Marketing Levels Progress
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A framework for understanding the progression of marketing sophistication, from basic product marketing to creating identity-based brands.
The Five Levels of Marketing
Level 1: Selling a Product
- Most basic form of marketing
- Simply describes what the product is
- Common with failing startups and poor websites
- Example: "We are a healthcare CRM using AI"
- Least effective approach as customers care about themselves, not your product
Level 2: Selling a Solution
- Focuses on solving customer pain points
- Effective but highly competitive
- Example: Head & Shoulders - "Tired of dandruff? Use our shampoo"
- Represents about 45% of companies' marketing approaches
- More compelling than product-only marketing but still basic
Level 3: Selling a Lifestyle
- Makes lifestyle aspirational before selling product
- Example: Lululemon selling yoga lifestyle before yoga pants
- Creates category demand before product demand
- Reference: Stuart Butterfield's "We Don't Sell Saddles" philosophy
- Gets people excited about the lifestyle first, then introduces product as enabler
Level 4: Selling a Feeling
- Focus on emotional connection
- Examples:
- UFC selling "holy shit moments"
- Disney selling "magical experiences"
- Nike selling feeling of greatness
- Louis Vuitton selling feeling of status
- More powerful than selling features or benefits
Level 5: Selling Identity
- Highest form of marketing
- Provides tribe membership and purpose
- Examples:
- Religious organizations
- Political parties
- Franchise businesses
- Gives people:
- Sense of belonging
- Clear identity
- Purpose
- Community
- Most powerful but hardest to achieve
Key Insight
- Most tech companies stop at Level 2 (solution selling)
- Huge opportunity exists to move up levels
- Higher levels create stronger customer connections
- More sophisticated marketing creates sustainable advantage
34:03 - 40:01
Full video: 56:55SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.