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There's option 4: offer the absolute best value for money in your niche and don't have a digital media budget, rely on word of mouth instead. e.g. Costco, Tesl
by MichaelZuo 3y ago
There's option 4: offer the absolute best value for money in your niche and don't have a digital media budget, rely on word of mouth instead.
e.g. Costco, Tesla itself in the early 2010s, etc...
- amadeuspagel 3y agoCostco relies on membership, not word of mouth, and this is also how amazon got past google (amazon prime).
- ttymck 3y agoHow is membership a marketing channel?
- jwestbury 3y agoMembership is a hook -- once you have a member, they're more likely to buy from you. It's not really a marketing channel, per se, but it is a method of increasing sales. "Marketing" gets kind of murky at the edges, really. Consider Pike Place Fish Market in Seattle, who are famous for their fish-throwing, but have never actually spent anything on advertising -- are they marketing or not?
- ttymck 3y agoWhat? How do you increase membership?
- crowcroft 3y agoWord of mouth and PR are zero-sum games with even fewer winners than advertising. Nice if you can get it though.
- MichaelZuo 3y agoNot really? Sam's club is doing fine competing against Costco. And I doubt their 'digital media budget' is anything significant either.
- crowcroft 3y agoGroceries in the US is one of the largest and most competitive markets in the world. Two companies are absolutely the exception to the norm.
- MichaelZuo 3y agoWhy would being 'one of the largest and most competitive markets in the world' make it inapplicable as a counter-example? If anything, the higher the competitiveness, the better a counter-example it makes.
- crowcroft 3y agoI think we're probably coming into this from very different contexts which don't make for a conducive discussion online. https://www.facebook.com/ads/library/?active_status=all&ad_type=all&country=US&view_all_page_id=20582642681&sort_data[direction]=desc&sort_data[mode]=relevancy_monthly_grouped&search_type=page&media_type=all https://www.facebook.com/ads/library/?active_status=all&ad_t... https://adstransparency.google.com/?region=US&preset-date=Last+30+days&domain=costco.com https://adstransparency.google.com/?region=US&preset-date=La...
- MichaelZuo 3y agoYour second link doesn't make sense? Why would other companies advertising on costco.com relate to Costco's own advertising practices elsewhere?