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Your future is out there
It may seem ironic to speak about profits and growth at a moment when most are thinking in terms of survival, or containment, in a weak global economy. However, this is precisely the time to worry about profits and the future. During good times, money is made simply by participating within industry, but during weak economic times wheat is sorted from chaff. It is at this time that the true character and standing of the enterprise is exposed.
The message here is simple. Customers are scarce. Without them business ceases to exist. They are the foundation of the business. Therefore both acquiring and especially keeping customers, is critical. Whether the purpose of an enterprise is to create shareholder wealth or to serve the customer is purely academic. The two objectives are inseparable since profit, and therefore wealth, is only possible if the customer gives his custom to the enterprise.
Allow us therefore to make two comments
Cheap College Papers on Marketing - what management is about
• Customers are not stupid. They can spot dilettantes posing as managers and service personnel immediately. They will force weak enterprises to compete on price only. Unless the enterprise is in a monopolistic position, customers will defect at the earliest opportunity for better value.
• Keeping customers requires absolute commitment, converting everyone within the organisation to the understanding that they all work for the customer.
In large corporations the chief executive typically symbolises commitment. In SME's, owners take on this role and need to be professional in their approach. Indeed, paying lip service is so destructive since there is direct contact with practically all employees, who in turn will spread the wrong message and attitude so quickly. Practically every SME employee is also a customer touch-point. Therefore customers soon get to experience the true attitude of the owners, fulfilling the axiom 'treating customers like they treat employees'.
So owner commitment is absolutely necessary for employees to believe that their business believes in the service quality that its marketing strategy dictates and it is this employee belief that translates into the service quality that clients expect.
Then, being professional means understanding and believing in marketing wholeheartedly. Now already a number of you readers are huffing and about to drop this article! If you think that marketing is just advertising and bllst then its best you read on.
Marketing should be the whole operation of the company as it tries to figure out not only how to sell what it makes, but what to make and where to sell. It forces the organisation to work from the outside in, instead of the inside out. This means, to take the client's viewpoint and to see the enterprise as the client sees it.
Marketing, therefore, starts the process rather than ends it. Strategic marketing must be the driving force of any enterprise which has as its ultimate objective the enhancement of shareholder value it is, quite simply, what management is all about.
Text Box 1
SIMPLY PUT
Marketing is THE business function. It forces the organisation to work from the customer point of view. It is an orderly and insightful process for thinking about and planning for markets, and therefore customers.
Is marketing just another function like purchasing, or is it the function to drive all other functions? It is both. On one hand it drives other functions by forcing the organisation to think outside in. But also, it has an implementation aspect. Since business and marketing strategy is easily copied, the devil, and the reward, is in the implementation detail.
Simply put the marketing process involves
• Understanding customers and their needs, and differentiating between the customer and the end-consumer;
• Dealing with global markets that are splitting into tinier segments;
• Coping with both aggressive competition and stagnating markets & economies;
• Developing or participating in brand strategies, including maintenance of development of the corporate image;
• Driving a lasting marketing culture through the whole organisation;
• In some industries - coping with the growing size and strength of intermediaries;
• In some industries - coping with the proliferation and expense of media.
TEXT BOX
Blast from the past
During hard times, the obvious temptation is to delve into information that is readily available, structured and undisputable that is internal information (sales data, financial data, operational data and so on). This is necessary, but on its own is only inward looking and historic exactly the place where future profits will NOT exist. In the words of Parkinson (Professor C. Northcote Parkinson) "The person who is devoted to such paper-work has lost the initiative. He is dealing with things that are brought to his notice, having ceased to notice anything for himself. He has been essentially defeated in his job."
At best, internal information may highlight lessons from the past. It may be possible to identify trends, but the time lag involved means that competitors may have already picked this up and moved on. So the next temptation is to use this information for blame allocation.
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