Is advertising and marketing really a sign of weakness?

Speaking at a recent investor relations conference, Amazon's Jeff Bezos announced that 'advertising is the price you pay for having an unremarkable product or service.'

Could it be that Amazon chief Jeff Bezos, the man responsible for brining personalisation to online retailing, sees online advertising as almost a sign of weakness?

Speaking at a recent investor relations conference, Bezos announced that ‘advertising is the price you pay for having an unremarkable product or service.’

While some brands would see advertising as the way to tell people effectively about your product or service, reported Ruth Mortimer of Marketing Week, could Bezos really see running advertising as almost a weakness to compensate for deficiencies in a company’s offer?

Granted, having a strong product or service that sells itself is clearly every website owner’s dream. But the reality is that keeping a product or service at the top of its game – at all times – isn’t always enough.

Even after averting threats such as brand fatigue or competition from fresher or cheaper competitors in the market, some brands still need to single themselves out from the overwhelming ‘noise’ made by other competitors.

A good illustration could be Marks & Spencer, which, it could be said, only began advertising in earnest after starting to feel the pressure after competitors appeared to offer the same quality and range of products and services.

But one thing worth noting about Bezos’ comments: Amazon does advertise – quite heavily – on Google’s Pay Per Click ad network. Take a look for yourself – it dominates the majority of searches for book titles.

Clearly, Bezos is talking more along the lines of brand building display ads.

Granted, brands like Amazon always benefit from first mover advantage, but any shortfall in price, superior customer service or delivery method could easily erode that advantage.

Advertising – in its many forms – is what happens when you can’t discount or cut operational costs any further.

Published: 09 Jul 2009

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