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Are Brands Expensive?
Posted By: raj_ldh* on 8/1/2005 2:12 AM (CST) 25 Points
sometimes i feel that brands are not expensive as the extra money that we pay to buy a brands is basically the amonut of confidence that we have that the product/service will be the best one available but at the other times the difference in the prices are high which makes anyone feel that Brands are Expensive.

Posted by: AndrewS Accepted Answer
8/1/2005 8:43 AM (CST)
I get the bottom line is that brands will only be able to charge what we will pay for them!
If you have a great brand, and its supported by premium quality, or premium customer service etc, then it is worth paying more for (a premium price).

I know what your trying to suggest, and I guess we will all find instances of brand that are worth less than they are charging, but consumers are getting more savvy, and will vote with their feet.
 
Posted by: raj_ldh* Author Response
8/1/2005 9:22 AM (CST)
well Mr. Andrews, i agree to what u just said but there is a very vague picture of brands in the minds of people.its just based on the perception of people, the massive advertisement backed with Quality (Ofcourse) which has been a main base for creating a brand.but when and how do u decide upon a premium quality of the product/service which is being offered to you?take any Example say Porche 911, its an expensive car no doubts abt that but isnt it giving a quality at the same time and people rather want to associate themselves to the brand and it has become a brand over the years. but sometimes there are brands like here in India which charge for God knows what?and i also feel that the extra money that u pay to get that brand is the cost which ur incurring to get that sense of achievement, that association with the brand, that value for money which mayb no other brand could give you.so my point is that this brand thing seems to be like only in the minds of people..thatz all.what do u think abt it?
 
Posted by: chough Accepted Answer
8/2/2005 2:41 AM (CST)
Depends on the brand! Some brands trade on being premium, first class products that you'll pay more for, others trade on being good value, 'cheap and cheerful' solutions. Porsche, VW, Kia, Daewoo... They're ALL brands! What your question addresses is brands that position themselves as premium products, that you would pay more for. Whether or not you pay a premium for a branded Asprin product, (for example), or buy the generic pharmacutical product with exactly the same active ingredient for a fifth of the price is all down to the perceived 'brand value'. I don't know about India, but in the UK a huge amount of people would buy the branded product! I know many people who consider themselves 'immune' to branding, but will always buy Hienz baked beans over any other purely because of (as you have identified), confidence in the brand.

I agree with your point that the only difference between a generic product and a premium brand is often only in the mind of the customer, but it's HOW it gets into the mind of the customer that concerns us! How do we create that desire for a product that costs more? That's what marketing, and more specifically advertising is all about! Remember too that product that charge more for there brands have usually spent huge amounts on market research, product development, packaging and advertising to ensure that they have those premium brands.

Check out the Interbrand website www.interbrand.com for detailed information on how brands add value.
 
Posted by: acgvk* Accepted Answer
8/2/2005 3:41 PM (CST)
That is exactly what marketing is all about! The image of the brand influences the way consumer perceive the prices of the products.
 
Posted by: raj_ldh* Author Response
8/7/2005 1:36 AM (CST)
well i agree to this point that they have created a brand in the minds of people and whenever they think of buying a CAR...they think of VW, Mercedes,Porsche etc. and i agree to this statement also that they have done alot of R&D on making a brand....A BRAND, but again the point here is that dont u think that the brand is charging more for what they are giving to the customers?how are they quantifying the Intangible aspect attached to the brand?i mean how are they deciding upon the strategies, the pricing etc of the intangible aspect of the Brand which exists only in the minds of the customers and no where else?like Coke which is the No.1 Company all over the World has about 3 Trillion $ worth and about more than 50% of it is being earned from its brand which is hard to understand.
if some1 can elaborate me on this pleaseee?
 
Posted by: raj_ldh* Author Response
8/12/2005 7:18 AM (CST)
Another Extension to this Topic is the fact that is the term brands restricted to Brands like McDonalds,GM,Coca Cola, Porsche, Ferrari or does the Generic Product form a part of this brand segment? because whenever we normally think of a generic product or a cheap product, a specific market comes to our minds instantly. now dont u think that is a brand in itself?even those markets have positioned themselves in such a way that whenever someone talks about a Cheaper products, the only thing which should come to their mind is Our Market and for this very reason, TNC's spend millions of $and if u agree to what i just mentioned then in that case,Those products which are being sold in the flee market are also brands in themselves?
 
Posted by: TruProphet* Accepted Answer
8/18/2005 7:18 PM (CST)
The question that was asked is "Is a Brand Expensive?" My answer is and always has been - Yes! But there are flip sides to that yes. If you build your brand well, advertise, promote, and give you name an image or certain amount of prestige - It can be premium priced for the consumer and definitely expensive for you, the producer/marketer/brand owner, to create, but well worth it.
On the other hand if you create a brand, and use inconsistant marketing, a poor price point, or sad quality it is also going to be expensive - because you spent all your money on a brand that has the prestige of a sponge.
When branding is in question, always know how you want to attack the market, have a plan (like we didn't know that) and decidde on what you want your brand to be. Personify it. Is it nice, classy, tough, durable, premium, pretentious...well you get the pictre. The great part about brands, at least from a marketing perspective, is that they are completely intangible. I can hold a Nike shoe, a good quality shoe, but I can't hold the perspectives of the people who look at my shoes and say "Daamn - those are some NICE shoes"
 
Posted by: Sanjeev Kumar Vyas Accepted Answer
8/19/2005 8:00 AM (CST)
Brands can be expensive or cheap. Depends on the market they are serving.

Expensive brands offer great qualtity product, have garuntee and good after sales service.

Cheap brands Try give qualti products at cheap price.

A brand is made by consistent performace of the product. Not all non-branded products are bad. Infact I get my shoes from a non branded place the shoes are quite good but the guy does not have a big name to ask for big bucks.

The expensive brands also have the feelings attached to them and peopel pay to be a part of it. This happens with Big and old brands who have invested a lot if time and money to make it big.
 
Posted by: D4Demand Accepted Answer
8/19/2005 2:36 PM (CST)
No leading brand is the lowest price on the shelf.
 
Posted by: Shelley, MProfs Moderator Response
8/27/2005 5:54 AM (CST)
I am closing your question since there has been no activity in over a week and it's getting stale. Next time you post something on our forum, please have the courtesy to reward the contributions of participants in a timely manner.

Thanks for participating, everyone!
 


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