Why Does Marketing Matter?
Presentation really is everything!
Have you ever researched the difference between a natural and a lab fabricated diamond? Maybe you were about to purchase an expensive engagement ring and asked yourself, “should I get a lab-made diamond for this? It’s so much cheaper! But if it’s cheaper.. Does that mean it’s poor quality? What is the difference?”
A naturally sourced diamond is ultimately worth thousands of dollars above and is more sought after than a diamond engineered in a lab, though both are inherently identical in look, feel and hardness. In all reality, the only difference between the two is that natural diamonds have small amounts of nitrogen and lab diamonds do not. Other than this, they are exactly the same. They are identical to the naked eye.
So why does it cost so much to purchase a natural diamond? These can cost double if not triple the amount that a lab-grown diamond costs! Given the fact that there is virtually no difference between the two. Why is it this way?
Well, it all comes down to marketing. The markup on the natural diamonds really boils down to a false value that we, as people, have placed on that particular diamond because of the way that they have been marketed to us. We are told that for whatever reason it is more attractive to have a naturally occurring diamond. It is considered “lesser” if the diamond on your jewelry was created in a lab, even though it is essentially the same thing as the one from the ground.
So, how does this apply to your company?
The way you present, describe, and advertise a product can have a very big impact on how much that product will cost and what volume of products will sell. Telling the story of your product and presenting it in the most attractive way possible to your target market is what will significantly drive demand for it. Presentation is everything.
Let’s take a look at some big names. Apple. Why has Apple been able to dominate for as long as it has and pushed itself to become the most valuable brand of all time?
Apple is an absolute master of marketing and presenting its products.
Another great example of this is Rolex. The most inexpensive and lowest end watch from Rolex is the Oyster Perpetual, and pricing starts around $5,700. I compared this to the most expensive and highest end watch from Timex, which is the Timex x Judith Leiber, starting around $1,200. That’s a $4,500 price difference! Most of that comes from the marketing and presentation that Rolex has built around its name. Owning or wearing a Rolex means you are the best of the best, the highest class, etc. Well, that reputation comes with a price, and it is one that Rolex is able to charge due to its impeccable marketing.
How about the diaper industry? Well, did you know that Kimberly-Clark is the manufacturer of both the Kirkland (Costco) brand and the Huggies brand of diapers? These diapers are practically identical aside from some of the branding and packaging; however, you can purchase Kirkland diapers for about 75% of the cost of Huggies. Again, the reason here is marketing. Kirkland brand is marketed as “here are some good quality diapers for a good price.” Huggies is presented in an entirely different fashion. They show babies being taken care of and loved and happy as can be in a Huggies diaper. They have Mickey Mouse on them, so you know it’s a kid-friendly product. Etc., etc. Kirkland appeals purely to a logical point of view, and Huggies attempts to appeal from a more emotional point of view. Same diapers, but big difference in presentation and final cost.
Putting it all Together
Now, you might be thinking “yeah this is so obvious. You haven’t unearthed any crazy insights or revelations!” That is just it. There isn’t anything crazy about this. It’s a fact of business – yet so many companies either don’t have marketing tools or are only willing to budget a very small amount towards marketing, but this is something that matters for all businesses! I highlighted the companies that I did because of how different they all are. Each one of those is in an entirely different industry, and yet, the marketing remains just as important to each one.
Marketing matters – better put – good marketing matters. This is one of those things that will seriously make or break your business.
If you have questions along the way or would like any sort of guidance or need help getting your marketing started (or if you’ve started on your own but still need some help) the team over at Lemonade Stand would be delighted to push you in the right direction! You can reach out to a team member here to get started. You can also take a look at this section of our blog to get a better idea of some of the services that we, and other digital marketing agencies, can offer and what pricing might look like for those services.