I have referred to this concept throughout these discussions. In my view, it is the single most influential concept in marketing. Building a successful brand; targeting the right segments/ developing new segments); being the first-mover and successfully differentiating a product; effectively applying the AIDA concept… how do these strategies all come together? What are marketers ultimately trying to influence in people? The final answer is perception. Let me state it another way:
Perception is to marketing what location is to real estate.
Perception, perception, perception!
A wise marketing professor once said, People don’t buy products, they buy solutions to needs. I would add that they buy perceived solutions to perceived needs. Adding the word “perceived” is good news to marketers, as it implies that solutions (even needs) are subject to external influence. After all, a solution is only a solution if we believe it to be so. By perceived needs I mean that some effective marketing campaigns actually create a feeling of tension in people, however covert, only to offer a solution to that tension. An example is the use of fear in advertising. It has been said that rejections are essentially requests for additional information. Well, how can additional information make people decide to buy a product? The answer: by changing how they perceive the product and how it can benefit them.
Perceptions of the world (our mental models or underlying assumptions of the world) govern what we believe (also known as our internal rules), how we perceive ourselves and others, and, most importantly, how we decide to act in relation to the environment. More simply put: It is in our moments of decision that our destiny is shaped. (Tony Robbins)
Every single belief and opinions we have is so because we have chosen to see it in a certain way. Perceptions of the world tell us who we are at a given moment (such as role perceptions: a man can be an employee and a subordinate at work but a father, leader, or coach at home).
Some of the world’s top communicators and leaders are so because they have been able to alter the way we see things (by framing and reframing our mental models). They are essentially able to manage the meaning we give to certain events. They can turn disasters into opportunities and failures into successes.
This is what marketing is all about. When we boil it all down to the basic elements, we communicate with others to influence them. We want ourselves and others to believe something, to do something, or to think about something.
Marketers tell us to never compete solely on price: All of your competitors have pencils and they can mark things down just as fast as you do. It's a death spiral (from Branding Rules; The Leaders of the Pack, Branding Strategy). Instead, they say we should compete on the entire marketing mix. Competing on the product level is nothing more than competing on perceived quality, in relation to a customer’s perceived needs. Promotion is another way to convince the buyer of his or her perceived need and of reducing the perceived risk of purchase. Distribution both through intermediaries and directly to customers can be perceived as adding to a product’s overall utility (such as Form and Place Utility).
Perceptions of quality and value lead to patronage and loyalty, which is a clear predictor of long-term profitability. Reduction of perceived substitutes (through differentiation and customization) may decrease elasticity of demand and allow firms to charge higher prices while minimizing competition and increasing market share. In short, communication is the tool with which marketers try to influence perception.
Many pioneering companies, such as McDonald’s, Microsoft, and Starbucks have altered how we perceive things like dining out, communicating with others, and drinking coffee. For example, as a result of intentional perceptual framing, many small business owners, biding entrepreneurs, and writers now prefer to conduct business at Starbucks, especially at Barnes and Noble locations. Some of the advantages: no need for a dedicated meeting place, a neutral unintimidating location, and the possibility that they will be noticed by others.
In sum, branding, targeting, timing, and communication are all crucial concepts that marketers have been trying to master for ages. When done right, each of these strategies will bring the modern marketing manager closer to successfully affecting the perception (and hence decisions and actions) of others, externally (consumers) and internally (stakeholders).
