by Neil Lakeland
Chairman, Chartered Institute of Marketing, Kent branch

There is truth in the oft quoted sales mantra of 'people buy benefits, not features'.

However, as I wander the high street in the run up to Christmas, all I see are lists of product features rather than what they mean to me, the consumer.

Although the physical and functional aspects are important, the intangible elements of the product are the key element since they include what the product represents. By focusing on these intangibles you differentiate yourself from the competition and avoid messy price wars.

Consider the iPhone. Whilst broadly similar to other smartphones, it enjoys a position of market dominance with each new iteration becoming the latest 'must have' gadget.

This is partly because of the brand heritage which Apple has, as well as the loyalty of its customer base. But it is also partly because with every new version Apple fundamentally changes the game and moves the core product on. New features keep the price high, with old specification iPhones not significantly cheaper than newer models.

Marketers can learn lessons from Apple. The first is that successful companies move the competition away from the core product onto the augmented and potential product, developing extra elements which help them dominate a category and provide additional benefits to the consumer. This moves the product away from being a commodity and into the premium category.

The second is that long-term success is only guaranteed by ongoing innovation.

New products should be developed and released just as the existing product is entering the maturity stage of its life-cycle.

Whilst each new version still satisfies the generic need it should do so in a superior way; thereby creating demand and moving the category forward.