The Decoy Effect in action!
Do you end up taking the third offer?
Would you implement this into your marketing strategy to maximize the return on your product and increase average order value?
Let me know in the comments section.
One of the levers you can pull as a business owner or a marketer to increase the return of your products is pricing. Now, I don't really mean just changing your price, increasing your price, or decreasing your price. That's not the case. There are some sort of psychological factors that actually place down when it comes to pricing, and one of my favorites is the decoy effect. Now, what is the decoy effect? The decoy effect actually explains that customers or consumers tend to change their preference between two options. When you offer them 1/3 option. Now this is actually common in cinemas. When you go see a movie, you get presented with options. Actually by popcorns you get served with three options. There is small, the medium and the large. The medium is most often time the decoy because the goal of these folks is to get you to buy the large option, which is where they're going to get better UV. How can you apply the decoy effect your marketing strategies? The first step is to pick three price levels for your product or your service. Now, this is actually the best part because if you go beyond three, sometimes it becomes hard to apply the decoy effects. The second step is to place your decoy effect relatively close to the third option. There. That means ensure that the price between the second option and the third option is very close and the third is to actually put that. Call in the middle. So because it is there, it will definitely just alter their decision making and they might just end up going for the third option there, which is what you want them to do. So let me know if this helps you. I will see you in the next video.
Marketing is the attempt at creating the desired perception of your product and Branding is the perspective people leave with after the marketing effort regarding your product.
I help brands increase revenue through effective marketing. If you have a great product or service in need of marketing videos, let's talk about taking it to the next level. I look forward to hearing from you.
Need a crash course on the difference between brand and marketing?
Brand defines who you are and what your message is.
Marketing defines how you take the brand and message to the people you serve.
Both are crucial for a killer marketing strategy.
Thanks for coming to my TedTalk! 😜
An essential part of marketing: Understanding the 4 P's and their importance in devising a convincing brand story and marketing strategy for your product.
Scaled Amazon stores from $600K to $1M monthly sales | Built a network of 300+ brands & distributors | Expert in Sourcing, Logistics, and ROI-focused operations | Mastering Wholesale sourcing & Inventory Management
An essential part of marketing: Understanding the 4 P's and their importance in devising a convincing brand story and marketing strategy for your product.
There are 2 things you have to do in marketing before anything else:
1. Get clear on your value proposition
2. Offer a damn good product
Fail at one of the above, then go back to the drawing board. You can't build your penthouse on broken foundations.
Prime Energy Drink has fallen victim to one of the most common fail-tactics of marketing. They relied too heavily on superficial aspects like celebrity endorsements or social media hype without focusing on the actual quality and value proposition of the product. In today's competitive market, consumers are increasingly conscientious and look for products that offer genuine benefits and unique features.
If the drink lacks distinctive qualities compared to other products in the energy drink market and doesn't deliver on taste or effectiveness, it's understandable why it might struggle to gain traction with consumers. Going from R500 a bottle, to R40 on launch and now a measly R9 - it's safe to say the brand now holds little value.
Building a successful brand requires more than just riding on trends or leveraging the fame of founders; it requires a solid understanding of the market, a differentiated product offering, and effective marketing strategies that resonate with it's potential customers.
Digital Media Strategist | Media Lead Diageo PEM Africa - Freshive/OMG | Meta Blueprint Certified
This is why you need a long term marketing plan for your product. Hyping a market and focusing too much on sensationalism doesn't do a product justice.
The cold hard truth about marketing...
Marketing isn't about convincing people to buy. Marketing is about making people believe in what you sell.
Too many brands try to use their marketing as an opportunity to sell people.
That’s wrong.
You need to make people believe in your brand.
You need to show them that what you offer can solve their problems, help them achieve their goals, and benefit their lives.
That is what marketing is about.
If you don't want to succeed in marketing, try to convince people to buy from you.
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Here's PRIME, prime sales are down because they did not vision longterm sustainability.....Don't be like PRIME....
ANY brand will experience this if the goal is sales but there are NO nurturing of expected clients in the marketing funnel. You NEED to make people see the value of YOUR product in THEIR lives.
#mark1media#digitalmarketing#marketing#fullfunnelmarketingstrategy#sustainablemarketing
Digital Media Strategist | Media Lead Diageo PEM Africa - Freshive/OMG | Meta Blueprint Certified
This is why you need a long term marketing plan for your product. Hyping a market and focusing too much on sensationalism doesn't do a product justice.