What Can Investment Banking Teach the World of Marketing

Marketers pride themselves in getting their customers happy. They notice what their customers care about. They like to make sure that their clients are 100% satisfied. As consumers themselves, marketers take their own personal likes to the table. The marketing mindset is helpful for selling. If you understand your audience, you will sell more successfully. However, it is terrible for buying.

Investment Banking Principles Necessary to Lower Expenses

Whether it is trying to wine and dine a customer into getting your product, or just providing a money back guarantee, marketing has made cultures like America very popular. Many immigrants have come to this country with the happy intent of getting their wants and desires met. What they often find is an expensive price for the golden cigar they looked at longingly at home. Marketers often rely on marketing so much that they demand good performance in the things they buy as well. If you buy golden cigars and sell them, you will not make any profit. It is necessary to buy old cigars and plate them with gold to make the biggest profit. Investment bankers know how to buy old cigars. Improving our business model requires suffering pain in our own purchases.

Marketing Well

Warren Buffett recommends that we have a contrary approach to those around us. If we copy those around us, we will face a lot of competition. When everyone buys golden cigars, they are high in price. When everyone is selling golden cigars, they are low in price. Simply doing what peers are doing is not the way to investment success. When everyone is selling golden cigars is the time to be buying them. Why? The price is low, and we are the ones smiling. When everyone is buying golden cigars is the time to be selling them. Why? The price is high, and we are the ones smiling. Attaching marketing universals to our product helps immensely. Think of things that most people emotionally crave. Things like survival, protection, pleasure, relationships, and food. All of these attributes, if attached to our product, will increase the likelihood that we will sell something. If we are a consumer, removing those popular attributes from our purchase will lower the price to buy it.

Conclusion

Humans are not rational. They are emotional. Emotional beings pursue self-interest and pleasure. Knowing that fact can greatly increase revenues to the shrewd business person. Ignoring that fact can greatly increase expenses to the typical business person.

David Milberg is a credit analyst in NYC.