Thursday, December 2, 2010

Russotti's Paradox

Generally in marketing, whether its a specific consumer segment, a particular geographic target, a particular price point or a demographic, seasonal promotions or event driven demand - assumptions can become self fulfilling prophesies.

For example, people join gyms to get ready for the beach and to lose weight after the holidays. When do gyms advertise? Then all people join gyms when the advertising runs. Then advertising that runs during these periods is more effective than ads at other times. So no ads run outside these periods.

Women take more photos than men. So who are photo advertisements targeted to? Then more women buy cameras. Then over time ads are directed at women and less and less men buy cameras.

The Paradox:

Assumptions whether true or false - are self fulfilling - call it Russotti's Paradox.

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