Branded or non-branded – what is the big difference?

Branded products (goods and/or services) may possess marketing induced, valuable metaproducts, but intangible values cannot be created for the non-branded. The simple price-demand relations relevant to non-branded products don’t apply to branded products, as their metavalue refers to a finite audience defined by its knowledge of this brand. Also, marketing applies to branded products only, though some frequently used theories actually are limited to non-branded items. Some important differences are rarely observed in marketing literature or education. Read the discussion in the paper on Value Marketing.


The value of price – crucial for branded items

Branded products (goods, services, etc.) are always compared to the alternatives and judged by their relative price. Expensive items are generally supposed to offer better quality. But the reason for their higher value (perceived by the buyers) is, basically, the price. Cheap products are always suspected of low quality. Price always brings status, social identity, to the owner, user, or beneficiary of the item – which may be a car, an airline, a lawyer, or the membership of a golf club. Want to read more?


Lena Linn i styrelsen för Charity Rating

Vid årsstämman valdes Lena Linn in i styrelsen för Charity Rating, givarnas intresseorganisation. Organisationens mission är att granska hur ideella välgörenhetsorganisationer arbetar och vilken nytta de gör med sina gåvor. Den är opartisk, obunden och oberoende av den bransch som granskas. Ordförande och initiativtagare är den välkände näringslivsprofilen Mikael Ahlström. Charity Rating startades 2005 med anledning av en rad undersökningar som visade att det finns ett stort behov av information bland givare som tillsammans står för mångmiljardbelopp till alla 90-konton. Många säger sig vara beredda att skänka mer pengar bara de har tillgång till pålitliga fakta. Charity Rating är organisationen bakom Givarguiden, som tillhandahåller jämförbar information som hjälper givare att hitta den organisation som kombinerar de faktorer de tycker är viktiga.


Value is created in the mind of the buyer only

There are several common misunderstandings concerning the nature of value. One thing is sure: you can’t create value in your products. Only in the mind of living people. And hopefully in the mind of them you want to buy your products. Read the article “On value creation in branded goods and services”.


Sell more thanks to a reduced price?

Yes, you may. But only if the value is unchanged. The price is what the seller decides, and the value is what the (eventual) buyer perceives. If the drop in price is temporary, the value of the object generally is unchanged in the opinion of the target group. But if the price reduction is believed to be permanent, buy-ers in general will gradually lower their valuation. The answer is then that a permanent price reduction is no reliable way to increase sales. In addition, as your profits per unit will drop, you need to increase sales to keep your gross profits. Read the article “On value creation in branded goods and services”.