The connections between marketing and psychology are particularly interesting for an agency such as ours with the brand promise, “The Power of Perception®”
The Branding Strategy Insider recently ran an article called Creating The Brand Halo Effect. The halo effect refers to how a product—through effective advertising, promotion and acceptance in the marketplace—takes off in sales, not only for that particular product, but for products associated with the brand.
The article uses Apple’s iPod as an example of the halo effect. In 2005, the company concentrated advertising dollars heavily on the iPod; however, their overall sales went up 68 percent from the year before. The big news here is that this jump wasn’t only from iPod sales, which accounted for 39 percent; but the other 61 percent of their sales, which came from computers, software and other services. By placing the spotlight on the best product or service from a given company, audiences form certain understanding or perception of an entire brand.
Putting most of your marketing “eggs” and advertising dollars in one basket may not be an easy idea to sell in the boardroom. But focusing on the best horse may increase sales in other areas.
The article also mentions how imprinting is an important concept in both marketing and psychology. In psychology, imprinting describes rapid learning that occurs on a subconscious level. In marketing, the first brand in a new category is often imprinted in audiences’ minds and percieved as more authentic than others. Examples of first brands are Kleenex, Hertz, Heinz and Starbucks.
Carefully managing perceptions to increase the value of brands has been PeakBiety’s focus for years.