strategy

Overchoice
Overchoice Jonathan Poland

Overchoice, also known as the “paradox of choice,” is a phenomenon in which having too many options or choices can actually lead to decreased satisfaction and quality of life. This can happen when people feel overwhelmed by the sheer number of options available to them, or when they experience regret after making a choice from a vast array of possibilities. Overchoice can lead to feelings of indecision, anxiety, and frustration. In order to avoid the negative effects of overchoice, it is important to set boundaries and limit the number of options one considers. This can help to reduce feelings of overwhelm and increase the likelihood of making a satisfying decision.

Some common examples of overchoice include:

  1. When shopping for a new car, a person may be faced with a vast array of options in terms of make, model, color, features, and price. This can make it difficult to choose the right car and may lead to regret after making a decision.
  2. When deciding on a college or university to attend, a person may be overwhelmed by the large number of schools to choose from, each with its own unique programs, campus life, and location. This can make it difficult to determine which school is the best fit.
  3. When deciding on a vacation destination, a person may be faced with a seemingly endless array of options, from tropical resorts to remote islands to bustling cities. This can make it difficult to choose the right destination and may lead to feelings of indecision and anxiety.
  4. When choosing a career path, a person may be overwhelmed by the wide range of options available, each with its own pros and cons. This can make it difficult to determine the right path and may lead to feelings of regret after making a decision.
  5. When selecting a restaurant to eat at, a person may be faced with a vast array of options, each offering different cuisines, ambiances, and prices. This can make it difficult to choose the right restaurant and may lead to dissatisfaction with the final decision.

Marketing Theories
Marketing Theories Jonathan Poland

Marketing is the process of identifying customer needs and developing strategies to meet those needs. This involves conducting market research, developing products and services, building a brand, setting prices, promoting the business, and distributing products to customers.

Marketing theories are principles and ideas that guide these activities, and they are often based on research and data. Some marketing theories are commonly used in the field, while others may be considered more unusual or specialized. Overall, marketing theories help businesses understand how to effectively reach and engage with their customers.

The following is a list of marketing theories…

Above The Line
Active Silence
Added Value
Attention Economics
Bargaining Power
BATNA
Behavioral Targeting
Below The Line
Benchmark Price
Bespoke
Bliss Point
Bogey
Brand Awareness
Brand Culture
Brand Recognition
Bricks And Clicks
Buyer Persona
Call To Action
Channel Conflict
Choice Architecture
Club Theory
Competitive Market
Competitive Parity
Complementary Goods
Complex Sales
Cross-Selling
Customer Journey
Decoy Effect
Economies Of Scale
Economies Of Scope
Experience Economy
Fear Of Missing Out
First-Mover Advantage
Hard Selling
Inferior Good
Long Tail
Market Position
Market Price
Market Saturation
Mere Exposure Effect
Message Framing
Nudge Theory
Peak Experiences
Penetration Pricing
Perfect Competition
Predatory Pricing
Premiumisation
Price Discrimination
Price Points
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Product Diffusion
Puffery
Relative Price
Retargeting
Sales Objections
Scarcity Marketing
Selling Points
Sensory Analysis
Serviceable Available Market
Six Degrees Of Separation
Soft Selling
Sticky Prices
Substitution Price
Target Audience
Target Market
Through The Line
Top Of Mind
Visual Merchandising

Market Environment
Market Environment Jonathan Poland

The market environment refers to all of the factors that can impact a company’s strategy, decision making, and tactics. This includes both internal and external conditions that can affect a business. The market environment can include a wide range of elements, such as economic conditions, competition, technological advancements, government regulations, and social and cultural trends. By understanding the market environment, companies can make informed decisions and develop effective business strategies. The following are some common elements of market environments.

Customers
The needs, perceptions and mood of your customers including:

  • Brand Awareness
  • Brand Image
  • Brand Recognition
  • Customer Motivation
  • Customer Needs
  • Customer Perceptions
  • Pain Points
  • Price Sensitivity

Competitors
The threats and opportunities presented by your competitors.

  • Brand
  • Business Capabilities
  • Competitive Advantage
  • Competitive Advantage
  • Customer Experience
  • Customer Satisfaction
  • Prices
  • Relational Capital
  • Reputation
  • Strategic Intent

Internal
Your internal environment that represents your strengths and weaknesses in the market. This can be extended to include the strengths and weaknesses that you incur due to partnerships.

  • Ability to Innovate
  • Brand
  • Business Capabilities
  • Competitive Advantage
  • Competitive Advantage
  • Customer Experience
  • Customer Satisfaction
  • Efficiency
  • Overhead Costs
  • Productivity
  • Relational Capital Reputation
  • Time To Market Unit Costs

Economy
Economic conditions including areas such as credit, labor, demand, supply, stability and growth. For example, a low unemployment rate that makes it difficult for small businesses to recruit employees.

  • Business Confidence
  • Business Cycle
  • Consumer Confidence
  • Credit Market Conditions
  • Deflation
  • Demand
  • Economic Growth
  • Inflation
  • Interest Rates
  • Inventory Levels
  • Recession
  • Supply
  • Unemployment

Political
The changing laws and policies of governments and other political events such as protests and strikes. For example, a government that requires businesses to shutdown to try to reduce some risk to society.

  • Government Shutdowns
  • Industry Regulation
  • Labor Law
  • Political Events
  • Political Stability
  • Protests
  • State of Emergency
  • Strikes
  • Tariffs
  • Tax Interpretations
  • Tax Policy
  • Trade Disputes

Social
Changes to society, culture and the way that people think. For example, consumers who grow aware of an environmental problem associated with a product, service or material.

  • Attitudes
  • Consumer Behavior
  • Demographics
  • Interests
  • Opinions
  • Psychographics
  • Values

Technological
Change to technology including physical technology and information technology. For example, new materials that make it possible to vastly improve your products.

  • Abandonment of Technology
  • Adoption of Technology
  • Data
  • Digital Convergence
  • Information Security
  • Infrastructure
  • Intellectual Property
  • Materials
  • Media
  • Platforms
  • Technology Economics
  • Technology Preferences

Loss Leader
Loss Leader Jonathan Poland

A loss leader is a product or service that is sold at a price below its cost in order to generate other sales. This pricing strategy is commonly used by companies to attract customers and increase overall sales, even if it means selling certain products or services at a loss.

There are several variations of the loss leader strategy, including:

  1. The “doorbuster” sale, where a company offers a deeply discounted product or service to attract customers to its store or website. This is often used during holiday shopping seasons or other peak times.
  2. The “bundle” sale, where a company offers a discount on a group of related products or services. This can help customers save money and encourage them to purchase more than they might otherwise.
  3. The “free trial” offer, where a company provides a limited-time free trial of its product or service in order to encourage customers to try it and potentially become long-term customers.
  4. The “add-on” sale, where a company offers a discounted or free additional product or service with a purchase. This can help the company upsell to customers and increase overall sales.

Overall, the loss leader strategy is a common pricing tactic that can be effective in attracting customers and generating additional sales. However, it is important for companies to carefully consider the potential risks and benefits of this strategy and ensure that it is aligned with their overall business goals and objectives. Here are more examples.

Location Traffic

Loss leaders are commonly used to drive customer traffic to a location. For example, a drug store that sells tissue paper at an unusually low price in order to get customers in the store whereby they may purchase other items.

Foot in the Door

Foot in the door is a classic sales strategy whereby you establish an initial relationship with the customer by giving them a good deal. This relationship is then leveraged to sell more. For example, an IT consulting company that takes on a project at low cost at a large bank in order to greatly expand their relationship with the bank over time.

Business Launch

A loss leader can be used to launch a new business or product. For example, a new ecommerce seller who has no ratings on their profile could sell a popular item at the best price on the platform in order to more quickly establish a reputation.

Rain Checks

It can be perceived as false advertising to offer a loss leader but then run out of stock. In order to address this potential compliance and reputational issue, retailers may offer rain checks that allow the customer to obtain the offer at a later date.

Limited Supply

Another way to avoid perceptions of false advertising is to specifically list how many units of a loss leader will be available in your promotional materials. For example, an electronics store that will offer a low cost mobile device to the first 50 customers to claim the offer.

Everyday Low Price

A loss leader can be an everyday low price whereby customers know that you have the best price for some item. This is usually a fast moving consumer good that is popular such that it has the power to generate sustained traffic over time. For example, a coffee chain with unusually cheap coffee that makes most of its profits from things that people buy with their coffee such as donuts.

Collectables

Campaigns that offer a different collectable each day or week in order to drive regular traffic. For example, a gas station that offers collectable items related to a popular summer movie at a very low price.

Add-ons

Offering the loss leader as an add-on such that you must purchase something else in order to qualify. For example, a collectable poster that is only available to people who see a movie.

Kids Meals

It is common for restaurants to offer kids meals that are low margin in order to sell to the parents.

Samples

Selling samples at a low price in order to give customers experience of your products. For example, in the 1970s it was common for record labels to sell compilation records at a low price in order to promote various artists.

Predatory Pricing

Selling below cost or below a reasonable margin can be considered an anti-competitive practice in some situations. For example, a large retail chain that offers dry cleaning services below cost in order to put local dry cleaners out of business. This may allow them to capture much market share and may be viewed as anti-competitive.

Razors & Blades

Selling a product at a low price that requires regular consumables. For example, selling a printer cheaply that is then very expensive to operate as it requires specialized cartridges.

Value Proposition
Value Proposition Jonathan Poland

A value proposition is a statement that explains the unique value that a company offers to its customers. It is a promise of the benefits and value that a customer will receive if they choose to do business with the company. In other words, it is a statement that outlines the specific value that a company provides to its customers, and why it is better than its competitors.

A strong value proposition can help a company differentiate itself from its competitors and attract potential customers. It should be clear, concise, and compelling, and should focus on the specific benefits that the company offers.

To create a strong value proposition, a company should first identify its target audience and understand their needs, pain points, and priorities. This will help the company create a value proposition that resonates with its customers and addresses their specific needs.

Next, the company should identify its unique selling points, or the unique benefits and value that it offers to its customers. These could include high-quality products, exceptional customer service, competitive prices, or a unique approach to solving a common problem.

Once the unique selling points have been identified, the company should create a clear and concise statement that outlines the specific value that it offers to its customers. This statement should be easy to understand and should focus on the benefits that the customer will receive, rather than the features of the company’s products or services.

In conclusion, a value proposition is a crucial component of a company’s marketing strategy. It is a statement that outlines the unique value that the company offers to its customers, and should be clear, concise, and compelling. By identifying its target audience and unique selling points, a company can create a strong value proposition that helps it stand out from its competitors and attract potential customers. The following are common types of value proposition.

Convenience
Saving the customer time and making things easier.

Experience
Experiences such as the taste of food or thrill of a theme park attraction.

Style
The aesthetics of products and services such as a hotel lobby that feels refined and comfortable.

Usability
User interfaces that are pleasing to use.

Identity
A brand identity that represents quality, status, a lifestyle or culture in the minds of customers. For example, a fashion brand that represents a subculture.

Reliability
Products that don’t break and services that are always available and consistent.

Efficiency
The amount of output created for a unit of input. For example, an electric car that can travel a great distance on a KWh of electricity.

Productivity
Tools that make customers more productive in their work and hobbies.

Risk
Reducing or transferring a risk for a customer. For example, an airline with a reputation for safety.

Compatibility
Products and services that work well with other things.

Information
Satisfying customer needs for information.

Price
Value for the price.

Terms
Attractive contract terms. For example, terms that remove unpopular restrictions that competitors impose.

Trust
Being trusted by customers. For example, a telecom company with a reputation for protecting customer privacy.

Customization
The ability for customers to change your products and services to their liking.

Performance
Performance such as the speed of a CPU.

Results
Results such as the historical returns of an investment product.

Functionality
Things that customers can achieve with your products or services.

Good Failure
Good Failure Jonathan Poland

Good failure, also known as productive failure, refers to the idea that failure can be a valuable learning experience and can lead to future success. This concept is based on the idea that failure is an essential part of the learning process, and that it is often through failure that people learn the most.

Good failure allows people to take risks, experiment, and try new things without fear of negative consequences. This can lead to innovation and creativity, as people are more willing to explore new ideas and approaches. Good failure also encourages a growth mindset, where people see challenges and setbacks as opportunities to learn and grow, rather than as failures. Some concepts include failing often, failing cheaply, failing quickly, and creating a fast feedback loop to learn from.

Examples of good failure include:

  • A student who struggles with a difficult math problem and spends time working on it, ultimately learning a new concept or method that they can apply to future problems.
  • An entrepreneur who starts a business and fails, but learns valuable lessons about what worked and what didn’t, and uses that knowledge to start a successful business in the future.
  • A company that experiments with a new product or service and fails, but learns valuable insights about customer preferences and market trends that they can use to develop more successful products in the future.
  • A team that fails to meet a project deadline, but learns valuable lessons about project management and team dynamics that they can apply to future projects.

Overall, good failure is an important concept that can help people and organizations to learn from their mistakes, innovate, and achieve success in the long term.

Good Customer Service
Good Customer Service Jonathan Poland

Good customer service is a service experience that goes above and beyond to meet the needs and expectations of customers, leaving them with a positive and lasting impression of the business. It is characterized by personalized, efficient, and effective support that helps to build trust and loyalty between the business and its customers. Good customer service is also proactive and anticipatory, addressing potential issues and concerns before they become problems, and ensuring that every customer feels valued and appreciated. Here are some aspects of good customer service.

Adaptability
A hotel that works hard to handle special customer requests such as a late night request to move rooms due to perceived problems.

Apologies
A call center (or online chat) employee who apologies immediately when the customer is inconvenience or complains of a perceived problem.

Authenticity
A restaurant that intensely cares about food, dining experience and service as opposed to end-goals such as profit.

Awareness of Competition
A large IT consulting company that doesn’t become arrogant and complacent about the competition such that they retain a sense of humility and urgent need to deliver customer results.

Competitive Spirit
An airline that thanks customers for their business and acts with knowledge that customers have many other choices.

Creativity
Front desk staff who can’t fulfill a customer request for a room change but find another solution to the customer’s problem with the room.

Cultural Competence
Airline staff who speak multiple languages and are good at dealing with customers from any nation and background.

Customer Advocates
A customer service representative who reports a common design complain to the business unit and product design team that can fix it.

Customer Experience
A cafe manager who politely asks a disruptive customer to leave as they are ruining everyone’s enjoyment of the cafe.

Customer is Always Right
A restaurant that takes the pragmatic stance that something is a problem if the customer perceives it as a problem. For example, if a customer thinks your best table isn’t good and wants to sit near the bathroom, don’t argue.

Deep Change
Addressing the root cause of low customer satisfaction as opposed to the symptoms. For example, an airline that upgrades to newer, more reliable aircraft to improve service levels.

Exception Handling
The process of making reasonable exceptions to policy to benefit the customer. For example, an airline that only accepts payment by credit card for food that has a policy of giving food for free to children traveling alone and others without a credit card.

Extra Distance
A mechanic who provides customers with detailed answers when they ask for advice on a separate problem with a vehicle.

Friendliness
A mover who maintains a helpful, approachable and friendly demeanor towards customers such that they regularly achieve high customer ratings.

Initial Response Time
A real estate agent that gets back to a customer in minutes after an email inquiry.

Packaging & Presentation
A department store that offers gift wrapping that is professional to the extent that few customers could wrap as well.

Passion for Service
Employees at a call center who enjoy their work due to an unusually positive team culture and leverage to solve customer problems such that dissatisfied customers are uncommon.

Plain Speaking
Technical support that explains a problem without dumbing it down or engaging in needless technobabble.

Polish
A waiter at a restaurant who has refined every detail of service such as proper placement of things on tables such that they help to create a fine dining experience.

Politeness
A waiter who addresses customers with respect and polite distance.

Professionalism
A salesperson who is professional such that they dress well, speak well, act well and are knowledgeable about their industry, product and customer.

Rapport
A banker who easily establishes rapport with customers due to their personal presence and inherent charm.

Resilience
A bouncer at a nightclub who handles difficult people in a reasonable way without loosing their composure or becoming stressed out.

Respecting the Intelligence of the Customer
Taking customers seriously when they request information. For example, an airline that provides passengers with detailed reasons for a flight delay and conveys an estimated time of departure with the acknowledgement that there is still some uncertainty around the estimate.

Solving Problems
An airline that immediately presents all customers with a useful list of options when a flight is cancelled including an immediate refund, rebooking, compensation, hotel bookings and so forth without a big hassle.

Sympathy
Trying to understand the situation of the customer at the emotional level. For example, a customer who is angry after being billed incorrectly as they feel they are being cheated. In this situation, a customer service representative may immediately apologize and clearly state that the money will be immediately refunded if the bill is wrong before quickly working to identify the billing error or confusion.

Talent
Customer service is a talent that involves difficult to acquire skills such as emotional intelligence, communication, personal resilience, self-discipline and personal presence. For example, a talented bartender in a busy establishment who achieves high order throughput while dealing with a large number of communication issues without losing their friendly and professional demeanor.

Tolerance & Inclusion
Service representatives who treat everyone well regardless of their background, identity or language abilities.

Transparency
Transparency is fair and open communication. For example, a hotel that communicates a renovation project at booking time with precise details on how the customer may be impacted by the work.

Treating Customers as Individuals
Treating customers as people as opposed to a faceless crowd, stereotype or wallet. For example, a theme park that avoids the sense that crowds are being herded by staff.

Turnaround Time
Fulfilling obligations to customers quickly. For example, a restaurant that has food on the table quickly during the lunch rush as many customers have a short and strict lunch break.

Customer is Always Right
Customer is Always Right Jonathan Poland

The principle that “the customer is always right” is a widely used guideline in the business world to guide customer service strategies, processes, and practices. While the phrase is often used as a slogan, it is not always literally true and is meant to convey a positive attitude and approach to serving customers. This principle is based on the idea that customer satisfaction is crucial for the success of a business, and that providing excellent service and addressing customer concerns should be a top priority. While it is important to listen to and take into account the feedback and needs of customers, it is also essential for businesses to set boundaries and maintain standards of professionalism and fairness in their interactions with customers. Ultimately, the goal of this principle is to ensure that customers have a positive experience and are satisfied with the products and services offered by a business. As a principle, the customer is always right can be applied in several ways:

Trust

If the customer says something is broken, trust them. From a commercial perspective, there is often nothing to be gained from accusing a customer of being wrong or exaggerating the truth. For example, many retail brands will except returns on a no-questions-asked basis in order to impress customers and build brand value.

Perceived Problems vs Problems

If a customer sees a problem with your products or services, it’s a problem to them. It is often counterproductive to argue that it’s not a problem. For example, a restaurant server might simply apologize that a customer’s food is too cold even if they secretly believe it was served at the right temperature.

Respect

Customers want you to respect them as individuals. It’s often more productive to respect your customers without judgement. This includes treating them with politeness and respecting their intelligence by listening to them with intent to understand. For example, a technical service representative may listen intently to a customer’s description of a problem, even if the customer describes the problem in difficult to understand non-technical terms.

Feedback Loop

It’s typically impossible to incorporate every customer suggestion into your products or processes. However, it’s often useful to consider each suggestion with the assumption that it could be helpful.

Product Design

It’s easier to sell a product that customers already want than to change their minds about something. If customers are convinced that pickup trucks are great, give them pickup trucks.

Communication Strengths
Communication Strengths Jonathan Poland

Communication strengths are qualities or abilities that enable an individual to communicate effectively. These can include general communication skills, such as the ability to listen actively, speak clearly, and write coherently, as well as specialized skills that are relevant to particular roles or industries. Some examples of communication strengths include the ability to persuade, negotiate, motivate, or inform others. These strengths can be valuable in a wide range of settings, such as leadership, customer service, public relations, sales, marketing, and academic pursuits. By leveraging their communication strengths, individuals can improve their ability to influence others, build relationships, and achieve their goals. The following are common communication strengths.

Active Silence Body Language
Call to Action Candor
Civility Coaching
Communication Goals Communication Planning
Confidence Consensus Building
Constructive Criticism Criticism
Cross-cultural Communication Cultural Capital
Customer Service Dealing With Criticism
Debate Diction
Difficult Conversations Emotional Intelligence
Ethos Explanation
Eye Contact Facilitation
Feedback Formal Communication
Friendliness Humor
Influencing Informal Communication
Interviewing Kairos
Languages Leadership
Listening Logos
Managing Expectations Marketing Communications
Meeting Management Mentoring
Message Framing Negotiation
Networking Non-verbal Communication
Nudges Open-Mindedness
Pathos Personal Presence
Persuasion Plain Language
Politeness Presentations
Promotion Public Relations
Public Speaking Questioning
Relationship Management Small Talk
Social Intelligence Storytelling
Teamwork Technical Writing
Tone Training
Verbal Communication Visibility
Visual Communication Voice
Wit Writing

In-Store Marketing Jonathan Poland

In-Store Marketing

In-store marketing refers to the use of physical retail locations, such as stores and showrooms, as a platform for marketing…

What is Marketability? Jonathan Poland

What is Marketability?

The marketability of a brand, product, or service refers to its competitiveness within a market. It is the likelihood that…

What is an Agent? Jonathan Poland

What is an Agent?

An agent is a person or organization that has been granted the authority to act on behalf of another person…

Sales Development Jonathan Poland

Sales Development

Sales development is a crucial part of the sales process that involves identifying potential buyers and developing qualified leads. This…

Rebranding Jonathan Poland

Rebranding

Rebranding is the process of making significant changes to a company’s brand in order to alter the way it is…

What is Competitive Parity? Jonathan Poland

What is Competitive Parity?

Competitive parity is a marketing strategy that involves matching or aligning a company’s marketing mix with that of its competitors.…

Supply Risk Jonathan Poland

Supply Risk

Supply risk refers to the likelihood that a disruption in the supply of goods or services will negatively impact a…

Willingness to Pay Jonathan Poland

Willingness to Pay

Willingness to pay (WTP) is a measure of how much a customer is willing to pay for a product or…

Risk 101 Jonathan Poland

Risk 101

Risk evaluation is a crucial component of the risk management process. It involves assessing the potential impact and likelihood of…

Jonathan Poland © 2026

Enter your
text here

Learn More

Types of Work Jonathan Poland

Types of Work

Work refers to any productive activity or pursuit that is undertaken in order to create value. There are countless types…

Remarketing Jonathan Poland

Remarketing

Remarketing is a marketing strategy that involves targeting customers who have previously interacted with a business. This is often done…

Sales Goals Jonathan Poland

Sales Goals

Sales goals are targets for the revenue or units sold that a sales team or individual is expected to achieve…

Basis of Estimate Jonathan Poland

Basis of Estimate

A basis of estimate (BOE) is a document that outlines the methodology and assumptions used to create an estimate for…

Anchoring Jonathan Poland

Anchoring

Anchoring is a cognitive bias that occurs when people rely too heavily on an initial piece of information, known as…

Systems Theory Jonathan Poland

Systems Theory

Systems theory is a field of study that focuses on the ways in which independent components or elements interact and…

Phased Implementation Jonathan Poland

Phased Implementation

Phased implementation is a method of developing and introducing a business, brand, product, service, process, capability, or system by dividing…

Grand Strategy Jonathan Poland

Grand Strategy

A grand strategy is a comprehensive and long-term plan of action that encompasses all available options and resources in order…

Two-Sided Market Jonathan Poland

Two-Sided Market

A two-sided market, also known as a multi-sided platform, is a market in which two or more groups of customers…