As I mentioned, I am reading ‘Absolute Value, a book that will certainly rock the world of marketers who have sat on their bottoms with the idea of branding. The idea that the ‘brand’ equity they create, can determine people’s choices.
This explanation by Itamar Simonson on NBC, explains the concept of why manufacturers ‘frame’ the price to provide an imperfect set of choices.
Simonson is a really good interviewee –he firmly, and politely disagrees with the host of the show and others at the table) to make his point and clarify the thesis of the book.
Two things, he says, worth noting:
- Marketing as we know it is no ‘trick’ – just an outdated way of providing consumer choices, so they make an irrational compromise.
- Brands are not the same ‘filters’ as say Facebook is. They were proxies for value that do no work as well now. The best filters live outside of the control of brands.