Expensive Marketing Cannot Compensate for Weak Brands and Undifferentiated Products

Topics: Marketing, Price, Brand Pages: 2 (430 words) Published: November 14, 2010
Expensive marketing cannot compensate for weak brands and undifferentiated products

Products from one business can be replaced by products from another. If you are a producer of a product that is undifferentiated in its segment, consumers shift from producer to producer without any effect on their habits or activities. It is difficult to shift from an iPod to a Creative Zen and easy to shift from Classic toothbrushes to Cibaca toothbrushes. When it affects your daily habits, you think twice before switching. At the same time, a weak brand is irrelevant to the consumer and they are purchased for their utility.

Mahindra's Logans are not purchased by consumers because they have any brand value but only because of the price point they sell at. It is the utility that the buyer derives out of it at that specific price that helps the product sell. Say the product is differentiated but weak, at the end of the day, it is the branding that helps a consumer connect to a product. When consumers perceive a product as being a blend into their persona, they accept it as their desire. However, since the product is weak, the demand for the product would be short lived no matter how expensive the marketing strategies implemented are. Say the product is undifferentiated, since the product has many competitors and all provide the same characteristics and utility, they are sold depending only on the price point. In the scenario undertaken, expensive marketing only raises the costs extensively and the price is difficult to justify without any difference in the characteristics and utilities offered. The essence of management being marketing, one must understand that despite expensive and extensive marketing, a bad product will not fare well in the market as the consumer is aware. Only when the producer considers the unaware consumers as their target segment can a bad product be successful but even this success is short lived as the consumer realizes his options over time and...
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