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- In this lesson, you will be introduced to the concept of a brand and
- its significance in marketing your products. You will also learn about
- brand management and its most important aspect - advertising.
-
- In this tutorial, the following hot keys are available:
-
- [Esc] - Quit the tutorial.
- [Back Space] - Go back one tutorial step.
-
- pos : 86, 394
- This is the factory that you set up in the "Manufacturing"
- lesson. It seems to be running well.
-
- pos : 395, 65, 418, 90
- mouse : left single
- A department store has been built in the city as a sales outlet for
- the factory's products. Click the department store to look at it.
-
- pos : 213, 391
- Sales have been weak and the department store has been losing
- money since its opening.
-
- pos : 335, 261, 388, 314
- mouse : right single
- The product detail report provides information to help you understand
- the reason for the poor sales results.
-
- Right-click on the product picture to display the report.
-
- pos : 428, 257
- Your competitor's brand rating is up to 28, and yours is zero.
- Since the prices are the same, customers are buying the products
- of the company with the higher brand rating. This is keeping your
- market share quite small in this area and leading to low profits.
-
- pos : 317, 366
- To compete, you must increase your brand rating. A brand rating is the
- sum of two factors, brand awareness, and brand loyalty. A brand rating
- cannot be changed directly, instead you must work on the underlying factors.
-
- pos : 317, 382
- The brand awareness rating measures how aware consumers are of this brand.
- People often buy a product simply because they are familiar with
- its brand. In Capitalism, we capture this effect in the brand awareness
- rating.
-
- pos : 317, 382
- A product can achieve a high brand awareness rating if the brand
- has been advertised extensively, the product has been on the
- market for a long time, or if the brand is widely distributed.
-
- pos : 317, 396
- A brand loyalty rating is a measure of the attachment that a
- customer has to a brand. If brand loyalty is high, customers may
- continue to purchase that brand even if competitors have
- superior quality and a lower price.
-
- pos : 317, 396
- Brand loyalty cannot exist without prior purchase and use
- experience. A brand must generate sufficient awareness before consumers
- will purchase and use the product. The higher the brand awareness, the
- more people will try the product, and brand loyalty can increase
- faster.
-
- pos : 317, 396
- The brand loyalty of a product is greatly affected by the product's quality.
- If customers are satisfied after using the product, brand loyalty
- begins to build up. Conversely, low quality and a poor experience with the
- product decreases brand loyalty. If customers are very dissatisfied
- with the quality of the product, a negative brand loyalty can result.
- This indicates that customers will actively avoid buying this brand in
- the future.
-
- pos : 317, 351
- In addition to these ratings, another important attribute of a brand is
- the brand strategy. There are three types of brand strategy,
- a corporate brand, a range brand, and a unique brand.
-
- pos : 269, 430, 286, 442
- mouse : left single
- You can set your corporation's brand strategy in the "Brand"
- section of the corporate detail report.
-
- Click here to close the product report.
-
- pos : 16, 256, 67, 306
- mouse : left single
- Click your corporate logo, a shortcut to the corporate detail report.
-
- pos : 452, 83, 525, 93
- mouse : left single
- Click here to see the brand report.
-
- pos : 145, 229
- This window shows that your corporation is currently pursuing the unique
- brand strategy. In this strategy, each product has an unique
- brand and each individual product needs separate advertising to
- establish and support its brand.
-
- pos : 146, 190
- Some corporations prefer the corporate brand strategy, which allows a
- corporation to use a single brand for all its products.
- When the corporation launches a new product, it is not
- starting from scratch to build up awareness of its brand
- identity. The investment required to launch a new product is therefore
- reduced.
-
- pos : 146, 190
- The drawback to this strategy is that the corporation is not perceived as a
- dedicated provider of a single category of product. The consumer
- may doubt the devotion of the corporation to the product, thus reducing
- their loyalty to the brand.
-
- pos : 146, 190
- In addition, when a corporation extends its product lines to
- many different markets, it may become difficult for the
- corporation to maintain consistent quality for all its products.
- Failure to do so results in damage to the brand as a
- whole. This risk increases with the number of branded products.
-
- pos : 141, 209
- Given the advantages and disadvantages of these two strategies, a
- corporation may choose a middle-of-the-road strategy, the range
- brand. In this strategy, products in the same product class
- are labeled with a single range brand. A range brand offers some
- benefits of the two other strategies but also suffers from some
- of their deficiencies.
-
- pos : 104, 208
- To change the brand strategy, click the one you want. When the
- brand strategy is changed, all existing brand ratings are reset to
- zero. It is generally best to decide the brand strategy of your
- corporation at the beginning of the game.
-
- pos : 467, 202
- The brand strategy window also shows useful information about each
- corporation's brand. You can click any city or corporation to
- see how each brand is faring in each individual city.
-
- pos : 213, 433, 230, 446
- mouse : left single
- You should now have a basic understanding of how to manage your
- corporation's brands. Let's see how you can use advertising to
- increase the product awareness of a brand.
-
- Click here to close the report.
-
- pos : 276, 285, 313, 308
- mouse : left single
- To carry out the advertising campaign, the first thing you need
- is an advertising unit.
-
- Click the "Layout" button now.
-
- pos : 504, 263, 559, 311
- mouse : left double
- checkunit : 3, 15
- Double-click here to create an advertising unit which is
- responsible for contacting media firms (television stations and
- newspaper publishers) and managing the advertising of the products.
-
- pos : 483, 283, 499, 290
- mouse : left double
- An advertising unit will manage the advertising of the product contained
- in each unit it is linked to.
-
- Click here to link it to the sales unit.
-
- The advertising unit is capable of handling more than one product at
- a time. Each unit the advertising unit is linked to will have its
- product advertised.
-
- pos : 172, 341, 251, 353
- mouse : left single
- Next, you must tell the advertising unit in which media firm (television
- station or newspaper publisher) you want your product advertised.
-
- Click the "Link Media Firm" button now.
-
- pos : 361, 32, 376, 58
- mouse : left single
- This television station seems to be a fairly good choice.
-
- Select it now by clicking it.
-
- pos : 440, 410
- action : next_day
- Here is how to read a media firm's statistics.
-
- pos : 424, 365
- This is the population of the city where the media firm is located.
-
- pos : 424, 380
- Coverage is a measure of the potential audience that might see an ad
- placed with this media firm.
-
- pos : 424, 405
- Reach is the number of people that actually received an
- advertising message at least once in the past month from this media firm.
-
- pos : 424, 420
- Rating Points is a percentage calculated by dividing reach by coverage.
-
- pos : 424, 445
- Cost Per Advertisement is the cost to place an advertisement with this
- media firm.
-
- pos : 424, 460
- Cost Per Thousand is the cost of exposing 1,000 people to an
- advertising message.
-
- pos : 550, 300
- The most important measure of the effectiveness of a media firm is its
- rating points. It summarizes the relative reach of the media firm.
- This should be your foremost concern when choosing a media firm to
- advertise your product. A graph is dedicated to showing the rating point
- history of this media firm over the past 12 months.
-
- pos : 402, 308
- Next to the rating point graph is a pie chart showing the share of the
- advertisers in the past month. The corporate color of each of this
- media firm's customers represents that corporation advertising share
- of this firm's revenue. The white portion represents the share held by
- local advertisers. This firm doesn't have any corporate advertisers yet.
-
- pos : 277,257,312,279
- mouse : left single
- It's the time to tell your advertising unit to use this television
- station for its ad campaign.
-
- Click the "Link" button now.
-
- pos : 82, 408
- The television station's statistics are shown here. Some additional
- information is also provided.
-
- Reach/Population is the percentage of the population who receive the
- advertising message. It is calculated by dividing the reach by the
- population.
-
- pos : 132, 444
- Daily Frequency indicates the number of times an individual
- is exposed to an advertisement in a day.
-
- pos : 121, 458
- Monthly Frequency indicates the number of times an individual
- is exposed to an advertisement in a month.
-
- pos : 503, 289
- For quick reference the daily frequency and rating points are displayed
- in the ad unit's info-box, denoted by the letters "F" and "R," respectively.
-
- Advertising frequency is significant, as a higher ad frequency
- will improve product awareness faster than a lower frequency.
- To increase frequency you must increase advertising spending.
-
- pos : 50, 306
- To set the monthly advertising spending click this slider.
-
- IMPORTANT: This is the amount of money spent to advertise EACH
- product managed by the advertising unit. Therefore an ad unit
- that manages the ad campaigns of four products will spend four
- times this amount each month on advertising.
-
- With this advertising scheme, your product is surely going to gain
- some popularity over time. Now you are ready to move on to the next
- lesson.
-