Question
Does "Costco Wholesale" risk creating Long/short term problems by choosing not to advertise itself?
I just learnt that over the years of its existence, Costco has been able to make a fortune, create customer loyalty and customer relationships without a single form of advertising (by choice). With the evolution of the 21st century, are there any downsides to this choice? Since the world to becoming a group of networks (Facebook, Twitter, Myspace e.t.c), do you foresee any problems for Costco in years to come? Thank you. Oh sorry, i meant Public advertising (e.g. Billboards, Tv commercials, Adds on Buses, Radio jingles, internet banners e.t.c). Not the type that only gets sent to people who have paid for the membership. Thanks.
2 months ago - 2 answers
Best Answer
Chosen by Asker
They do not advertise to the general public because the general public cannot shop there and is irrelevant to them. "Membership" is the key to their marketing operation. They do advertise to their members, as a way to cycle them through their doors more often...thus creating additional sales that likely would not have happened on there own. They rely on word of mouth to expand their membership base...and because they have great products at great prices, and great service backing it all up ...they get great word of mouth. So by being able to advertise solely to their customer base, this makes their advertising monumentally efficient. 100% of their advertising is only seen by people who already believe in the brand, and have a proven track record of purchasing....a marketing managers dream come true.
by Doran P
2 months ago
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Other Answers
Well....I get Costco e-mails which highlight specials going on that week...I consider that a form of advertising.
by T.- 2 months ago