Companies have learned that they can add service or convenience to products and raise the price. That higher price includes a larger margin and therefore more profit.
Author: Rob Berman
Rob Berman is a PRODUCT DEVELOPMENT / MARKETING Executive with a proven track record of success growing the top and bottom lines in small, medium and large companies as well as matrixed and multi-national organizations. Experienced in domestic and international markets. Effective in a fast paced environment with multiple priorities -- meet deadlines while consistently bringing new products to market, managing existing lines of business, driving communications and achieving financial targets.
Factors like crisis, the environment or changing perceptions can dramatically impact a brand.
Let’s take a look at what happened to some brands that faced changed perceptions.
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Branding: How Crisis Impacts Your Brand
Brand Identity and Brand Equity are important for the future of a company. To use a sports analogy –Would you rather be the New York Yankees or the Kansas City Royals?
Let’s take a look at what happened to some brands that have endured a crisis.
BRITISH PETROLEUM (BP)
British Petroleum re-branded itself as BP as it spread throughout the world. They played off the initials by saying “BP” stood for “Beyond Petroleum.” After, the debacle in the Gulf of Mexico the stock lost almost 50% of its value.
Expected Response: Best estimate is they may re-brand back to Amoco, which they bought in the US and rebranded to BP.
The US economy has continued moving away from manufacturing and towards services. Certain services and manufacturing can be outsourced and off-shored but not all of them. Let’s take a look at a scenario.
New Microwave – That Is Easy
I recently purchased a microwave oven to replace a broken built-in one. I did not own the home when the prior microwave, face kit and special air-circulating base were installed. I knew I was limited by the dimensions of the box where the microwave was built-in
I searched online at the General Electric Appliances site for a microwave that had the correct dimensions. The name of the series for my microwave had changed so I could not find it that way. I spent significant time trying to discern what was the correct size and model for my needs.
There was a rich discussion recently among members of the Marketing Executives Group on Linked In. The topic of debate was Top Marketing Mistakes.
Each company should periodically step back and take a look at their marketing activities. The following list can be utilized as a checklist for activities that should be stopped. Let’s see how many of these mistakes you have avoided. In no particular order are 40 mistakes.