How To Influence People: Marketing Secrets Behind The World’s Biggest Brands - Rory Sutherland
Apr 27, 2023
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Join Rory Sutherland, vice chairman of Ogilvy UK and author of 'Alchemy,' as he offers a masterclass in marketing and consumer psychology. He dives into the power of asking 'why' and the dangers of overconfidence in statistics. Rory also discusses the importance of word-of-mouth marketing and creating 'talk triggers' to engage consumers. With insights on brand evolution and emotional perceptions, he reveals how small marketing tactics can yield significant results in shaping consumer behavior and product perception.
Simplicity and creativity are key in marketing campaigns, as surprising ideas and unconventional approaches can lead to success.
Be cautious with statistical analysis and rely on highly skilled statisticians to avoid errors and incorrect assumptions.
Small details in marketing can have a significant impact on consumer perceptions and behavior, creating memorable experiences and generating positive word-of-mouth.
Direct marketing has become overused with the rise of digital ads and social media, while indirect marketing through intermediaries is becoming more prevalent.
Trial, experience, and frequency play a crucial role in influencing consumer preferences and advertising helps generate trial for products that can change consumer preferences.
Deep dives
The Value of Statistical Understanding
Having a good statistical understanding can be a superpower in the workplace. It allows individuals to make informed decisions, understand trade-offs, and grasp important concepts like the explore exploit trade-off. Basic statistical understanding is valuable in business and other contexts, and it helps to prevent errors and ensures better decision-making.
The Importance of Simplicity in Marketing
In marketing, it is important to prioritize simplicity and avoid the urge to appear overly serious. Surprising ideas and creativity can be highly effective in marketing campaigns, and being willing to approach marketing from a less conventional angle can lead to innovative and successful strategies. A good marketer understands the value of capturing consumers' attention, even if it means sacrificing some seriousness.
The Impact of Average Statisticians
Averagely good statisticians, especially when they are confident, can be damaging and dangerous. While highly skilled statisticians have a nuanced understanding of the subject, averagely good statisticians lack this expertise and may make significant errors in their assumptions or calculations. It is crucial to be aware of the limitations of statistical understanding and to recognize the potential risks of relying on less qualified individuals for statistical analysis.
The Value of Trivial Details in Marketing
Small and seemingly trivial details in marketing can have a significant impact on consumer perceptions and behavior. Focusing on those details, such as personalized gestures, talk triggers, or unexpected extras, can create memorable experiences and generate positive word-of-mouth. By paying attention to small details, marketers can create remarkable and unique experiences that differentiate their products or services.
Direct Marketing vs. Indirect Marketing
Direct marketing involves one-to-one contact with consumers, such as writing directly to them or placing ads that lead to direct purchases. On the other hand, indirect marketing occurs when products are sold through intermediaries, like supermarkets. The podcast mentions that direct marketing has become overused due to the prevalence of digital ads and social media.
Importance of Behavioral Change and Measurability
The podcast discusses the importance of being able to measure and attribute behavioral change to specific marketing stimuli. While direct marketing offers the advantage of being more measurable and quantifiable, the speaker argues that there are valuable marketing activities that are probabilistic and cannot be perfectly quantified. The focus on purely quantifiable metrics may hinder the recognition of valuable marketing opportunities that cannot be easily measured.
The Role of Trial, Experience, and Frequency
The podcast explores the significance of trial, experience, and frequency in influencing consumer preferences and behaviors. It emphasizes that there are products and experiences that fundamentally change a person's utility function and priorities once they have been tried. Certain products, like Japanese toilet seats or air fryers, may not attract interest initially, but once experienced, they create strong preference and loyalty. The podcast argues for the importance of advertising in generating trial and accelerating the adoption of products that have the potential to change consumer preferences.
The Power of Branding in Consumer Capitalism
Brands are essential in consumer capitalism as they allow consumers to reward good experiences and punish bad ones through future business or boycotts. Brands provide a reputation and trust that benefits both consumers and businesses. The focus on recognizable brand names contributes to better products and helps consumers make confident decisions. Amazon's algorithm prioritizing trademarked brands over pronounceable ones in search results reflects a disservice to consumers and highlights the importance of memorable and reputation-focused branding.
Raising the Floor in the Hotel and Coffee Industry
Chains like Holiday Inn Express and Starbucks have played a significant role in raising the quality standards in their respective industries. By setting a consistent baseline of quality, these chains have made it easier for consumers to make decisions and have increased consumer confidence. Additionally, independent businesses have benefited from the trust and perception of quality created by these chains. The value of raising the floor, ensuring a minimum level of quality, should not be underestimated in improving overall consumer experiences.
Rory is the vice chairman of Ogilvy UK, which is one of the biggest marketing and advertising companies in the world. He's the author of the book Alchemy: The Surprising Power of Ideas That Don't Make Sense and his TED talks that have been viewed over 7 million times. In the conversation Rory gives me a masterclass in marketing and advertising ,and reveals the marketing secrets brands use to change our perception of products and influence our behaviour. Enjoy :)
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(00:00) Intro (01:52) University and your view on education (10:29) The power of statistics (23:30) You should always ask why (25:09) The doorman fallacy (28:40) Consumer psychology (32:33) Why you should dare to be trivial (43:19) Building talkability into a product (54:48) What got your interested in marketing? (01:03:33) How most businesses are optimised (01:04:06) User imagery vs target audience (01:07:00) How you become the perfect brand (01:08:33) Evolutionary psychology and products (01:16:00) The importance of longitudinal questions (01:18:16) Why new ideas are slow to take off (01:20:53) Rebrands and longevity (01:30:37) Brands lead to better products (01:32:24) What don't people like about advertising? (01:42:55) Psychological value (01:48:47) Happiness (01:56:44) Book recommendations
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