Free Market Economy?

Venture capitalist Steve Jurvetson doesn't see any reason for startups to budget funds for marketing and tells businesses to go for "zero cost" marketing.

While I fully endorse the reasoning, such talk makes me think of the geek-inspired belief that there is some long tail nirvana in which purchaser and purchase are automatically connected in a frictionless way at zero cost. I find that more than a little disingenuous insofar as there is still a marketing cost in creating the product and the attributes which cause a purchaser to want to seek it out. This cost will not get close to the budget of a big advertising campaign online or off but there is a cost.

To deny this reeks of the "marketing = promotion"school of thought as opposed to "marketing = strategic and tactical elements that allow the customers’ needs (as defined by the customer) to be met". This was one of the things that prompted me to write my geek marketing 101 post - the fact that unfortunately there really is no such thing as a free lunch.