Tuesday, February 17, 2009

Seth and KT - Questions or Answers?

Earlier today, I had a conversation with KT about the typical business strategy of most organizations. As KT was making a purchase at a local fast-food establishment, he wondered why restaurants place more marketing value on the logo and aesthetics than the actual product and capacity. Later on, I get an RSS update concerning Seth's argument about business leaders not focusing on the needs of the customers. Instead, Seth argues that most businesses look at a rational buyer that applies more logic to a purchase than normally occurs during a typical purchase decision process.

To help you understand Seth's point, just remember the phenomenon of "Spinners", the 20" wheels that spun around at the stop light. Have you seen them lately? Just think, someone spent thousands on a fad that no longer "gets it done" - and it wasn't that long ago.
Do you think there was a strategy for a rational thinker/buyer? To help you understand Kyle's point, just think about the hole-in-the-wall restaurant that you wait in line for hours just to get a taste of something you can't find at any other restaurant. There's no fancy logo, and the interior design leaves a lot to be desired. Do you even care about the branding strategy? IT'S ALWAYS THE PRODUCT, THEN IT'S PRICE, THEN IT'S THE PLACEMENT, THEN IT'S THE PROMOTION. Just ask someone.

Both KT and Seth, although presenting different arguments, have introduced a topic of discussion that needs to the number one agenda item of every board meeting across America.
(1) What are the core needs of our target market?
(2) Is the brand strategy supported by the product or the logo?

The businesses that understand this argument, and take advantage of the opportunity, will thrive in these turbulent economic times.

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