Friday, May 10, 2013

Seducing the Customer

Creating a perceived value of a product that is more than the cost of production is ultimately the main way to drive profits on a given product. A consumer's perceived value of a product/service directly affects the price they are willing to pay for a product or service. In general, customer's have no idea of the real cost to produce a product or of the cost to provide a service.

This is where innovative marketing strategies come into play. The trick is to develop creative marketing campaigns that seduce the customer into believing the value of the product is more than it is actually worth.

When developing these strategies companies should try to produce commercials and advertising that are relevant to its target market as well as relevant to the company. I find it obnoxious that there are so many ads on TV today that have nothing to do with the product or the company. It is not an effective way to get someone interested in the product. Advertising should be about showing the functionality of the product or service in a way that makes the customer see value in purchasing the product.

Yes, your irrelevant over the top commercial may be memorable, but if it does not create an increase in perceived value you are wasting your money. And my time.