Desperate Marketing

Desperate Marketing

February 7th, 2013 // 12:12 pm @

marketingThere is a growth in aggressive marketing verging on the desperate. Not only from the unscrupulous players there have always been, but now from major companies, why?

Facebook is placing “Suggested Pages” into our feeds, presumably having not been able to generate enough revenue from its traditional advertizing to support its share price, and shareholder expectations.

Mobile phone operators are sending us texts with adverts, much to many consumers annoyance.

My software protector MacKeeper actually managed to interrupt my home page every time I opened my computer with an advert to upgrade their product.

These types of aggressive marketing are signs of companies that have been unable to build solid relationships with their customers, and to persuade their customers to pay a commercial rate for their product.

Facebook is a great success in many ways, having hundreds of million users. But it has been unable to persuade users to pay even a modest fee for the service, in fact the mere mention of Facebook charging will send the blog world wild.

Other companies such as cell phone providers sell their product on price not value, and therefore feel pushed to sell advertizing on texts.

We live in fast moving and amazing times driven by new technologies, however the underlying truth remains one has to persuade customers your offering has value. The need for a clear value proposition is as relevant as ever.

The issue comes not from the Marketing department but from the top of the organization. It is those at the top of any company that must build the basic value proposition of the organization.

The danger is that in this fast moving world we forget that the basics of business have not changed. We still need to provide a service or product that the consumer will pay an economic rate for.

Failure to do so will destroy companies. A very high share value can generate cash to run a business, and in periods of high growth it is often a sensible strategy. However it cannot be done forever, and when it ends suddenly it can be disastrous for the organization.

As of today Facebook has a market capitalization of $68,000,000,000 yet it has no value proposition that the consumer is prepared to pay for. I am glad I am not a shareholder.

Category : Blog &Other Thoughts

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