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PhilTake #18 - The Power of Premise, Part 3

Business success or failure is often understood by looking at six critical elements called Morphemes. Last week we discussed Coca-Cola’s Coca-Cola’s 1985 failed New Coke product launch. and we’ll continue looking at that topic this week.

Coke is powerful global brand – and brand drives customer’s purchasing decisions. According to Seth Godin – Author of Linchpin, brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.

Coke’s decision to launch New Coke was primarily driven by customer taste tests indicating a preference for the sweeter taste. Remember, the premise is based on buyer behavior, not buyer preference.

That is worth repeating. The premise is based on what the customer actually does – not what they intend, hope or indicate they will do.

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