What is brand value?

A recent survey by the market research firm YouGovPolimetrix revealed that the slumping economy has a lot to do with how people perceive brand value. For example, in the hotel category, Best Western and Comfort Inn ranked as best; Motel 6 ranked as worst. YouGovPolimetrix defines brand value as "getting good value for what you pay."  That seems a bit imperceptive to me.  What about people's investment of time, attention, and, especially, identity? Would you hold a client conference at a Best Western? I didn't think so. (By the way, if names truly influence brand success, YouGovPolimetrix should be really worried.)

Are customers really responding to the recession by redefining value? I'm not so sure. They are certainly not using a rational, price and functionality-based calculus to choose between products and services. Think about this: According to the Coupon Council the typical family saves less than $10 per week using coupons.  Contrast that with the amount of money that the average family spends on renting videos and buying lottery tickets each week.

So what are people doing in today's marketplace? They're doing what they've always done: they're trying to optimize their desire for "happy now" - novelty, sensory stimulation, engagement, and social experiences - with their desire for "happy life" - physical and financial well-being, growth in mind, spirit and relationships, and giving back and making a difference.  The recession hasn't caused them to modify this rapid, and primarily subconscious, marketplace calculus.  It has simply made them more discerning.

What's that mean for marketers?  It means that if your brand commands a price premium, you had better understand the nuanced way that your audience defines and intuits value. And then make sure that your brand - including your facilities, people, web site, et al. - deliver a bundle of value components that provide "good value" for your customers'  investment of time, money, attention and identity. It is not as simple as it may appear, as evidenced by the recent news about GM, Mrs. Fields, and Circuit City. And in my humble opinion, many, many more to come.

Posted November 10, 2008
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BIG Kahuna

And let's not forget that value means different things to everyone...

Posted by: BIG Kahuna | November 10, 2008 at 07:23 PM

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