Why ‘marketing’ is not a question?

In the era of an ever-changing landscape in the business and competitive environment, marketing should not be a question; but at the helm of decision making for corporates across the globe.

The ultimate direction of a company or a brand is validated by customer perception. While most businesses do not fail in the identification of their target customer and delivering the goods and services the market wants, they fail to identify the need for marketing.

Running a business with poor communication or zero marketing is good as; “expecting a vehicle to perform, without pumping petrol or electricity”- no one knows what the vehicle can do, other than the manufactures of the vehicle.

Rule of thumb

In order to overcome financial turmoil or the lack of budget/revenue achievement, as a rule of thumb, most organisations globally reduce the middle-line cost, starting with ‘marketing’ to compensate for the top-line underachievement. Thus, providing a positive bottom-line for the organisation’s board and shareholders to be temporarily satisfied. This is like pumping half a tank of petrol and expecting the car to go 300-kilometres, as it does on a full tank.

Factors affecting the marketing budget

While it is evident that the marketing approach of yesterday will not be relevant today, cost-effective mediums such as digital marketing paves the way as the front runner in global expansion. However, this is not the solution to all problems. Depending on the industry, country, product, product life cycle, target audience and many other factors, the marketing mix and budget would vary.

Role of management

During times of political and economic turmoil such as what Sri Lanka iscurrently facing, it is understandable that a substantial marketing budget may be slashed in most organisations. Marketing is not about having the largest budget, but a sufficient budget to creatively impact the audience while engaging with the brand depending on the macro environment.

The board of directors and senior management must engage with the marketing team to see the best suited and creative outcome with the reduced budget versus the loss of value with the budget reduction. Having an ‘impact matrix’ on such a decision is critical since it is mandatory to plan a ‘what-if scenario’ for a better outcome.

Marketing strategies during turmoil

While the strategy selection may be impacted via the degree of the political or economic turmoil, industry or the product lifecycle, the below list can be viewed as marketing strategies to be considered during a turmoil.

-Clutter-free advertising:increase in advertising to improve market share, return on investment and top of mind recalls while the competition takes a back seat.

-Price cuts: During financially tough times, instead of having no business at all, go for price cuts on exclusive goods and services. As an example: Hotels in Sri Lanka extending price cuts to local travellers, thus retaining a cash flow.

-Newmarket development: Temporarily move to another market with existing goods and services.corporate communication:brands to resonate their value via further establishing the brand purpose through a creative corporate campaign for a positive outlook on the issue at hand.

-Internal marketing:treat your internal customers well so they can endorse your goods and services of the company. As an example: Hotel chains providing special offers to internal staff.-joint venture programmes:build a brand image for the industry. As an example: Sri Lanka apparel working on a marketing plan for a positive outlook on the issues to overcome pressures from overseas stakeholders.

What happens if you snooze on marketing?

During a political or economic turmoil, with the many drawbacks and hindrances on business operations, one must not forget that opportunities exists for companies and brands willing to take a gamble, to be on the leaderboard.

Your step-down on marketing can be the step-up with an opportunity for your competitor to overhaul. Having the best product or a winning USP and not communicating this, is a crime. Board of directors and the senior management must note that if you snooze, you lose. (Sarath Perera, is a chartered marketer who is currently employed as aglobal Marketing Manager for a leading multinational IT company, backed with experience and exposure in management, advertising, sales and marketing)