The Hidden Price of Constant Product Tweaks
When a flagship gadget falls short of customer expectations, the instinctive fix is often to push a new version or an incremental upgrade. Executives rally engineers, reallocate budgets, and push the next model to the market. While the surface looks clean, the underbelly of this strategy is a maze of hidden costs that can bleed a company’s margins for years.
First, every iteration demands a new set of design drawings, engineering tests, and validation runs. Even a small change - an altered battery placement or a different color finish - requires new tooling and new assembly lines. Those tools can cost hundreds of thousands of dollars and take months to deploy. In the semiconductor world, a single die redesign can mean an additional $2 million in upfront spend and a 12‑month delay before the next batch reaches the factory.
Second, the supply chain becomes fragmented. A new component forces a new supplier, or a new shipment schedule, and every new node in the chain is a potential choke point. If one vendor delays, the entire launch stalls. The risk multiplies as you add more components. Over time, these supply disruptions translate into missed sales windows and a loss of consumer trust.
Third, customers experience brand confusion. They see a product that looks similar but behaves differently. Their expectations, built on previous models, are no longer met. This misalignment often erodes the perceived quality of the brand and makes it harder to command premium pricing. The result? A cycle of price wars, lower profit margins, and a steady erosion of brand equity.
When the market is already volatile, the cost of constant change becomes unsustainable. A company that invests heavily in product iterations may find that the incremental revenue gains simply do not offset the costs. The true measure of return becomes a complex calculation of engineering hours, tool depreciation, supplier renegotiations, and marketing spend - all of which can outweigh the incremental sales boost. It is in this environment that a strategic pivot toward influencing consumer behavior can offer a more efficient path to growth.
Competition Falls Short When the Market Shrinks
Most companies launch their strategy with the belief that they are in a growing market. New customers are expected to pour in, and every brand is vying for a slice of that expanding pie. This mindset works when the market’s size is increasing, because the influx of new buyers offsets the loss of a few loyal customers. The competition model is a zero‑sum game with a winning side that pulls ahead.
However, when the market reaches maturity or begins to contract, the playing field changes dramatically. The customer base shrinks, and the pool of potential new buyers dwindles. In this context, two brands that once enjoyed a steady flow of new buyers now compete for the same few prospects. The result is a downward spiral of price cuts, thinner margins, and a relentless squeeze on profitability.
Consider the traditional cable television sector. For decades, new households added to the subscriber base. The cable companies invested heavily in content and infrastructure to win these new viewers. As households began cutting the cord and moving to streaming, the subscriber pool shrank. The price wars that followed drove revenue per user down, forcing companies to cut costs, reduce service quality, and in many cases, sell off assets to stay afloat.
When a market shrinks, the only sustainable lever left is differentiation that opens up a new customer segment, not merely a tighter focus on the same segment. CEOs who cling to a “win‑by‑price” strategy risk turning their brand into a commodity that no one can afford to buy at a premium. The alternative is to influence the way consumers think and behave so that the market itself expands or shifts into a new direction.
Edward Bernays: The Original Behavior‑Shaping Strategist
The first person who articulated the idea that you could grow a market by changing people’s habits was Edward L. Bernays, often called the father of modern public relations. He distinguished public relations from advertising and marketing by stating that PR’s goal is to change public opinion and behavior, while advertising sells the product that already exists.
Bernays began each campaign by dissecting the existing public behavior that prevented his client from thriving. He mapped out the psychological barriers - whether it was a lack of awareness, a prevailing myth, or a social stigma - and then identified what needed to shift. Once he understood the required change, he chose a champion: an expert, a celebrity, or a respected institution that could credibly endorse the new behavior. By pairing that champion with a public event - like a demonstration or a press conference - he created news that naturally attracted media attention. The media, in turn, amplified the champion’s message, nudging the public’s perceptions and actions toward the desired outcome.
Bernays’ work shows how PR can be a catalyst for market creation. He didn’t create new products; he created new cultural norms that expanded the demand curve. His tactics were indirect, often using front organizations, letter‑writing campaigns, or expert testimony. These methods worked because they appeared authentic and came from trusted sources. The results were measurable: increased book sales, higher luggage purchases, and even a shift in breakfast habits.
How to Apply the Bernays Formula Today
The core of Bernays’ approach remains the same: generate an event, use the event to produce news, and let the news reshape public opinion or behavior. The modern execution requires a keen understanding of today’s media landscape and the psychology of online audiences.
1. Identify the Desired Behavior Change. Look at your product’s adoption data. Where do potential customers drop off? Is it a lack of awareness, a misconception, or a perceived barrier? Define the specific behavior you want to influence, such as “install the app before the first purchase” or “share the product on social media.”
2. Find a Credible Champion. This could be a respected industry expert, a beloved influencer, or an institution that the target audience trusts. The champion’s voice must carry weight; if the audience doubts the champion, the message falls flat.
3. Design a Compelling Event. It should be something newsworthy - a launch, a demonstration, a challenge, or a collaborative partnership. The event must provide a narrative that journalists can pick up on and that audiences can engage with on social platforms.
4. Amplify Through Media. Pitch the event to journalists, bloggers, and podcasters. Offer exclusive access or interview opportunities to secure coverage. Use press releases and media kits that highlight the human element behind the champion’s endorsement.
5. Leverage User‑Generated Content. Encourage participants to share their experience online. Provide easy ways for them to post photos, videos, or testimonials. The more authentic voices you can collect, the stronger the social proof becomes.
6. Measure the Impact. Track metrics such as media mentions, sentiment analysis, and changes in adoption rates. Use A/B testing to refine your messaging and event design. Iteration is key: the first campaign may not hit the mark, but the data will guide the next round.
In this modern iteration, the event can be a live webinar, a pop‑up store, or a viral challenge on TikTok. The news is the coverage that follows - articles, vlogs, tweets - while the shift in behavior is measured in concrete actions: clicks, sign‑ups, purchases.
Case Studies: From Hairnets to Bacon
Bernays’ influence stretched across industries. In the 1920s, the hairnet industry faced a threat when women’s hairstyles shortened. Bernays convinced health officials to mandate hairnets for restaurant workers, turning the product into a safety necessity. He also enlisted fashion icons to write about the elegance of long hair, reinforcing the industry’s relevance.
When the luggage market struggled to maintain relevance, Bernays orchestrated a partnership with colleges. By encouraging freshmen to buy suitcases, he created a new demographic of “first‑time buyers” who began to see luggage as an essential part of campus life. The campaign leveraged the authority of education institutions to validate the product’s importance.
In a more humorous but still effective example, Bernays organized a national soap‑carving contest for children to promote Ivory Soap. Kids were enticed to participate, and the resulting media coverage painted Ivory Soap as a fun, family‑friendly product. The competition also provided a natural avenue for user‑generated content, as parents and children shared images of their soap sculptures.
Finally, when bacon faced resistance from urban diners who preferred lighter breakfasts, Bernays engaged doctors to endorse a “hearty breakfast” featuring bacon and eggs. The medical endorsement gave the product an aura of healthfulness, countering the prevailing narrative that bacon was unhealthy. The campaign demonstrated how an expert’s voice can shift consumer perception even against strong counter‑arguments.
Modern Media: A Skeptical Audience, Yet Still Influenced
Today’s news outlets are far more skeptical than they were in Bernays’ era. Journalists are wary of paid pitches and can quickly spot front‑group messaging. That said, the fundamental human tendency to trust authoritative sources remains unchanged. Activist groups, think tanks, and even corporate PR teams continue to employ the same core tactics: creating a narrative, finding a champion, and staging an event that invites media coverage.
Take the 2016 U.S. presidential campaign. Media coverage was saturated with expert panels, policy briefings, and event‑based news. The strategic use of front groups - such as trade associations that issued position papers - helped shape public opinion on trade and immigration. These stories often appeared in mainstream outlets, influencing public discourse and, ultimately, electoral outcomes.
In the realm of environmental policy, grassroots organizations have used public demonstrations and expert testimony to pressure regulators. When a front organization staged a protest on a high‑profile bridge, local news crews documented the scene, while the organization’s spokespeople cited scientific reports from independent researchers. The resulting coverage shifted public sentiment toward stricter environmental regulations.
These examples underscore that while journalists may have tighter editorial standards, they still respond to compelling narratives that include credible voices, timely events, and clear, actionable information. The same formula that worked for Bernays works for any organization willing to adapt it to the digital age, where social media can amplify the reach of a single event far beyond traditional press coverage.
The Bernays Formula Reimagined for Today
In the current climate, the Bernays formula remains a practical framework for expanding a market. It starts with a clear goal: influence the way people think and act. The next step is to identify a champion who can speak truthfully and convincingly. The third step is to orchestrate an event that is both newsworthy and socially shareable.
From a practical standpoint, companies should treat the event as a content asset that can be repurposed across multiple channels. A live demonstration can be recorded and turned into a video series; a press briefing can be summarized into a blog post; a social media challenge can be extended with user‑generated content. The goal is to create a continuous feed of credible, engaging material that keeps the champion’s message at the forefront of public consciousness.
Media coverage acts as a multiplier. A single story in a major outlet can trigger a cascade of reposts, comments, and further reporting. Each subsequent mention reinforces the original message, gradually shifting public perception. The final, measurable outcome is a change in behavior - more product trials, higher purchase rates, or increased advocacy.
For leaders who have exhausted product iterations and are fighting for dwindling customers, the Bernays approach offers an alternative path. By strategically nudging public opinion and behavior, a company can unlock a new customer base or create a demand that never existed before. The key is to treat PR not as a marketing expense but as a strategic investment in the marketplace’s very definition.
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