Unbranded Product Stages

Unbranded Goods: In the first stage, goods are treated as commodities and most are unbranded. This stage is usually characterized by an excess of demand over supply. It is most closely approximated by developing economies and the former soviet block countries, and is rarely seen in developed economies. Producers make little effort to distinguish/brand their goods with the result that the consumer’s perception of goods is utilitarian.

Stage 2: Brand as Reference In the second stage, competitive pressures stimulate producers to differentiate their goods from the output of other manufacturers. Differentiation is achieved primarily through changes in physical product attributes (gets clothes cleaner). Consumers’ memory networks expand beyond recognition

All individuals share in a process of transmitting, reproducing and transforming the social meaning of objects. As consumers, individuals within a social group interpret marketer-sponsored information such as advertising and use brands to send signals to others about themselves. Other individuals interpret these signals to form images of and attitudes toward the brand’s user. If the user does not get the anticipated reaction, he or she may re-consider use of the brand. This process of decoding the meaning and value of brands and using brands correctly is active involvement of the consumer in the brand’s

Individuals can be classified on the basis of brands. For example, the affluent drive Rolls Royces and the less affluent drive Fords. When products and brands cross cultural boundaries, confusion can result as goods may not be valued for the same reasons in other cultures. Thus, the values communicated by products and brands must be consistent within the group and the culture.

Brand as Icon In this stage, the brand is "owned by consumers". They have extensive knowledge about the brand – frequently worldwide-- and use it to create their self identity. An example is the Marlboro cowboy who is recognized around the world. The cowboy is rugged, a man against the odds, but he is not crude and lacking in sophistication. Consumers who want to be perceived as strong, rugged or loners might smoke Marlboro cigarettes. The cowboy is a symbol or icon of a set of values.

To be well-entrenched in the consumer’s mind, the icon must have many associations—both primary (about the product) and secondary. For example, Air Jordan shoes have primary associations with Michael Jordan’s athletic prowess and secondary associations with the Chicago Bulls and winning. The more associations a brand has, the greater its network in the consumer’s memory and the more likely it is to be recalled. Thus, management of these brands must continually find associations that strengthen the iconic stature of