A common argument goes: a company needs to advertise—abracadabra—profits.  Well, that’s not what is said, but that’s what it translates to.  The belief is a company just has to advertise and they’ll be profitable.  This is not how advertising works.  Advertising will get new customers into the door, but a good product is needed to keep them coming back.

The argument implies people are too dumb to tell if a product is good.  Yes, advertising is important, but its not the end all be all of a successful company.  According to this myth, the buggy manufacturers just had to advertise more and the car never would have sold; the candlemakers just have to advertise and we’d never have electric light.  If a marketing campaign is all that is needed, companies wouldn’t worry about customers’ demands.

A good must solve a problem or meet a demand.  That is, the customers demands.  If the good doesn’t do as advertised, the company will get bad reviews, the word will get out.  The company may even do well initially, but the profits will be short lived.  A company which advertises massive weight loss in a short time, cure cancer, etc., will have their cover blown as soon as customers use their products. 

Customers want their demands met.  If they are not met, the customer will stop patronizing.  If enough people do this, that is all that is needed to put that company out of business.  They do not have to be voted out of office at the end of their term, they can be put out of business right away.  Why would a company bother investing if nothing was needed other than marketing?  Demands matter.

It must be understood that marketing is not the only thing needed for profits.  No question about it, marketing is important.  Companies wouldn’t do it if it didn’t help.  No amount of marketing will make the horse and buggy out compete the car, or candle out compete the electric light.  Goods and services do improve, so does marketing.  With that, reviews of companies also improve.  Especially in the internet age, a bad product will be brutalized in no time.