The Physics of Marketing - Newton’s Theory of Color

It never occurred to me that someone invented the color wheel, but in fact Isaac Newton did just that and more with his Theory of Color.  Newton used prisms to show that white light was actually made by a combination of the “ROY G BIV” colors of the rainbow.  At that time there were varying theories regarding color and light, and Newton’s assertion, which seems like common knowledge today, was quite controversial at the time he introduced it.

Newton explained that objects appear to be a certain color because of how they reflect light, rather than color being an inherent property of an object - A red apple reflects red light which is seen by the eye.  Newton went on to place the colors on a wheel, where he could then illustrate the concept that by combining primary colors in various proportions, all other colors could be created.  This led to the idea of complementary colors such as blue and orange which when used together provided maximum contrast.

Newton’s theory of color has been studied and refined over time and is often directly applied in marketing though the design process.  Visit a graphic design studio and color wheels abound with countless shades and tones, which when combined correctly, offer dramatic visual appeal.  Who knew that graphic design had roots in physics?

So the big question becomes how to extend Newton’s theory into some broader analogy about Marketing.

Here goes…

Okay, so suppose the market is equal to white light. Each company has an ability to use the components of that light to reflect a given appearance.   Just as light can be broken down into colors, Marketing can be broken down into categories.  This traditionally has been represented as the 4 P’s of Marketing (Product, Price, Place, and Promotion) - although many other models exist.  For today, I will go with the trusted 4 P’s.

Marketing seeks out new ways to combine colors to create something of beauty and value for the consumer.  Some might like blue and orange (everyday low prices, no frills), others red and green (design and style).

Companies are tasked with choosing the right mix of the colors they have to tell a unique story to the consumer.  If this story resonates, i.e. the consumer perceives the colors to be different and chooses them, the company has a chance to succeed. This is the idea of the Marketing Mix.  What products to sell?  How much to sell products for?  How much attention to focus on service?  How much to spend on advertising?  Whether to open a store online in a shopping mall?  There are some combinations that work well, and some that result in ugly gray brown.

In totality all of these brands, all of the commercials, promotions, channels of distribution, and available products combine to make the consumer marketplace - white light.  Perception is the prism by which the market is broken down into segments, and in the end consumer gets to choose their own favorite colors.

What do you think?  How can you apply Newton’s Theory of Color to Marketing?  Please share your theories and thougths by leaving a comment.

The Physics of Marketing - Ideal Gas Law

If you have ever climbed up a mountain, you know that it is much colder at the top than at the bottom. Have you ever wondered why? Well it is because the atmospheric pressure is much lower than if you were at sea level. There is simply less atmosphere above you.

This relationship between pressure, volume, and temperature is described the ideal gas law, and it was formally discovered in 1834 by French Physicist Emil Clapeyron. It states if you heat a gas, it will expand, increasing pressure. Also, if you compress a gas, it will increase the pressure.

So how do we apply this to marketing?

I view this law as analogous to “sale pricing.” Think of Kohl’s - a company that is big on sale pricing. If you visit Kohl’s, you will see big discounts for a limited time. This is designed to increase the pressure on you, the consumer, to purchase a product. Because the price is lowered the deal is hot, so the manipulation of this variable is akin to increasing the temperature. Now because the sale is for a day, a weekend, or at best a week, the window of opportunity is short.

Where Kohl’s really amplifies this is in their basic pricing policy. Now I don’t have scientific data to support this, but just go there and look at the price of something that is not “on sale.” It is well above what you would pay elsewhere. So, when Kohl’s marks something down by 70%, the seemingly good deal, is actually only marginally better than a regular price elsewhere. However, the pressure exerted by limited time and perceived discounting is extremely effective in generating impulse buys.

Now, imaging you buy that sweater for 80% off, and do get what you believe to be an amazing deal. Here is where they really capitalize. You now need pants to go with them. Because it is easier to just get them while you are then, instead of taking the time to go somewhere else, you purchase the pants at a price that delivers a huge margin for the store. Brilliant. Kohl’s maximizes this impulse by locating farther away from the competition in strip shopping centers - not in the mall where comparison shopping is easier.

Am I saying that the shirt you got for $4.00 marked 90% off was a rip off. No way. It was a great deal. Just realize that there is more to the sale than the cheap shirt - there is the rest of the outfit that comes with a price. Kohl’s is masterful in manipulating price and time to generate pressure to purchase. Thus, they are a great illustration of the ideal gas law in the context of marketing.

Where do you see this concept illustrated? Please share your thoughts by leaving a comment.