This game introduces the concept of a brand and its significance
in marketing. You will also learn about brand management and its
most important aspect - advertising.

The following hot keys are available:

[Esc]              - Display the instructional game menu.
[Back Space] - Go back one instructional step.

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This is the beer produced by the factory you set up in the "Manufacturing"
lesson. Sales are weak.

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mouse : right single
The product detail report provides information to help you
understand why sales results are poor.

Right-click the product picture to display the report.

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Your competitor's brand rating is up to 24, 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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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mouse : left single
Click your corporate logo, a shortcut to the corporate detail report.

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mouse : left single
Click here to see the brand report.

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This window shows that your corporation is currently pursuing the unique
brand strategy. In this strategy, each product has a unique
brand and each individual product needs separate advertising to
establish and support its brand.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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mouse : left single
To carry out the advertising campaign, the first thing you need
is an advertising unit.

Click the "Layout" button now.

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mouse : left double
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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.

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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.

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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.

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mouse : left single
This television station seems to be a fairly good choice.

Select it now by clicking it.

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action : next_day
Here is how to read a media firm's statistics.

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This is the population of the city where the media firm is located.

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Coverage is a measure of the potential audience that might see an ad
placed with this media firm.

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Reach is the number of people that actually received an
advertising message at least once in the past month from this media firm.

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Rating Points is a percentage calculated by dividing reach by coverage.

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Cost Per Advertisement is the cost to place an advertisement with this
media firm.

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Cost Per Thousand is the cost of exposing 1,000 people to an
advertising message.

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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.

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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's 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.

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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.

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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.

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Daily Frequency indicates the number of times an individual
is exposed to an advertisement in a day.

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Monthly Frequency indicates the number of times an individual
is exposed to an advertisement in a month.

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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.

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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's popularity will
certainly rise. Now take some time to review what you have just
learned and organize a sound advertising campaign.

When you are ready to move on to the next instructional game, press
[ESC] and select "Next Game".

If you want some hints, press [ESC] and select "Hints".
