RE: Re: Value of brand

Interesting Comments...

I think it's important to remember that we've moved from a predominantly
product based economy to a predominantly service based economy.  We no
longer sell the product - we sell what the product can do for you.  How the
product will improve your life, and make you happier, richer, and/or more
fulfilled. 

Starbucks, McDonalds and Exxon may be selling coffee - but they are not
selling the same product. The "experience" as we've been calling it, is
rather ill-defined, because we neglect to acknowledge the intrinsic value of
the product, compared to the retail value of the product.  

Intrinsic value can be anything to anyone - the "warm-fuzzy" feeling you get
from that first sip or the jolt of caffeine when you need it the most. The
intrinsic value may not be worth the retail value - it all depends what the
product or service is worth to you.  Starbucks capitalizes on this intrinsic
value by creating a "coffee house" space where we literally feel at home.
You walk through the door, the smells of coffee grounds and vanilla and
sugar in the air, the warm tones, the big overstuffed chairs and sofas, etc.
People walk into these coffee houses knowing they'll pay the price for it -
that's when intrinsic value - not retail value - kicks in.

McDonald's and Exxon on the other hand are selling a completely different
intrinsic value. If you're buying coffee from Micky D's or Exxon, odd's are
coffee isn't the first thing on your mind.  The intrinsic value here is
(more often than not) convenience.  Now, I'm not saying preferance doesn't
have anything to do with it, but preference is built into this intrinsic
value and determines which door you'll walk into in the first place. 

It's easy to say "sell the brand rather than the experience" - but in a
world innundated with brands and logos and "fresh" and "new" and "better
than ever", it's not the brand that's going to reel in the dollars anymore.
Think about how you shop... how most average people shop... they don't look
primarily for brands anymore - they look for the best value for their buck.
The successful future of branding lies in striking the intrinsic value chord
effectively with your audience.

Look around, it's already happening - design and marketing strategies are
moving further and further away from the "product" and more towards the
"service" everyday!  When was the last time you saw a commercial for running
shoes that actually showed you what the show was made out of and why the
PRODUCT was better?  Or how car commercials have moved from showing you
what's under the hood to how stylish, classy or macho it makes you look, and
then flashing the 100,000 mile warranty on top?  The service - the intrinsic
value - is the new key to the money bank.  Use it wisely.

~erick

______________________________
E r i c k   S t r a g h a l i s 
Graphic Designer * Imagitas, Inc.
T. 781.906.4800 x4677 * F. 781.906.4848
48 Woerd Ave. * Waltham, MA * 02453-3826


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