Short-term decisions can destroy value. “Emotional” benefits is not that important… “Utility” is important… but – what if you have value, but it is not perceived as value?
Decisions are made emotionally and then justified rationally. Value is often perceived as: value = functional benefit / price. But is it all? Leadership brands pay attention to value part of the equation.
It is important to “find an enemy of your brand” (not a competitor – an issue (not enough time, etc.)
Wal-Mart “out positioned” Target:
Wal-Mart: pay less > live better (more time/money for what you love)
Target: pay less > expect more (inexpensive upscale products)
People pay more for high-status item when they feel powerless…
Badge Model starts with functional benefits (what the product does), moves up to the external badge (how to appear to others), move up to the internal badge (reinforce positive self-image), and culminates with the transformational benefit (what the consumer hopes to become through the badge).
The most important – relevance and differentiation. Comparing on price leads to commodity. #1 reason why brands fail is lack of differentiation. This is the area where creativity is important.
HYUNDAI – now has 18% of the market. It was the first company that was able to connect its strategy with the most obvious fear of the times: if you loose your job, you can return the new car you purchased.
Why Obama won the competition with Hillary? Branding!
Hillary – functional. Obama – movement.
Human brain does not change during “un economy.”