The Anchoring Principle

The choice of the blog on which I will comment on, was pretty straightforward. My attention was captured by the blog “The Anchoring Principle” edited  on “Influential Marketing blog” on Friday, November 25.

The “Anchoring Principle” refers to the practice of using one high priced product (an anchor), to make everything else seem cheaper by comparison.

This interesting principle did not sound new to me. Indeed, just a few time ago, I read a book entitled “Influence” written by Robert Cialdini, which explains this concept in a more deeply way.Cialdini refers to this concept as the “contrast principle”.

To better understand this principle, a very easy example could be useful: if we lift a light object first and then a heavy object, we will estimate the second object to be heavier than if we had lifted it without first lifting the light one.

In the same way, people tend to have an “anchor” price for their buying experience and judge the products in relation to that anchor. If the “anchor” price is high, they are more willing to pay an higher price and vice-versa.

Thus, under a marketer point of view, it is much more convenient in a shop to keep a few very high priced items, in order to entice customers to buy the apparently “cheap” ones .

Another way to use this principle in a profitable way for salespeople is to present the expensive item first, if a customer asks for two or more products. Indeed, presenting the expensive item first and following it with the unexpensive one will make the second product seem cheaper than what it actually is.

The great advantage of this principle is not only that it works, but also that it is easy to apply and it is pretty undetectable. Marketers are continously seeking for these weapons of influence and unfortunately customers rarely relize they are deeply influenced by these techniques.

The Battle

Reading some of my classmates’ blogs, I found very interesting Kevin’s one “Complete Image Change”.What caught my attention was the advertisement at the bottom of the page “Get a Mac”. The ads present the Mac personality as young and cool. In this commercial, Mac explicitly declare its superiority above any other brands without specifically mentioning any of them. Probably this ad is pretty famous here in Canada, but since I come from Italy, I’ve never seen it before. I found it very interesting, but I asked myself :”Can an advertisement state the brand’s competitive advantage over the entire market or is it also possible to claim a firm’s superiority over other specific brands?” Thinking about it, I’ve noticed that everyday on TV there are some advertisements in which firms reclaim its superiority in the sector. But what if the sector is made up by only two competitors? Does it change anything? What about the battle between Coca-Cola and Pepsi?

https://www.youtube.com/watch?v=muH-zcOYnFc 

Coca-Cola and Pepsi are two big name brands that share a worldwide profitable market and explicitly fights one against the other to gain more share. Some time ago Pepsi aired a set of ads that proclaimed the superiority of Pepsi on Coca-Cola. Let’s watch one:
https://www.youtube.com/watch?v=EMo6o0BtFG8
I honestly think that this one is a funny advertisement. But is it fair? The commercial does not list any features and characteristics of the two drinks (Coke is more bitter, while Pepsi is sweeter), but it just claims the supremacy of Pepsi. And what about this one?
https://www.youtube.com/watch?v=EMo6o0BtFG8
This commercial was banned. My question is: is it fair to ban? And if yes, when? I am really curious about your opinions.
Another well-known example is the battle between Nike and Adidas.
https://www.youtube.com/watch?v=8TnG7jyfoWI

Build Brand Relationships Out In The Pub

After consulting and reading some of my classmate’s blogs,I decided to share my experience relating to Severin’s blog “Building brand relationships out in the streets”.In his blog,Severin talks about how “Molson Canadian” builds brand loyalty in its consumers by providing free beers in downtown Vancouver.

Last week I was on the way back home and I saw some friends going to one of my favourite pubs on campus:Mahoney’s and sons.I decided to join them and few minutes later I was inside the pub holding a free beer in my hands.Yes,a FREE beer.To be precise a KOKANEE BEER!Just later I realised that it was the “Kokanee night”.Indeed,a part from beers the pub provided free Kokanee’s gadgets,like sunglasses and keychains.At the end of the night,I left the pub happy and satisfied but I asked myself:what could be the effects of these kind of events for a brand like Kokanee?.I got the answer just few days later:I went out with some friends and surprisingly we all got a Kokanee beer!We all started laughing after realising the strong impact that the “Kokanee night” had on us.
Was that kind of marketing strategy effective?I think so,but I’ll let you decide.
Based on what Severin said and after my personal experience,I definitely think that these kind of events are good opportunities to build and strengthen profitable customer relationships.

THE FRIENDSHIP BEER

Let us assume that a customer is not as rational as we think he is!
The need-purchase-benefit formula seems to be too old in a modern contest in which the consumption mainly answers to pshicological,subjective, and emotional necessities.Nowadays, the real  challenge is not among products but among the perceptions customers have on products. So illustrating all the properties of a product sometimes turns to be useless in a world in which for each category there are so many products with similar or equivalent quality.And it is for that reason that communication and marketing,which work on consumers perceptions,make the real difference.
A way to influence and involve the customer under an emotional point of view is to give the product a strong identity,directly linking that product with a widespread value.Let’s take the example of Heineken.As we can see

 
Heineken’s advertising campaign used to build a strong relationship between Heineken beer and friendship,one of the most important and common values in life.The purpose of this ad is not to illustrate all the properties of Heineken beer,but to create a strong link between beer and friendship, and thus Heineken turns out to be “THE FRIENDSHIP BEER”.
When I first saw this ad,I immediately thought to show it to my friends.The next day some of them came to my house and unexpectedly brought a case of beers.Just guess which was the brand??Heineken,obviously,the friendship beer.From then on my friends and I always get a Heineken when there is an event to celebrate!!!
Cheers