Marketing – necessary evil?
Posted On March 23, 2017
Is marketing “a necessary evil” and an overhead? Some companies may feel this way if they have had a bad experience. I know that businesses need to be careful with their budgets! But whoever made this remark was clearly not getting their marketing right. Marketing should be the biggest and best investment you can make to enable your business grow.
What is Marketing?
It all depends on how you define marketing. Some people think of marketing as making brochures, websites, exhibition stands and fluffy PR. It can be viewed as a little arty by those on the engineering side of things. However those aspects of marketing should really come under the heading of Marketing Communications. The real scope of marketing is wider than marketing communications on its own. The classic marketing concept of the”Four Ps” defines it perfectly. Marketing is: product, placing (for this read distribution or route to market), pricing and promotion. In most companies, the marketing department focuses on promotional work, but the four Ps model is spot on because it puts the elements in the right order. It tells us that there is other work to do before any kind of promotion can be successful. The product has to be right, the pricing has to be right, and the route to market has to be prepared.
I will add a note here about markets. The size of a market dictates the size of the opportunity for an individual company, but there will be competition. The number and relative strength of competitors in the market affects the share that each player can achieve.
Promotional marketing will only succeed if certain other things are considered first. There should be research to understand the size and scope of the market, competitors, and the potential demand for a product or service. Then the product or service must fit with that demand, at a viable price.
If the background research has been realistic, and if the product or service design and pricing are right for the market, then the promotional work should bring good results.
If there is a real opportunity in the marketplace, increasing your promotional work should bring an increase in business. Businesses that do their research and invest more in promotion than their competitors will do better in the longer term. This makes marketing more challenging for smaller organisations. This is why the great business gurus like Michael Porter advise smaller companies to specialise in market niches. This allows them to achieve visibility and success without such a large investment.