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the advertised brand: its value and cost

January 4, 2016

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Ultimately, what prompts a customer to select one brand over another? The organization that loses track of its brand value may be stuck with only a single value proposition, competitive price.

Indeed, for most purchasers, price is the likely first point of consideration. That is, unless there has already been the acceptance of a value proposition even more deeply ingrained than that of price. Even then, price is never completely out of the equation. It always affects the customer’s value perception.

Consider then, the price as related to value. It could be that the price point, as compared to the crowd occupying the space, is actually in the lower range. In that instance, the perception of a lower price often equates to a lower perceived value. Here, only the strength of the brand identity can possibly overcome the negatively perceived value, and appeal to a larger cross-section of customers. This is not only true in retail, but also in the service industry.

Conversely, if the price of the product or service is in the higher range, brand identity can and does make the difference to the informed customer. The association that has been built with the brand’s overall integrity, quality and reliability will always sway the customer towards purchase. It does not guarantee it, but certainly has the capacity to level the claims of the competition.

In a real sense, value belongs to the brand, while cost is simply one factor considered by the customer in making the selection. Where the value perception of the brand is high, the cost of the product or service may be high or low among competitive brands and still be the preferred choice.

When proper weight is given to marketing the brand, the effect upon advertising strategy can be profound. Consider how a simple branded by-line can form the foundation of an entire campaign, crossing all channels and completely leveling the closest competitor’s claims.

“You can make a straight cut with any saw. What it comes down to is this: Which brand do you trust? When safety, job performance and reliability are considered, there are very few real choices. You already know which one you choose.”

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