FOCUS: TECHNOLOGY MARKETING SEMINAR - Consumers relying on brand image due to market confusion

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.

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