These parts on marketing are short because I like to get a bite size idea across in the time while you wait in the line at Tim Hortons or Starbucks – max two minute read.
In the first post on this topic, I spoke about why perception about your product or service can make such a big difference in the premiums you command and the profitability you can make.
In the second post I wrote about the downside of taking a position in the market especially when there’s a major technology shift – from horse carriages to automotive.
One of the key agendas of marketing is to attract customers to you. But there’s an unsaid implication in that statement.
Marketing should help you attract the customers you want and repel those you don’t want.
Like the red egg above in the picture, people who don’t like to have red eggs will get repulsed by it and will not buy it. However the people who love red eggs will go to any length to get them.
You may sell a much smaller volume than the white eggs, but you could be making much larger volume. So many iconic brands like Harley Davidson, Apple, don’t have a large market share in terms of volume but they lead in terms of profitability.
Whatever perception you want to create however cannot be at the cost of the quality of the products or services. Good marketing is not a substitute for a poor quality product.
If you have an excellent quality product or service and then you choose a narrow market and create a perception of being different then you can take home a much higher profit.
Till next time.