Best Defense Against Price Competition
This entry was posted on 11/5/2006 6:50 PM and is filed under Branding.
Branding according to Kotler: One of the best sites with brand image is www.tide.com. The site explains how the detergent works and why Tide offers the best cleaning power and value. Check it out for a wonderfully designed and executed business site.
Additioinally, Kotler in his book, According to Kotler goes on to discuss branding:
“Brands and branding – brands provide the major defense against price competition. Strong brands create more trust and comfort and a better image of quality than less well-known brands. People are willing to pay a price premium for the stronger brands. The ultimate strength of the brand is based on its performance, not its promotion.
A brand is initially built by publicity and advertising and ultimately maintained by its performance. A brand is a promise of value. A successful brand shifts the demand curve to the left, allowing the company to either sell more for the same price or charge a higher price and sell the same quantity.
The key need is to develop a distinctive offering, not simply a distinctive image. The offering can be distinctive in features, styling, services, service support, guarantees, and a host of other factors that will make one value proposition superior to another in the eyes of the beholder. I am in favor of building a superior value proposition, not just massaging an image.”