When it comes to building a profitable business, the debate often centres around two key questions:
- Should you focus on delivering the highest quality product or service?
- Or should you prioritise making it marketable and accessible?
Recently I watched a video by Hiten Shah which offered valuable insights that challenge conventional thinking and highlight the crucial role of marketability in driving success by delving into the success of ‘startup cloner’ Rocket Internet. I highly recommend watching the video after reading this article.
You can check it out by clicking here!
The Profitability Perspective
At its core, profitability is about balancing costs and revenue. Offering a high-quality or unique product can set your business apart, but it’s not enough if no one knows about it. Conversely, providing a more accessible or “easy-to-find” service may capture immediate attention but risks blending into a crowded market without differentiation.
The Singer Analogy: Marketability in Action
Imagine two singers:
- The first has moderate talent but knows how to captivate audiences with a strong brand, excellent marketing, and the right connections. They’re everywhere—on streaming platforms, social media, and consequently award stages.
- The second has extraordinary vocal talent but performs only on street corners. Despite their skill, their audience is limited, and their reach is constrained.
The first singer’s marketability trumps the second’s quality in terms of profitability and reach. Similarly, in business, even the most exceptional product needs visibility to succeed.
Lessons from the Rocket Approach
Hiten describes Rocket as ‘shamelessly cloning startups’. However, he also emphasises their strategy underscores the importance of investing in marketing to scale a business effectively. Rocket would identify a startup’s business model, replicate it, and strategically target regions where the original business had no presence. By aggressively marketing the venture, they ensured rapid growth and dominance in the new market. This approach generated Rocket Internet billions!
Their strategy focuses on these principles:
- Prioritise Marketability: High-quality offerings are valuable, but they must be visible and resonate with the target audience to generate revenue. This involves strategies such as creating a strong brand identity, leveraging digital campaigns, and ensuring a consistent presence across
- relevant channels.
- Invest in Visibility: Allocate resources to amplify your reach through marketing campaigns, social media presence, and customer engagement.
- Focus on Profitability: While quality adds value, profitability often depends on how well your offering aligns with market demand and visibility efforts.
Household Names That Excelled Through Marketing
Creating an innovative new idea is often not as valuable as creating an innovative marketing scheme. Like Rocket’s companies, many household-name businesses weren’t the first of their kind but outshined competitors through stellar marketing strategies:
- Coca-Cola: Despite not being the first soft drink, Coca-Cola’s innovative advertising campaigns made it a global icon.
- Apple: Not the first in personal computers or smartphones, but its marketing focused on design and user experience, creating a cult following.
- Nike: Entering a crowded athletic shoe market, Nike’s “Just Do It” campaign and endorsements made it a leader.
- McDonald’s: In a competitive fast-food market, McDonald’s thrived by branding itself as family-friendly and emphasising consistency.
- Netflix: Though not the first streaming platform, its marketing of original content and personalised recommendations set it apart.
These examples highlight how great marketing propelled these companies to dominate their respective industries. For instance, Coca-Cola’s memorable advertising cemented its global presence, while Apple’s focus on user experience and design cultivated a devoted customer base. By strategically branding themselves and employing impactful marketing, these businesses outshone their competition, proving the transformative power of visibility and resonance in the market.
The Importance of Marketing Investments
Marketing isn’t just an expense; it’s an essential investment in your business’s growth. By making your product or service visible to the right audience, you’re not only increasing sales but also building a brand that people trust and remember.
While it’s challenging to prescribe a specific percentage of your budget for marketing, the Rocket Internet approach underscores the importance of spending enough to ensure your offering gets noticed. Businesses that undervalue marketing risk falling into the “street busker” trap—brilliant but unseen.
Final Thoughts
In the competition between quality and marketability, neither is inherently more important. The key lies in understanding how to balance them to achieve profitability. Rocket Internet’s approach reminds us that the key to growth is visibility; however, the key to longevity is quality.
By focusing on marketability and investing in visibility, businesses can turn potential into profit, ensuring their products or services not only stand out but also reach the right audience.
Ready to take your marketability to the next level? Contact us today to see how we can help amplify your brand’s reach and profitability.
