Are You Confusing the Market?

Has this ever happened to you? You've just found aof relief and thank the powers above that it worked.
stain on your favorite dress; the one that hasGee, wouldn't it have been nice if the manufacturer
everyone using words like "drop-dead gorgeous"had actually gotten the credit?
when describing how you look. Or, for men, it's theSeriously, is this the kind of experience you want
power suit you wear whenever you're getting readyyour customers to have - one that's plagued by
to close a big sale. Either way, you're at risk of losingdoubt, fear and anxiety? Is this the kind of
the image that's so vital to you.experience that's going to keep them coming back
As you're bemoaning your loss, you hear an ad thatagain and again? Will it make them want to sing your
claims that it's stain remover:praises? Or will their stories of you be littered with
- Removes stains that other stain removers can't getpain and anguish?
outHere's another classic example. You walk into an auto
- Is gentle on all fabrics, so much so that it doesn'tdealer's showroom and find just the right car. As you
shorten the garment's lifewere making your decision the salesperson touted
- Is green - it produces no toxic wastethe classic look, sporty feel and luxurious comfort -
You've heard all of this before and always beennot to mention the incredibly great mileage the car
disappointed to find that the claims were unfounded.gets. You sit down to discuss price. You tender an
Still, if you don't do something you're not going to beoffer. Of course it's unacceptable. He takes it to the
able to wear the outfit again.sales manager and returns with a counter-offer. On
You do a little research and find that the claims madeand on the process goes until you finally settle on a
about this new stain remover have all beenprice.
substantiated by independent testing labs with stellarWhat's the one question on your mind as you leave
reputations for fair and honest appraisal of thethe showroom? "I wonder if I got a good deal?"
products it tests. Maybe there's hope yet!Why are you wondering that? Because the car didn't
Off to the store you go, encouraged by thechange, but the price did. Again, we have an example
possibility of saving your favorite outfit. You find theof price and sales pitch not meshing.
stain remover on the shelf and, much to yourSo what's the message here? If you want loyal
surprise, find that it's actually cheaper than thecustomers, make sure that your price supports your
competing brands. Quickly, what are you thinking?marketing and sales claims. Customer loyalty hinges
Does the Hallelujah chorus come to mind? Or are youon a number of factors. Customers must feel good
wondering whether the product is as good asabout their purchase. Feeling good means feeling
touted? Is this another example of advertising hype?confident about the choice they made. Confidence in
But wait, the testing labs all supported the product'stheir choices comes from knowing that they made
claims! Hmm, I wonder if the testing labs aren't asan informed decision. Where did that knowledge
independent as I thought?come from? To a great degree, it stems from the
These are the kinds of doubts that we experiencefact that the price matched the marketing claims.
every time there is a disconnect between theThis concept works regardless of the level of quality
marketing message we're hearing and the price we'reor service the buyer desires. If you're looking for
seeing. In essence, when your price doesn't supportdisposable plates for a child's birthday party, a
your marketing claims, you're asking the buyer toone-time-use product for people who could car less
choose which to believe - the marketing message orabout aesthetics, you may go to one of the dollar
the price. When faced with this choice, which do youstores. The price matches the quality. You know that
believe?you're not getting much quality, but you're paying an
Typically we, as buyers, believe the price. Why?extremely low price as well.
Because anyone can claim anything. We learn that atOn the flip side of the coin, if you're looking for a
an early age and our skepticism grows as we growhigh quality item with image enhancement capabilities,
older. That's why we're skeptical of advertising claimsthe price better reflect both or you're likely to pass
and more trusting of the price we're seeing.on the item. Why? If the situation calls for high
Let's continue with our example. Despite the doubtsquality and that quality is going to reflect on you, you
you're experiencing you decide to buy the staindon't want any doubts about the purchase. You'll go
remover. Why? You don't have a choice. You knowto an alternative that has a more congruent
that the other products you've tried don't work. Thismarketing/price message.
is your one shot at salvaging the look you treasure.Stop confusing the market! Make sure that your
You're earlier excitement has turned to doubt andpricing supports your marketing claims. You'll enjoy
anxiety. Yet you return home with the stain removergreater revenues, higher margins and greater
and, after several tests on old clothes, you apply itcustomer loyalty.
to your favorite outfit. It works! You breathe a sigh