· 2 min read

Marketing Money

Draft version

Word of Mouth

I understand that there are more things in the world then technology products but for a lot of technology products I don’t like ads.

Tesla does it the best.

They make a really really good product which is much better that what is offered by the competition and thus the words spreads by word of mouth.

As the industry will mature I can understand that the gap between your product and the competition is very less. Thus in that state to win the market you essentially have to try everything like Advertisements.

Marketing money

Ever heard of Beats by Dr. Dre. The product kind of sucked before they got bought off by Apple.

Their product money split was something like this:

40 percent marketing + beautiful cover 60 percent product

The reason for their survival was not that they had a good product. Bose was probably better in every way.

The only reason for their survival was every god damn music video used Beats in their video. Their packaging was too good.

On the other hand Bose was profitable just for their product.

Beats is not at the place it was in it’s hype years now. That is likely because Apple (it’s now parent company) has decided to focus more on product quality.

Over marketing a product while ignoring quality mean you get the initial sales but they as time passes you have to deal with user start disliking you.

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