My First Lesson in Marketing
April 15th 2007 13:16
Marketing is subliminal to me. I once attempted one subject on marketing. On exam day I was issued a piece of paper to write the answers to five questions. I concentrated hard, but not a single idea came out of my mind, not a single word was written in the exam paper. I just signed it with my name and gave it back to the lecturer.
I find marketing too crazy and at times too futile. Yet, from the perspective of the businessman and the investor that I am, I deeply believe in marketing. I am convinced that marketing is the quintessence of business. I actually think that a business, whichever it is, will never reach its potential without marketing.
Many times I think about this: that a business with a product with a great potential would never reach as far by word-of-mouth as with marketing.
I actually think that if you have a nice brand and market it appropriately you could sell anything under it – just think of Virgin. I think that Coca-Cola could do the same.
Anyway, when I was just eight years old I read a comics issue from Walt Disney where I found this story: Donald Duck was trying to sell a flower and pot for a price and was not being successful. MacDuck then arrived and told him to put the price up – yes, to increase the price.
So far as then, I only understood discounts as a way of promoting sales. So, what were the logics behind increasing the price of a flower?
Well, the suburb in question was a rich one.
When I realised that, I remember clearly, I felt in my mind a great “ah-ah”. How funny.
I actually came to believe that price is part of the buying experience. If you buy a Ferrari, red or yellow, you are assured of belonging into an elite of few – and you would never comment that it was actually a bargain.
The same happens with women that buy at David Jones, Myer or Oroton, to mention only a few. These women are not just after the product; they are not just after the buying experience – they are also after the price, just because it represents exclusivity.
Walking out of the store then, with a marked bag on hand, means they belong in that level, social or otherwise.
Unfortunately, I am convinced that human beings just love elites, socio-economic classes and the like. Price, then, puts you in some category of people.
I find marketing too crazy and at times too futile. Yet, from the perspective of the businessman and the investor that I am, I deeply believe in marketing. I am convinced that marketing is the quintessence of business. I actually think that a business, whichever it is, will never reach its potential without marketing.
Many times I think about this: that a business with a product with a great potential would never reach as far by word-of-mouth as with marketing.
I actually think that if you have a nice brand and market it appropriately you could sell anything under it – just think of Virgin. I think that Coca-Cola could do the same.
Anyway, when I was just eight years old I read a comics issue from Walt Disney where I found this story: Donald Duck was trying to sell a flower and pot for a price and was not being successful. MacDuck then arrived and told him to put the price up – yes, to increase the price.
So far as then, I only understood discounts as a way of promoting sales. So, what were the logics behind increasing the price of a flower?
Well, the suburb in question was a rich one.
When I realised that, I remember clearly, I felt in my mind a great “ah-ah”. How funny.
I actually came to believe that price is part of the buying experience. If you buy a Ferrari, red or yellow, you are assured of belonging into an elite of few – and you would never comment that it was actually a bargain.
The same happens with women that buy at David Jones, Myer or Oroton, to mention only a few. These women are not just after the product; they are not just after the buying experience – they are also after the price, just because it represents exclusivity.
Walking out of the store then, with a marked bag on hand, means they belong in that level, social or otherwise.
Unfortunately, I am convinced that human beings just love elites, socio-economic classes and the like. Price, then, puts you in some category of people.
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