The Biggest Mistake Marketers Make

One big mistake as an entrepreneur can cost
you millions of dollars, momentum, and years of lost time. And the reason why I tell you this is because
a lot of times marketers, when you think about marketers, there are a lot of mistakes you
can make as a marketer. And by the way, if you’re an entrepreneur,
CEO, guess what else you are? You are somewhat of a marketer, because at
the beginning when you’re building your company, as a founder, you may not know it, but you’re
marketing, whether it’s directly or indirectly, you’re marketing yourself. And you don’t ever want, as a marketer to
have a bipolar personality. Just like individuals sometimes one day we’re
happy, one day we’re upset, one day we’re this, one day we’re that. Sometimes you see some brands that they’re
so bipolar. They’re all over the place. They don’t even know what it is. It’s almost like a kid that wants to try to
please everybody. And the highest form of maturity is when one
becomes independent of others’ opinions, meaning you as a CEO, you as an entrepreneur, need
to position yourself and realize who you want to be and sticking to it. Here’s why the biggest mistake marketers will
make is trying to appeal to every single customer and you just can’t do that. Because no one hasn’t done it and become massively
big, because you just can’t do it. Now why is that? Let’s talk about it a little bit for you to
understand what it is. Look, there’s really four different categories
you can choose to be, as an entrepreneur, and as a business. Let me explain. On this side [left], we have high quality,
meaning the higher you are here, represents the better quality of a product you have. If you’re further on the pendulum here means
you’re low cost. Cost, more expensive [right], less expensive
[ left]. Better quality [top], lower quality [bottom]. So if your product is here [bottom left],
it means you’re what? Low cost, low quality. If your product falls here [top right], you’re
high quality, high cost. If you’re here [top left], quality is high,
but cost is low. If you’re here [bottom right], quality is
low and cost is high. Now some people may say, “Pat, can’t I just
be everywhere?” No, you can’t. It’s very simple. Harvard is here [top right]. A community college is here [bottom left]. Public education may be here, but some places,
if you go and live, I don’t know how many times. . . I’m going to try to get my kids into West
Plano area, because it has the great what? High quality education, but what? Low cost. That’s still a bracket you’re going into. You go into certain areas, and public school’s
going to be here [bottom left]. You go in some private schools and may be
up here [top right]. It doesn’t matter what the product is. I can go into different products. Let’s look over here, and I want to do a test
with you. Ferrari. Think about it. Which of these four categories do you think
Ferrari falls under? A low quality, low cost? No. Low quality high cost? It’s not low quality so we know automatically
it’s not here [bottom]. Is it high quality? Yes. Do we know it’s high quality, high cost? Yes, Ferrari is right here [top right]. How about Starbucks? You pay $5 for a cappuccino, whatever you
want to call a Frappuccino, so cost is high and quality is high. At least that’s what they claim. And if their quality wasn’t that high, they
wouldn’t be as big as they are today. So they must have great quality. If we go to Tesla, what do you think Tesla
is? Is Tesla very, very expensive? So you may say, no, the cost is not really
that high, but the quality is high. So maybe Tesla is here [top left]. Maybe Tesla is here. Because you can get a Tesla nowadays, what
Elon Musk’s goal is to try to produce a product that’s a middle America product, with a very,
very high quality. He wants to go here [top left]. That’s his goal. He’s not trying to be Ferrari. He wants to be here, high quality, low cost. Where’s Wal-Mart? Think about Wal-Mart. Do you think Wal-Mart cares that they’re here
[bottom left]? Wal-Mart’s the biggest company in the world. Wal-Mart doesn’t care if you don’t like Wal-Mart. Wal-Mart knows, we’re not going to sell $6,000
Canali suits, and we’re okay with it. You’re not going to go to Wal-Mart and say,
“I would like to buy some Ferragamo shoes.” They’re going to say, “I’m sorry, you want
what kind of shoes? We got a Ferrajack shoe, for $9.99. You’re not getting Ferragamo shoes here.” I’d like to get a Ferragamo belt. Ferra what? Ferra. . . We have Ferra belts, $11. Forget the gamo, we have the Ferra belt. You’re just not going to get that. And that’s where Wal-Mart plays. And by the way, they have 2.2 million employees
around the world. So if you say, “I don’t like Wal-Mart,” they
don’t care if you like them. That’s where they are [bottom left]. Jaguar. Some people say, why did you put Jaguar on
there? Because Jaguar is low quality, high cost. Before they become Ford, for many years, everybody
would make fun of Jaguar, because Jaguar wanted to be this high end, luxury car that you pay
$60,000 to drive, or $55,000, $80,000 to drive, and it looked good, but the quality just wasn’t
that good. It was very expensive, low quality. Until Ford bought Jaguar, and they changed
their reputation into what they are right now. If they didn’t, they would be still here. By the way, a IKEA would be what? IKEA would probably be low quality, low cost. IKEA would like to say we’re here [top left],
but they’re here [bottom left]. Now, for myself, when we started the company,
I started off, myself, as Morgan Stanley Dean Witter. .Now watch this. When I started with Morgan Stanley Dean Witter,
I just want to tell you this. The clientele you dealt with at Morgan Stanley
Dean Witter were who? People that had a net worth of a million dollars
and up. So I’m dealing purely here [top right]. Our fees were higher, but I’m also up here
[top right]. Then I went to Trans, then I started PHP,
with our friends. We started the PHP Agency. Our goal was to be high quality, low cost. This is where we wanted to be. We want to provide the highest quality products
out there, with the lowest amount of cost, that works for us. Now, anytime you create an identity, anytime
you create an identity, once you create an identity, you have a reputation of what your
product is. When you have a reputation of what your product
is, and all of a sudden you decide to change it, guess who you throw off? Your existing base of customers. Because here’s what happens. The thought is, well, you know what, if you
try to appeal to these guys, we’ll also do a very, very good job. Can you imagine how much money we could do? Because it makes sense, right, common sense
wise. You know, we need to get everybody because
it just makes a lot of sense. Really? Let me tell you a little bit of history. There used to be a time there was competition
for cigarettes. Many, many years ago. You had Marlboro, Camel, and Winston who were
competing. Very close. If you remember, Camel was about what? How cool they wanted to be, all this other
stuff, and Winston was coming up, all these things, and Marlboro. Okay? What ended up happening during this period,
Camel and Winston fell for market manipulation, media criticism, all this stuff, and this
is what the market did to them, media did. Media told Winston, Camel, and Marlboro, you
know what your mistake is? You don’t appeal to women. That was a big. . . believe it, you’re watching this right
now and saying, “Pat, what are you talking about?” Go study it. You don’t appeal to women. People are not attracted to Marlboro, Winston,
and Camel, and we believe, these are consultants, those who know everything, right? We believe if you try to start appealing to
women, you’re going to crush it, and the first one to do that is going to blow up. Really? So guess what happens? Camel and Winston fell for it. They started having girls smoking cigarettes
in commercials. They started having girls holding cigarettes
in magazines. They started having all these pretty girls
smoking cigarettes. And they said, Oh, we’re going to get it. We’re so smart. Marlboro is not moving. They don’t move. They don’t move. They don’t move. And guess what ended up happening? They never moved. Marlboro didn’t move. Marlboro didn’t fall for anything. Because Marlboro made a decision a long time
ago, Marlboro is a cigarette, this is how they are, and they’re completely okay with
that. Marlboro is a cigarette for man’s man. That’s their m.o. While everybody told them to switch, they
didn’t do it. Now watch what happened. Let me give you some numbers here. Today in the marketplace, Winston has 2% of
the market. Camel has 8% of the market. Newport has 13% of the market. And let me tell you what Marlboro’s got. Let me tell you here. So we got Winston what, 2? 8 [Camel], 13 [Newport]. You know what Marlboro’s got? 41% goes to Marlboro! You know why? Here’s why. Now it’s cigarettes, by the way, just so you
know, the brand alone, Marlboro, if you wanted to buy it, it’s $80 billion, if you want to
buy it today. Last year, 391 billion Marlboro cigarettes
were smoked, last year. Let me say it again. 391 billion cigarettes. I don’t smoke cigarettes. I can’t stand cigarettes. There’s nothing about cigarettes I like. My family, they were smokers. I cannot stand cigarettes to save my life. I’ll smoke four cigars per year, and that’s
pretty much it. I cannot stand the smell of cigarettes. 41%. Why? They stuck to their product. So the question comes back to you here. This is me and you talking now, nobody else. I got the question for you.. Who is your ideal customer? Who is your ideal customer? Are you trying to please everybody? Can you imagine if Morgan Stanley one day
says, “yes, our ideal client is a net-worth of $5 million, with a $1 million of investible
cash. And oh, by the way, you can also do $50 a
month with Morgan Stanley Dean Witter. What are you talking about? I go to the bank to do that. I go somewhere to open up a CD. You want to do that [top right]. No way. They lose their identity. And by the way, so many companies do this. So if you’re a smaller company and you’re
thinking, you know, it’s just me. . . so many people, because they see the potential
of the market and they want everything. It is very important. What if Wal-Mart, look how confusing this
could be. I want you to think about it. Wal-Mart makes an announcement next year,
and this is what Wal-Mart says. “Effective January 1st 2017, Wal-Mart will
start selling Ferragamo and Canali suits.” What would you say if Wal-Mart said that? Tell me you wouldn’t be confused. And by the way, do you think the customers
that go to Neiman Marcus, which is high-quality, high-cost, you think they would go into Wal-Mart
to go buy those Canali suits? Do you know how confusing it is? It’s very confusing. Very, very confusing. It’s the same to say if Neiman Marcus decided
to say, “We’re selling $9 shoes, come and get it.” That’s just not going to happen. So who’s you’re ideal customer? You. You’ve got to ask the question, do you know
it? Age bracket, income range, what do are they
doing, what do they like, why do they come to you? Who is your product? What are you marketing your product to? And then stick to it. And do whatever you can to compete in that
space and be the best in that space. So your biggest differentiator could be Neiman
Marcus and Nordstrom [top right], we are here [bottom left], and we’re happy with that. We are here [top left], we’re happy with that. You can go here [bottom right]. We’re going over here [bottom left]. Target likes to say Target is whatever, but
guess what? Target is not as low cost as Wal-Mart is. And by the way, here’s the other part to keep
in mind about this. Once you decide who your ideal customer is,
and once you decide where you want to position yourself, don’t let this confuse you. You will have enemies. You will have opposition. You will have people that will say terrible
idea, he has no clue what he’s doing. She has no idea what she’s doing. Everyone’s going to try to confuse you. And if you can stick to the message long enough,
you’ll succeed. If you can’t, you’re like the rest of the
entrepreneurs and marketers out there that made the mistake of trying to appeal to everybody,
and lost every single thing they had. And they lost their success, millions, and
they went from a market where they were competing with Marlboro and then all of a sudden, they
dropped, dropped, dropped, dropped. And now they’re at 2%. Winston, Winston in Iran was Winston. Winston is 2%. Camel used to be very famous. Today 8%. Marlboro 41%. Stick to your message for the longest period. Market it strong, until all of a sudden you
become one of the competitors, everyone says, “Oh my gosh, they’re so smart over there.” It’s not that you’re smart. It’s just the highest form of maturity is
when you become independent of other people’s opinions. And other’s opinions is everybody telling
you what to do. Stay focused on what you want to be and who
you want to be and where your ideal customers are going to be. With that being said, let’s get that pillow
here. Hey, I was excited about doing this episode. Very excited about doing this episode, because
I get this message all the time. Pat, I want to get this customer, that customer. This video is dedicated to all of you that
say, I want to get all. . when I ask you who your customer, you say everybody. I disconnect. Because you can’t have everybody as your customer. You’ve got to know exactly who your customer
is. Okay, first things first, if you haven’t subbed,
please do so. Click on the sub button here. And by the way, I think YouTube’s got a new
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2018, meaning, right now it’s ’16, it’s about to be ’17 in a couple of weeks. And by the end of 2017, we want this channel
to be at a million subs. I know a lot of people say it’s crazy. We just crossed 155,000 subs right now. Pat, you got 845 more to go. How do you think this is going to happen. One, no one thought we were going to get to
100,000 subs, when we were at 2,000 subs. But you helped us get there. And there are a lot of people that don’t think
we’ll get to a million subs, but we feel you’re going to help us get there. And we will make one promise to you. We will keep creating the best content online
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content. We will constantly work on creating the best
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100 thoughts on “The Biggest Mistake Marketers Make

  1. Hi Pat,
    I love your content, and passion for entrepreneurship thank you for giving back.
    I recently started a springboard diving business in my area teaching kids how to dive. I have struggled with what you are talking about here a lot over the past few months and the points you raise in this video I agree with. However, I am still struggling because I do offer a premium product at a premium price and while some parents in my area can afford the lessons, some cannot or struggle to do so. I am torn because as a kid, I had parents that struggled to pay for athletics so I resonate with that pain. My question is, should I be worried about confusing customers by selling Ferragamo in Walmart as you said? Should I be making exceptions if people are having trouble? Or do you think things should be more flexible in a small operation such as mine? I feel like things could get hairy very fast if others find out that prices are different for other families etc.. I apologize if this seems selfish or obvious but it is something I have been wrestling with for some time now and I would love to hear your thoughts. Thank you. -Jeremy

  2. Great Video. I really needed this since I have started my own agency and started to market it. So thanks for that Pat. BTW love the bloopers at the end.

  3. Amazing, the nearly irresistible force of not trusting your course. I work at staying consistent with our brand and product and pricing every single day and I still get off track from time to time. Your channel truly helps me run a better business and make more money every time I watch and re-watch. Great great message. Thank you.

  4. hey Patrick, would you mind please to let me know what kind of black board did you use in this video. I loved that you can write on it with color markers. please let me know the name and if I can find it on Amazon or anywhere else. thanks a lot

  5. Thumbs up this commet if you know the truth.

    Patrick Bet-David is sociopath. His company PhP is a fucking horrible brainwashing pyramid scheme with terrible products that steals money from the pockets of financially illiterate eldely people. Ladies and gentlemen he made his money through legal theft. Google the yelp reviews for his "insurance" company called People Helping People. Those reviews will give you a glimmer of what this dude really is.

  6. I love this video Mr. Bet David!! I realized that it's not about being able to satisfy everyone but have 100% market penetration in YOUR range of clientele and stick to that!

  7. All the while I try to please everyone. That's why I'm still can't go into another step. There are markets out there who can afford and who can't afford. This video is really open my eye and my mind. I think I know where is my direction now. So, don't try to please everyone. Thanks Pat, very high quality videos.

  8. How does this combine with the 3 tier pricing for products? You made a video about having a cheap model middle price model and luxury model. Both tips seem correct, Maybe in the ideation phase we need to have 100 models and get the top 3?

  9. The best place to be is probably the bottom left, low quality, low cost, because that is where most of the population will fit, depending on your type of product.

  10. Correct me if I'm wrong but as of right now I believe Tata Motors Limited currently owns the subsidiary Jaguar Land Rover.

  11. Great info man!

    Position yourself in one market / specific niche , choose your market according to the quality, cost and your target audience then market your brand and work as hard to achieve the ultimate goal.

    Thanks Patrick.

  12. What I want to be is high quality and low cost, but high quality also means high cost in many ways. How I want to bring it down is high effectiveness – bringing the quality up in the most time and cost-efficient way possible. Essentially I want high quality and to give the best value for my customer's money.

  13. I thought I was being picky and spoiled for wanting one exact type of customers, but now I know it's actually a good thing to specify your target and stick to it! As long as I deliver and market well I should be just fine – and even happy and enjoying my business far more.

    I have so much time until I launch (or until I get to the country where I'll launch, haha) to study entreprenership and implement all of these Valuetainment lessons that I feel like when my business launches it'll blow up!

    I follow Valuetainment and I follow one person in my field who is doing something very similar to what I want to do and is VERY successful and has been successful for decates now. I'm so thankful to have that! That person also says to imagine your ideal customer, so now I'll do that with confidence. 🙂

  14. Awesome post Patrick
    I think the only company that uses all strategy is Amazon. Remembering Amazon starting in 1994/1995 with the strategy of being a cost leader in online retail of books, but now they literally everywhere and they threaten their competitors or any industry they get into; from gaming, music, movies, cloud computing, A.I and space project and the list goes on. All these services appeal to different customer segment and you can see this from the list of competitors Amazon has which spans from low quality and low cost companies to high cost and high quality. For example Ebay, netflix, spotify, walmart, google, spaceX, apple, paypal, Barnes & Noble, Youtube Gaming and best buy………… are all competing with Amazon and they all have different business models and startegy. So i would say Amazon is "successfully" stuck in the middle.

  15. i was thinking twice to try to capture more then one segment,.. this video will change my strategy. thank you

  16. Back in 2008, TATA Motors bought jaguar land rover from ford because ford was not able to make things work out at jaguar land rover. So TATA motors should be held responsible for building the reputation what jaguar land rover have today.

  17. you the truth. you teach us
    I think the future of education can be exactly this. I'm started utube class room

  18. I thought, Ford was losing big money with Jaguar, so they sold it to Tata Motors, who then changed Jaguar's reputation, and made it profitable.

  19. amazing Pat. a lot of value. the difference between cost and quality this will be the biggest that i will learnt from this video. thank you

  20. Hey Patrick how about companies like Nokia who stuck to their message and did not innovate?

    How do you differentiate a strong message from trying to appeal to everybody

  21. Every time i stuck in some problem, your videos help me a lot to be break through from that problem. Thanks Pat!

  22. when you said everybody can be a costumer.. and you disconnect, that makes you challenge me…. becuase of that i got an idea that everybody can be a costumer as long as they knew how to count.. thank you for that… you're awesome, and i admire you…

  23. Marlboro is even slicker than you think! They let the other brands test a new Idea and they now market cigs to people they sell these smaller packs girls love and they also love love the new marlboro Smooth they let the other companies plant the groundwork

  24. But what about say Canon. They make high quality high cost cameras. At the same time they make low quality low cost and middle quality middle cost products. They have all kinds of customers.

  25. Hey Patrick, can you do a video on how to find market demand for begginers with no income or whatsoever.

    P.S. : Love your content.

  26. just love the way you explain stuff and you are very very right brother your channel has best content for entrepreneur

  27. Remember that episode with Roberto Goizueta and Coca Cola? I think this is something similar: Marlboro is now making Heets cigarettes with IQOS, a Phillip Morris device, some semi-electronic cigarette device thing. Slick move, because the device is quite expensive, and they are actually selling a new product as "the healthy cigarette". That marketing! I would have never thought that an old dog like Marlboro would learn new tricks and sell something this new, exactly because they always stuck to their principles…
    But there you go, they are keeping their tradition and launched a new idea under a different name…

  28. Thank you for this! A friend shared a link to this video on Facebook, and I'm grateful to her. This addresses a pressing question I've had about my own writing business. I'll be watching more of your videos and sharing them.

  29. It's very funny, I was just thinking who my target audience was and then I get this video.. Thanks a ton. 🙂

  30. You didn’t reach 1M subs by 2018. But I think you will eventually do it Pat! Keep working !! Love your videos 🙂

  31. Attributing malboro dominance because its competitors advertised to women is complete shit. You gave nothing of substance here. There was no history about market dominance for these ciggs. You just decided to connect two unrelated events to fit your narrative.

  32. I wonder what if you think the same about all those companies now (comics, movies, tv, universities, etc) that have now completely changed their message to abandon their legacy base customers to cater to the new LBGT Politically Correct group.

  33. Tesla is not high quality. There not supporting consumers and denying owners mandated recalls based on there own discretion which is illegal. Low quality high cost is Tesla

  34. You valuetainment are the best, the amount of videos I have watched. None of them explain like you do. Subscribed to show my appreciation and support. Keep it up ??

  35. One realliy good complement to this video is the cars industry, where there're brands who wants to launch a new line of cars for another target, and they prefer to do it creating another brand, even with all the costs that it takes (new name, new marketing campagins, new image, everything), but they do it to conserve their identity. Excellent video!

  36. I quit smoking, too! Even it was a real fight within, because my grandpa was the founder of a used to be one of the main cigarette company even ever doing OEM for Marlborough. Better living for others' better living is a mystery of sacrifice, indeed. Thank you, Pat.

  37. I'm so glad I found you. Your videos have been a God sent. Theres no fluffy feel good motivation. I love the substance and direction you provide. Your videos have helped me learn to market and scale my business. Keep up the great work.

  38. I just came back to see this video, you've got 1 million subs, and when this video was pubised, here were 100k, which is great for this type of content.

  39. Wouldn’t everyone wants high quality and low cost ? Imagine Ferrari being same price as tayota .. what’s wrong with this?

  40. A normal conversation

  41. I know this videos is old but it has retained its value! I do have a question. It sounds like you are saying a company should stick to their fundamentals, but obviously some form of innovation is needed as more innovative companies do come along and turn the market upside down. companies such as yours in the life insurance industry. So how do you know when to stay put, or innovate?

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