Why Don’t Great Products Always Make Money?

In the ever-evolving marketing landscape, the common belief that “A good product is the best advertising” has been challenged by complex facts. Even great products often struggle to gain widespread acceptance. This case study explores the dynamics behind why great products don’t always succeed in the market and explores comprehensive strategies to overcome this challenge.

The Misconception of “Product-Centric” Success

There has long been a misconception that business success is based solely on product quality. This has been debunked as despite efforts to create great products, companies have come to realize that excellence alone does not guarantee market appeal, and there is a need to shift away from a product-centric approach.

Advertising Differences: Attraction vs. Sales Impact

The assumption that visually appealing advertising will automatically lead to increased sales is not true. It is important to measure advertising effectiveness not only based on its visual appeal but also on its real impact in driving sales. Therefore, companies need to shift towards advertising that focuses on converting customer interest into actual sales.

Biases That Influence Consumer Behaviour

Biases inherent in human behaviour often hinder the success of a product that actually has good quality. Consumers tend to stick with products that are already known, even when faced with potentially superior alternatives, leading to resistance to change.

Overcoming Challenges

A comprehensive approach can be taken to overcome the challenges faced by these superior products, including:

• Increasing Social Proof. To overcome misunderstandings that arise around product quality and advertising appeal, companies are encouraged to be able to utilize existing social evidence, such as displaying product popularity that increases the perception of pleasure and reduces uncertainty. In addition, by utilizing the feared of missing out (FOMO) culture technique, companies can create a sense of urgency and desire to buy among consumers.
• Building Relevant Content. By emphasizing the importance of displaying product advantages in a context that is relevant to the target market, business actors are advised to avoid irrelevant advertising, even if the advertisement is able to attract attention. Building relationships with consumers, by meeting their unique needs and insights, is the most important thing.
• Strengthening Customer Experience. By understanding the human tendency to be more biased towards certain things, business actors are advised to optimize customer experience, by simplifying the process of acquiring and using products, and making it easier for consumers to accept new offers. 

Given the increasingly complex challenges faced by leading products in the market, the misconception of product-centric success needs to be addressed tactically, advertising effectiveness needs to be redefined, and inherent biases need to be acknowledged, because these biases have become human nature. Business actors are expected to be able to masterfully overcome the complexities that exist in the market, so that they are able to propose solutions that can include social proof, relevant context, and improving customer experience. It is hoped that in the future these solutions can serve as practical guides for transforming extraordinary products into leading products in the market.