Many years ago, I worked for a man I consider a master marketer. We often discussed ideas of seemingly great importance as we drove long distances together late at night. I was always amazed at how philosophical we were after midnight. Some of the ideas even held up in the light of day.
One of those midnight discussions focused on an important marketing truth -- that in the marketing world – “perception is reality”. And its corollary – “value is based on perception”.
When selling products and services – you must create in the mind of the potential customer, a perception of the product that will encourage them to spend the amount of money you want to receive.
If the perceived value in the customer’s mind is higher than the price marked on the item, the customer believes it to be a good value. “Wow!” You want your customer to say. “I am pleasantly surprised. I would have thought it would cost a lot more. This is a great value!”
Yet if the asking price is higher than the perceived value, the customer thinks: “I’m getting ripped off. This is highway robbery!”
So in marketing, the key is to control the perception of value – so that the customer thinks the price is a good deal.
How do you do that?
Well, you can elevate the price of the item or service if the product has an outstanding reputation, strong testimonials from satisfied customers, beautiful presentation … and in a retail environment – the store’s interior lighting and décor will affect the perception of value.
People expect things to cost more in prettier stores.
If you went to a restaurant with soft candlelight and were served by a waiter, you would expect to pay more than at a KFC where you grab your own plastic sporks.
You get the picture, right?
Now advertising can help create the perception of reality. It can help build a reputation. It can effectively present favorable testimonials. It can help in the presentation of the product or services.
But, it’s up to you to develop your lighting and décor.
The same principle can be applied to your website, brochures, direct marketing materials … virtually everything you use to market and sell your product.
Mr. Dana KehrPro Marketing Northwest
PO BOX 731413
Puyallup, WA 98373
(253)579-4040 – text and direct