Our modern society is going through profound changes. It is my belief that those changes are affecting the way we perceive Value.

Firstly: With the internet allowing everyone instant access to information, size no longer matters in the same way. What matters is how “findable” you are. The boom of SEO practices and the attempts by everyone to get their content “aggregated” is certainly a proof of that trend (on aggregating content see our previous post “aggregate or get lost”). A visual representation of aggregation would be an internet crossroads where, by strategic placement, you would maximize the chances to get traffic to your site.

Secondly: The Digital revolution has created a cheap way to replicate content and distribute it quickly without borders.

Shop till you drop...

In this context, we have the right to ask ourselves: what drives ‘value’ ? And more particularly ‘perceived value’. If we agree that ‘perceived value’ is the key to profit, and leads to a higher brand equity, then what are the new rules of such value? What makes perceived value higher?

Time to revisit good old Economics principles. ‘Value’ is best materialized by the price consumers are willing to pay for the product or service. That ‘price’ is a direct result of the interaction between offer and demand.

This is a nice theory, and it possibly works great in a stock exchange situation where information flows quickly. Everywhere else, there are a number of “variables” that interfere and delay market adjustments. The two greatest interferences are “knowledge” and “time” and both are closely intertwined.

I take an example :

You are buying a product or a service. The more time you spend understanding the market (knowledge) and other competitive offers; the clearer will be your perception of value. You will know if what you are buying is good value or not (the idea of “good value” being the trade off you are actually willing to make). You will also learn more about the product or service and its customers.

Possibly you will read reviews and recommendations and you will decide if they sound true or not.

Based on all this and from recommendations from your network you will decide what you think of this particular brand or product and of its value.

So where does this leave us?

What parameters influence perceived value? Here is what I submit:

1. Time: how much time you are willing to spend on the subject to build your knowledge of the field

2. People: recommendations and comments from your network and words from people you trusted to be of some authority.

These are the new parameters of Value. Time and people. There is no real question about information availability, more and more we have to assume that it is readily available providing one has the time.

People can make or break the reputation of a Brand, product or service. They are at the core of everything – I just wish we never forget that.

Photo credits robholland

If this sounds like chicken and egg to you then think again. Yes, marketers are generally pretty good at splitting hair, but here the story is different. Indeed, the first part of this Marketing Century was dedicated to showering consumers with Brands, bombarding them with messages. But does this approach still work?

A cruel dilemma ! Chicken or Egg?

Perhaps to an extent, but there is a marked increase in the resistance to the disruption of life by advertising.

So what then is the right model ?

Well, we learned from Chris Anderson that business now has a tail…. A long tail. Basically, with the internet revolution, being niche is more attractive than ever before. Consumers can now find you, regardless of how small or distant your business is. What is important is that they should want to find you. This is the era of extreme customization, the era of Google. Customers search, they browse, compare, review, write about brands and recommend or criticize. They gather in communities and sometimes decide to send brands warnings (Cadbury, Dominos Pizza, to name a few).

I would like to argue that this is the era were Marketers should focus on Bringing Consumers to Brands . A novel approach to marketing is required as the brand consumer matchmaking game is not as unilateral as before.

Sure, the Marketers of yester-year too cared about understanding their target market. They too could not please everyone and endeavoured to find the perfect compromise. As Malcom Gladwell put it, they looked for the “perfect tomato sauce”. But then there is no perfect tomato sauce, is there? Instead, there are perfect tomato sauces… for a myriad of customers with different needs. And now more than ever there is a need to recognise more perfect tomato sauces!

Welcome to the long tail. Here listening to and understanding customers is taking on a whole new significance. Brands that can do that and make it into the inner circle of a particular tribe are ensured success. More than ever the “humanity” of a brand or brand personality becomes critical. It is not easy to be accepted by a particular tribe. There are codes, behaviours, beliefs you must subscribe to. Is your brand green? Do you erase your carbon footprint? Is your food organic? What is your brand doing for the community? They want transparency, traceability, accountability. Who manufactures your shoes? If it happens to be China, don’t lie… we all know what assembled in EU means. Made in China is now perfectly acceptable. Eyewash is not.

The old principle of giving to receive gains currency. You must give loads before you start to receive. And you have to do the right thing before people accept you as friends. There is no direct path to consumers’ heart… you have to earn their trust, you have to prove genuine to your words. THIS is the new world order when it comes to brands.

Sure, you can still shower the wider number with messages, but this has lost its efficiency, and more likely than not you will go unheard. Instead, you need to concentrate on permeating a community, getting into a tribe’s good books. Engaging consumers at a whole new level. Becoming an integral part of their lives. That is what will win you their heart in the long run. There is no short-cut.

Photo credits – Rights reserved Shutterstock manzrussali

Your business is facing new challenges this year? The recession is forcing you to re-structure? You want to work smarter? Still you need to launch new products, expand into new channels or grow into new markets. Your competition is tough and you need to keep innovating, you need to be more creative. A traditional reaction in times of economic downturn is to cut costs and slash advertising expenses. But often it proves to be a quick fix and then a setback in the long run at the expense of your Brand Equity.

In a recession more than any other time, you need to sell “better” and resist price erosion pressures as much as you possibly can.

Here is my 2cts contribution to what I think one should do in times like this.

Review your processes and ask yourself if your marketing does this:

1. All your activities are aligned and match the sales cycles and the needs of the markets you are working with.
2. Your brand communication is strong, meaningful and consistent with your history and your business strategy.
3. Your brand strategy adds value to your product(s) and you are able to retain a price premium that will save you from cutting already thin margins.
4. Your in-store presence reflects who you are (brand), what you want to say to consumers (Call to action) and gives you a true competitive edge in the last mile.
5. Your Channel partners value your efforts and fully support your product(s).

If not then you need to start reviewing and changing the way you spend your marketing money.