4.
Evolutionary Marketing is excited by Metaproducts
The value of a (hypothetic) generic product could be assumed based on substance
and utility values. The outcome of its sales can be described by a pricedemand
diagram. For the generic product, or commodity, the price elasticity (E
= ΔQ/ΔP) is negative. We assume here that it follows a curve according to R =
Q x P, a ”classic” price-demand curve.
Without affecting the substance or utility values, marketing driven values can
be added. (With the help of marketing communication, design/”styling”,
branding, etc.) By this, the product is moved to a higher value potential; it is
excited to a new level of value. The value of an intangible phase of the product,
a metaproduct, has been added, but only according to the buyers’ perception.
This added metavalue of the product is limited to a finite population, defined by
its discriminating knowledge of product and brand – its audience. We are now
studying a functionally branded product.
Any attempt to describe the price-demand relations of this product will be affected
by the fact that its metavalue is limited to its audience. This is the main
reason why the economical behaviour of branded products only can be discussed
in terms of empirically founded degrees of price elasticity.
Nothing indicates, consequently, that sales of the excited product would follow
a new ”classic” price-demand curve when its price is changed. Even positive
price elasticity is conceivable for a branded product.
In the illustration, the product in the position A has gained a pure volume premium
whereas B gained pure price premium over the original generic product.