Author: Onne Farahnabila

Understanding the Decoy Effect and How to Use in Marketing to Increase Sales

Post author By Onne Farahnabila
Post date 19/05/2023
No Comments on Understanding the Decoy Effect and How to Use in Marketing to Increase Sales

If you have ever encountered three drink sizes offered by a coffee shop or supermarket, that is an application of the decoy effect.

The decoy effect is one of the marketing strategies used to increase the sales of a product.

Price is the most complicated marketing element. Therefore, to determine it, many considerations are needed, and the decoy effect is one of the strategies used for this purpose.

What is the Decoy Effect?

As quoted by The Decision Lab, the decoy effect is a pricing strategy used by adding a third, less attractive option as bait to influence the buyer’s perception of the main option.

One instance of implementing the decoy effect can be seen in the following scenario:

Company A offers beverages in two sizes – small and large, with the respective prices:

Small: Rp35,000

Large: Rp50,000

This pricing strategy allows customers to easily compare and select the option that best suits their needs or budget.

However, the company decides to apply the decoy effect by introducing a third option – medium, as a lure.

Thus, the beverage options now include:

Small: Rp35,000

Medium: Rp45,000

Large: Rp50,000

By adding a third option with a price that appears to be reasonable, the company creates the decoy effect.

Initially, customers may have a tendency to select the small option, but the presence of the decoy option can potentially influence their decision-making process.

How to use the Decoy Effect in business?

To effectively use the decoy effect in your business, it’s important to consider more than just prices. The decision could also involve factors like quality versus convenience.

The ultimate goal of a decoy is to create the perception that your target product is a good deal. This can be achieved by changing the relative value of different parameters (e.g. cost versus layover time for a plane ticket) or by offering more for less (e.g. different sizes of perfume).

Here’s a quick guide to creating a decoy:

Choose your target product or service, ensuring that it’s something your customers already like.
Introduce a decoy that offers less for the same or almost the same price. The decoy should be a very bad deal in comparison to the target.

However, it’s important not to make the decoy too unappealing, as you still want to make the price of the target product favorable. You can make the decoy less attractive by changing a different feature, such as the color.

Ensure that the third option you offer is distinct from the target and decoy and provides a clear customer comparison point.

Apply Decoy Effect to Your Marketing Strategy

This strategy is commonly used in pricing, where a third option is added to make the target product appear more appealing.

Though to effectively use the decoy effect in the business, it’s important to consider factors beyond price, such as quality versus convenience, and to ensure that the third option is distinct from the target and decoy while providing a clear comparison point for customers.

If you’re unsure of how to apply Decoy Effect to your marketing strategy, CVI will be happy to offer consultation to help you.

Tags branding, decoyeffect, digital marketing, digital strategy, marketing guide, social media strategy

Article

The Importance of Context in Color Psychology for Marketing and Branding

Post author By Onne Farahnabila
Post date 03/04/2023
No Comments on The Importance of Context in Color Psychology for Marketing and Branding

What is Color Psychology?

Color psychology is the study of how different colors affect human mood and behavior. Understanding color psychology in marketing and branding is crucial for businesses to communicate their message and influence consumer behavior effectively.

By selecting the right colors for their brand, businesses can create a powerful emotional connection with their target audience and convey the right message.

Challenges of Applying Color Psychology in Marketing and Branding

Many researchers have attempted to classify how individuals react to particular colors. Still, the truth is that color is too subjective and heavily influenced by personal experiences to be universally translated into specific emotions.

Factors such as personal preferences, experiences, cultural differences, and context can all affect colors’ impact on us. Therefore, the belief that colors can evoke hyper-specific emotions is often inaccurate.

Making Effective Color Choices for Your Marketing and Branding Strategy

The right color is appropriate for your brand

The appropriateness of color is important in branding and marketing. According to a 2006 study, the choice of color for a brand is determined by how appropriate it is for the product or service being offered. It’s essential to determine whether a color is appropriate by collecting customer feedback.

The right color differentiates your brand

Studies have shown that color is essential in creating brand identity and recognition, with new brands advised to choose colors that differentiate them from competitors.

The Isolation Effect suggests that items that stand out are more memorable. Research has found that consumers prefer color patterns with similar hues but also favor palettes with contrasting accent colors.

The right color has the right name

The names given to colors can significantly affect how consumers perceive them. Research indicates that consumers prefer fancy color names over simple ones, even when the colors displayed are the same. Furthermore, unconventional and unique color names are more appealing for products, including paint colors, where elaborately named shades are considered more attractive than those with simple names.

The Power of Colors

Color can have a significant impact on communicating messages, setting particular atmospheres, and even shaping people’s choices. It also influences consumers’ purchasing decisions, clothing choices, and how they decorate their surroundings.

Tags branding, color psychology, digital marketing, digital strategy, marketing guide

Article

Marketing Guide During Ramadan in 2023

Post author By Onne Farahnabila
Post date 28/02/2023
No Comments on Marketing Guide During Ramadan in 2023

Ramadan is an important period in the Islamic calendar, characterized by fasting, introspection, and religious devotion. Businesses seeking to capitalize on this holiday must devise a well-planned Ramadan advertising and marketing strategy.

This article “Marketing Guide During Ramadan in 2023” presents a comprehensive overview of Ramadan marketing and shopping trends for 2023, providing valuable information for both small and large corporations.

Gain insights on how to optimize this religious holiday season for your business. Kindly take the time to read further for more information.

Maximizing Your Online Presence During the Ramadan Season 2023

Indonesians often turn to the internet when considering a purchase to gather information and feel confident in their decision. Nearly 80% seek a trusted source and 94% want to read as much relevant information as possible. Search engines are a common starting point, with 73% using them to find e-commerce or brand websites.

Having a strong online presence is crucial for brands, but it also must be well-timed. By being present during the information-seeking process, brands can remain top-of-mind in the customer’s journey to purchase.

Key moments for brands to engage with Indonesians during Ramadan

Key Moments Guide during Ramadan

Timing is key for Ramadan marketing efforts in Indonesia. As consumers start their preparations for the holiday, interest in fasting-related products like dairy, juice, and staple foods increases. This trend continues to intensify two weeks before the start of Ramadan.

During the first week of Ramadan, searches for gifts and entertaining products like baked goods and soft drinks also intensify. The third week of Ramadan sees a peak in interest in beauty, fashion, and home improvement products as families prepare for home visits during the holiday.

Throughout the month, telecommunication products like data plans and prepaid packages are in high demand as people connect with loved ones online. By aligning your marketing efforts with these shifts in consumer behavior, you can effectively reach and engage your target audience during this important holiday.

Ramadan Audiences Guide Every Marketer Should Know

Marketers should be aware of the different audiences that will be celebrating Ramadan and tailor their campaigns accordingly. Understanding the needs and motivations of each group will help create advertising that resonates with them and drives results.

Families

This group values spending time together and may be more likely to participate in offline activities such as visiting relatives or going on vacation. Marketers should avoid ads featuring food or drink as Muslims abstain from eating or drinking during the day.

Young Adults

This audience may be more engaged with their faith during Ramadan and interested in content about religion, spirituality, or personal growth. They may also be open to participating in offline activities like visiting mosques or attending religious lectures.

Working Professionals

This group may have less time for religious observances due to work, so content that helps them balance their responsibilities while maintaining their spiritual practice would be appreciated.

They may also be interested in learning how to integrate Islamic values into their work life.

Students

With more free time during Ramadan, students are a prime target for brands promoting leisure activities or products. They may also be interested in content related to personal development or exploring their faith.

Seniors

Older Muslims may appreciate content that is respectful of their age and religious beliefs. Brands should focus on how their product or service can add value to the lives of this group without being intrusive or disruptive.

Newcomers to Islam

Muslims new to the faith may appreciate educational content about Ramadan and what it means to be Muslim.

Push Your Marketing During Ramadan to the Next Level

Brands targeting Muslim consumers’ marketing guide during Ramadan should keep in mind the significance of the event in the Muslim calendar.

A successful Ramadan marketing strategy should consider the key factors of the holiday and the needs of the target audience.

To help you meet this goal, CVI offers a consultation that will help you to get ready for Ramadan 2023.

Source: Videnglobe, Thinkwithgoogle

Tags digital marketing, digital strategy, marketing guide, ramadhan guide, social media strategy

Article

The Benefits of Email Marketing for Businesses

Post author By Onne Farahnabila
Post date 20/01/2023
No Comments on The Benefits of Email Marketing for Businesses

Email is one of the oldest forms of digital communication—but it’s also one of the most effective digital marketing strategies out there.

What is Email Marketing?

Email Marketing is a powerful channel, a form of direct marketing that uses email to promote your business’s products or services. It can help make your customers aware of your latest items or offers by integrating those items into your marketing automation efforts. It can also play a pivotal role in your marketing strategy with lead generation, brand awareness, building relationships, or keeping customers engaged between purchases through different types of marketing emails.

Why is It Essential?

Apart from being the primary communication source, email marketing has some other benefits:

It offers a high Return on Investment (ROI). Based on the Neilson study, email marketing has the highest ROI of 675% when compared with any of the other major marketing methods. An email marketing campaign can greatly increase sales and profits when integrated with a business’s website.
More effective in acquiring new customers than social media platforms like Facebook or Twitter
We can seamlessly integrate it with other communication channels. Use your chance to enlarge your audience, blending emails with your profiles on social media platforms, SMS, or web push notifications.
It improves your website’s search engine optimization (SEO) by driving traffic to your website through content sharing and backlinking.

When to Use It?

There are many ways to use email marketing — some of the most common including using the tactic to

Build relationships: Build connections through personalized engagement.
Boost brand awareness: Keep your company and your services top-of-mind for the moment when your prospects are ready to engage.
Promote your content: Use email to share relevant blog content or useful assets with your prospects.
Generate leads: Entice subscribers to provide their personal information in exchange for an asset that they’d find valuable.
Market your products: Promote your products and services.
Nurture leads: Delight your customers with content that can help them succeed in their goals.

Types of Email Marketing

There are several types of email marketing, each with its own purpose and target audience. Some of the most common types include

Newsletters: Newsletters are typically sent on a regular schedule, such as weekly or monthly, and include information about a company’s products or services, and industry news. We prefer to use newsletters to maintain a relationship with existing customers and to keep them informed about the company’s activities.
Promotional Emails: These types of emails are used to promote a company’s products or services, often including special offers or discounts. We prefer this strategy whenever we want to target lists of potential customers and drive sales or generate leads.
Transactional Emails: These are automated emails that are triggered by a specific action, such as a purchase or registration. They can include confirmations, receipts, and other types of information that are relevant to a specific transaction.
Relationship Emails: This type of email marketing is used to build and maintain a relationship with a customer. It can include “Welcome” emails for new subscribers, “Birthday” emails, and other types of messages to foster a sense of engagement with a company.

Each type of email marketing has its own specific goals and strategies. But, they all have the goal to target the right audience with the right message at the right time.

Ready to Start Yours?

If you’re ready to start the benefits of an email marketing campaign, CVI can help.

Let us help you create a personalized plan that aligns with your unique goals and audience. Our team will work with you to develop compelling, engaging content that drives results.

Source: Mailchimps, Sendpulse, Hubspot

Tags business, digital marketing, digital marketing channel, digital strategy, email marketing

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