Critical Debates in Marketing
Part A: With Products, Is It Form or Function?
The form versus function debate has been around for many ages. However, the preference of one to the other depends on the subject under discussion. In marketing, form precedes function because a marketer always strives to create a positive impression of a product (Rindova & Kotha, 2001). The precedence of form over function should not be mistaken to mean the functionality of a product is not fundamental as marketing efforts. The reasoning behind favoring form to come before function in marketing is that a product’s functionality alone cannot give it a competitive age among competing products. In the current information age, the consumer is likely to be aware of many other similar products that share the functionality features of the product under consideration. Competing products could also be having superior functionality over the product at hand. Nonetheless, form creates a unique aesthetic value in the product. Form refers to the visual features of a product that set it apart from other similar products. The characteristics of a product that determine its form are shape, color, design, and size. Function, on the other hand, refers to features of the product pertaining to its utility value to the consumer such as efficiency, ease of use, and purpose of the product (Okada, 2005). The characteristics of a product that define its function include the materials used, the purpose it serves to the consumer, and architectural improvements that make it more rewarding than a competing product.
Consider a situation where a customer already knows that usability of two competing products is almost the same. They get to a shopping mall to buy either of the products. The only defining factor that will pull the customer towards one product and leave the other is the impression that the products create to the consumer. Other features that relate to form are size and shape. Size accommodates different income groups. A consumer may choose to buy a product in small quantities due to budget constraints. Another great example is that of two pens of the same price. They have the same function to the student. However, a student who supports the Dallas Mavericks Basketball team is likely to buy a pen bearing its colors and emblem than another pen that bears plain traditional colors. A buyer is also likely to buy the latest model of a Land Rover Discovery Car due to its attractive aesthetic appearance rather than the supposed enhanced usability.
In conclusion, the form argument holds the view that the unique external features of a product that differentiate it from its competitors are not always related to its functionality. Contemporary marketing thrives on differentiation because the modern consumer has a better access to product information than past consumers. Differentiation involves the product’s form so that it reflects issues such as style, status, or prestige, which do not make its functionality better than similar products. Form supersedes functioning as a source of competitive advantage in marketing.
Part B: Is the Right Price a Fair Price?
Prices of products should reflect the value that customers are willing to pay
The reality of the market is that consumers are not the same. The core issues that differentiate consumers from each other include knowledge of market prices, the value they place on the product, and the level of loyalty (Aaker, 2012). These factors determine price premium that a company can use to reflect the brand equity of the product. If products were to reflect the costs involved in producing them, it would mean that the companies treat all customers as having the same level of access to information, have the same attitude towards the product, and have the same level of loyalty to the product over other competing products. Using the cost as a way to determine price is unrealistic in a typical market.
In marketing, the orientation of consumer determines all marketing decisions. Consumers usually consider the attributes, utility, and prices of the products they purchase based on individual value judgments. The considerations they make are often influenced by factors such as family members, promotional activities by marketers, and referrals from friends. Companies, therefore, set prices based on the expectation level already inherent in consumers upon the maturity of a product in the market. Thus, the price of a product not only reflects the total cost of the product, but the perceived costs. The price includes costs such as the purchase price from the producer, the cost of acquisition, cost of transportation, the cost apportioned to the risk of failure, and the cost of handling the product. Perceived risks, on the other hand, includes a combination of attributes relating to the physical, service, and technical capabilities of the product.
In conclusion, the price of a product should reflect the value customers are willing to pay rather than the costs involved. For a product to achieve desirable sales, brand-building investments such as differentiation and promotions create brand equity. In particular, the price premium measures the loyalty of customers. Thus, customers that are loyal to a product should also be logically willing to pay a price premium.
References
Aaker, D. A. (2012). Building strong brands. New York: Simon and Schuster.
Okada, E. M. (2005). Justification effects on consumer choice of hedonic and utilitarian goods. Journal of marketing research, 42(1), 43-53.
Rindova, V. P., &Kotha, S. (2001). Continuous “morphing”: Competing through dynamic capabilities, form, and function. Academy of Management Journal, 44(6), 1263-1280.
