Frank Streifler in his AdWeek post entitled “5 Marketing Principles Brands Should Embrace in 2010″ explains this so well:

A Bain & Co. survey notes that 80 percent of CEOs believe their product to be differentiated, but only 8 percent of consumers agree. And Y&R’s recent Brand Asset Valuator found a 90 percent erosion in brand differentiation over the last 10 years. These are not just sad examples of illusory superiority, but a staggering statement of our industry’s failure to add value in the past decade.

It’s critical that marketers realize that the product itself is the most powerful brand-building tool. We’ve all heard it before: “innovate or die.” But today’s hyper-connected society adds a sense of urgency to this broadly accepted mantra because mediocrity is getting extinguished with increasing speed via social networks.

Because reality always trumps image, marketing needs to create real value versus just adding a perceived value. Marketers need to shape the offer — the product, service and experiences consumer buy — not just communicate it. Marketing becomes the product and the product becomes the marketing.

I would love to hear your thoughts on creating real vs. perceived value!