It's amazing to be in a position where you can just create value and people will find and pay you solely based on that. But I don't think that path is available to just anyone without connections or quite a bit of luck. I guess marketing is the dirty thing you gotta do to lift yourself up by your proverbial bootstraps, and anyone can do it regardless of where they grew up and how much money they got. Somehow, that thought makes it all a bit less depressing to me.
If supplier A has a product of quality Q at price P, and supplier B has a competing product of quality 1.2Q or 0.9P, all else being equal, we would expect B to prevail in the market, or at least gain a superior market share. However, if A's marketing budget is superior, a larger percentage of the market will hear about their product sooner, and will gain traction earlier. Since all businesses have finite viability, B may go out of business before the market has time to correct the distortion brought on by A's marketing.
There was no solution to this in Adam Smith's time, but we now have something that points to a solution: aggregated reviews/ratings from verified purchasers, indexed or curated in such a a way that is uniformley accessible and conveniently query-able to all market participants. In an environment where such a mechanism is universal, theoretically, there should be no benefit to marketing.
In theory, you'd need consumers to fund such an organization only until they had so much sway that a review from them became essentially mandatory for anyone to consider your product, at which time they could charge a fee to review a product without becoming beholden to the companies paying the fees.
Many years ago, when it was still fairly new.
I'd never recommend Angie's List, these days, though. It's pure garbage.
She also used to rely on Amazon reviews.
Again, it's a dumpster fire, these days. Absolutely worthless.
They are a charity funded by subscribing consumers. They don't get paid by the sellers so the incentive structure benefits the consumer. I trust what they write.
Widely used and viewed is value; less and less does a product evaluation work in isolation. So very difficult to evaluate products fairly in that sense. Something may be better but it's only in so far that your review agragation / index is a fair market for attention.
Think GitHub stars and amazon reviews for products or product hunt for new startups, or YouTube or LinkedIn views; all have their game of gathering attention / marketing that plays into products visibility and viability.
This couldn’t be more incorrect. In Smith’s day your sources of information would be interpersonal, or one of your local newspapers. Newspapers in the 18th century wore their bias on their sleeves and had very particular world views, they were anything but neutral. You might also learn about commercial interests in coffee houses where stock markets first developed. This was a place where people were trying to sell you something, like shares in a commercial shipping business.
I’m always astonished that people make these claims about Smith’s work without having read his books or any relevant history.
I trust three things: Recommendations from competent acquaintances, actually good review sites, and brands I've been happy with in the past.
My acquaintances and the review sites I frequent are pretty niche. If they weren't so niche, they'd probably inevitably become corrupted and promote the offering of whoever pays the most. I think it would be amazing if this could be scaled without the corruption, but I don't know how.
That leaves the brand recognition as the one thing that scales. And that mostly happens through marketing. You hear about something and eventually build enough trust to invest, and if the offering is good, you found a good supplier and they found a potentially loyal customer. I think that mechanic isn't so bad, though far from ideal.
This is yet another disproof of the nonsense belief that markets reward efficiency, which is good for consumers.
Markets are fundamentally about gaining advantage over others, and it's far easier and cheaper to gain advantage through manipulation and questionable forms of persuasion than by any other means.
Which is why everyone and everything is now drowning in toxic sludge.
Markets, lacking any sense of the collective good, inevitably produce a tragedy of the commons for the benefit of a small number of the most successful, persuasive, and least ethical predatory manipulators.
This is supposed to be "rational", but that framing is itself a manipulation.
There's nothing rational about drowning in toxic sludge. It's a specific moral policy choice, with predictably negative consequences that have played out over and over again.
This pov assumes that everyone engaged in "marketing" is remotely competent at what the are doing, both the product/service they are pushing and their own marketing effort.
I've seen plenty of people in LinkedIn just generating absolutely worthless noise that can't possibly reflect positively on them.
What? No, it doesn't assume any such thing. The mere fact that marketing is necessary implies nothing about the skill of those attempting it.