The Physics of Marketing — Newton’s Law of Gravitation

Sir Isaac New­ton makes his sec­ond appear­ance in this series with his Law of Grav­i­ta­tion. Per­haps one of the most widely known prin­ci­ples of sci­ence is grav­ity. I say this know­ing that while most peo­ple could prob­a­bly not explain grav­ity very well, just about every­one under­stands the idea. This was Newton’s block­buster idea. It explained ocean tides, comets, and even led to the dis­cov­ery of Nep­tune.
So what is Newton’s Law of Grav­i­ta­tion about? Well, here goes…
New­ton basi­cally asserted that “every object in the uni­verse attracts every other object along a line of the cen­tres of the objects, pro­por­tional to each object’s mass and inversely pro­por­tional to the square of the dis­tances between the objects.” This the­ory served to explain much of the ear­lier work of Kepler in one con­cise the­ory. While Newton’s Law of Grav­i­ta­tion was later proven not to apply to all objects (black holes and sit­u­a­tions with extremely high grav­ity) by Ein­stein, his work is a foun­da­tional part of mod­ern sci­en­tific thought.

So in my fee­ble mind it seems that Mass and Dis­tance are the keys here. Now how to take these ideas and put them in the con­text of Marketing?

Because peo­ple are not always ratio­nal, I am not sure you can apply an equa­tion to human behav­ior with much pre­ci­sion, but I def­i­nitely think that there are par­al­lels to be drawn. Here is my first take. Think about cus­tomers. Big brands get big atten­tion. Peo­ple know Coke. Peo­ple buy Coke. Coke is mas­sive. Coke has pull.

So how do lit­tle brands stand a chance of get­ting some “pull” with cus­tomers. The answer lies in prox­im­ity — the other part of Newton’s The­ory. Small com­pa­nies must get close to the cus­tomer in order to stand any chance of sur­vival. They can actu­ally use this to thrive and exert con­sid­er­able influ­ence if prop­erly exe­cuted. Would a proper anal­ogy be the impact of the rel­a­tively tiny moon on the Earth’s tides as opposed to the sun’s impact on them? (I ask because I am not a sci­en­tist) The moon has huge pull on the Earth’s oceans, and impacts the tides because of prox­im­ity. Cer­tainly it has far less Mass than the giant sun. Still it is close. So, con­tin­u­ing my exam­ple in the world of soda pop, (using both terms to be user friendly) Jones Soda has done a great job of being “the moon.” They decided to get close to con­sumers — actu­ally putting pho­tographs of them on their pack­ag­ing. This has allowed them to build a loyal fol­low­ing of con­sumers who are engaged with their prod­ucts. They con­duct events that are designed to be built around the con­sumer as well. They have done a mas­ter­ful job of uti­liz­ing this prin­ci­ple to cre­ate growth.

Here is the rub for most com­pa­nies. How to main­tain that prox­im­ity. Star­bucks is feel­ing this pain, Jones is prob­a­bly going through it as well. As you gain more mass, it is actu­ally more dif­fi­cult to remain close to the con­sumer. The prox­im­ity or close­ness to indi­vid­ual con­sumers tends to suf­fer as com­pa­nies expe­ri­ence growth. The dis­tance increases, and they exert less pull. In sum­mary the moon becomes more like the sun, just not nearly as big. Thus the advan­tage it enjoyed thanks to prox­im­ity is destroyed. Jones becomes more like Coke, but with­out the Mass to sus­tain the gravity.

Won­der why your favorite brand “sold out?” Well because they were faced with this dilemma. How to stay close and simul­ta­ne­ously get big. How to main­tain or increase pull? “Sell­ing out” is just a nat­ural part of that. Peo­ple inevitable pick Coke, because it car­ries a lot of weight. It has mass — and thus grav­ity. It pulls peo­ple back. To sus­tain that mass Coke invests in Mass media, mass dis­tri­b­u­tion, mass expo­sure. It must sell a lot of soda pop to sus­tain that mass and grav­ity. This is why small com­pa­nies don’t need super­bowl ads to thrive. They need super cus­tomer service.

Mar­ket­ing in my mind is all about the cus­tomer. You can have grav­ity through mass or prox­im­ity. You might be able to get both, but often you have to choose. There is no “right choice” but rec­og­nize that with that choice comes the impli­ca­tions of grav­ity. Growth for growth sake — more mass — might not always be the answer.

Alright, so that is my take on Mar­ket­ing and Newton’s Law of Grav­i­ta­tion. What do you think? How does New­ton apply to the mod­ern world of Mar­ket­ing? Please enlighten the world with your thoughts.

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9 Responses to The Physics of Marketing — Newton’s Law of Gravitation

  1. Tim Bailey April 26, 2008 at 8:11 pm #

    Very elo­quently put David.

    A thought akin to your soda analogy:

    As you may know, I recently bought my first home with my fam­ily. I knew that there was going to be some main­te­nance work…but I have found that my gross under­es­ti­ma­tion has found me tak­ing trips to home improve­ment stores weekly-plus.

    Here lies a per­fect exam­ple of how Newton’s Law of Grav­i­ta­tion seems to apply to mar­ket­ing. It was the week before easter and I had been in my neigh­bor­hood Ace True Value pick­ing up a gas­ket that I needed to make a minor plumb­ing repair. While I was in the store, I noticed that on that Sat­ur­day they were host­ing their annual Easter Egg Hunt. Nat­u­rally, I decided that I was going to take my 5 year old girl to the hunt (gives me a chance to spend qual­ity time with the lit­tle one and be in a hard­ware store at the same time). Now the egg hunt was very folksy. It was an hon­est effort to do some­thing nice for their cus­tomers. It did not go off with­out a hitch (they ran out of eggs), but at the same time, it was a clear mes­sage of appre­ci­a­tion and giv­ing some­thing back. Any­way, the crux of the story is that this par­tic­u­lar store, although it does not have nearly the mass of a Lowes or Home Depot, has a high grav­ity not only because it is close, but also because of things like Easter Egg hunts and other events that tell the cus­tomer base that ‘we are close AND we care’.

    The inter­est­ing fact related to this won­der­ful hard­ware store is that I, unfor­tu­nately would not travel far out of my way to go there. Had I lived around the cor­ner from one of the big box DIY stores, I would have bought my gas­ket and been on my way. Why? Because mass and dis­tance affect our buy­ing habits, no mat­ter how hard we try to say they don’t. It seems to just be the sci­ence behind business.

  2. Doug Dockery April 27, 2008 at 9:23 pm #

    Dave:

    Great post — I’ve learned a great deal from your Physics of Mar­ket­ing series of posts. I’m look­ing for­ward to the next one!

    Best -

    Doug

  3. Rohit Mishra April 27, 2008 at 11:57 pm #

    It is always about ser­vice David. Even for the big mass like “Coke” . When a food-research insti­tute pub­lished reports about pres­ence of harm­ful amount of pes­ti­cides in Coke and Pepsi a cou­ple of years back in India, both brands took a big hit. It was only after a long-drawn adver­tis­ing cam­paign where Pepsi used the tagline “Same Stan­dard World­wide” that con­sumer con­fi­dence grew back into these mega-brands.
    Rohit

  4. Chad April 29, 2008 at 8:11 pm #

    I think mass and dis­tance are both impor­tant. How­ever, the law of grav­i­ta­tion states that dis­tance has a greater influ­ence than mass. The grav­i­ta­tional force between any two bod­ies can be described as follows:

    F = G*M1*M2/d^2

    So the force (F) is lin­early pro­por­tional to mass but the dis­tance effect is squared. So if you dou­ble the dis­tance (d), the force drops to 1/4th. Being close to your cus­tomers is more impor­tant than being big.

    I think a good anal­ogy is my per­sonal choice in oper­at­ing sys­tems. Microsoft is huge, it has an extremely large mass. How­ever, their anti-competitive busi­ness prac­tices and high cost soft­ware push me away from them. As a result, I have begun to grav­i­tate towards Linux and open source soft­ware. Now Linux has only a mere frac­tion of the mass as Microsoft, how­ever they are “closer” to me in terms of con­cept and in cost. There­fore, they have a greater pull even though the mass is con­sid­er­ably less.

  5. davidebowman April 30, 2008 at 7:17 am #

    If being close to your cus­tomers is truly more impor­tant than being big, do you won­der why it tends to be such an after­thought? Play to your strength. If the strength of a small firm is prox­im­ity to the cus­tomer, than intu­itively the focus should be on get­ting closer, not big­ger. This might be akin to what Seth Godin described as “share of wal­let” as opposed to the typ­i­cal focus on “share of mar­ket.” Deeply under­stand­ing the needs of cus­tomers, iden­ti­fy­ing, antic­i­pat­ing, and solv­ing their prob­lems yields prox­im­ity. Adver­tis­ing can deliver big­ger, but under­stand­ing gets you closer. Grav­ity is pretty damn inter­est­ing. Thanks Isaac Newton.

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