Consider these stock prices:
Apple in 2000: $23 | Today: $566
Amazon in 2000: $30 | Today: $228
Microsoft in 2000: $58 | Today: $31
Netflix in July 2011: $295 | Today: $77
What lesson do these numbers teach? That consumer excitement — which we create through excellent marketing — is correlated directly, positively and precisely, with stock price.
Apple, with its best-in-business consumer energy, has seen its share price increase a ridiculous 25-fold in the last 12 years. Amazon’s share price has enjoyed a nearly eight-fold increase in those 12 years for similar reasons: powerful marketing, deeply understanding its customers, and developing evangelists.
Meanwhile, Microsoft has seen its stock price nearly halved in the same time period — even while making more money than both Apple and Amazon for many of those years. Why? Poor marketing. Low market energy. Few evangelists.
Finally, for a more micro picture, consider Netflix: In a six-month period last year, due to a horrible series of marketing decisions, Netflix lost many of its evangelists, most of its positive customer energy, many customers, and two-thirds of its stock price.
These lessons apply to startups and publicly traded companies equally: if you want increase your value to investors, improve your marketing and focus your efforts on building market passion for your products.
Because as goes customer energy, so goes the value investors perceive.
I help clients dramatically increase sales through powerful marketing. My clients include TiVo, Logitech, Sony and Pandigital. See my Web site for details about my work
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