MSTM 508 Book Review - Free Prize Inside
MSTM 508 Book Review - Free Prize Inside
MSTM 508 Book Review - Free Prize Inside
Free Prize Inside: The Next Big Marketing Idea is a marketing and business
book written by Seth Godin and published in 2004 by Penguin Books that talks
about soft innovation, in contrast to big revolutionary changes, as a way to
make a product remarkable – that is, to possess attributes that make people
talk about it. While this is not an entirely new idea, per se, Godin provides fresh
approaches into dealing with the challenge of change in the context of
marketing and product development.
The book is written in a very informative yet conversational tone that inspires
its readers from all levels of the organization of their own personal potentials to
come up with remarkable ideas that could take any venture to success.
SUMMARY
As remarked by Seth Godin, the organization that wins is the one that realizes
that all it must do is create things worth talking about – highlighting the
importance of marketing. This is what the free prize is all about. A masterpiece
of 240 or so pages, Godin’s book may be widely divided into three parts:
1. Why you need the free prize
The first part of the book introduces the reader to the problems underlying two
of the so-called ‘most reliable ways’ to achieve growth in marketing a product
or service: big advertisement and big innovation. In the book, it was rationalized
that both methods entail large costs and bigger risks in achieving commercial
success. With the changing media, traditional promotion through
advertisements is not anymore as effective as it was before. Likewise, big
innovation using expensive research and development technology does not
guarantee commercial success of a certain product or service.
On this note, Godin introduces the concept of having a free prize or the use of
soft innovation as the next big marketing solution. According to him, these refer
to clever, insightful and useful ideas that practically anyone in the organization
can think up. It seeks to make a product remarkable by solving problems
surrounding it, and giving it an essential element that people will talk about.
Free prize is thus termed for this sort of innovation because the revenue
associated with it can be far greater than the cost of implementing it.
In this part, Godin recognizes that the difficult part isn’t finding the free prize,
but getting the rest of the organization to embrace it. It doesn’t matter whether
the idea is good, in Godin’s words, there is no correlation between how good
one’s idea is and how likely the organization is willing to embrace it.
According to Godin, great ideas, not necessarily perfect ones, exist every day
if one only knows where to look. Furthermore, these ideas should not be kept
secret. In Godin’s own words,
“Ideas in secret die. They need light and air or they starve to death. The more
you share your ideas with, the more likely it is to become real.”
These ideas can then be transformed into the free prize, which is defined as
the element that transcends the utility of the original idea and adds a special,
unique element worth paying extra for, worth commenting on.
A lot of examples on edgecraft are provided in this chapter apart from several
ways how one can discover his free prize. If the people get to notice the free
prize in the product or service, then the product itself becomes the marketing.
ANALYSIS AND EVALUATION
People can find the free prize that will transform their companies. The book
talks about many concepts including soft innovations – cheap, clever and small
changes which take a business to the next level instead of High Tech patents
and R&D in organizations.
While the message of the book is not entirely new, Godin presents the idea in
an attention-grabbing and inspiring manner. His playfulness and common
sense make the book fun and easy to read; in contrast with other heavily written
books in business and marketing. The book also comes with interesting case
studies the define "free prize" thinking – e.g. Apple's iPod, Chef Boyardee's
prehistoric pasta, AOL's free installation CDs, among many others – to make
sure he gets his message across in the discussion of his points.
However, one comment that I would like to note is Godin’s persistent usage of
his self-created jargon, e.g. free prize, purple cow, edgecraft, etc. sometimes,
this new vocabulary complicates the discussion of several issues making some
parts of the book hard to understand. Also, since the book had been published
in 2004, many of the technological innovations cited are already old and out-of-
date. I would like to suggest an update as far as the examples are concerned.
All in all, Free Prize Inside: The Next Big Marketing Idea is a very fun and
inspiring guide that opens a lot of possibilities for innovative marketing that
really works. Since today’s consumers are more calculating and cynical, the
products and services that businesses offer them must be more than just hype
and clever advertising.