Of festivities and rationality November 8, 2007
Posted by ilabs in Mind is a Monkey.Tags: doodling, entrepreneur, marketing
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Man is not a rational animal ; he is a rationalising one.
November. Delhi. Fog, Chill and in these settings of dull evenings, you would see a city being dressed in festive lights as the sun sets by. They glow, they glitter in colours of pink, yellow and blue. They bring a city together in joy and celebration. Diwali is here, the festival of lights. What joy! But wonder why we need to wait till every November to celebrate together?
Festivals are actually an amazing example of rationalization.
Festivals in themselves seem to usher in a mood of happiness and joy. But wonder why?
Why is it that we need an excuse of a Diwali to forget our worries and celebrate? Is it social proofing at work because we know everyone is celebrating. And hence, celebrating with them wont be too bad.
And how does commercial activity (aka shopping) jump up in one season? We buy because everyone buys – again social proofing? No, it is not really because of ‘discounts’. Discounts are given by stores because they want us to buy more once we are in there. Yea.. the brands/stores are smart. They are rational and this rationality in a festive season helps them meet their sales targets.
Ever wondered how a big 60 font written in red ‘SALE‘ makes us irrational? How many times have we gone into a ‘SALE’ at our favourite store and come out buying nothing? How many times have we gone into a ‘SALE’ at our favourite store and come out buying something even though we really did not want/like the item we purchased.
Most of us anchor ourselves to the word ‘SALE’ and hence start believing that what we are getting is a good deal – Anchoring, Satisficing, Rationalisation.
And around us we see people buying a lot. So if it makes sense to them, it must make sense to me. Social Proofing.
And the retailer greets you with a big big smile. Wonder why? He’s selling it @ 50 % discount ! You got the better deal , then why is he so happy?
Read between the lines sweetheart - Our irrationality makes many a businesses run – and dont they love us for it !
But apart from all this, all said and done, festivals indeed are necessary.
Because however forced upon it actualy maybe, but festivals do bring in a a season of joy.
They give people a reason to forget grudges and worries and celebrate.
Between rational behaviour leading to gloom and glum and irrational behaviour leading to joy and celebration, I guess the latter is better.
Happy irrationality.
Happy Diwali !
On your mark… June 3, 2007
Posted by ilabs in Starting Up.Tags: marketing
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Marketing – myriad of jargons… if it sells, you are a king. if it does not, you better find an other kingdom or blame the sales team.
But the good thing about marketing is that it is logical and if you are sensible you’ll see through it. But why the flurry of jargons?? my take on this is – marketing essentially has to be what will make you sell, not today but even tomorrow. Now as market matures and customer becomes more aware, as market dynamics change, so will your secret of selling (also called USP). With that also will the conceptual framework of arriving at your proposition.
So from marketing mix to 4Ps (product price place promotion) to 3Cs (customer context competition) – all these are not rules but mere frameworks to help stimulate a thought process. The bottom line – your thought process…
Now, after giving this boring intro 
please let me confuse you more by giving one more framework that I came across last week (credits : ET article – prof nirmalya kumar, london bussiness school). And lets try understanding it logically..
Value customer : Yes your product can have many customers (market segments) but which type of customer do you really want to serve (target segment) ?Try to serve and RETAIN only those customers who are most profitable to you
Value proposition : Most spoken, most abused most misunderstood – what makes you different? What makes you endearing? In my mind, what makes you special enough for the customer to come back to you and ask for more.
Value network : This is good one. because it is something we often overlook at the white board. to deliver to the customer, you need a network (internal / external). Identify your networks. Select them. Build them to give yourself the delivery advantage. Because at the end, the product is only as good as it is delivered (time, cost, accessibility)
So now to our marketing lingo, we can add 3Vs too. Wonder why do marketing professors have a propensity towards identifiers with same alphabets – 4Ps, 3Cs, 3Vs !! Will someone ever try suggesting a framework like ABC?
But the moral : these are just frameworks… what matters is your thought process.
