, the by Jack Trout
manufacturers and retailer’s services.
1. Must establish position for firm or product in mind
According to Principles of Marketing by Serrano of of customers.
2016, Product is anything in the form of good, service, or 2. Position should be distinctive, providing one
idea consisting of a bundle of tangible and intangible simple, consistent message.
attributes that can be offered to a market that might satisfy 3. Position must set firm/product apart from
a want or need and is received in exchange for money or competitors/
something else of value. 4. Firm cannot be all things to all people – must
focus.
PRODUCT STRATEGY
Is often called the roadmap of a product and outlines USES OF POTIONING IN CREATING COMPETITIVE
the end-to-end vision of the product and what the ADVANTAGE
product will become. Companies utilize the product
strategy planning and marketing to identify the direction of Tools to understand Relationship between Products
the company’s activities. and Markets

Good product strategies either meet an existing need with 1. Compare to competitions on specific attributes.
a quality solution or create a need by offering something 2. Evaluate product’s ability to meet consumer
so modern and special that customers decide they don’t needs/expectations.
want to live without it. Some products, like organic foods, 3. Predict demand at specific prices/performance
meet customer concerns about the environment and their levels.
personal health.
Ways to Identify Market Opportunities
STRATEGIES FOR MATURE PRODUCTS
1. Introduce new products.
1. Develop new uses or functions and new purposes 2. Redesign existing products.
for products. 3. Eliminate non-performing products.
2. Develop new or add latest product features.
3. Find news classes of consumers or new potential Product Strategies
markets for present products.
4. Find new classes of consumers for modified 1. Breadth Strategy is reaching multiple segments
products. with a single product.
5. Increase product used for new product users. 2. Depth Strategy is serving one segment with
6. Change marketing policies or strategies. multiple products.
3. Tailored Strategy is customizing products for
• Marketers engage in market segmentation each segment.
when they divide the total market into smaller,
relatively homogenous groups or segments that Positioning (who are in the marketplace vis-à-vis the
share similar needs, wants, or characteristics. competition)
• When a marketer selects one or more target
1. Determine who you are in the market.
markets, they identify one or more segments of
2. Then decide who you want to be.
individuals, businesses, or institutions toward
3. It involves all of the marketing mix variables.
which the firm’s marketing efforts will be directed.

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LESSON 3 Place
BASIC TYPES OF CHANNEL DISTRIBUTION
PLACE
Is making the products available in the right 1. Direct Channel Distribution
quantities and locations where customers want them. Is the transfer or movement of goods and services
from manufacturer to final user or customer without
the intervention of independent middlemen.
DISTRIBUTION STRATEGY
Refers to the process of moving goods and services
This is the channel or intermediaries chosen when the firm
from the company to the customer. The distribution
wants to control the entire marketing program. They have
channel that will be adapted must provide a strategic
close contact with consumers and have limited target
advantage to the company.
markets.
COMMON DISTRIBUTION CHANNELS
2. Indirect Channel Distribution
1. Direct sale is when the company/firm plans are Is the transfer or movement of goods or tangible
to move goods directly to the ultimate users. This products and services or intangible goods from
is the most effective channel. manufacturer or producer to independent
intermediaries to customer.
2. Original equipment manufacturer sales
involve selling a manufactured product and which This channel is utilized buy firms who want to expand their
is later sold as a finished product to the end user. markets or end users. The end result is increase in sales
An example is the sound system incorporated volume and growth in sales as the relinquish some
into cars. channel of distribution control and consumer contact.

3. Manufacturer’s representative is a wholesaler INTENSITY OF CHANNEL COVERAGE

employed by one or several producers and paid
on commission basis according to quantity sold 1. Exclusive distribution is the limited number
. of middlemen used in a geographic area. It is
4. Wholesalers are channel members that sell to also organized in a particular region or provinces
retailers or other agents for further distribution to handle the sales and distribution of the product.
through the channel until they reach the final They handle the distribution of the product and
users. thus lessen the expenses.

5. Brokers are distributors who buy directly from 2. Selective distribution is organizing a
distributor or wholesaler and sell to retailers or moderate number of wholesalers or retailers.
end users. The entrepreneur uses and tries to combine
some channel controls and image with good
6. Retailers are the one who sell directly to sales volumes and profits. Chosen dealers were
customers in the store. They buy product without selected on the basis of credibility in the
any intermediaries or middlemen. distribution of the product to the target market.

7. Direct mail includes printed materials used in a 3. Intensive distribution is organizing a large
targeted campaign to consumers. These are sent number of middlemen that are used to obtain
directly to consumers. These include catalogs, widespread market coverage and channel
letters, e-mail, and other direct appeals. acceptance. The objective is high sales volume
and profit.
CHANNEL OF DISTRIBUTION
Is made up of people or organizations involved in the PHYSICAL DISTRIBUTION
distribution process. It is any activity of firms or Covers the broad range of activities in connection
individuals who take part in the flow of goods and services with the efficient delivery of raw materials, parts, semi-
from manufacturer to final consumer or business user. finished items, and finished products to designated places
and designated times and in proper conditions.
• Channel members may either be manufacturers,
service providers, wholesalers, retailers,
marketing specialist or consumers.
• Middlemen act as go-between the producer and
the consumer. It refers to the following:
wholesalers, retailers, and marketing specialist.

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WAYS According to Elements of Marketing 4th edition by

Mutya of 2007, PRICE means the money value of a
• Transportation is railroads, motor carriers, product or service expressed in terms of peso or and or
waterways, pipelines, and airways. centavos. It is also the amount of money needed in order
to acquire a product or service and its accompanying
• Inventory Management consists of a continuous services.
flow of goods or tangible products to match the
quantity of goods kept in inventory as closely as FIVE STEPS IN DEVELOPING A PRICING STRATEGY
possible with sales demand.
1. Objective
• Warehousing carries the physical facilities used 2. Broad Price Policy
primarily for the storage of goods held in 3. Price Strategies
anticipation of sales and transfers within a 4. Implementing Price Strategy
distribution channel. 5. Price Adjustments

• Retailing refers to those business activities 1. OBJECTIVE

involved with the sales of goods and services to a. Sales Based.
the final consumer for personal, family, or The firm is interested in sales growth and/or
household use. It is the final stage in a channel maximizing market share. The concern of the
of distribution. company is to increase sales by offering new
product design, product lines, and promotional
Retailing is important because its impact on the items.
economy, its function in the distribution channel, b. Profit-Based.
and its relationship with suppliers. The impact of The firm is interested in maximizing profit,
retailing on the economy is a major source of earning a satisfactory profit, optimizing the return
employment with high annual sales. on investment or securing an early recovery of
cash. Its thrust is to satisfy the investors/
• Scramble merchandising takes place when a stockholders by providing them immediate return
retailer adds goods and services that are of investment.
unrelated to each other or the original business of c. Status Quo Based.
the retailer. The firm seeks to avoid reasonable government
actions, minimize the effects of competitor
• Wholesaling is buying or handling or actions, maintain good channel relations,
merchandise and its subsequent resale to discourage the entry of competitors, reduce
organizational users, retailers, and/or other demands from suppliers and stabilize prices.
wholesalers but not the sale of significant volume The goal of the company is to maintain good
to final consumers. image to the community by creating projects/
programs that protects its welfare and goodwill.
LESSON 4 Price
2. BROAD PRICE POLICY
PRICE Provides procedures, rules, and methods to act
Determines the value of good or service to the buyers in one specific situation. It links prices with the
even to the sellers. It is the amount of money needed in target market, image, and other marketing
order to acquire a product or service and its elements. It makes sure that pricing decisions
accompanying service. are coordinated from other sellers.
a. Penetration pricing
It is the amount of money charged for a product or uses low prices to capture/attract the lager/mass
service or the sum of values that consumers market for a product or service. The preference
exchange for the benefits of having or using the of the mass majority of the market will be the
product or service. basis of the price set.
b. Skimming pricing
The company must provide ways to conceptualize actions uses high prices to attract the market segment
to attract customer patronage using the price. more concerned with product quality,
uniqueness, or status than price. The seller
chooses high price in order to determine who will
really patronize the product.

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3. PRICE STRATEGIES d. Flexible pricing

Are ways or some actions to accomplish the Is based on customer’s ability to negotiate or buy power
goals and objectives of the company in gaining of the customer.
profit. - The entrepreneur must meet the needs
a. Cost-based price strategy and wants of the customer so that they
Is when the firm sets prices by computing need to adjust the price just to ensure
merchandise, services, and overhead costs then continuous patronage and loyalty.
adding the desired profit to those figures. After e. Odd pricing
combining all the expenses incurred during the Are prices set at levels below even values.
production of the product, the seller must also - The entrepreneur uses odd numbers to
decide the best profit as part of the price of the attract customers in pricing a product.
product. f. Price-quality association
b. Demand-based price strategy Is when the customers believed that high price
Is when the firm sets prices after researching represents high quality and low prices represent low
consumer desires and makes sure the range of quality.
prices is acceptable to the target market. The - The entrepreneur instilled to the mind of
firms conduct researches regarding the sale the customers that having a high price
ability of the product. If the product meets the contain high quality materials.
criteria of the market, the firm can raise the price g. Prestige pricing
of the product because it can assure profit based Is when customers set price floors and will not buy at
on the market demand. prices below those floors. Above price ceilings, items
c. Competition-based price strategy would seem too expensive.
Is when the firm sets prices in relation to the - The entrepreneur must consider that
competitors. The entrepreneur must research products must follow the price floor and
the prices set by their competitors. ceiling set by the government.
h. Leader pricing
Is selling key items at low prices to gain consumer
4. IMPLEMENTING PRICE loyalty within its product time. It is hoped that the
STRATEGY costumers will buy regularly priced products together
Is the firm readiness to sell the product which with the specially priced one.
would be effective if given an attractive price - The entrepreneur must be aggressive to
strategy. win the respect of the competitors so as
a. Customary pricing they can value the actions that will take
Is when one price is maintained over an place.
extended period of time. i. Multiple-unit pricing
- The entrepreneur must consider the Is when the entrepreneur offers discounts to
price of the product which is consumers for buying in large quantities.
affordable to majority of buyers. - The entrepreneur must consider that
b. Variable pricing selling more units will produce more
Is when the price responds to costs fluctuations profits. To prevent overstocking and
or differences in demand. maintain proper inventory, selling in bulk
- The entrepreneur must consider the can increase profit and promote growth.
law of demand and supply. If there j. Price lining
are sufficient supplies and few Is when instead od setting one price for a single model
demands, the price will increase and of a good or service, the firm sells two models of
vice versa. different quality and features at different prices.
c. One-price policy k. Price bundling
Is when the price is charged to all customers Is when the firm offers a basic product, options and
buying the product or service under similar customer service for one total price.
conditions. - The entrepreneur will combine product and
- The entrepreneur will set one price service to the price set in the product.
for all products available for sale l. Unbundled pricing
even though they differ from design. Is when the firm sells by individual components and
allows customer to decide what to buy.
- The entrepreneur will set price of the
product item from the other. It can be sold
separately and individually
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m. Geographic pricing d. Mark-ups

Is when the prices are set depending on the distance Happen when the company is raising regular selling
of the buyer to the seller. Normally this activity is done prices because demand is unexpectedly high, or costs
if both parties are far from each other. The two parties are rising.
must agree to the price before the transaction can take - The entrepreneur must be careful to
place. These are the sample transactions: increase the price of the product as it can
affect customers’ continuous loyalty.
• FOB Factory is when the buyer pays for all e. Markdowns
freight charges regardless of the distance. Are reductions from original selling prices to meet lower
• Uniform Delivered Pricing is when buyers prices if competitors, overstocking, shop-worm
pay the same delivered price for the same merchandise, and increase customer traffic. This
quantity of goods. activity can affect profit generation.
• Zone pricing is when the buyers within the
geographic zone pay a uniform delivered price. PRICING STRATEGY
• Base-point pricing is when the cost of In determining the right price, the following factors must
transporting the goods is computed from base be considered:
point nearest buyer.
1. The customer’s perception of value of the kind of
TERMS OF PAYMENTS business firm;
Are price agreements, including discounts, timing of 2. The costs involved such as overhead, storage,
payments and credits agreements. financing, production, and distribution; and
3. The profit objectives of the firm.
Discounts are reduction in the selling price given to
customers for varying reasons: paying in cash, The price set by the firm may be established through
performing certain functions, buying in large quantities, any of the following methods:
and off-season buying
1. COST-PLUS PRICING
5. PRICE ADJUSTMENTS This method covers all costs, variable and fixed,
Changes in cost, competitive conditions and plus an extra increment to deliver profit.
consumer demand require changes in price.
a. List prices 2. DEMAND PRICING
Are regularly quoted prices to customers, as in This is a method of pricing where the firm sets
catalogs, price tags, and purchase orders. prices based on buyer desired. This range
- The salesman must have a clear acceptable to the target market is determined.
and updated price so when the
negotiation takes place, a minor 3. COMPETITIVE PRICING
correction of price will be made. This method of pricing calls for price-setting on
the basis of prices charged by competitors.
b. Escalator clauses
Happen when the contract which allows price
4. MARKET PRICING
increase after the sale is concluded before
This is a form of cost-oriented pricing in which the
delivery is made.
firm sets prices by adding per-unit merchandise
- The seller must communicate to the
costs, operating expenses, and desired profit.
buyer that there is a price
adjustment due to some reasons
Factors that Influence Price Determination
and must agree to the new price.
c. Surcharge Internal factor
Is the supplementary to list prices. These are Marketing objectives
additional charges added to the total price. Marketing mix strategy
- The seller can include this or Cost plus pricing strategy
disregard to better gain customer
loyalty and profitability of the External factor
company. Market Demand
Competitors’ Strategy
Economic and Social Concerns

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LESSON 5 Promotion
The Selection of a Promotion Mix Depends on
PROMOTION Several Variables:
is any form of communication which is used to inform,
persuade and remind people about an organization or 1. Product Life Cycle
individual's goods, services, image, ideas, community An organization must be aware of the different
involvement or impact on the society. stages of PLC and the company status to fully
design a strategy.
PROMOTIONAL MIX
is a combination of the strategies to accomplish the 2. Company Characteristics
promotion objectives of an organization. It includes The more products line the company gains the
advertising, publicity, personal selling, and sales better tools to serve the organization.
promotion that help the organization to fully inform,
persuade, and remind the customer about the 3. Relations with Middleman
organization goods and services. The dealer such as retailer or wholesaler can give
impact about company effectiveness and
PROMOTIONAL MIX TOOLS efficiency.
refer to the entire set of activities, which communicate
the products, brand or service to the user. PROMOTION STRATEGY
How the products or service of the company will be
These are the following: promoted is an important component of the marketing
strategy. The promotion strategy must include the
1. ADVERTISING following:
is a paid, non-personal communication regarding
goods, services, organizations, people, places and 1. Advertising Aspects
ideas that is transmitted through various media by a. Advertising budget
business firms, government and other non-profit b. Positioning message
organization and individuals who are in some way c. First year media schedule
identified in the advertising message as the sponsor.
2. Public Relations
The leading medium has been the newspapers, This will be a detailed presentations of the publicity
followed by television, radio, magazines, industry strategy of the firm. This will include a list of media
publications and outdoor ads. that will be tapped to convey the firm message to the
target market. The schedule of special events like
product launching will also be included.
2. PUBLICITY
is a non-personal communication regarding goods, 3. Sales Promotion
services, organizations, people, places, and ideas These are means used to support the sales message
that is transmitted through various media but not paid like special sales, coupons, contests, premium
for by an identified sponsor. awards, trade-in, among others.

Ex. Coca cola will be the sponsor for the family 4. Personal Sales
show aired in channel 7. Present the sales strategy which includes:

a. Pricing procedures
3. PERSONAL SELLING
b. Rules on returns and adjustments
Involves oral communication with one or more
c. Methods of sales presentations
prospective buyers by paid representatives for the
d. Generation of leads
purpose of making sales. Normally, this is done
e. Policies on customer services
through door-to-door selling.
f. Compensation of salesmen, and
g. Responsibilities of the salesmen
4. SALES PROMOTION
Involves paid marketing communication activities
that stimulate consumer purchases and dealer
effective.

Ex. Buy one take one, bodega sale, discount

coupons.

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LESSON 6 People
PRODUCT REPOSITIONING
PEOPLE Means reviewing the current position of the product and
Can be considered as product by providing its marketing mic and seeking a new position for it that
satisfaction to the consumer. These are the celebrity, seems more appropriate.
model, artist, dancer, singer, and the like.
MARKET POSITIONING
Businesses can improve their ability to attract, retain, and Is developing a product and brand image in the minds of
improve productivity by applying the following five-step consumers. It can also include improving customer’s
PRIDE PROCESS: perception about the experience they will have if they
choose to purchase a company’s product or service.
P– Provide a pleasant working environment
R– Recognize, reward, and reinforce the good 1. Innovator / Leader vs Follower
behaviour
I– Involve and participate in the activities and Innovator / Leader means being an initiator in
programs selling a new product to the market.
D– Develop skills and attitude
E– Evaluate and measure performance Follower / Imitator means that the products just
being copied from the innovator. No new ideas
NETWORKING are being developed or created.
It involves socioeconomic business activity by which
entrepreneurs and business people meet to form 2. Domestic vs International / Global
business relationships to recognize, create, or act upon
business opportunities, share information, and seek A Domestic firm produces only for local
potential partners for business ventures. consumption.

NETWORK MARKETING International / Global market expands its product

For most Filipinos, it is a new business format that line to market located beyond the boundaries of
boggles their minds. As a concept, network marketing has one country.
been founded the fastest way to accumulate wealth
nowadays. 3. Quality vs Price

The concept is used to penetrate the market as fast as Quality must be the priority in selling the product
possible without entailing expensive marketing costs such not considering how much it will cost. It describes
as advertising and promotions. how the firm prioritizes the materials being used
and how it will create satisfaction to the market.
It is spread by word-of-mouth and a non-traditional
business with unconventional results. Price must be the first consideration in producing
the product – how much it will cost to the market,
and how to make the product become affordable
LESSON 7 Positioning to the market.
POSITIONING LESSON 8 Brand Name
Refers to how the firm differentiates their product or
service from those of the competitors and serving a BRAND NAME
niche. It is where the firm identifies a target segment and Is name or mark that is intended to identify the seller’s
develops a strategy mix to address the desires of that product and differentiate it from the product of the
segment. The objective of positioning is to establish the competitors.
firm’s product or service identity in the mind of the buyer.
Brand Mark is recognized by sight but cannot be
PRODUCT POSITIONING expressed.
Is placing a brand in that part of the market where it will
have an approving acceptance compared with competing TRADE MARK
brands. Is a brand that have been adopted by the seller and
- The entrepreneur must create an image to given legal protection. The trade mark is protected by
the public presenting how they want to operation of law under the DTI. Branding protects the
position the product (low price and high company from imitations and fake products.
quality, high price and high quality)

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Advantages of Branding The Different Strategies Used to Sell More

Products
1. Brands make it easy to identify the product or
service. 1. Branding Within a Product Mix
2. It assures the buyer that they get the same quality
of products. a. Separate Name for Each Product
3. It reduces price comparison. This is often termed as family branding. It is
4. It adds prestige to the product of the seller. simple and less expensive to introduce new and
5. It provides legal protection for the seller. related products to a line. The prestige of the
6. It helps in product market segmentation. brand can be spread more easily as it appears on
several products.
Selecting a Good Brand Name
b. The Company Name Combined with the
1. It should suggest about the product or service. Product Name
2. It must be easy to pronounce and remember. The is best suited for marketing products that are
3. It must be simple and short. related in Customers look at quality products and
4. It must be distinct or different from others. mind setting fort the objective of the marketing
5. It must be adaptable to new company product that organization.
may be added.
6. It must be capable of registration and legal c. The Company Name Alone
protection. Branding with the company name alone places a
great burden on the producers' reputation for
Branding Strategies quality. Other products carrying the same brand
Producers and middlemen alike must choose strategies name may not make the grade and this will affect
with respect to branding their product mixes and branding the other products in the market.
for product saturation.
2. Branding for Market Saturation
1. Producer’s Strategy
This strategy is employed by product manufacturers’ a. Introduction of Line Extension
that dominate the greater market to the superiority of This is the strategy where brand names are extended
their product. into new forms and sizes of an existing product
category.
2. Middleman’s Strategy
This is also called as co-branding where the producer b. Introduction of Brand Extension
and sole distributor carry the brand name of the This strategy calls for the extension of the brand
manufacturer and that of the middlemen. name to new or modified product categories. It aims
to penetrate the market easily with new product
Brand Equity spells out the value of the brand in categories as the brand name had performed
the market. excellently in the market.
Brand Loyalty is developed as customers
become aware on the quality of the product c. Introduction of New Brand Name
compared with other brand in the market. It is the strategy where a new brand name is attached
to a new product category. Corporate brand
Advantages of Co-Branding acquisition is resorted in order to protect the existing
brand that had reached its maturity and declining
1. It creates broader customer appeal. stage.
2. It develops greater brand equity.
3. It expands the middlemen brand in the market. Reasons for the Existence of Brands

Disadvantages of Co-Branding 1. Identification

Brands enable consumers to easily distinguish
1. Coordination is oftentimes difficult with the one product from another
producer and the middlemen.
2. It entails legal contract which can be complex and • Magnolia branded a generic product-dressed
difficult. chicken, which became the leading brand
3. Licensing agreement is necessary. within two years from launch. It continues to
4. It requires mutual trust between the two parties. command a Premium in pricing.

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2. Protection
It enables the owner of the brand name to enjoy
the goodwill associated with the name so as not
to be taken advantage by others.

• Levi's jeans have been resorting to the legal

remedy of running after unscrupulous
individuals and companies taking their brand.

3. Positioning
It enables the owner to communicate the benefits
of his product vis-à-vis competition.

• Bruno's barbershop chain adopted such a

name as it immediately conveys masculinity

Criteria for Choosing a Brand Name

125 Principles of Marketing by Pereda, Pereda & Castillo
2013)

1. Distinctive
Is the brand closely associated with another product?

2. Word Association
Does it have a pleasant meaning?

3. Legal Requirements
Can it be registered?

4. Memorability
Can your name be remembered easily

5. Pronounceability
Can it be pronounced easily?

6. Limitations
Is the brand name too limiting to be used for
expansion?

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