The 8 Biggest Marketing Myths

1. The best product or service will win.
Not so!  If that’s the case, why do we use VHS tapes instead of Sony Beta tapes?  The Beta was superior technically.  It’s now gone, ancient history.  What wins in marketing is the perception in the prospects mind.  Perception is reality. Most people are quite sure their perceptions are correct.  When Coca Cola introduced the “new” Coke it failed miserably.  It was a problem with “perception”.  Even though Coke had performed over 200,000 taste tests and new Coke had won hands down.

Today “new” Coke is also ancient history.  In peoples’ minds, Coke was better than “new” Coke.  The lesson - if you intend to change people’s minds you had better have deep pockets.  Another case in point: The Energizer Bunny - $5 billion dollars spent on ads and still 45% of the time people buy the wrong batteries, while thinking they’re getting “bunny” batteries.

2. Attack your competitors’ weakness with your marketing. 
Not so!  You must attack your competitors’ strengths.  After all that’s why their clients buy from them.  They overlook their weaknesses.

You need to attack the weakest strength first.  That’s what Jack-in-the-Box is presently trying to do to McDonalds & Burger King with the “we won’t make it until you order it”.  Suggesting that by using heat lamps and microwaves the competitors’ fast food is inferior and not as fresh and tasty as Jack-in-the-Box’s.

3. You have to run an ad 3-6 times before it is effective/profitable. 
Really?  If an ad bombs month #1 why will it do better in month #4?  A bad ad is a bad ad.  It doesn’t improve over time.  Advertising with the direct mail method isn’t like a magazine ad .  People are more prone to save postcards and letters that interest them than magazine ads.  Also, in general, it’s a lot easier to target prospects with mail than magazines.  Another problem with magazine ads is a common production lead time of 3 months.  By the time your first ad appears and bombs, its too late to do anything about the second or third ad.  Don’t even put yourself in this position.  I’m convinced that the same guy who coined the phrase “user friendly” created Myth #3.

4. “I know this product like the back of my hand.  I’ll be able to sell it.” 
Quite often people do know their products and services, but do they know the market place?  It’s nowhere near as important to know about the product or service as it is to know the market place.  The market place and how it is approached and developed will more dictate your success, than product or service knowledge.

5. Everyone loves it.  I’ll have no problem selling a bunch.
What people tell you and what they actually do often does not match up.  This is why using focus groups is such a hit and miss deal.  People tell you what they think you want to hear.  Here’s a better test – casually show/explain your product or service to people.  Do they say “Wow!”?  If so, you may have a winner.  Next tell them you have an extra one or can arrange for them to get the service.  Key Point - Do they get their check book out right then?  If not, it’s not as hot of a deal as you thought.

6. The Internet is an easy place to make money. 
60% of all revenue on the Internet is related to pornography.  Another 20% is computer related.  The last 20% is all the other industries combined.  In actuality, a lot of people are losing money on the net.  The Internet reminds me of the California Gold Rush back in 1849.  A few people struck it rich and the rest had to get a real job.

7. You should cut back on your marketing and advertising expenditures in a recession. 
A study published in Business News Week, 12/4/87 indicates the exact opposite.  Agency Ogilvy & Mather and the U.S.-based Strategic Planning Institute found a clear link between increased spending on advertising and increased market share. The study showed that companies spending “much more” on advertising than their leading competitors as a percentage of actual or projected sales, captured 32% to 40% of the market...companies that spent about the same as their rivals gained a 23% market share, and those spending “much less” had to be content with less than 15% of the market.  Market share, in turn, has a dramatic effect on profitability.  Those companies with greater than 40% enjoy an average return on investment of 41%, while those with shares under 10% return profits around 9%.”  By effectively marketing during a recession, while your competition cuts back, you can capture a larger piece of a shrinking pie...and when the economy turns around, you find yourself in an incredibly strong position.

8. I’ll be able to get money to finance my new product.
It’s not easy!  In fact, it’s quite difficult.  And, if you are able to get backed, you might have to give up a large percentage of your company.  Steve Jobs and Steve Wozniak of Apple Computer were able to get $91,000 from Mike Markkula to launch their company.  In return, Markkula received 33% ownership of Apple.  This is not uncommon.  Now if you’re thinking you can get a large company to produce your idea, you’re most likely wrong.  Large corporations very rarely accept outside ideas.  Your best bet is to approach the smaller sized companies and work on a royalty basis.  No matter how you do it, you’re going to have to be prepared to give up a hefty percentage to whomever puts up the money.