Apple recently overtook Exxon Mobil to become the largest company by market capitalization in the US. It was already the darling of techies and a classic case study in marketing, so it’s not unexpected it won the stock market too. As one of the only platforms where companies from extremely diverse sectors are pitted against each other, the stock market is indeed a great equalizer.
However, I would like to kick off a debate here specifically about the two extremely different markets these companies operate in – not the technology versus oil and gas industries, but the established versus the created markets, and more importantly, the way marketers view each of these.
Apple consistently creates its own market – launching products consumers do not even know they need until they see them, and the ensuing success is the sort of legend marketers will talk about for years to come. The petroleum industry, on the other hand, is not as glamorous, and seldom would you hear of a successful marketing campaign in this industry (except for a potential damage control campaign in the case of an oil spill).
Does that obviate the need for marketing in mature industries where customers have a good understanding of what they want, at what price they want it, and who to ask for it? Is the marketing function marginalized in such industries? Is it overshadowed by the more glamorous (and arguably more challenging), yet-to-be-created, marketing campaigns? After all, aren’t marketers more motivated with (apparently) larger challenges in such industries?
While I initiated this debate considering two different industries, the disparities exist even within the same sector. Consider the oil and gas industry, where most companies are well aware of automation vendors, their price points, specifications, etc. This is a highly regulated industry with only a few players (in many instances, state-owned enterprises) and few vendors around the world. Most contracts are tendered; sales processes tend to be driven by compliance and deviation, and proven track records. It’s easy to doubt the scope of marketing needed here given that contracts are awarded to the lowest bidder, but there is actually intense competition in this area, and hence a need for solid differentiation and rigorous (and possibly innovative) commercial models. Marketers also invest substantial time in enriching the customer experience given that future business depends upon the same limited number of customers.
Continuing the same example, consider marketing operational excellence software in the oil and gas industry. This is a solution with extremely low awareness levels (at least from what I have experienced in India). It is often seen as a good-to-have versus a must-have automation solution. That makes this an area marketers can shape with great campaigns. Marketers can do this not only through standard marketing channels, but also through substantial investments in educating customers of the need for operational excellence solutions. They have to fight the biggest and strongest competitor in this space, which is ‘do nothing,’ given the steep resistance to change in such critical applications. And this would take a long time, and sustainable marketing programs to have the desired effect.
So, which is the tougher job or the bigger challenge? Creating a marketing campaign for a product in a mature market? Or marketing a totally new product category or industry where there may be less competition, better pricing opportunities, and other benefits associated with being the first mover?
After all, aren’t short, tight deadline launches more thrilling than sustained, long-term marketing programs? What do you think? Do you prefer one over another? Do you believe one is more challenging than the other? Going back to the Apple and Exxon Mobil illustration, if the ‘best companies to work for’ lists are anything to go by, I wouldn’t be surprised if their ratings reflect their attractiveness for marketing talent too. Go ahead, air your views here. And while you are at it, enjoy these hilarious strips on disruptive innovations from the Dilbert series.
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