Does Marketing Really Matter?

I was reading a story about MySpace in Wired, and it got me thinking about whether marketing matters within Web 2.0 given many of the most popular services – MySpace, Google, YouTube, PhotoBucket – were mostly created on the strength of low-cost viral marketing and word of mouth. Instead of expensive advertising campaigns or well-crafted PR initiatives, these companies offered compelling and useful services that resonated with consumers. So what role does marketing play within an environment that prides inside on low development, distribution and marketing costs? You could make a good argument that Web 2.0 companies with interesting and useful services can get away with one marketing person (albeit someone who can wear a variety of hats). Instead of marketing campaigns, Web 2.0 companies should just focus making their services better, meeting the needs of users, and using non-traditional tools (blogs, podcasts, e-mails from the CEO when someone signs up for a beta, etc.) to build a community and create a brand. Of course, these are marketing tools but they’re grassroots as opposed to hiring some slick marketing agency to “build” your brand.