Shaping brand characteristics: A strategy for success in market competition

Author: Apusao
Publisher:
Publish Date: 1999-12-01
Features:
Fragment: Informing that there are more than 500 different advertising methods around you, such as 25 interconnected terminals and 50 21-inch displays cleverly arranged in the food and medicine departments; 75 advertising tiles embedded in the ground, these tiles are intricately carved and movable; soft voices continuously gently convey special product information for the day to you. You will remember the composition your high school son wrote, titled "Too Much, It's Time to Ban Advertising?". He received an A-. When you pass by the "Daily News" display screen, you read a report from the Time Warner Research Organization, stating that without prompting, only 16% of the American public could recall a brand name for a product or service, and most of these people could only remember the brand called "Good Brand".
1. Branding in a Confused Market Today, the scenario mentioned above might sound a bit far-fetched. However, a few years later, it might really become that way. In our unstable economy, the sales of traditional branded goods have always been one of the few stable events, but now things are different. Marketers are changing who they sell to, what they sell, and how they sell it at an exponential rate, which is somewhat like the Andromeda phenomenon in business (translator's note: Andromeda is a princess of Ethiopia whose beauty was praised by her mother, causing the god of the sea to anger and torment the nation with sea monsters). On some days, many people doubt whether the existing marketing methods can last for 10 years. Of course, the result is obvious—it can't. The divisive factors have created an hostile environment for traditional brands, threatening their survival. However, if marketers take action now, analyze what factors will change the core of the products they are actually selling, i.e., brand characteristics, the situation you just read about will not be inevitable.
At the beginning of our discussion, let's first look at what brands face when things are going well.
1. The U.S. consumer economy has been completely rebuilt and has permanently changed our definition of value. Currently, brands of low-price products and services are the main focus of consumer purchases, even for those who can afford more expensive goods. Millions of Americans have lost their jobs in the recent recession, including many who had been living comfortably. Unlike the past, these jobs will never return. Workers at all levels will never receive another paycheck in that industry; in many industries, middle management positions have been permanently erased from organizational charts; tens of thousands of clerks have been laid off by their supervisors, who sit at their desks, filing documents and answering phones. Many people have had to start completely new jobs or face unemployment lines. These are the experiences of people whose lives are changing. They are making people rethink family budgets and weigh whether the more expensive products and services are truly necessary. Meanwhile, the quality of many low-price products and services has improved, almost on par with high-end competitors. The current situation is that people are not hesitating to accept this change—not just those with less money are interested in these products and services, but everyone is facing low-price branded goods. These new perspectives on value redefine what a brand is and determine what we should bring to the market.
2. Overwhelming Customization In the market, operators have more competition than ever. Almost everyone agrees that the era of mass marketing has quickly passed like an eclipse. This shift was first predicted by Alvin Toffler in his book "Future Shock". Ten years later, in "The Third Wave", he confirmed: "The mass market has fragmented into multipolar and diverse small markets, which require increasing varieties, types, styles, models, colors, and standardized products." We now live in a world of "mass customization," an economy born from updated individualism and ever-changing tastes, urging sellers to provide standardized products and services at any time. Consumers believe that whatever is sold in the market should meet their needs—it is the right of consumers. Through the "Takeoff" program, American Airlines (TWA) is essentially offering customers vacation arrangements of their choice. AGC (American Greeting Cards) generates $35 million annually with its CreataCard machine, which allows customers to design their own greeting cards from scratch. Hertz's "Number One Gold Program" takes reservations, prepares cars according to your specifications, and parks them under a sheltered canopy waiting for you. Marriott's "Preferred Program" provides the room arrangements you need within a given space without additional charges. At the same time, consumers may not necessarily feel they need all the products that can be produced. In a 1992–1993 annual research report written by Walden Bissell, respondents said the market is saturated with too many identical products. When many customers expressed that opinions and retailers are demanding fewer products be retained for each brand,