Why is Brand Name So Expensive?

In Class we learned about the essence of marketing, and how corporations market their products. We saw how companies gather information and use that to appeal to the consumers. I wanted to figure out why certain brand names are so expensive. Is it simply because they are expert marketers? Or because they actually produce the best products.

Image result for granaClothing is a great example of a market where there are price discrepancies based on brand name. The actual cost of the material that brands are using does not vary very much. Yes, it does cost more to make, but it doesn't need to cost the 6-8 times more that companies are charging. Luke Grana, founder of fashion company “Grana”, describes how he begin his company. He decided that his niche would be using the finest materials. Grana went to peru to find the finest cotton in the world. This is one of the keys to being a brand name that can overcharge. If there is a certain niche and individuality to your product you can charge more than the going rate.


Brand advertising is key to its marketing, adding tremendous value. With more consumers aware of your brand, the more they trust and stick with you throughout. This makes them a more loyal customer in the future.





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