Marketing a product and service is an art and a science, to use an overworked but well marketed cliche. Because the results of marketing are often vaguely defined, the entire department is often targeted for cutbacks. Sales people go first. Marketing experts are the next out the door. It's time to find out if marketing really does pay off for a company.
A common cliche says that if you build a better mousetrap, people will beat a path to your door. Another cliche says if you build it, they will come. I consider both cliches to be based on false premises. Quality, need, price, or desirability are not going to sell a product that no one knows exists. For all we know, some budding entrepreneur has already created the perfect mousetrap in the family garage. We don't know for two possible reasons. It has never happened, or if it was created, no one told us about it. The marketing function is missing.
Marketing is needed in good times when sales are booming. Marketing is a matter of business life or death during an economic downturn or recession. When sales are brisk, there is often a temptation to eliminate the marketing component from the company budget. Advocates of dropping spending will argue that sales are strong, and marketing is no longer required. During a recession, spending cutters will state that marketing is a luxury that the business can no longer afford. The budget knife wielders are wrong at both times.
When times are good and products and services are selling extremely well, marketing helps expand the sales totals even more. Instead of finding a plateau in organization revenue, stronger marketing efforts along with enhanced sales efforts, can take the company to a new level of success. Instead of holding steady, the company can grow and expand in size and scope, increasing annual profits for the business.
When times are tough, marketing is an absolute necessity for the company. Failure to market the business products and services to new customers and clients could spell financial disaster for the organization. The first requirement of any business is to stay afloat financially.
A substantial sales drop resulting from any sort of economic downturn could result in closing the doors forever. Seeking out new customers and clients, and maintaining a relationship with existing clientele is absolutely essential. Instead of cutting back on marketing during a recession, I suggest the contrarian approach of expanding the marketing function. The new customers gained during the hard times will form a powerful base for expansion when the economy makes its always inevitable upswing.
When planning those budgets, make a strong committment to the marketing department. They can help you weather the storms of recession and ride the waves of economic prosperity.
When does marketing pay?
It always does for any business that is serious about cash flow, increasing sales and market share, and cares about improving overall profits.
Yes, marketing pays off very well indeed.
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