The professor looked over his Marketing class and tossed out the question, “What is more important in marketing, perception or reality?”
Without hesitation the class responded as a group: “Perception!”
“So,” said the professor, “you are saying consumers’ perceptions about a product (or service) are more important than how the product actually performs?”
Again, the graduate class was unanimous in its response. Every student felt people’s perceptions were more important than reality.
The class was correct. In most phases of life perception trumps reality in the minds of consumers.
As an example, if you want to know the time you can buy a watch at a discount store for $20 that will tell the correct time almost to the second. That’s the reality of the situation.
However, if that’s the case, why would a person pay $10,000 for a watch? Will the $10,000 watch tell better time? Probably not. But that’s where perception comes in.
Watch manufacturers realize that people buy watches for different reasons other than for their function. Yes, for $20 you can get the right time. However, when you wear a $10,000 watch it is a visible statement to others that you want them to perceive you in a different way. Now you are going for status. The accuracy of your watch telling the time is secondary.
In his book “All Marketers are Liars” Seth Godin talks about folks who drive around town in their Porsche Cayenne SUV. Everyone knows Porsche is known for its high-performance sports cars and high price tag. The Cayenne goes for about $80,000 and up.
However, Godin points out that Volkswagen produces its $36,000 Touareg at the same factory where the Cayenne is built. In reality, there is very little difference between the Cayenne and the Touareg.
But there is a major difference in people’s perceptions of the two vehicles. If you are tooling around in a Porsche you are making a statement that you want to be perceived differently than if you were in a VW.
You could take two identical shirts and sew on a Polo (or Brooks Brothers) logo and mark the item up 100% or more. Why? Because consumers perceive increased value comes with certain brands. Their perceptions may or may not be true.
The lesson here is that you may offer the greatest product or service on the planet. But it won’t mean a thing if your customers don’t see it the same way.
Consumers today buy what they want, not necessarily what they need. They will pay more based on their perceptions of the same basic product.
The real key to the success of any business is how it is marketed and communicated to its target audience. This means you have to continuously look for ways to communicate the image you want customers to perceive.
Public relations efforts are often more important for success than the actual product or service. How a business communicates with the public can make all the difference.
One disastrous media interview can undo years of image building. Doing a media interview without proper training is a disaster in the making.
Yes, things such as the location of your business, the packaging of your product, sales tactics, positioning, etc., are very important. But if customers’ perceptions are not positive you are in trouble.
In business (as in life!) managing perceptions is the key to success.
(John Landsberg is President of Bottom Line Communications and an adjunct professor of marketing and communications.)
