Product segments or product types of certain industries display different and specific product features to build a possible relationship among consumers. Some of the variables that customers consider when deciding to purchase products or services is based on brand equity. Brand equity is a set of assets or liabilities associated with a brand name or symbolism that includes brand loyalty, perceived quality of goods or services, brand awareness, patents, trademarks and brand associations. A brand can be a symbol, slogan, name or design used to help consumers identify specific goods or services of the seller and help them to differentiate their products from the competition. A consumer’s decision to purchase weighs a great deal on supply and demand of particular goods and services.
Brands are also known as product variants. In order to get consumers to select your brand over your competition’s brand or a generic brand, your image and presentation makes a tremendous difference in their decision-making process. If you are able to answer some of the following types of questions, then you already built a relationship based on local, national or global brand recognition and consumerism –
o What is the name of the toothpaste you use and why?
o Why type of coffee do you drink and why?
o Which fast food restaurant do you frequent and why?
o What type of soda pop do you drink and why?
o What make and model of car do you drive and why?
o What college or university do you attend and why?
o What is the name of the jeans you are wearing and why did you choose them?
The perceived value (which measures how much a consumer agrees to pay for a company’s goods or services) and price (which is the monetary amount that a customer will pay for a particular product or brand) are also significant in a company’s marketing strategy. Value proposition acknowledges a company’s target market, their competitor’s targets and product differentiation (gives a competitive advantage). When companies think about product differentiation they base their brands on their product or service, their performance quality, reliability, package design, services, courtesy, competence, reliability and well trained personnel, along with their image coverage and expertise.
Customers are looking for great value, dependability, quality, benefits and excellent customer service. Even if consumers pay a little more for a particular brand than penetration pricing (based on the premises of only a low price), as long as they get what they want and it serves them beneficially, along with customer satisfaction, then nine times out of ten you will have a loyal and repeat customer.