As part of the marketing framework, it is necessary to understand the product and branding of that product. The product is a good or service that is able to meet the needs and demands of the customers where the product has both the tangible and intangible elements (Rushton & Carson, 1985).
Take the example of a car. A car is a product that is able to meet the transportation need of the customers. Therefore, this provide provides a benefit that is able to add towards the convenience and lifestyle of those customers. Marketing attempts to increase the positive variability. Referring to the car example, the car manufacturers are able to provide cars in different shapes, sizes, colours and features so that the customers are able to customise the product accordingly. This is illustrated in the picture below:
Car manufacturers are very responsive to provide the different products that are able to meet customers’ need. By offering the different products, car manufacturers are able to tap into different market segments where they are able to satisfy the different needs. Some car buyers have a focus on providing comfort for the family. In this case, the larger car is more suitable. Some other car buyers are looking for style and elegance, the car with advanced features shall suit these customers.
The product has its identify through the brand that is able to create the customer association and perception about the product. Branding is important because this provides the customers with identity that leads to customer loyalty and demand a premium price (Mudambi, 2002). Customers are able to predict the perceived quality of the branding and make the decisions accordingly that the premium price is justified by the quality and symbol that comes with the brand.
Referring to the example of cars, Mercedes Benz is a brand that is associated with quality and symbol of success. The brand of Mercedes Benz is represented by the logo below:
This is supported by this link that outlines the brand of Mercedes Benz represents the highest quality and safety for the buyers that includes the latest technology for the comfort of customers: https://www.mercedes-benz.com/en/mercedes-benz/classic/history/corporate-history/. This shows that Mercedes Benz adopts the umbrella brands where all the cars are known as a Mercedes car that is made up of all the different models. The Mercedes brand has strong brand equity because the customers understand that they are paying for the premium quality and safety features as well as the research and development. To determine the brand equity, this is observed through the comparison between the Mercedes Benz cars with the other brand. This observation suggests that the other brand tend to offer cars that have low entry price. The lowest entry price for Mercedes Benz is the medium price range for the other brand.
In spite of this success, Mercedes continues to develop new products through the generation of new ideas, design and development process and commercialisation of those products. Generally, Mercedes shall provide the products that are developed and designed with the customers in mind. This requires Mercedes to undertake certain market research and survey so that Mercedes is able to generate ideas of the different products that are able to meet those needs. In doing so, Mercedes is able to provide a product that is in line with the customers’ expectation. This provides an indication of the possible success.
Marketing needs to take into consideration on the different strategies to achieve success of that new product. One of these considerations is to create the product awareness to the wider product that creates the curiosity and demand for the product (MacDonald & Sharp, 2000).
Macdonald, E. K., & Sharp, B. M. (2000). Brand awareness effects on consumer decision making for a common, repeat purchase product: A replication. Journal of business research, 48(1), 5-15.
Mudambi, S. (2002). Branding importance in business-to-business markets: Three buyer clusters. Industrial Marketing Management, 31(6), 525-533.
Rushton, A. M., & Carson, D. J. (1985). The marketing of services: managing the intangibles. European Journal of Marketing, 19(3), 19-40.