Comments on: The Unthinkable Future of Marketing http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/ Gaurav Mishra's Weblog on Marketing, Technology & Social Media Fri, 21 Nov 2008 19:43:23 +0000 http://wordpress.org/?v=2.5 By: Gaurav Mishra http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7041 Gaurav Mishra Mon, 30 Jun 2008 07:57:42 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7041 @Sandeep: It's amazing what happens when something becomes free. Free e-mail is used fundamentally differently from $1 a year e-mail. It's a mind-boggling exercise to imagine how a free laptop will be used differently from a $1000 laptop. @Vivek: It's an equally mind-boggling exercise to imagine what happens when the transaction cost involved in bartering (including certification for both products and parties), let's say a 2 year old $1250 home theater system with a 1 year old $1000 laptop, drop to zero. Actually, with "social shopping" around the bend, that's about to happen, in any case. @Sumant: Yes, you are right. This are basically ten manifestations of one unthinkable future. You are also right that, given the socio-economic context we operate in, it's almost impossible to imagine how an entire economy can work on a pay-what-you-want honor system. I'm not predicting that it will happen. I'm only trying to imagine what if it happens. @Sandeep: It’s amazing what happens when something becomes free. Free e-mail is used fundamentally differently from $1 a year e-mail. It’s a mind-boggling exercise to imagine how a free laptop will be used differently from a $1000 laptop.

@Vivek: It’s an equally mind-boggling exercise to imagine what happens when the transaction cost involved in bartering (including certification for both products and parties), let’s say a 2 year old $1250 home theater system with a 1 year old $1000 laptop, drop to zero. Actually, with “social shopping” around the bend, that’s about to happen, in any case.

@Sumant: Yes, you are right. This are basically ten manifestations of one unthinkable future. You are also right that, given the socio-economic context we operate in, it’s almost impossible to imagine how an entire economy can work on a pay-what-you-want honor system. I’m not predicting that it will happen. I’m only trying to imagine what if it happens.

]]> By: vivek khandelwal http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7038 vivek khandelwal Mon, 30 Jun 2008 06:31:32 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7038 how about the revival of the Barter System. The web is already into it ..maybe by the time these rules start ruling ..we can have the bartering too.. how about the revival of the Barter System.
The web is already into it ..maybe by the time these rules start ruling ..we can have the bartering too..

]]> By: Sumant Srivathsan http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7011 Sumant Srivathsan Tue, 24 Jun 2008 11:58:16 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7011 This is not really 10 futures, just one future with its spinoffs. However, as others have said, a lot of these behaviours don't hold economic water. The reason that so many products are free on the Internet is that they are subsidised in different ways, the most visible of which is advertising. This is not completely portable into the offline realm, where the costs of production are not only much higher, but also cover a much broader range. Cars will never be as mobile a product as cellphones, and neither product is as mobile as shampoo. This lack of mobility places extreme pressure on the business that makes them to recover their costs very close to the unit level, breaking down any opportunity to cover volumes. Your argument that people will pay through the honour system is flawed; even in the case of Radiohead and Nine Inch Nails (both released pay-at-will albums), neither band made much money through album sales. The albums were eventually released on CD at the regular $12 market price. This scenario is quite imaginable when economics becomes redundant. Unfortunately, the only situation where that is possible is one global nation and government that decides that everybody gets what everybody else has. This scenario ensures balanced mobility of goods which negates the need for money to be used as an intermediate in transactions. Maybe I'm not too clear about what I've just said, but I'm up for a discussion on the topic. This is not really 10 futures, just one future with its spinoffs. However, as others have said, a lot of these behaviours don’t hold economic water.

The reason that so many products are free on the Internet is that they are subsidised in different ways, the most visible of which is advertising. This is not completely portable into the offline realm, where the costs of production are not only much higher, but also cover a much broader range. Cars will never be as mobile a product as cellphones, and neither product is as mobile as shampoo. This lack of mobility places extreme pressure on the business that makes them to recover their costs very close to the unit level, breaking down any opportunity to cover volumes. Your argument that people will pay through the honour system is flawed; even in the case of Radiohead and Nine Inch Nails (both released pay-at-will albums), neither band made much money through album sales. The albums were eventually released on CD at the regular $12 market price.

This scenario is quite imaginable when economics becomes redundant. Unfortunately, the only situation where that is possible is one global nation and government that decides that everybody gets what everybody else has. This scenario ensures balanced mobility of goods which negates the need for money to be used as an intermediate in transactions.

Maybe I’m not too clear about what I’ve just said, but I’m up for a discussion on the topic.

]]> By: Sandeep Ramesh http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7008 Sandeep Ramesh Tue, 24 Jun 2008 08:43:42 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7008 Or maybe go a step ahead and create a free market, price-less product?? :-) Just as an aside - this talk reminds of the nascent email providers. They tried to lock in users with free service and then charge a fee for continued usage. Although there is no "free market pricing", it was probably an attempt to gauge value. Or maybe go a step ahead and create a free market, price-less product?? :-)

Just as an aside - this talk reminds of the nascent email providers. They tried to lock in users with free service and then charge a fee for continued usage. Although there is no “free market pricing”, it was probably an attempt to gauge value.

]]> By: Gaurav Mishra http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7007 Gaurav Mishra Mon, 23 Jun 2008 11:28:51 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7007 @Sandeep: I'm not sure how many of us love the typical PSU, but, yes, the basic idea is that a brand will exist only because we will want it to exist. @Blue: Precisely! Basically, since none of us will need money anymore, we will work only for the love of work. I think we should get together and write a sci-fi story about this unthinkable price-less future. @Sandeep: I’m not sure how many of us love the typical PSU, but, yes, the basic idea is that a brand will exist only because we will want it to exist.

@Blue: Precisely! Basically, since none of us will need money anymore, we will work only for the love of work.

I think we should get together and write a sci-fi story about this unthinkable price-less future.

]]> By: Blue http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7006 Blue Mon, 23 Jun 2008 11:17:54 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7006 So is everything going to be lovingly handcrafted by artisans? Because ultimately, what it breaks down to is: If no one needs money to buy things, then... No one needs money. Which means no matter how much you pay your factory workers, it won't matter because they, like everyone else, won't need the money. ("Money," which you can give to a brand but which neither the brand nor its consumers actually need, will be the equivalent of a 5-star rating on Amazon.) And, because no one would voluntarily work at a factory assembly line if they didn't need the money, it follows that all of your products will have to be lovingly handcrafted by artisans. Which, in the end, will probably only improve the quality. ^__^ So is everything going to be lovingly handcrafted by artisans? Because ultimately, what it breaks down to is:

If no one needs money to buy things, then…

No one needs money.

Which means no matter how much you pay your factory workers, it won’t matter because they, like everyone else, won’t need the money.

(”Money,” which you can give to a brand but which neither the brand nor its consumers actually need, will be the equivalent of a 5-star rating on Amazon.)

And, because no one would voluntarily work at a factory assembly line if they didn’t need the money, it follows that all of your products will have to be lovingly handcrafted by artisans.

Which, in the end, will probably only improve the quality. ^__^

]]> By: Sandeep Ramesh http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7005 Sandeep Ramesh Mon, 23 Jun 2008 10:10:10 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7005 Yeah...i kinda agree with this unthinkable situation. This is something like a creation of social value. @blue - loss making PSUs do exist. Raising money for a venture is not an impossibility - even with potentially zero revenue. For example - if a fantastic NGO is going bust, it can raise money. A situation where a NGO gets listed on a stock market and is seen as a peddler of social value is a sort of extension of Gaurav's concept. Basically - people want it to exist. And will ensure that it does. The power of the consumer. Yeah…i kinda agree with this unthinkable situation. This is something like a creation of social value.
@blue - loss making PSUs do exist. Raising money for a venture is not an impossibility - even with potentially zero revenue.

For example - if a fantastic NGO is going bust, it can raise money. A situation where a NGO gets listed on a stock market and is seen as a peddler of social value is a sort of extension of Gaurav’s concept. Basically - people want it to exist. And will ensure that it does. The power of the consumer.

]]> By: Gaurav Mishra http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7004 Gaurav Mishra Mon, 23 Jun 2008 09:20:01 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7004 @Aakriti: We are not talking about an auctioning system here. We are talking about a honor system. :-) @Aakriti: We are not talking about an auctioning system here. We are talking about a honor system. :-)

]]> By: Aakriti http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7003 Aakriti Mon, 23 Jun 2008 09:08:39 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7003 It is all very confusing...micro economically it doesn't make sense.. i mean an individual will not pay if he can get it for free...if we are looking at an auctioning system here for the smallest of products(bcos some product wud have a huge demand) Auctioning marketplcaes will come into place.. and therefore the free concept will not exist ? It is all very confusing…micro economically it doesn’t make sense.. i mean an individual will not pay if he can get it for free…if we are looking at an auctioning system here for the smallest of products(bcos some product wud have a huge demand) Auctioning marketplcaes will come into place.. and therefore the free concept will not exist ?

]]> By: Gaurav Mishra http://www.gauravonomics.com/blog/the-ten-unthinkable-futures-of-marketing/#comment-7002 Gaurav Mishra Mon, 23 Jun 2008 07:54:47 +0000 http://www.gauravonomics.com/blog/?p=1091#comment-7002 @Blue: Well, in my unthinkable future, the products won't have a price tag, but people will still pay (donate) money for it (#1). So, companies will only manufacture products until there are enough people donating enough money for them. So, in the basic scenario, the viable companies will always have enough money to pay salaries and the unviable companies will shut down, just like now. In any case, if the workers are underpaid, they can choose to use the products they want for free. If there are too many underpaid workers who can't pay for the products they need, more companies will become inviable and shut down, so there will be economic boom and bust cycles, just like now. I hadn't really thought through how wages and salaries are structured, but here's an interesting twist to my original scenario. The companies will pay both workers and managers a percentage of the profits, instead of a salary based on a per day or per unit wage rate, so all your pay will be performance linked. If people love the brand I work for, I'll become rich, except that I'll have no real need for money because I can already own whatever products I want to, for free. So, I'll donate part of my wealth to charity and donate the rest to the brands I like myself, including (hopefully) the brand I work for. :-) @Blue: Well, in my unthinkable future, the products won’t have a price tag, but people will still pay (donate) money for it (#1). So, companies will only manufacture products until there are enough people donating enough money for them. So, in the basic scenario, the viable companies will always have enough money to pay salaries and the unviable companies will shut down, just like now.

In any case, if the workers are underpaid, they can choose to use the products they want for free. If there are too many underpaid workers who can’t pay for the products they need, more companies will become inviable and shut down, so there will be economic boom and bust cycles, just like now.

I hadn’t really thought through how wages and salaries are structured, but here’s an interesting twist to my original scenario. The companies will pay both workers and managers a percentage of the profits, instead of a salary based on a per day or per unit wage rate, so all your pay will be performance linked.

If people love the brand I work for, I’ll become rich, except that I’ll have no real need for money because I can already own whatever products I want to, for free. So, I’ll donate part of my wealth to charity and donate the rest to the brands I like myself, including (hopefully) the brand I work for. :-)

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