Does It Matter if You Have a Better Product?

In our society, we celebrate competition. In school, individuals compete to graduate first in their class, whether it would be for high school, undergraduate or graduate school. In the workforce, people compete for interviews and job responsibilities at the same company. However, competition between businesses is more complex; the best product is not always the best seller in the marketplace.

Not All Products or Services Are Equal

From insurance policies to financial planning software, most of us will agree that all products and services are not created equally. Some insurance policies will allow you to convert a term life insurance policy into a whole life insurance policy up to age 55 while another insurance company might only allow you to convert the policy within the first 5 years of the policy’s existence, with some age restriction as well. What if the insurance policies mentioned above cost the same amount and have the same financial rating? This phenomenon leads us to ask the following question. Why do some people choose an inferior product or service, even if it costs the same or more than a better product or service?

Marketing is the Key to Success

To me, marketing is what sells products and services. Television, radio, print, and internet ads can be effective in promoting a product or service. Think about the numbers of commercials you see on television or hear on the radio while driving to work. Each commercial focuses on trying to connect with an audience. Nevertheless, marketing is not limited to television, radio and/or internet ads. When it comes to businesses such as Google, Starbucks or Goldman Sachs, there is little advertising, so these businesses depend on the praise of others, whether it be from the media, industry insiders or their clients. Google, Starbucks and Goldman Sachs have mastered brand loyalty because they have others people to do their advertising. Of course, most companies will never reach the branding achievement that Goldman Sachs has earned.

The Product or Service versus Marketing

Earlier, it was mentioned that not all products or services are equal. This means that some people will not purchase the best cars, clothes, computer programs, credit cards or insurance products, even if price is not an issue. The root cause of this human behavior can be linked to marketing. These individuals have been influenced by commercials and/or brand loyalty. It is hard to get a Pepsi drinker to switch to Coca-Cola. Likewise, many young people choose to put their investment dollars with Charles Schwab or Fidelity because of their wonderful television ads.

If you run a business, you need to have good products and service, but marketing will make your successful. The best independent painter in the world might make $40,000 a year. However, do you know who he or she is? Exactly, marketing is too important to overlook!