What the Hell is It That You Actually Do Anyway, Mr. Marketing Guy?

sleazyguy

Ahhhh, marketing. Few professions are as maligned as marketing. When I say the word “marketing”, no doubt your mind is flooded with images of sleezy skags in suits talking about how transmedia synergies are really hot with the teen male demo. Nobody could say it better than Bill Hicks:

But here’s the question: what IS marketing? Do you know? Do you really know? I’m going to go out on a limb and guess that if you absolutely, fundamentally hate marketing folks without reservation, you probably don’t actually know what marketing is. Or, rather, what it’s supposed to be. I’m a student at a graduate school that made it’s reputation on marketing, and I didn’t actually know what marketing was supposed to be until I took a marketing class. Marketing isn’t just advertising. It isn’t just focus groups and lowest common denominator bullshit. Continue reading

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Competitive Advantage and the Productivity Frontier, Or Why Dark Souls is the Ikea of Game Development

DarkSouls

One of the major figures of business academia is a man named Michael Porter. Porter, a professor at the Harvard Business School, is possibly most famous for his trademark “Five Forces Analysis”, but he is also the author of one of the definitive books on competition, Competitive Strategy.

Porter argues that efficiency, while important, is not enough to create a true competitive advantage. Even if a firm is using the most cutting-edge technology and best practices of an industry, to the utmost level of efficiency (what Porter refers to as “the productivity frontier”), all a competitor needs to steal the lead is to find a new best practice, technique, or technology and become just that much more efficient. In simpler terms, being the most cost-effective company only puts you in the lead until someone else figures out how to be more cost-effective (Porter calls this “expanding the productivity frontier”). Further, Porter argues that a firm can either iterate (do things better) or it can innovate (do better things), but it can’t do both at once: a new technology or product will, by definition not have an established best practice, so iterations must occur before that relevant productivity frontier can be found. Continue reading