When people are willing to pay 1,800 times the actual price for the same service, we talk about “brand added value.” But: Where does this added value come from?
Simply sticking a higher price tag on it is not enough in any case. That would be an extra cost, but it has to be offset by something. Additional price without additional performance is simply expensive. Those who pay more without getting more are stupid. However, this does not apply to people who buy a branded product.
You are sure to have made a fair deal and to receive more than just the product performance. And they are right.
A branded product is not just expensive. ???? It is valuable. ????????????
That’s why people are willing to pay more. The term “valuable” can be taken quite literally: value-able. Full of values.
The added value of the brand comes from the fact that there is literally more value in a branded product than in a non-branded product.
The task of those responsible for the brand is therefore to put the right values into their brand. Correct means: the values for which people are willing to spend money.
So there are 3 questions every marketeer should ask himself:
???? What values does my brand stand for?
???? What values is the target group looking for?
???? Which of them are particularly valuable?
To all the CMOs and brand strategists: Who knows this about their own brand?
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