Market Sophistication 101

Here are my notes this marketing video. Very subtle stuff:

The Big Idea: You sell differently based on competition level and the degree of public sophistication about your product and market

There are five levels of market sophistication:

Level 1: Product is completely new

What to do: Be direct. ‘This is what we do.’

Eg:”Now Lose Ugly Fat” “Shave Yourself”  “Learn to Meditate”

Level 2: Product Relatively New with Market Competition

What to do: Outbid Competition with features. Claim is in Headline, Feature is in Subhead

Eg: “Lose up to 47 Lbs in 4 weeks or get $40 back”   “Chrysler 300: Now with 300 Horsepower”  “So safe you can shave your baby”

Level 3 – Market has given up on ads but still has some needs.

What to do: Present new “Feature” or shift emphasis to HOW product works.

Eg: “First Wonder Drug for Losing Weight” “Deep Meditation in minutes using patented sound technology” “Some day all beer cans will open this easy”

Level 4: Countering Competitors 3rd Stage by making your product faster, cheaper, more convenient

What to do: Pile on the features

Eg: “Gillette ultimate razor” “10 reasons to work with us”

 Level 5: Market is Jaded

What to do: Appeal to emotions, pictures, cartoons, funny

Eg: “I’d walk a mile for a Camel”, Marlboro man, ipod ad with hot woman in silhouette

One example of one product through the stages of market sophistication:

Level 1: “Our cigarettes are filtered”

Level 2: “Our filter cigarettes taste good”

Level 3: “Our cigarettes are filtered using a new patented dyna-blade filter that not only makes cigarettes not put toxins in your body, but also clear your car”

Level 4: “Our cigarettes are double filtered for double the pleasure”

Level 5: “Tastes good like a cigarette should”

(Then introduce a new feature and create a new market for that…)

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