Life lessons from an ad man | Rory Sutherland

Summary

In this engaging TED talk, advertising expert Rory Sutherland explores the concept of intangible value and how perception can often outweigh reality. He highlights various examples, from marketing strategies like Fredrick the Great's rebranding of the potato to the placebo effect in education and health. Sutherland challenges conventional views on value, emphasizing how subjective and psychological factors shape consumer behavior and societal trends. Through humor and thought-provoking anecdotes, he demonstrates the potential of perception to drive change, reduce environmental impact, and create more egalitarian societies.

Takeaways

• 😀 Advertising creates intangible value, which often gets a bad rap but can be a sustainable substitute for material value in the future.
• 😀 A simple change in perception, rather than real-world improvements, can sometimes create greater value (e.g., supermodels handing out Chateau Petrus on a train).
• 😀 Placebos are effective in addressing perception problems, often achieving positive results with no side effects or high costs.
• 😀 Most life problems, especially after a certain level of wealth, are problems of perception rather than reality, as illustrated by the idea of placebo education.
• 😀 Frederick the Great of Prussia successfully promoted potatoes through clever marketing, demonstrating that value is often about perception, not intrinsic worth.
• 😀 Ataturk used innovative persuasion techniques to discourage the veil in Turkey, showing how behavioral change can be achieved through clever rebranding and not just compulsion.
• 😀 Value is subjective and relative, as demonstrated by Coca-Cola's universal availability and status messaging, making it a more egalitarian product.
• 😀 Small behavioral nudges, like a smiley face on speed limit signs, can lead to more significant societal changes than traditional methods like fines or penalties.
• 😀 Changing the way decisions are presented, such as with a ‘save money’ button for pensions, can significantly alter consumer behavior, such as encouraging more savings.
• 😀 Marketing can create intangible value without altering the product, as shown by the Shreddies example where changing the shape of the cereal (square to diamond) was enough to create buzz and value.

Q & A

What is the primary argument Rory Sutherland makes in this TED talk?

Sutherland argues that 'intangible value'—value that comes from perception rather than intrinsic qualities—plays a crucial role in shaping modern society and addressing environmental and social issues. He suggests that we need to reconsider the traditional focus on material value and explore how intangible value can offer sustainable alternatives.

How does Sutherland define 'intangible value'?

Intangible value is the perceived or subjective value that people assign to things, rather than their inherent, material worth. This value is often created through advertising, branding, or perception manipulation, and can be a substitute for physical resources or labor.

Why does Sutherland suggest that we should shift our focus from material value to intangible value?

Sutherland argues that in a future where material goods become scarcer, shifting the focus to intangible value can allow society to maintain or increase its overall wealth without depleting limited resources. This shift can offer more sustainable solutions to societal challenges.

What example does Sutherland use to illustrate the power of intangible value in transportation?

Sutherland critiques the engineering solution for improving the London-Paris train journey by simply shortening the travel time with new tracks. He humorously suggests that employing supermodels to hand out expensive wine on the train would create more perceived value and enhance the experience without altering the train's physical infrastructure.

How does Sutherland use placebos to illustrate his point about perception versus reality?

Sutherland suggests that placebos are an excellent example of how perception can be more powerful than actual changes. In medicine, placebos work because they create the perception of healing, and in education, the perception of a good education can lead to greater success than the actual content taught.

Can you explain the historical example of Frederick the Great's marketing of the potato?

Frederick the Great of Prussia faced resistance when trying to introduce potatoes as a staple food. Instead of forcing the people to adopt it, he rebranded the potato as a royal vegetable, with guarded patches where only royalty could access them. This caused peasants to steal the potatoes, increasing their popularity.

What does Sutherland suggest about the nature of value in society?

Sutherland suggests that all value is relative and subjective, depending on how it is perceived. He emphasizes that value is often created not through the intrinsic qualities of an object but through its social and cultural significance, which can be manipulated through marketing or rebranding.

What does Sutherland mean by the concept of 'persuasive technologies'?

Persuasive technologies refer to tools or devices, like mobile phones, that can influence human behavior in a subtle and often unnoticed way. These technologies are designed to be contextual, timely, and personal, guiding people towards certain behaviors, such as saving money or making healthier choices.

How does Sutherland link intangible value to consumer products like Coca-Cola?

Sutherland highlights Coca-Cola as an example of a product where value is not just tied to its physical ingredients but to its status as a symbol of equality. Coca-Cola is available to everyone, from the president to the homeless person, which gives it unique social and cultural value, transcending its material worth.

What was the case of Shreddies cereal an example of, according to Sutherland?

The rebranding of Shreddies cereal into 'Diamond Shreddies' is an example of creating intangible value without changing the product. The shape of the cereal was altered in appearance only, but the perception of it being a 'new' product created added value in the minds of consumers, demonstrating the power of perception in marketing.