QH: Marketing in the Shadow

Psst. Hey you. Want to know where there is margin a-plenty? Find the shadows of a large, expensive product.

If you can build software to create PDFs it feel like a good deal at $50 - because Adobe charges $300+ for that privilege. It wouldn't feel like a good deal if the $300 options wasn't the norm. It's the fact that there is a large mountain in whose shadow you are playing.

You want to be a cheap car - be the Mercedes C-Class. You're cheaper than S or E classes, but still a Mercedes. What a "value" it is.

Other stuff that's "cheap" when compared:

  • Knock-off fashion
    (purses, jeans, suits...)
  • Cheaper technology
    (not-the-hottest mobile phones, off-brand TVs & monitors...)
  • No-name groceries

It may not be all that cheap, but it's cheap-by-comparison. It's the simple perception question: what is my user/buyer/client thinking of me in terms of?

Friday, July 25, 2008, 12:00 AM

tagged: comparison, marketing, perception, pricing

series: Quick Hits (38 other posts in this series)