Entrepreneur

0 readers

1 users here now

Rules

No Personal Attacks - criticism of ideas is allowed, attacking people is not.
Self Posts Only - links can only provide supplementary material. Your post must contain enough content to have a discussion.
No “How To Get Rich Quick” posts - This community is not about making a quick buck. Posts asking the community how to make $X, without making specific reference to a reasonable idea, are not tolerated.
Avoid unprofessional communication - Please treat fellow entrepreneurs like respected coworkers, label conversations if NSFW and avoid deliberate provocations.

Please feel free to provide evidence-based best practices, share a micro-victory, discuss strategy and concepts with a frame work, ask for feedback, and create professional conversation. Treat every post as if you're at work and representing the best version of yourself.

founded 10 months ago

MODERATORS

communick@indiehackers.space

Why do big companies save on product and spend on marketing? (alien.top)

submitted 10 months ago by quantum-fitness@alien.top to c/entrepreneur@indiehackers.space

25 comments fedilink hide all child comments

Okay riddle me this why do big companies save on product but increase spending on marketing and admin?

I was reading though Blizzard-Activision financial statement and saw how they increased spending on both sales and marketing and admin by more than twice what they increased spending on product development.

This is coming Ib the wake of the flop on their newesr CoD game. The same thing is happening for Creative assenbly and the total war franchise. Way to much time spend on milking the product and not enough on making a good product.

It seem to be something that mostly happens when the companies think they cant grow anymore. They live on past glory while they slowly tank the product.

However this really seems like a bad strategy. We have seen that with games like BG3, but it also seem to be the goals with stratgies like content marketing.

you are viewing a single comment's thread
view the rest of the comments

[–] Glad_Supermarket_450@alien.top 1 points 10 months ago

The reality is as long as the packaging looks good, the product can be subpar.

There’s always time to make it better, but it’s not a necessity if its profitable.

It’d be nice to have the complete product that performs amazingly in the beginning, but more often than not that feedback loop is necessary to improve it.

It’s an interesting catch 22. If its a good enough product then you don’t need to market it, is true to a degree. If we replace the word market with getting users / testers, then the feedback loop requirement is met & not only will the product improve but it’ll not need excess marketing.