What is brand value? Take two pieces of A4 paper size paper
and distribute between yourself and a friend. Following which approach any
willing candidate and make it your goal to get them to take your paper over
your friend’s identical paper. During which
your friend will be doing the same of course. The fact that one is selected,
and the other is not selected is the difference in brand value. At this point
maybe consider if that friend is the right friend for you given the outcome of
the “sale”. If the need is there people will buy. Now you can go and
create the need or/and you can fill the need
but that’s a different topic. Reverting
to brand value, how to you create brand value it if both products are
identical. If there is no benefit when you compare one to the other how can a
person’s opinion be influenced.
Because human psyche, that’s how.
We are in a chase of equality (equilibrium) however internally we are at a
constant state of inequality. Information is filtered out as our mind sees fit,
judgement are made quicker than blinks, and with all of that we make decisions
to the best of our KNOWLEDGE. Thus, do not get filtered out, make it something
interesting and you are in that final selection.
If you have agreed with me to this point you, lets press on.
What was the first thing you bought from amazon? For me it was a book. Terry
goodkind “The Sword of Truth”. Man, I was so ecstatic. I was
finally able to find the full set! And the price was less than what I saw at
the store. And I was finally able to find the full set! This is important
because unlike an apple, each book is a piece of art. Thus, unlike apples it is
literally impossible for every book to be available at one location. Personally,
going into a library or a bookstore is overwhelming. How is one supposed to
filter through the vast number of authors and works? Welcome Amazon, the place
that carries a billion books, but you can find the one that you are looking for
with a click of a button. Yes, your thirst of knowledge can be finally quenched.
Do you want a first edition book? Well they have one 5000 miles away and it will
can be here in a week. If it’s out
of stock, well maybe I will wish for it and if I wish hard enough… look it’s back in stock. Welcome to Just in time inventory. Why print
thousands of copies if you know only a few hundred want it. Produce in batches
of efficiency and restock when you see/except the proper demand. If you can do
it with books why not other things. And thus, a small retailer can take their
business global without worrying about distribution. Like any good returns
business, the intermediary (amazon) connects the supplier, to the distributor,
and to the consumer and just takes a small cut for creating the link. And like
any intermediary over time this provides leverage, ie. Banks.
So here is the chart that inspired this series, there will
be more to come.
Chart sourced from (https://www.ft.com/__origami/service/image/v2/images/raw/http%3A%2F%2Fcom.ft.imagepublish.prod-us.s3.amazonaws.com%2Fc35bc4e0-cf14-11e7-b781-794ce08b24dc?source=next&quality=highest&width=700)