Case in point: Associations with brand logos. No core belief is needed to deal with company logos and associations made with them, thus those associations are more easily influenced. A recent study showed people subliminally exposed to Apple’s logo were more creative with their tasks than people exposed to IBM’s.

Likewise, as posted on the Today show’s website, it’s easy to send subtle cues to other people physically in order to get them to associate certain positive traits in their mind. For example: having a picture of a dog on your desk to convey loyalty or wearing a black suit to convey authority. This is what is also referred to as "the power of suggestion."

In short, perception is easily manipulated because people are less likely to guard their perceptions than their beliefs. Changing someone’s faith, on the other hand, would be a much more difficult task, as belief is protected at the center of the onion.

Understanding this relationship is important when considering the implications of other studies and how those implications apply to marketing efforts. More than one piece of research has found, for example, that people are more likely to be influenced by friends and families than they are an A-list blogger. Part of that rests with the belief that someone is trustworthy versus the perception that someone is trustworthy. Some, though, take that information and jump to the conclusion that blogger endorsements and celebrity endorsements are over-credited for effectiveness.

The underlying assumption is that it all comes down to how much trust people put into a recommendation. People these days are much less likely to put trust in a celebrity they know is paid to say something. That distrust could extend to bloggers as well, either for that reason, or lack of certainty of the person’s identity (especially in light of recent hoaxes), or a myriad other reasons not to trust a stranger.

So, a consumer in the market for an automobile is more likely to trust a friend or relative, especially one with long-term brand experience than a blogger in another state. Yeah, well, when you put it that way, it’s not such a surprise, is it? 

Veteran communications specialist Shel Holtz doesn’t think it should be shocking, either, and criticizes competing viewpoints that trust is the most important metric in marketing:

“Whatever happened to the importance of building awareness?” asks Holtz at his blog. “While the influential bloggers—the so-called ‘A-listers’—may not have influence, they do have eyeballs. They are A-listers, after all, because people read them. I may have greater trust in my friend in the next cube, but where did he hear about it? And if he heard about it from a trusted friend or family member, they read about it from a source that gets broad distrtibution [sic]. The information has to start somewhere.”

A good place to start, it could be argued, is search ads (regardless of direct ROI), especially if a marketer has strong organic rankings with specific keywords. Exposure to the brand, with reinforcement along the discovery process (sponsored plus organic), sends a subtle message to viewers that will sit somewhat idly and relaxed in the perception areas. If not there, a nice endorsement from someone respected is also a good start, just for those subtle associations people don’t take too seriously but do allow to alter their behavior just slightly, either negatively or positively.

This is why branding professionals are so careful (and sensitive about) the person spreading their message. It’s not as much about trust as it is about association and perception. Perception and associations can change very quickly, which is also why OJ Simpson doesn’t get endorsement deals anymore.

It’s a common fallacy that people buy based on price. Well some do, but most people buy based on value or rather their perception of value. Many small business owners begin their business life with the thought that they will enter their market and simply offer what they have at a slightly lower price and all will be good. In truth it’s not the best or even a good idea. Unless your last name is Walton and you’re an heir to the Wal-Mart throne you won’t be able to compete on price nor should you try.

Instead you should compete on value and everything on your site from the inital perception of your design to the way you walk potential customers through the sales process, should be about increasing the perceived value of your products and services in the eyes of your potential customers.

Value At The Supermarket

Think about your last trip to the supermarket. You probably bought a few generic items, but if you’re like most people you also walked out with a few brand name items in your shopping cart. Why? Are those brand food items really any better than their generic counterparts? In some cases maybe.The are a few brands I think taste better. At least I have convinced myself somewhere along the way they taste better and I’m willing to pay a little extra for that better taste real or not.

Do you ever compare ingredients between brands? If you do you’ll find that many times what’s in the brand is exactly the same as what’s in the generic. In fact some brands sell their products through private labeling and it’s quite possible the brand and the generic are exactly the same except for the packaging and the price. Two items sitting right next to each other on the same shelf that are exactly the same except for their label and one can sell twice as much as the other.

So why would anyone ever buy the brand name item that costs more?

My TV Has More Value Than Your TV

My first job, other than a paper route, was working in an audio/video store called Crazy Eddies. Those of you on the east coast of the United States will likely remember the store or at least the commercials. And no the guy in the commercials wasn’t Eddie. Anyway we used to sell these two knockoff brands of televisions. I think they were a knockoff of a major brand, but I can’t honestly remember after all these years. The two knockoffs were called Multi-tech and Dyna-tech. They were exactly the same in every way. Same tv, same packaging, and even the same price. The only difference was those few letters at the start of each name. One was Multi and the other Dyna. That was the only difference.

One day two customers came to the stock window to pick up their sets. They’d each bought one of the two knockoffs. While one of my coworkers was grabbing their tvs I listened to the two of them debate which of their tvs was better all the while knowing they’d purchased the same thing. I smiled to myself as they quoted features to each other and made up facts the sales person told them about the set they were taking home. And all the time each was going home with the exact same tv that they’d bought for the exact same price.

So why were they arguing with each other over who got the better tv?

The answer is that people don’t buy on price. They buy on value of more correctly their perceived value in a product of service. People by brand name foods in the supermarket, because they believe the brand is better in some way and offers a better value. Two people can argue over which of the exact same television is the better bargain because each perceieves the set they are buying offers a better value.

That Bottle Of Wine Costs How Much?

Think about two bottles of wine, one selling for $20 and the other selling for $200. Both will be gone by the end of dinner so why buy the more expensive bottle? Because for some it has more value. It tastes better in some way and that extra taste is worth $180. For some no bottle of wine is worth $200 or maybe even $20. All they want from that bottle is to get drunk. A cheap bottle of wine does just as well as an expensive bottle if the intoxication you get from it is it’s only value.

For some,, while there is no discernible difference in taste between the two bottles, they may still opt for the $200 bottle of wine. Why if they don’t get any real value out of it? Real value or not they perceive that $200 bottle to have more value. Maybe they think it will impress their date or maybe they believe it does taste better even if they really can’t tell. Somehow in between paying the extra money and the last glass they convince themselves that it really did taste better. They may even just assume it’s better because of the higher price.

Price And The Perception Of Value

If I pointed you to competing services, one charging $15/hr and the other charging $350/hr, which would you assume offers the higher quality service? Clearly there’s not enough information to decide with only their rates as information, but likely you would assume the $350/hr company offers the higher quality. They may not, but the perception is that since they charge more they must be better.

Earier in this post I claimed that competing on price isn’t the smartest decision for a small business to make. There will always be some other business that can charge less than you can. A better option is to charge what you will and offer more value for that price. Give customers the perception that your products and services are a better value than the competition and you have a good chance of selling to them. Back that up with real value to maintain that perception and you’ll create some loyal customers who buy again and again and again.

Don’t try to give your customers the best price. Give them the best value for the price.

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Steven Bradley is a web designer and search engine optimization
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Bloggers read other blogs, quote other bloggers, and communicate with other blog owners both online and in person.

Of course that is obvious; at least to bloggers like you. That might also be the problem. As hard as it may be to believe, not everyone is a blogger. As a result, not everyone is as knowledgeable about the blogging phenomenon as we blog writers.

What is not so obvious is the level of blog awareness among the general mainstream population. In fact, many people are not aware of blogs, even though they might even read blogs themselves. They just might not know that what they are reading is a blog. While that might seem farfetched to many bloggers, it’s not that outlandish to non-bloggers. After all, many people think bloggers are only self absorbed navel gazers anyway. If the mainstream media is a guide, them the only types of blogs that exist to them are political blogs, personal blogs, and the blog stylings of various celebrities.

Why not put the idea of blogging knowledge to the test? This week, when you’re at work, visiting clients, socializing, or just talking to people on the street, why not ask them about blogs and blogging. Ask them if they read blogs. Perhaps they might not even have heard of the concept. Be sure to ascertain from those people who read blogs if they are aware of blogs beyond the political or personal types. If you are a business blogger, that’s important information to acquire for the future. If a person is not aware of business blogs, for example, it’s very difficult to initiate a blog based relationship.

Be sure to keep a record of the number of people who have heard of blogs, who have read blogs, and who might even read your own blog. At the same time, write down all of the people who have never heard of blogs, or who only possess limited knowledge of the medium. Armed with this information, you can formulate a plan to help increase awareness of blogging among the general population. Your ideas could become standard advice in the blogosphere, giving you even more traffic. Talk about benefits to gaining knowledge!

Along with your general questions, ask if the person has heard of or read your own blog or blogs. While they might not have read your powerful and informative posts, they are potential readers. Be sure to give them a business card that features your blog and URL. Along with increasing the level of blog awareness, you are gaining more visitor traffic for your own blog, and some potential long term customers and clients. Now that’s putting research to work for you.

Right?

If people aren’t aware of blogs, after providing answers to your informal questions, it’s our job and responsibility as bloggers to spread the word. It won’t happen by itself. Only in the movies can you build it and they will come. Real life doesn’t work like that. People need you to share information about blogs, and the value of maintaining a blog. Unfortunately, that blogging know how doesn’t just appear ready made right out of thin air.

Set up a few simple blogging questions and do some informal blogging research today. You might even convert a few more people to blog readers or writers. You might even learn more about blogging yourself as you examine aspects of blog writing you hadn’t considered prior to your informal research. You may not only add some new readers and bloggers to the blogosphere, but you might strengthen your personal committment to writing great posts on your own blog as well.

Now that’s some powerful blog evangelism in action.

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They need to do something positive about the behaviors of those important external audiences of theirs that most affect their operation. And as they persuade those key outside folks to their way of thinking, help move them to take actions that allow their department, group, division or subsidiary to succeed.

The good news for those managers is that good public relations planning really CAN alter individual perception and lead to changed behaviors among key outside audiences.

The premise? People act on their own perception of the facts before them, which leads to predictable behaviors about which something can be done. When we create, change or reinforce that opinion by reaching, persuading and moving-to-desired-action the very people whose behaviors affect the organization the most, the public relations mission is accomplished.

There is literally no end to the magic that can be wrought: fresh proposals for strategic alliances and joint ventures; welcome bounces in show room visits; prospects starting to work with you; capital givers or specifying sources beginning to look your way; customers starting to make repeat purchases; membership applications on the rise; community leaders beginning to seek you out, and even politicians and legislators starting to view you as a key member of the business, non-profit or association communities.

First, get your public relations people on board this particular approach to PR. Reason is, they must buy into why it’s so important to know how your outside audiences perceive your operations, products or services. And do be sure they accept the reality that negative perceptions almost always lead to behaviors that can damage your organization.

Then, spend some time outlining how you plan to monitor and gather perceptions by questioning members of your most important outside audiences. Questions like these: how much do you know about our organization? Have you had prior contact with us and were you pleased with the interchange? How much do you know about our services or products and employees? Have you experienced problems with our people or procedures?

You’ll find satisfaction in the fact that your PR people are already in the perception and behavior business and can be of real use for the initial opinion monitoring project. Professional survey firms are always available, of course, but that can blow your budget. So, whether it’s your people or a survey firm who handles the questioning, the objective is to identify untruths, false assumptions, unfounded rumors, inaccuracies, and misconceptions.

It’s time to decide which of the problems outlined above becomes your corrective public relations goal – clarify the misconception, spike that rumor, correct the false assumption or fix a variety of other possible inaccuracies?

The fact is that you will realize that goal only when you select the right strategy from the three choices available to you. Change existing perception, create perception where there may be none, or reinforce it. Picking the wrong strategy will taste like Limberger cheese on your Jello. So please be certain the new strategy fits comfortably with your new public relations goal. You wouldn’t want to select “change” when the facts dictate a “reinforce” strategy.

Now, one of the more challenging aspects of your public relations effort, writing a persuasive message aimed at members of your target audience. It’s never easy to craft action-forcing language that will help persuade a target audience to your way of thinking.

Needless to say, be certain you have your best writer on the assignment. What’s needed are words that are not only compelling, persuasive and believable, but clear and factual if they are to shift perception/opinion towards your point of view and lead to the behaviors you desire.

On the other hand, one of the less challenging chores is identifying the communications tactics needed to carry your message to the attention of your target audience. Insuring that the tactics you select have a record of reaching folks like your audience members, you can pick from dozens that are available. From speeches, facility tours, emails and brochures to consumer briefings, media interviews, newsletters, personal meetings and many others.

It’s also a fact that the believability of the message can be dependent on the credibility of its delivery method. Which means you may wish to deliver it in small getogether-like meetings and presentations rather than through a higher- profile media announcement.

When progress reports are first suggested, you and your PR team are well advised to undertake a second perception monitoring session with members of your external audience. The same questions used in the benchmark session can be used again. But now, you will be observing very carefully for indications that the bad news perception is being altered in your direction.

If activity isn’t at the pace you desire, rest assured that the PR program usually can be accelerated by adding more communications tactics as well as increasing their frequencies.

The bottom line for a business, non-profit or association manager is this: a workable public relations blueprint will help you persuade your most important outside stakeholders to your way of thinking, and move them to behave in a way that leads to the success of your department, group, division or subsidiary.

Another example of perception, persuasion and behavior, PR at work.

Bob Kelly counsels, writes and speaks to business, non-profit and
association managers about using the fundamental premise of public
relations to achieve their operating objectives. He has been DPR,
Pepsi-Cola Co.; AGM-PR, Texaco Inc.; VP-PR, Olin Corp.; VP-PR,
Newport News Shipbuilding & Drydock Co.; director of communi-
cations, U.S. Department of the Interior, and deputy assistant press
secretary, The White House. He holds a bachelor of science degree
from Columbia University, major in public relations.
bobkelly@TNI.net Visit:http://www.prcommentary.com

If the customer thinks that what you are offering them isn’t worth much, then how can you ever hope to charge a high price?

You can’t!

The key is to communicate the VALUE message. And, you must communicate it so strongly that the price seems reasonable in relation to the product or service you’re offering.

What really matters is your pricing policy and how you communicate price to your potential market. Should you offer a discount? Should you feature the price boldly? Should you introduce the price early in the offer? These are important questions because without realizing …you may be educating your customers to give price their primary consideration. That may not be your intention, but like it or not, that’s what often happens. The customer becomes price sensitive and then …SURPRISE! SURPRISE! … a competitor comes along with an even lower price and you lose a customer.

Perception is everything!

A case in point – A week or so ago, I was exploring a suburban shopping center when I decided to get a loaf of bread for lunch. As I walked along the street I came to a supermarket. Then across the road, I spotted a little bakery. So, off I trundled to the bakery, “A wholegrain loaf please.” I had committed to buying the loaf just by walking in the door.

Price was not important in my buying decision, something else was. That ‘something else’ was perception. Your customers’ perception of you can be more important than your price.

Why did I choose the little bakery over the supermarket – perception! I perceived that the quality would be better. But, who’s to say that the supermarket didn’t have a product equally as good as, if not better than, the little bakery.

So could it be that by focusing too much on price, we set up an expectation of a lack of quality in the customers mind? And could it be that by focusing too much on price, we create the impression that our service might be suspect? Absolutely!

Does it feel right?

It doesn’t matter what you charge. It is the customers’ perception of your price that matters. If the customer thinks the price is too high in relation to the value delivered for the product or service, then they won’t buy. If they think the price is too low, then again they might not buy – because, they may be suspicious of the quality in relation to the price. The price may not feel right.

A customer perception of what is a ‘reasonable price’ is more important than what you want to charge for your product or service. And the customer decides what’s reasonable based on perceived value for money, not price. It’s creating this perception of value that tells the customer the price is right.

I’m a firm believer that, in the long term, it’s always better to add perceived value to your product rather than reduce your prices.

Customers are smarter these days, have more disposable income and have more choice than ever before. The key to making the sale is to communicate VALUE! Do it so strongly… that the price seems reasonable in relation to the product or service you’re offering.

Noel Peebles. Market Leaders Limited. All Rights Reserved.
http://www.instantsellbusiness.com
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