The Fed and Marketing?

It is arguably the most important "P" of the four Ps – pricing. While the Fed jumped in today to fend off what many of us have felt personally for the past couple of months, it’s so interesting to see how Marketing pops up everywhere. At any time. Prices rise to offset higher costs of raw materials (and to hedge against uncertainty in global liquidity), and Marketeers should take notice, regardless of their markets or products. By the way, has anyone seen how fast the prices of milk and eggs have risen compared to our paychecks??? Throw out the focus group results, tear up the usability metrics, and archive the elasticity curve data because in times of FUD, the data just don’t matter. If only I could mobilize and launch my FUD plan, I’d go directly after the consumers most susceptible to FUD – you and me.

So who wins in this crisis? OPEC, of course, by holding supply tight and/or raising prices. What a model. Google, too. Who else? The print and electronic media. Everyone is reading the WSJ and watching CNN.com for the latest news. Want to bet that ad prices arent falling? But honestly, I’m hopeful that Congress can agree on a stimulus package so that I can go out and buy something to do my part, all while considering the other three Ps (namely product, place, and promotion) as I do.

Speak with you soon. DC.