Marketing Debate 2 Essay Example | Topics and Well Written Essays - 500 words

Marketing Debate 2 - Essay Example Their focus is to attract cost conscious shoppers, and thus they compete on price. On the other end of the spectrum there are high end stores such as Saks Fifth Avenue and Bloomingdales whose business model is not to compete on price, but rather to sell high quality, designer merchandise that focuses on the image of the consumer. Designer labels such as Ralph Lauren and Pierre Cardin are likely to be found in these stores that are associated with a higher price point and oriented toward image-based shopping. To be sure, it would generally not be possible to find these kinds of labels in discount store chains because they are priced at a point that would not be attractive to the category of shoppers that find discount retailers appealing. It would have an impact on the image of those labels if they were to associate with a store that utilizes a price-based business model as opposed to an image based model. Brand image is a crucial business asset. Any decisions made by a manufacturer that affect that image for better or worse must be carefully considered in order to avoid squandering a competitive advantage and associated profits that are tied to the brand. â€Å"A strong brand image offers an organization several important strategic advantages. A brand distinguishes the goods and services of one seller from those of competitors. A powerful brand identity creates a major competitive advantage; a well recognized brand encourages repeat purchases. Thus, a brand acts as a signal to consumers regarding the source of the product and protects customers and manufacturers from ‘me-too’ products that may appear identical† (Porter and Claycomb, par. 6). The question of whether a store’s image affects a brand’s image works in reverse as well. The brands a store chooses to carry go a long way toward impacting the image of that store. As