Question

Topic: Other

Do Great Products And Services Need Advertising?

Posted by shaunabe on 250 Points
First, some definitions

1. Great products or services –products or services which dominate in their category or created a new category. They would be recognizable as successes because of market share or very rapid growth.
2. Advertising – to be specific, this refers specifically to activities which involve buying media.

I am currently identifying a number of companies that have successful products but have not spent much or anything on advertising. to understand what they are doing differently. For example, Starbucks ran its first TV ad over the holidays last year - how were they growing before then? Whole Foods doesn’t advertise as far as I can tell. Zappos does some print and search advertising, but allocates a chunk of what would have been ad budget, to custom service. What about Zipcar? Or Craigslist? Or Method Products? Or 37Signals Basecamp? Google didn’t spend their way to visibility either.

The goal is to have people think about how they allocate resources to activities like product development or customer services (i.e. making the experience better for their customers) versus various forms of advertising and promotion. And then identify some common themes among companies who choose to spend their ad dollars elsewhere.

Do you have examples of companies or products that have grown without (or without very much, relative to their competitors) advertising spending?
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RESPONSES

  • Posted by Jay Hamilton-Roth on Accepted
    (From: https://newsgroups.derkeiler.com/Archive/Rec/rec.arts.tv/2006-08/msg00935.h...)

    Porche
    Berkshire Hathaway
    Prada
    Rubbermaid
    American Standard
    Fender guitars
    In N Out Burger
    Krispy Kreme
  • Posted on Member
    Yeah, one of these companies is Wrike.com
    It's a Basecamp alternative that does not use any advertising - only the word of mouth or buzz marketing. And they are achieving good results. Wrike was ricently named the best in Productivity category of 2008 eWeek Excellence Awards.

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