The Tribune

By D'ARCY RAHMING

PROFESSOR Philip Kotler, of the J.L Kellogg Graduate School of Management, is considered by many to be the 'Father of Modern Marketing'. About 25 years ago I attended, and worked for, this prestigious institution, fixing PCs and teaching staff how to maximise their use. This meant I got to hob knob with some pretty brilliant guys like Kotler, many of whom wanted to give me advice about my young life.

Kotler seemed a little lost around the PC, which in fairness was new to everyone back then. We would chat from time to time, and he was very friendly. I do wish I had the sense to learn some more things directly from him, but I hung out with the finance and economic professors. I only later learned how famous Kotler was. He's still around now, 81 years old, according to Wikipedia. I understand he has written several books and more than 100 articles on marketing.

From time to time I reread his classic book on marketing management that is used by so many universities. I have a 1991 edition, and I am sure he has updated it multiple times since then. Kotler had something very interesting to say about direct marketing, which I think was prophetic about the recent Facebook initial public offering (IPO). Yes, I know, 1991 was way before Facebook was ever even conceived, and maybe even before its founder was in first grade, but certain principles don't change.

But before I tell you what Kotler said, there are certain things to consider. First, there have been numerous articles predicting the death and downfall of Facebook, none being accurate. Second, the negative publicity affected the price. After much fanfare, the Facebook IPO launched at $38 per share. It quickly dropped to $27 and, at the time of this article, seems to be on its way up. The fact that the stock lost over a quarter of its value so quickly comes as no surprise to some and a shock to others.

Facebook has been labelled a new media channel, plain and simple. Just like newspapers, radio and TV, it is a place where people get information. It just so happens to be an electronic gathering place where people meet to socialise. Kind of like Starbucks without the coffee. In order for Facebook to be worth anything it needs something to sell, and that something is advertising.

And the way the advertising works on Facebook is why big companies like General Motors (GM) pulled their advertising. Facebook advertising is most successful with direct marketing techniques. Direct marketing is direct to the customer, and you don't need a sales force or, in some cases, even a marketing department. Professor Kotler correctly pointed out, as far back as 1991, that major companies are slow to adopt direct marketing because the people in marketing jobs are threatened by this type of advertising.

Fortunes will be made by those companies who master Facebook marketing. However, professional marketers need to adapt or die.

NB: D'Arcy Rahming holds a Masters of Management from the J. L. Kellogg School of Management at Northwestern University. A lecturer at the College of the Bahamas, Mr Rahming has clients in general insurance, retail, the health and medical fields, sports federations and financial services. To receive his marketing newsletter FREE go to http://DArcyRahming.com or contact him directly at darcyrahmingsr @gmail.com