Marketing is a Tax

"Marketing is a tax you pay when your product is unremarkable" is a quote from Robert Stephens founder of the Geek Squad. It has taken on a mythic-ness across the Internet and is a particular favorite among tech companies. There is incredible power and importance in Robert Stephens' 11 words. Blasphemy from my marketing mouth? Not on your life.

However, I fear many people may be misunderstanding the importance of this statement. Marketing in his sentence literally means traditional advertising and paid media. Folks use his quote as yet another grenade in the battle between the product / tech and marketing teams (sad). When a launch fails, all too often the marketers point at the product team and vice versa (sadder). I believe the genius of the expression that "good products market themselves" is misunderstood and has a ton to do with a stage in a brand's life and the nature of the product. Google search, yes. Google wave, no. Google is now running Chrome advertising which will drive search traffic. Tivo was a truly great, leading product without successful marketing and it struggled. Segway?

Hmmm. Marketing isn't just communications. Semantics feel important here. Marketing means: listening and anticipating on behalf of customers for the development of new products, distribution to make it easy to learn about about and access them, the experience you create in their delivery and service, plus how you communicate about them. Marketing (aka branding) can be the meaning that flows through it all.

I am a marketer on the frontier of what we marketers do, and it is hard to explain my role in any traditional terms. My work crosses product and communications. With technology and customers' changing use of it, the traditional siloed roles of NPD, advertising, tech teams, etc. don't necessarily make sense. A perfect iconic example is Steve Jobs. Do you notice how the tech folks see him as their hero? And so do the designers, the distributors, the businessmen, the advertisers, and the marketers. I love that. He was all of them. Another perfect example I like to use is Facebook. Every consumer products company wants to work with Facebook right now because that's where the customers are. So who do you send to the meeting with Facebook? Are they a media partner? Are they a distribution and sales channel for your product? Are they actually part of your product (eg games, payments)? Are they servicing through your social media team? In a corporate org structure, you could imagine sending 20 people to Facebook across NPD, Advertising and Media, Servicing, etc. It just doesn't work that way anymore. Many technology companies are media companies and the more they can integrate the creation, curation or distribution of stories (aka content), the more those silo lines can blur. As the Internet of Things emerges and the Internet is embedded in more and more everyday objects like cars and cameras, the possibilities get even more amazing. "Marketing" or whatever we are going to call ourselves has to keep up. And when we mash the old roles up, it is so much fun. We're just getting started. Let me give some examples.

Media marketing is part of the product itself...
Facebook "likes" is a perfect example. As you use the Facebook platform, you are broadcasting your interests in a very branded way by Facebook. This works extremely well, because the product by its nature is social. But what about other products that aren't literally social themselves?

Threadless. They run t-shirt design competitions through an online social network. According to Bonfire Social Media, Threadless "revenue is growing 500 percent a year, despite the fact that the company has never advertised, employ no professional designers, use no modeling agency or fashion photographers, have no sales force, and enjoy no retail distribution." However, they do understand social media and have built an active, empowered following of hundreds of thousands of people. The shirts become the media. They all carry the Threadless brand.

Product is part of the media advertising...
For the launch of Jay-Z's biography Decode Jay-Z, Microsoft Bing and Random House literally took pages of his book and placed them where he grew up in NYC. The product itself became the advertisement, instead of the traditional "author head shot, cover art and launch date." It also gave a reason for customers to explore the Bing technology rather than watching a video demo. I love this campaign. (Interesting, from May 2010 to 2011 Bing gained search marketshare from Google. In May 2011, Google started their largest traditional campaign ever).

So back to Robert Stephens' and his quote that rang across the Internet world in 2008 and is still reverberating today. What I have since deduced is that Robert Stephens was working with Crispin Porter + Bogusky around that time. To break the finger pointing between the marketing, sales and tech teams at Best Buy (who purchased Geek Squad in 2002), I bet Stephens' and his agency Crispin threw a white flag up to the tech and product teams to shift the dialog away from advertising. Geek Squad spent a considerable budget on marketing, just not all on traditional paid media. They shifted the expensive television media budget to "bake the marketing" into the product experience. The branding on the Geek Squad cars, the uniforms for the agents, plus more. They had custom made shoes that left tens of millions of guerilla marketing imprints of the Geek Squad logo. This brand story is even more amazing to me because Geek Squad is a service, not a tangible product, and their service is not inherently social or embedded in tech.

Robert Stephens has a very unique understanding of branding and an amazing relationship with his marketers. You can see the irony in using Stephens' words to dismiss the true, forward looking marketing leaders, branders or the function all together. These are the types of marketers who the product and technology dreamers might want to find in their organizations--the marketers who truly respect what they do and who may even know how to read a little code.

John Iwata the CMO at IBM says, "The marketplace is changing faster than the marketing function." Let's change that.
____________________________
Update 11/15/11:Timely video on Amazon and Facebook: Changing the Definition of Marketing.
____________________________
There are two really good reads I have found on this topic of silo-jumping: Marketing in a Time of Change by HHCL in "Please Read It Now, Now, Now" and not surprisingly, Baked In: Creating Products and Businesses That Market Themselves by Alex Bogusly and John Winsor. You can also read more about the original Geek Squad branding in this 1999 article in Fast Company.