What are Marketing's Timeless Truths?

When I first read Morgan Housel's Psychology of Money, I felt a palpable sense of anticipation and curiosity. Little did I know then how profoundly it would alter my perspective on money.?

The buzz around Morgan's second book was equally intense, and I, like many others, eagerly pre-ordered it, unaware of the transformative journey it had in store for me.

Morgan's second book is about the power of knowing what stays the same when making assumptions about the future. He explains it with a short story right at the beginning of the book.

Housel's friend was driving around Omaha with Buffett in late 2009. At this point, the global economy had grinded to a halt, and Omaha was no exception. Stores were closed, and businesses were boarded up.

Friend: "It's so bad right now. How does the economy ever bounce back from this? "

Buffett: "Do you know what the bestselling candy bar was in 1962?"

Friend: "No,"

Buffett: "Snickers. And do you know what the bestselling candy bar is today?"

Friend: "No,"

Buffett: "Snickers!"

And then, in that moment of silence, the power of the story hit me. It was a powerful lesson in focusing on what stays the same rather than what changes. At the beginning of Morgan's second book, this story sets the tone for the journey.?

Quite a few stories like this have stayed with me after I finished the book. Morgan has a story on how he narrowly escaped an avalanche after declining to go skiing with friends who unfortunately did not survive. This incident made him realize how life-altering decisions can sometimes be made thoughtlessly or randomly.

Morgan's premise is that human behavior doesn't change; one must examine the past and study human behavior to predict how the future will evolve.

Why is Knowing Marketing's Constants Powerful?

Morgan's new book made me rethink marketing fundamentals from first principles. The buzz surrounding artificial intelligence, automation, and mass personalization can be deafening, causing doubts and concerns about the future.

But if you were to apply Morgan's principles, you would have to start by thinking about what will remain the same instead of asking what will change in the future. So what are marketing's constants?

Value

Consumers will always seek value from your products and services. You can't or shouldn't deviate from your brand promise. How your customer's experience value will always change, but fulfilling a brand promise is the only way to ensure you build trust with potential and current customers.

Storytelling

We don't remember facts or opinions but always remember a good story. Storytelling has stayed constant over the centuries, even when technology didn't exist. Consumers always want to hear a good story; sometimes, those stories are advertisements.?

Morgan also expands on this in the book: as long as we are irrational, idiosyncratic, and biased toward ideas from our limited experiences, we will care about good stories and narratives.

Moats

Competitive advantages don't last, as change is constant in business. Nearly 53% of companies that made it to the Fortune 500 list in 2003 no longer exist today. Some believe these companies no longer exist because they either became complacent or couldn't evolve with time.?

But that isn't always true. Could any of us see COVID-19 coming and the devastating impact e that it would have on companies? Morgan states in the book that "risk is what you don't see."

Even organizations with a wide moat wouldn't have a competitive advantage after fifteen to twenty years. As network effects, intangible assets, and cost advantages don't last beyond a point.?

The organizations that have lasted on the Fortune 500 list have focused on constants for their business. Amazon knows people will also want low prices, vast choices, and fast delivery, while everything else could change; constants are table stakes.??

Trust, credibility, and relationships

Consumers will always value trust, credibility, and relationships. This holds true even for B2B businesses, where relationships play a significant role. Often, clients choose to stick with their current vendors because of the strong relationships they have built over time rather than switching to a different product or service.

Listening to Customer Needs

When you make predictions about the future, you can prepare for your customers' upcoming needs. This reminds me of the story of Levi Strauss. During the California Gold Rush, his company realized that the hardworking miners needed durable clothing to withstand the rigors of their work.?

This innovative idea was a game-changer, as miners flocked to Levi Strauss & Co. for the reliable, hard-wearing pants known as "blue jeans."

Interestingly, during the gold rush, those who sold shovels and other essential mining supplies earned more wealth than those who tirelessly scoured the land for specks of gold. This phenomenon gave birth to the enduring idiom, "During the gold rush, sell shovels."

If you follow Morgan Housel's principles, I'm sure you can find similar constants for marketing and business. If you haven't read the book yet, you can buy it from Amazon.

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