People are increasingly looking at the brand values surrounding a
product and not just the product itself and its features, before making
the decision to purchase it.
The reason, according to M&C Saatchi's client services director, Pip
Landers, is because there is so much choice in the marketplace and
little differentiation among similar products.
The result is that consumers have become confused and so have resorted
to looking at the branding to make a purchase decision.
The fiercely competitive mobile telephone market is an example where
effective branding is a key to success.
"In the Hong Kong mobile phone market, there are many large players but
the products and services they offer are very similar. Even if one
introduces a new feature today, the others would follow suit very
quickly and consumers know this," Ms Landers said.
This situation has led to people buying brands and not product features,
she added.
"The brand is all the message you give to consumers about the product,
including the history, the corporate background, the price information
on top of the advertising message.
"Since in the minds of consumers there is little to differentiate among
a number of similar products, the differentiation comes with how much
money is spent by the company in branding," Ms Landers said.
She also said that new products were "appearing in the market at an
alarming rate, and this means a company can only succeed if the brand is
strong".
The shift towards focusing on brand values has been brought about by
technology, computers and communications.
In the past, Ms Landers noted, innovation was the key to success since
consumers actively sought out key product features that would make their
lives easier or more comfortable. Today, however, people purchase
products for what they represent, that is the brand values that they
feel reflect their own or desired personalities.
In the past, therefore, advertising was crucial, but the current
thinking is more complex.
Ms Landers said that companies had to keep in mind four basic points
when selling their products and service:
- The customer always comes first;
- There must be effective marketing communications;
- Total integration of brand and communications message, underlining the
point that companies should not just think about advertising they should
think about retail outlets, POP, special promotions, or 360 degree
integration in short; and
- Boldness and commitment. Companies have to stand out in the crowd and
they should realise that brand strategy is a long-term commitment which
cannot change every year.
