15/09/2025
Principle of Diminishing Marginal Utility in Marketing
"According to this principle, the utility of an item decreases as the supply of units increases (and vice versa)."
consequently in marketing it may imply that at first, your marketing efforts great benefits your company or organization and it dramatically gets you a better results.
In Nigeria for instance, I consulted with a woman and this was the offense she committed, the principle of diminishing marginal utility shows that the value a business gets from an additional unit of a marketing effort decreases with overuse. Over-relying on a single strategy can lead to diminishing returns, even if it was effective at first.
Below were the cr!me the brand committed. I'd edited to fit relatable narrative, and maintain anonymity.. .
Social Media Overload
A small fashion brand in Abuja, "Ankara Threads," built its initial success by consistently posting on Instagram. The first few posts generated high engagement and sales. However, the owner believed more was better and began posting ten times a day, sharing repetitive content. Followers grew tired of the constant, low-quality posts, and the marginal utility of each new post declined sharply.
Lagos Billboard Saturation
A new tech startup in Lagos, "QuickRide," found great success with its first major billboard campaign. The massive billboards along the Third Mainland Bridge created significant brand awareness and a spike in app downloads. Thrilled with the results, the company saturated the city with tens of billboards, placing them at every major junction and highway. Soon, the novelty wore off.
In marketing, what works well at first can become ineffective or even detrimental with overuse. The marginal benefit of each additional marketing effort decreases, and eventually, the cost can outweigh the gain. To be a successful marketer, you need to understand this and diversify your strategies to avoid hitting the point of diminishing returns.