Branding is all about impressions. The impression that a logo or advertisement imparts on us dictates the actions we are prepared to take. This can include how much we are willing to spend, how useful the product can be, how reliable it is and whether it will compliment your personal style and society’s perception of you.
Some customers prioritize feature sets that are unique to a specific product or service while others may be focused on a specific price point. This is when branding becomes particularly useful as it can answer or overcome any hurdles just by being branded properly.
In this edition’s video (above) Cody O’Neil, WDK’s Marketing and Strategic Brand Manager talks about examples of successful branding, specifically Apple.
Apple came from the brink of bankruptcy in the mid-late ’90s to become one of the most profitable companies in the world today. They did this by addressing the negative perceptions regarding their brand, which at the time was seen as only suitable for designers or artists.
Today Apple has diversified their product line, and done a wonderful job of charging as much as humanly possible for their products. At the beginning of the iPhone life cycle, they only cost $200 or less to make depending on the model and its specifications. At that time Apple was selling iPhones for $799 or $899. Now they cost a little over $300 to make and sell them for well over $1000. Customers will gladly pay this severe markup because Apple products are seen as having tremendous value. It also has reached the level of social status, if you have an Apple product you are seen as higher class and Android is more of the “working man’s” phone even though many Android phones have better specs or features the iPhone does not.
Now that the market – or at least the segment of the market that is willing to pay full price – is depleted and saturated Apple has shifted their tactics and is now making budget sensitive models to sell in less affluent markets.