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208 Chapter Eight
In brand development, the company should design a desirable brand identity
based on a thorough analysis of the marketplace, competitors, and the
relative strengths and weaknesses of the company itself, in order to achieve
the best customer brand image possible.
Product
Customers do not buy brand symbols; they purchase products. Initially,
customers may be influenced by advertisements or their friends’ advice to
try a product with a certain brand name, but the product has to perform up
to customers’ expectations. If the product performs equal to or better than
customers’ expectations, the perceived brand image will be confirmed
by customers’experience; that will trigger word-of-mouth recommendations,
sales will grow, and the positive brand image will spread among more and
more customers. In order to accomplish this, it is very important that the
actual product characteristics, such as functions, performances, and quality
levels, be consistent with the brand identity. Therefore, product development
has to go hand in hand with brand identity design; the product development
process has to be in tune with brand development.
Price
The role of price in brand development is quite interesting. The brand price
is related to the benefits that the brand provides, as illustrated by Fig. 8.8. If
a price is too high relative to the benefits that the brand provides, the
perceived value in customers’ minds will be low. Customers will think this
brand is overpriced. However, if the benefits that the brand provides are
high, but the price is low relative to the benefits, the customers’reaction can
be quite complex. Theoretically, customers will be happy to get more and
spend less, but the perception of a “cheapo” product may creep in, which
may undercut the brand image. Usually, benefits are the main focus for
brand identity creation. If you have more benefits and customers are happy
Functional Emotional Self-expressive
benefit Relative
benefit benefit price
Value proposition
Figure 8.8 The Relationship Between Price and Benefits of a Brand (Aaker 1996)