As mentioned in Forbes, when Tata Motors announced the Nano in 2007, it was billed as the “world’s cheapest car.” Less than a decade later, the Nano is dead, with sales dropping each year precipitously. What went wrong? This blog post will discuss why customer perception matters in marketing and provide an example of a failed marketing campaign. We will also explore how Tata Motors could have improved its strategy to create a more successful campaign.

The Fiasco

When the Tata Nano was first announced, it was positioned as the “world’s cheapest car.” This announcement was a massive mistake. The problem is that when you place yourself as the cheapest, you are also saying that you are not the best. You are not aspirational. You are not something that people want to be seen driving. You are, quite simply, the cheapest option.

There are a few reasons why this is a problem. First, it creates a self-fulfilling prophecy. If you tell people that your product is the cheapest, they will believe it. They will not perceive it as being high quality or luxurious. Second, it means that you are constantly fighting an uphill battle to prove that your product is not, in fact, the cheapest. You are attempting to persuade people that your product is more valuable than it is.

In the case of the Tata Nano, this fight was an impossible one. The Nano was plagued with quality issues from the start. It was poorly made, and it showed. People who bought the Nano did so because it was cheap, not because it was a good car. As a result, when the quality problems started to surface, there was no way to convince people that they had made a mistake. The perception of the Nano was set in stone.

Why Perception Matters

The Tata Nano is a prime example of why customer perception matters in marketing. When you position your product in a certain way, it is difficult to change that perception. Once people have an idea of your product, it is tough to convince them otherwise. In the Nano case, Tata Motors should have focused on creating a quality product instead of trying to be the cheapest car on the market. They would have avoided the negative perception that has dogged the Nano for its entire existence.

Restaurant Customer Perception

If you are looking to create a successful marketing campaign, it is essential to keep customer perception in mind. Make sure that you are not making the same mistake as Tata Motors. Position your product in an aspirational way to create a positive customer perception. Only then will you be able to operate a successful, long-term campaign.

What can restaurants learn from this campaign failure? If a restaurant is recognized for its inexpensive costs, it won’t be easy to persuade customers to pay more for the same meal. However, if the restaurant is known for its quality food, people will likely pay a higher price. In other words, customer perception matters in marketing. As a result, keeping this in mind when developing your marketing approach is critical.

What are your thoughts on customer perception in marketing? Let us know in the comments below! For more information on marketing tips, check out our blog on what we can learn from restaurant social media marketing failures.