Don’t Depend on Marketing Alone to Grow Your Business
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As a consultant with a focus in marketing, I have to admit I struggle with the topic of this article. My ego would love to say that marketing professionals, such as myself, are capable of singlehandedly effecting dramatic success without the shared coordination of the other business functions within a company.
Recently I read an article that stated “70% of CEO’s have lost faith in the marketing function within their organizations.” The article also contended that while most companies retain the marketing function out of tradition, they admitted their expectations are limited to branding, advertisements and promotions. Initially I took offense to these statements. However, after thinking about it more, I realized that somewhere, somehow the perception was instilled in us that marketers alone possessed the capacity to drive the overall success of a business; when in fact, success ultimately lies with all functions of a business working in tandem optimally –– not just communications (aka marketing).
Being a researcher by nature, I wanted to know when and how this mind set shift may have occurred. Based upon my research, I propose this began when the medium of television entered the marketplace. With the introduction of television commercials in the 1940’s, not only were businesses able to come into thousands, if not millions of homes, but now they could do so with advertisements that brought their product to life in a way that wasn’t possible before. Communication (i.e. ads) was then able to accelerate a business’s reach to a level previously inconceivable.
With more people than ever learning about companies and their offerings, sales increased in lock step, especially for those with catchy taglines and memorable imagery. Who created those TV ads? Who wrote those catchy taglines? Marketers. For a very long time, creative marketing was in fact taking the front seat and driving growth for companies; at least it was perceived that way.
Ultimately though, success comes to those companies who have of all of their business functions performing at optimal levels. With the advent of the Internet and social media, consumers are now much more savvy, and some are skeptical of marketers. That’s why I say, “You can’t hang your hat on marketing alone to drive growth.” The other functions — product development, finance and leadership — are equally important to the success of a business and should be working in concert with marketing to deliver optimal growth results.
Product Development
It goes without saying that without a product/service of some sort, there is no business. What your company offers to the marketplace will define its destiny. For those students of marketing, they will recognize this as one of the famous four P’s (Product, Price, Place, Promotion). Product development is naturally linked to marketing because, in its function as liaison between the company and the consumer, the marketing department has privy to insights concerning the consumer and can make recommendations regarding relevant products, features and benefits.
Research and Development (R&D) needs to assess those recommendations from the marketing department. They need to determine the feasibility of bringing those ideas into reality and decide if it would be beneficial to move forward with the concept. They would consult Operations, Finance and Leadership to confirm that the idea is within the company’s capabilities, budget and overall growth strategy for the business.
Take-Away: Look at your product offering. Ensure that it is speaking to a need and that it is not only competitive, but also profitable for the company.
Operations
As the nuts and bolts of a company, Operations can make or break a business. Having a great product concept is wonderful, but without the meticulous workings of operations bringing that idea to life, it’s simply just a great idea. When operations are optimized, they can save money, improve product quality and deliver inventory on time and in full, which speaks to great customer service. The best marketing campaigns will fall flat if Operations is unable to deliver the product to the end user in a way that makes economic sense to the company.
There are cases where Operations has greatly assisted a company’s rise to success. Walmart for example, is revered for their cross docking strategy whereby products are delivered to distribution centers and immediately taken from one truck to another and then directly to the store. This seamless ability to manage the massive quantities of inventory with minimal labor and storage allows the stores to keep shelves stocked and ultimately sell more products, in turn resulting in higher revenues and lower costs.
Take-Away: Don’t overlook the potential for Operations to add to the bottom line of your business. Be creative here and you will reap the benefits.
Finance
Every business owner understands the importance of cash flow. It always seems that the cart goes before the horse when it comes to a business’s costs versus its revenue. Without sufficient cash flow, a business cannot fund the necessary expenses needed to run operations and create inventory. I’ve heard horror stories of companies winning the marketing lottery so to speak and generating lots of interested buyers, only to turn them down due to the lack of financial resources to fulfill the demand the marketing department successfully created.
The same is true for distribution. Should sales persuade a large retailer to take you on, know the costs needed to ramp up initial inventories, as well as your operational capacity to deliver the continuing quantities needed on time and in full.
Take-Away: Be mindful of your company’s financial capacity when seeking to build demand and distribution.
Leadership
Every car needs a driver and so does every company. Company leadership provides the vision and overall strategy. Without a strong strategy, a business will just meander in the marketplace unsure of its goals and objectives. Leadership also serves to manage the day-to-day operations of the business, directing the various functions to ensure their activities are aligned with the company’s resources, capabilities and goals.
Often, company leaders find it easy to get caught up in the details of running the business because those tasks are finite and results are immediately seen. Managing the vision and strategy is not so straight forward, but so much more important than the minutia of daily tasks.
Take-Away: Company leaders are just that: Leaders. Make the time to drive the company to your goal.
Successful companies have four pillars to build them up: Communications (Marketing), Operations, Finance and Leadership. Without any one of these four, the company would fail. In the same vein, no one pillar can hold the company up on its own. I’m the first person to attest to the invaluable asset of communications to a company. No one will know to buy your products if you don’t communicate them to the public. That said, marketing alone cannot determine if a company is going to be successful. The other functions — operations, finance and leadership — all need to be running at optimal levels and working in tandem with marketing to drive a company to their destination.
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About Insights Discovered
Penny Redlin is a regular contributor to the “Business Sense” feature on The Giggle Guide®, sharing insights about business planning, effective communications and marketing strategies.
Based in Las Vegas, Nevada, Insights Discovered was founded by Penny Redlin in an effort to share her professional expertise within the children’s product category. The company’s mission is to give every mompreneur an opportunity for success. Insights Discovered exclusively services children’s products brands. The specific industry focus demonstrates a strong dedication to the unique needs of children’s products companies. Insights Discovered offers strategic planning, market research and traditional marketing services.
For more information, visit www.insightsdiscovered.com or call 702.218.5707.
