Tuesday, January 12, 2010

A better word for marketing is demarketization

The word market means different things to different people. Adam Smith's idea was that markets are about competition, and competition auomatically keeps tabs on vendors and consumers. So actually markets are about competition.

However, if you are in the marketing business, market is just another word for opportunity, and opportunities tend to arise in places where there is little or no competition.

Check out famed internet marketeer Seth Godin's blog entry on Groucho Marx.

Seth states "It's extremely difficult to repair the market." What is he actually saying?

He's saying get out of situations where you have to compete directly. So for him, a market is a place where there is no competition, and when competition comes, it's time to get out.

That is the point to vendor lock-in. When you lock in your customer, you lock out the competition. And that is why software vendors love it so much. It demarketizes the customer relationship.

2 comments:

Tim Southam said...

Little countries like Canada, which were built on the back of cartels, are great examples of the virtues of demarketization. Just remind the geniuses behind the cartels not to try to ply their trades in actual large markets. They just get clobbered.

Barney said...

That is why everyone in Europe screams every time the EU tries to improve cross border competition, I guess.

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