Читать книгу Driving Eureka! - Doug Hall - Страница 34

The internet has created exponential growth in our ability to exchange information. On a much smaller scale, a similar increase occurred at the turn of the century before last in the USA.

From 1870 to 1910, there was explosive growth in the ability of the marketplace to exchange information. During this time period, 5.1 million phones were installed, railroads developed into an efficient national network, and the concepts of “brands” and national advertising were born. In just four years, from 1871 to 1875, the number of brands with registered trademarks grew nearly tenfold, from 121 to 1,138.

The consequence of this increased exchange of information was a marketplace that was closer to a true free market economy. As customers had more information, they could compare the value they received for their money. Those merchants who didn’t offer a meaningful point of difference (i.e., value for the money) soon lost sales and died.

Because the change in exchanging information came faster than most companies were ready for, the impact on the economy was deflation, as companies had to cut prices to win back sales. In total, there was a 30% decrease in the consumer price index during this time period.

The internet has created a 1,000X greater disruption than the introduction of railroads and national advertising. Everyone can know everything about a product. Differences that are marketing “smoke and mirrors” are quickly exposed. Having lots of money to spend on marketing is no longer a cure for mediocre nonprofit services or commercial offerings.