The Physics of Marketing — Mach’s Principle

The Science Of Mechanics - Supplementary VolumeErnst Mach, was an Aus­trian Philoso­pher and Physi­cist. He lived from 1838 to 1916. His prin­ci­ple pro­posed the idea that “mass there influ­ences iner­tia here.” That means that the grav­ity of far away things affects how nearby things move. Thus motion is only mean­ing­ful when mea­sured against another object. For exam­ple, we know the earth is spin­ning because we can mea­sure it rel­a­tive to the stars. With­out the stars, or some other point of ref­er­ence, motion would be mean­ing­less. Because Mass is the crit­i­cal fac­tor in motion, and every object in the uni­verse is pulling on every other object, true motion can only be deter­mined by exam­in­ing mass.

[ Albert Ein­stein seemed to view Mach’s prin­ci­ple as some­thing along the lines of:

“…iner­tia orig­i­nates in a kind of inter­ac­tion between bod­ies…“[3] ] — wikipedia

So what does this mean to mar­ket­ing? How can you take the prin­ci­ples of a 19th Cen­tury Sci­en­tist and apply them to the mod­ern dis­ci­pline of Mar­ket­ing? What is the analogy?

On an aside, please stay away from “this is the guy that the Mach 3 razor is named after.” While this is a pretty eas­ily demon­stra­ble way that Mach impacted Mar­ket­ing, lets stick with Mach’s prin­ci­ple this week.

Please edu­cate me. Drop some sci­ence knowl­edge and leave your comments.

Mach’s prin­ci­ple — Wikipedia, the free encyclopedia

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7 Responses to The Physics of Marketing — Mach’s Principle

  1. David Esrati April 4, 2008 at 12:59 pm #

    OK Doc­tor–
    There are two fac­tors here to con­sider:
    1) the impor­tance of crit­i­cal mass in mar­kets: cell phones wouldn’t be pos­si­ble if you didn’t have a ton of sub­scribers. The cost of sup­ply­ing cell sig­nals to one client would make the costs astro­nom­i­cal. With­out the abil­ity to have crit­i­cal mass– you wouldn’t have a mar­ket.
    2) The move­ment of a com­peti­tor can set your busi­ness in motion. Again look­ing at cell phones– Apple’s intro­duc­tion of the iPhone forced every other cell maker, and ser­vice provider, to rethink their offer­ing and change the way they approached the hand­set and the deliv­ery of ser­vices.
    Both of these exam­ples apply to big mar­kets– that are still matur­ing. How­ever, if one looks at the soda mar­ket, you’ll see that juice, energy and branded and for­ti­fied water have been eat­ing away at the cola dom­i­nated mar­kets slowly and steadily– so you may have a third axiom:
    3) That any large mar­ket will be inter­est­ing to niche mar­keters that can scrape off just enough to be prof­itable, but not a threat. Steve Jobs coyly said his goal was 1% of the hand­set mar­ket, which the iPhone is well on it’s way to hav­ing plus more.
    How’s that for a start to your Physics of marketing?

  2. DAVIDeBOWMAN April 4, 2008 at 1:31 pm #

    Love it.

    I think the com­pet­i­tive part of mar­ket­ing is very applic­a­ble here. For exam­ple, a firm enjoy­ing 7% annual growth may view itself as doing well, Mean­while if the indus­try growth rate for that mar­ket that is at 20% they may be gone tomor­row. Motion has no mean­ing with­out some point of reference.

    I love the iPhone exam­ple. It was not long ago that the Razr from Motorola was the rage. It was every­where. Enter the iPhone, and overnight it was irrel­e­vant. Hence, Motorola is lay­ing off thou­sands of peo­ple today.

    iPhone is also great in that it did exert con­sid­er­able force on the mar­ket as a whole. It has made AT&T a legit­i­mate player, and shifted power — at least for now — away from the car­rier. Who knows for how long?

    Thanks David. Great Com­ments — as I would expect from you.

  3. DAVIDeBOWMAN April 7, 2008 at 1:32 pm #

    Some­thing else I was think­ing about with regard to Mach. The idea of the web as a mar­ket­ing tool seems to be very anal­o­gous. Espe­cially with regard to search. Clearly there are sites that exert con­sid­er­able grav­ity, pulling in traf­fic from all around the web. Still, in the inter­con­nected world of the inter­net, all sites are linked to one another and can affect one another as a result. Memes and con­cepts that are pro­duced else­where in the world can evolve, grow, and then find their way into my con­scious­ness — for­ever chang­ing my per­cep­tion of the world. A site unknown to me today, could be my favorite site tomor­row — and the favorite of a bil­lion oth­ers. As new ideas are cre­ated and spread, the rel­a­tive impor­tance of every­thing else on the web is altered — a process that is con­stantly happening.

    Any­one care to con­nect the dots further?

  4. Geoff D April 7, 2008 at 8:31 pm #

    While I can’t offer much in the mar­ket­ing depart­ment, I will use my psuedo smarts to chime in on the physics. If any­thing, it has stim­u­lated some thought in me.

    It turns out that Ein­stein actu­ally proved Mach to be wrong. One com­ment in the orig­i­nal post that lead me to dig fur­ther was ‘Thus motion is only mean­ing­ful when mea­sured against another object’. This is one prob­lem that Ein­stein addressed with his The­ory of Rel­a­tiv­ity. Ein­stein took Mach’s idea of mat­ter and motion and showed that even in an empty uni­verse, a body in motion would be able to sense motion.

    What is impor­tant is that Ein­stein used Mach’s ideas to come to a greater, more cor­rect solu­tion. Although dis­proven, Mach’s the­ory was incor­po­rated, and here’s where the link to mar­ket­ing may fol­low. In sci­ence and mar­ket­ing, one per­son (or entity’s) new line of think­ing stim­u­lates new thoughts and growth poten­tial that tran­scends even what the orig­i­nal the­o­rist had in mind.

    As an aside, whether you meant to or not, your most recent post (on 4/7) con­tains 3 prin­ci­ples of Quan­tum mechan­ics that you may want to con­sider for future weeks’ dis­cus­sions:
    (1) The Heisen­berg Uncer­tainty Prin­ci­ple
    (2) Entan­gle­ment
    (3) Shrodinger’s Cat Exper­i­ment
    Very dif­fi­cult to grasp on a phys­i­cal level (at least for me), but prob­a­bly very applic­a­ble to the world of marketing.

  5. DAVIDeBOWMAN April 8, 2008 at 12:38 pm #

    Geoff,

    Thanks for join­ing in the dis­cus­sion. Much of the pur­pose of this series is to stim­u­late thought, so even if I get the physics par­tially wrong, if con­ver­sa­tion hap­pens, I am headed in the right direc­tion. That is even more true when the con­ver­sa­tion yields greater under­stand­ing. Per­haps this is anal­o­gous to Mach and Ein­stein as you describe their rela­tion­ship. Fur­ther­ing that, my under­stand­ing is that they both sought out to prove that much of what New­ton said was not right. Still, nei­ther would have been able to gain that level of under­stand­ing with New­ton. This fits in well with the book Cre­ativ­ity that I ref­er­enced in the ini­tial post in the series. Cre­ativ­ity requires a domain that is accepted as truth. It is through chal­leng­ing the valid­ity of that domain, that cre­ativ­ity hap­pens. Thus Ein­stien needed Mach who needed New­ton, etc.

    I con­tinue to think about Mach with regard to the web. I was con­sid­er­ing the idea of cus­tomer sat­is­fac­tion and prod­uct qual­ity. How many unsat­is­fied users, each with their own “grav­ity” to exert enough mass to cre­ate change or destroy a com­pany for its actions. More specif­i­cally, how can the web amplify neg­a­tive word of mouth. It used to be that con­sumers had lit­tle in the way of cre­at­ing change. The power was held by large cor­po­ra­tions. While that is still true in some areas, the web has helped to illus­trate the fact that all things exert grav­ity on all other things. Choos­ing to talk pos­i­tively about some­thing ( a prod­uct, ser­vice, or com­pany) , talk neg­a­tively about some­thing, or not talk about some­thing at all has an impact. The web ampli­fies these con­ver­sa­tions. This inter­re­lated nature of the world is a key con­sid­er­a­tion for mar­ket­ing pro­fes­sion­als today.

    I will need to do some research on the other 3 prin­ci­ples you ref­er­enced. If they are not in the book I am using to guide this dis­cus­sion, I will find a way to add them in.

    Please keep chim­ing in with your thoughts. I value them tremendously.

  6. Monica the mmews April 9, 2008 at 11:58 am #

    David,

    I also was intel­lec­tu­ally stim­u­lated the arti­cle and com­ments. Hav­ing stud­ied physics exten­sively before decid­ing that chang­ing human behav­ior through communications/marketing was more chal­leng­ing, I first want to say that I’m excited about this dis­cus­sion in general.

    Now, to your point about each sci­en­tist need­ing the oth­ers before him…that is a true tes­ta­ment to the Mach prin­ci­ple. This is one area where I think if you were to apply Einstein’s the­ory of rel­a­tiv­ity, that Mach might actu­ally be a bet­ter fit.

    Yes, you can cre­ate ideas in a “vac­uum.” How­ever, the cre­ation and result­ing ideas usu­ally don’t stand the test of time. It is sub­se­quent cre­ation and ideas that chal­lenge the orig­i­nal that grow in strength and valid­ity. Exponentially.

    The down­fall is that I don’t believe cre­ativ­ity will ever reach a crit­i­cal mass and begin to regress the way the Mach prin­ci­ple pre­dicts. Or at least I hope it never does!

    I’m not sure I can con­tribute much from the web per­spec­tive, but I want to just also add that the Mach prin­ci­ple is espe­cially rel­e­vant to mea­sur­ing out­comes of communication/marketing activity.

    With­out know­ing where every­thing in the envi­ron­ment around you stands in rela­tion to pre-campaign, dur­ing cam­paign and post cam­paign, it is dif­fi­cult to deter­mine whether any change was affected and what the true change was/is. In a vac­uum it would be easy, but unre­al­is­tic. (Don’t worry, though, Ein­stein is still my hero!)

    I look for­ward to your next installment!

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