4 ms·
That's not how marketing works, now or ever. The sole purpose of marketing is to drive sales of a product or service. Marketing is profitable to the seller if
by rprasad 14y ago
That's not how marketing works, now or ever. The sole purpose of marketing is to drive sales of a product or service. Marketing is profitable to the seller if (a) it yields more customers/clients than in the absence of marketing expenditures and (b) net income is higher (either larger profit or a smaller loss). See e.g., Apple, which spends more on marketing every year than the combined GDP of several dozen small nations.
Removing marketing would not magically make everything cost cheaper; marketing is usually a small % of a product's costs. Several of my clients are multinationals selling various consumer goods; for them marketing is almost a rounding error compared to COGS, payroll, or facilities (i.e., less than 5% of gross expenses).
The primary effect of removing marketing is that suddenly all sellers and service providers would have difficulty reaching new customers. This would benefit existing companies, but it would kill startups of all kinds (tech and non-tech alike).