remedies vs. bonuses

benefit baseline

Brands can deliver two different kinds of benefit.

The first is a remedy; something that returns us to normality.

Brands in this category are predominantly functional in nature: things like insurance and paracetamol.

The second benefit is a bonus: something that enriches our lives.

Brands in this category appeal to our emotions: things like iPods and Nespresso machines.

We tend to be less willing to pay a premium for remedy benefits, because the benefit is finite; they simply return us to our normal state.

Bonus benefits are not subject to the same price sensitivity, because they make our lives better than they were before.

Most brands can deliver both kinds of benefit; marketing’s challenge is to identify how the brand lifts people above their baseline.

Success depends on highlighting the bonus.

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