Marketers can learn from Apple, says Chartered Institute of Marketing chairman
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by Neil Lakeland
Chairman, Chartered Institute of Marketing, Kent
branch
There is truth in the oft quoted sales mantra of 'people buy
benefits, not features'.
However, as I wander the high street in the run up to Christmas,
all I see are lists of product features rather than what they mean
to me, the consumer.
Although the physical and functional aspects are important, the
intangible elements of the product are the key element since they
include what the product represents. By focusing on these
intangibles you differentiate yourself from the competition and
avoid messy price wars.
Consider the iPhone. Whilst broadly similar to other
smartphones, it enjoys a position of market dominance with each new
iteration becoming the latest 'must have' gadget.
This is partly because of the brand heritage which Apple has, as
well as the loyalty of its customer base. But it is also partly
because with every new version Apple fundamentally changes the game
and moves the core product on. New features keep the price
high, with old specification iPhones not significantly cheaper than
newer models.
Marketers can learn lessons from Apple. The first is that
successful companies move the competition away from the core
product onto the augmented and potential product, developing extra
elements which help them dominate a category and provide additional
benefits to the consumer. This moves the product away from
being a commodity and into the premium category.
The second is that long-term success is only guaranteed by
ongoing innovation.
New products should be developed and released just as the
existing product is entering the maturity stage of its
life-cycle.
Whilst each new version still satisfies the generic need it
should do so in a superior way; thereby creating demand and moving
the category forward.
Wednesday, December 14 2011
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