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

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