The Physics of Marketing - Absloute Zero

At just about -273 degrees Celsius, you reach the point at which all molecular motion ceases.  There is no heat.  None.  This is known as Absolute Zero, and it was developed in large part by Lord Kelvin.  In his honor, the Kelvin Scale, in which 0 degrees equals -273 C,  was named.  While scientists have some close to reaching absolute zero in laboratories, it may be impossible to accomplish because the act of measuring would require some level of heat be introduced.  Still, scientists have gotten really, really close to this temperature that is really, really, really cold.

There are some really “cool” things that happen to certain elements when you approach absolute zero, such as condensates - super cold liquids that can overcome adhesion and gravity to spontaneously flow out of their containers.  Needless to say, funny things happen near absolute zero.

So, from a Marketing Perspective, what is analogous to absolute zero?

I am inclined to say that the concept of the Long Tail, introduced by Chris Anderson, is analogous to this concept in some way.  The Long Tail states that, among other things, the internet empowers infinite consumer niches, and thus in a digital world where inventory is not much of an issue, there is a demand for just about everything.  So, that record you and your buddies made in the garage in 1976 might have one person out there somewhere, besides you, who is interested in it.  That record - once thought to be completely void of heat - now possesses a minuscule amount of movement.

Marketing professionals are paid to move products and services away from absolute zero - as far away as possible.  Marketing is some sense is about using resources for generating heat around a product or service, capitalizing on the Second Law of Thermodynamics (Thanks Geoff) to maximize the return on investment.   As the product life cycle would dictate, nothing lasts forever and today’s hot product becomes yesterday’s news pretty quickly.  Marketing moves on, and the product or service often loses heat until it finally dies - theoretical absolute marketing zero.

Still, the long tail being what it is, absolute zero for a product may never actually be reached.  As products or services approach this temperature, weird things happen.  Small groups of people may decide that they don’t want to let go of a product or service, and demand comes from seemingly out of nowhere to defy conventional wisdom.  That is why someone will pay $27.00 for the Shirt Tales lunch box on ebay.  Sometimes this remains isolated and sometimes the product begins to generate heat again and moves away from Absolute Zero.  Pabst Blue Ribbon comes to mind as a brand that was once near death, and then, somehow got to be trendy.  Now, bars in Columbus, Ohio can’t keep enough of it in stock to meet demand.  While this definitely differs from the absolute laws of physics, the ideas seem to be similar.

I am curious to hear from you on Absolute Zero.  How can you apply this to Marketing?  Please share your thoughts and join the discussion with your comments.

The Physics of Marketing - Conservation of Energy

This week’s Physics of Marketing post is about energy. It is clear when someone has energy and more clear when they lack it. Starbuck’s has made a fortune on regularly selling me cups full of energy in the form of caffeine laden black coffee.

Energy takes many forms, and is probably best thought of in terms of change or motion. Both are forms of kinetic energy. Potential energy is less intuitive, but equally important. It is the boulder at the top of the hill, which if nudged would descend with tremendous momentum, crushing anything in its path. While at rest, it is potential energy.

Conservation of Energy means that energy is neither created or destroyed, but rather that it simply is transferred from one form to another. There is a finite amount of energy, but seemingly infinite manifestations of that amount. Energy is the E in Einstein’s famous E=mc².. Energy is a fundamental part of the universe, and again is neither created nor destroyed.

So, how does the conservation of energy relate to marketing?

Immediately I was drawn to the idea of the interaction between a company and the consumer. The product or service offering of a company is designed to address some unfulfilled need of the consumer. “Wouldn’t it be great if that were bigger, faster, better, cheaper, more, easier, smarter, less, …” You get the gist. The consumer chooses if the need is important enough to act upon, and if so, can choose to seek help from a particular company. This all represents potential energy. The goal of marketing is to convert this into kinetic energy - initially this is a sale. But it does not end there.

If the initial sale goes well, there is a good chance that more of the consumer’s potential energy is converted to kinetic energy. This may take the form of repeat business. If things go exceptionally well, the consumer may choose to actively participate in the conversion process by spreading the word to friends and family. This positive word of mouth can deliver more kinetic energy. This should ultimately result in cash for the company - potential energy. At which point, the company might choose to invest in future innovation - potential energy.

Conversely, if the sale goes poorly, the conversion of energy from potential to kinetic follows a different path. If the experience is mediocre, most of the potential energy will likely remain unconverted, or will be converted by another provider. The consumer goes away, and the transaction is a one-time experience. If things go very poorly, large amounts of potential energy will be converted - this time to the detriment of the company. An angry consumer in the digital age can spread negative word of mouth far, wide, and fast. In instances where others share a similar negative experience, the result for the company can be devastating. . Consumers will move to competitors, and the company will struggle to survive.
According to Abraham Maslow, all people have needs. These needs constantly change form but always remain present. Thus energy is always present in the marketplace. Marketing seeks out potential energy. Great marketing maximizes its conversion to kinetic energy, and then back to potential energy again.

What do you think? Draw your analogy between Conservation of Energy and Marketing. Join the conversation and leave your comments.