Shot #99: The Costly Signaling Theory
Hello awesome marketers & founders 👋,
This is Luv and here’s your weekly Marketing Shot :)
(Delivered every Tuesday)
In today’s Marketing Shot:
🛠️ 1 Useful Tool
💡 The Costly Signaling Theory
💡 1 Creative Campaign
🗞️ 4 Noteworthy Updates from the Digital World
🛠️ Useful Tool
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Costly signaling theory is a marketing concept that says that consumers are more likely to trust a brand that makes costly investments in its marketing. This is because costly investments are seen as a signal of the brand's quality and commitment to its customers.
Imagine this- you're at a party and someone walks in wearing a stunning designer outfit. Chances are, they're sending a signal that they've got the resources to afford such a lavish outfit. The Costly Signaling Theory in marketing works in a similar way.
It's about brands showing they're committed and capable by investing resources into their marketing efforts by going the extra mile to prove their worth.
There are many different ways that brands can make costly investments in their marketing:
Advertising: Brands that spend a lot of money on advertising are signaling to consumers that they are confident in their product or service.
Sponsorships: Brands that sponsor high-profile events are signaling that they are successful and have a strong brand reputation.
Product quality: Brands that use high-quality materials and production methods are signaling to consumers that they are committed to providing a high-quality product.
The best example for this is Nike. It’s a brand that is known for its costly marketing investments. The company sponsors high-profile athletes and events and it also produces high-quality sportswear.
#CreativeCampaign
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🗞️ 4 Noteworthy Updates
Elon Musk's X takes on LinkedIn, releases Beta version of job hiring platform for verified companies (read)
Google Search can now index CSV files (read)
YouTube is testing hum to search for songs, and it’s way faster than Google Search (read)
Instagram is testing a new reels display for multi-advertiser ads (read)
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📋 In case you missed the last Tuesday’s Market Shot- Do you want to write copy that sells?
See you next Tuesday :)
Thanks,