Marketing In An Economic Downturn (Continued)

. Sunday, January 18, 2009
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If you have not read Marketing In An Economic Downturn Read it first!

In my last post on marketing in an economic downturn I left you with a try it at home test. The test was to demonstrate how consumers find value by comparing.

Here it is again.

Try this! (Without cheating)

Without looking on wikipedia, answer the following questions.

a) The African continent has more or less than 18 countries?
b)How many countries does the African continent have?

Now here is the purpose.

Most people will answer the a) question as being more, now when answering b) most people answer in 20's. This is due to the fact that your reference point is 18, you would never consider the answer as being 47 because that's far too high compared to your reference point. *The correct answer is 47.

Now here is the fun part. Ask your friend this question.

a) The African continent has more or less than 60 countries?
b)How many countries does the African continent have?

Hopefully your friend's answer will prove my point.
How can I use this to increase revenue for my business?

As I mentioned in my previous post, allow your customer to compare.

Another great strategy, especially for luxury brands, is to make your customer work for it. This again plays on the fact that your customer can find value in comparison. Run a promotion that is only valid on certain days. Example "Sunday Special, 25% off services." Offer discounts or free gifts when customers give you their email address, as mentioned in the big red button post.

By doing this you create value in 3 different ways.
-Value in comparison of price
-Value in the effort that had to be done by the customer
-The big one. Value in the fact that not everyone received this offer.
*If everyone had a diamond, how valuable would they be?

Remember the economic downturn can be a threat, but if you are creative and spend your money wisely it can be a huge opportunity.

Good luck and you know who to call if you get stuck.