A market place is a fine example of potential transactions but with asymmetric information. It simply means that the information available to buyers is different or mostly insufficient than the information available to the sellers. The general perception about this gap would be that it’ll insinuate purchase reluctance in buyers if the sellers don’t bridge this information gap. But for this to happen, the customer needs to be aware of the information deficiency which more than often never happens! However, it is interesting to see how this “unexploited value” gives buyers and sellers an incentive to capture that value. And this my friends is the genesis of Marketing Signaling and Screening…a power foreplay of buyers and sellers that had influenced product sales ones but now has changed gears.
Sellers with high quality products need ways to signal the quality of their products so that buyers can distinguish between high-quality and low-quality products. Before we consider this ideal situation, it’s important to realize that there are no fair rules in marketing. A seller would very much want to signal the high product/service qualities but what if it has none? well…the seller can still promise all the big stuff quality and features which for the time being only he knows isn’t true. Buyers must find ways to screen out erroneous information but allow in truthful information. This may not seem very relevant for products which can be easily evaluated or are low involvement like vegetables, soaps but think about the time when you bought a new refrigerator or an air conditioner.
Traditional form of marketing is highly Signaling driven. Remember the print Ads and television commercials which bragged about their product features and how they are the best in the market. They had everything in it for you to believe them and we did!
It was partly because the product value proposition mirrored consumer needs but for most of the time it was because just a one way communication. There was no way the company would answer an individual’s concern before buying that product and so we felt…may be they are right. The scope of screening was very less unless the company salesmen were at your door step to demonstrate or give eye popping warranty for it.
In today’s marketing scenario, with the advent of social media marketing the play field has been leveled for both the players. Social media marketing has helped in completing the communication cycle by including the buyers in every step of the transaction (information and goods). Today the companies on social media platforms cannot just get away with false claims and product featuring. In no time the customer can track them down and inquire about what ever is in their mind out in the open. The ball now is in the seller’s court and they are bound to respond to the query or comment. If they don’t…customer has successfully screened them out and if they can survive the screening the customer gets the best bet. All in all customer has emerged as the powerful end of this marketing evolution and it is expected out of the customer to make the most out of it.
Wooing your target customer has become more and more challenging in the cluttered market but there are also new ways to reach out to them. Brands have moved on from selling products to providing solutions to their consumers, and in this ‘solve my problem’ game trust is the cornerstone. So who would you trust to fix your precious car, or reduce the peeking fine lines on your beautiful face??
Who are they? Anyone, I repeat, anyone who holds a strong opinion (positive or negative or neutral) about anything (that could be sold) and is capable of influencing your opinion about that thing!
I know it sounds complicated but trust me its not. trust me.
Let’s start with very simple examples to under the influencer concept. I was a very inquisitive child and would ask endless questions to my mom about everything possible. I had no idea then that the answers will continue to teach me things even today. Well I once asked her…why did you choose this school for me?! and she said that NEIGHBORS say it one of the best in the town. I hated drinking a glass full of milk and would ask her everyday…Why do i need to drink it? and she replied DOCTORS say it is good for your bones.
You guessed it…our neighbors, doctors, family, friends and even a storekeeper influence our decisions (very important decisions) everyday. So for people who think influencer marketing is the “in-thing” na-ah…
But yes, influencer marketing has become rather important and relevant in this digital age. That’s a given because today everyone is all eyes and ears 24*7 on n number of platforms just to know your opinion! so why not make them share an opinion about your product/service.
sharing this good read that has all the basics covered :
We always try to read about what to do, how to do it and how much more to do it!! I am talking about marketing btw.
But the evolving landscape of marketing channels, particularly social media, has challenged the cookie cutter marketing strategies that we all have learned and assume as the marketing holy grail. May be it’s time to unlearn some of them…
Here’s a very good blog that talks about: Weird Social Media Habits that’s gotta stop!
On of the points which i want to especially highlight here is as follows:
#4 – Focusing Only On YOURSELF
What do you think the purpose of social media is for brands? Is it solely to provide updates about everything happening at your company? Or, is it to help your followers solve their problems, open the door to conversations and provide helpful resources to begin building credibility?
I hope that the answer is obvious. If a brand is using social media platforms as a means to only push out content about the happenings at their company, they’re doing it wrong. Social media presents a unique and more personal opportunity to interact with your followers. Utilize this opportunity to the fullest by uncovering what your followers care about and providing them with insight on those items, and asking them enticing questions to gain their opinions as well.
Been there done that and it has to stop. If you are following your telecom service provider on twitter, I am sure it is because you think it’s a real time deal to get their support. Sure, they won the best service provider award this year…yay! but you don’t want to see another award winning post when you are stuck with a bad service. That’s like pushing the wrong buttons e.g <Enter> after a hate message.
‘learn from the master’ applies here.
sure you can take notes on market research and emphasis on details while formulating a marketing strategy. But what inspired me the most is the enthusiasm to WIN. No plan B.
8 Behaviors of Successful Creatives
Read this article on LinkedIn and it got me thinking…
It reminded me of the aptitude test i took way back in school to figure out my strong and weak skill sets and make a career choice basis the outcome. I clearly remember having scored below average in the creative section and it just shook my idea of myself.
Well i am presently in a field which i consider creative, marketing. I tried to be an engineer which was supposed to be a befitting career for me but you don’t wanna know how that went 😛
But i still can’t get this thought out of my mind. can we train ourselves to be creative?! and if so, who can measure if i am more creative than the rest? because for me i can be creative while making a cup of tea or snoozing the morning alarm or even for calling in sick for work! I think there are kinds of being creative and one should be very clear about it before talking or discussing about it.
i have my reasons.
Marketing speaks aka marketing jargon is usually perceived as tricks up a marketers sleeve. Having worked in a corporate and now with a marketing agency, life has kind of been a full circle in a short span of time. And throwing jargon in meetings has changed its hidden motive from “testing ones skills” to “proving ones”.
But given the peace loving person that i am, there can be a truce offering. What if everyone just knew what these tense but often self explanatory words/phrases meant. So here are some marketing magic words that you might use (*with caution) while discussing the life changing marketing strategies with your team, marketing experts, third party or your pet dog!
1. Advertising Clutter
Hey remember that beauty soap ad?! which has like milk, shea butter and aloe vera in it?…the one which has a beautiful model in a bathtub with foam all over her??…ohh come on, how about the jingle that’s always at back of your head!
I bet we all are thinking about different soaps that match the description above. And that my friend is an example of advertising clutter or Marketing clutter. While this phenomenon is inclined towards being a negative marketing effect but that’s not entirely true. Creative content, targeted messaging and multi-channel communication is key to creating some space for your brand in the clutter.
2. Double-Loop Marketing
Marketing for a product or service starts with a strategic approach towards achieving the goals you set out for your business. Here the term approach is important because it is a step wise planner that aligns various components of the campaign to measurable KPI. Double-Loop marketing is an effective approach wherein the marketing efforts are two fold: Market Share & Wallet Share
In the first loop companies try and provide as much information and advise to the potential customers about their solution/innovation. You do not want to just talk about your product but present a bigger picture of how your product/ service will make their life perfect. This loop is vital in creating a recall for your brand thereby creating a mind share in consumers cluttered mind. In line with the example of soaps, we have to give it to Dove for their consistent messaging of “moisturizing soap” and that’s what lingers in or mind when we think of this soap. The second loop is where you say show me the money! because businesses run on money you have to successfully sell you brand and grab a wallet share of your consumers.
There you go…I hope you’ve added these marketing lingo to your pocket book and ready to bedazzle the next marketing presentation. Come back because there’s going to be more of marketing speak in the coming days.
I am no marketing guru, I learn and spread the word. So please leave your comments in the form of suggestions, feedback, explanations and make this a marketing classroom.