MARKETING in 2008 - a personal view
CMC- InsightExec 01 Dec 08
When asked to write about the marketing concerns during the past year, I considered
that a review of the various topics in the “marketing press” would
give a good indication of the main interests of Marketers in 2008.
If the “marketing press” is a true reflection, it is apparent
that for the majority of marketers the subject of brand is and has been all
important, particularly relating to market share, brand image, and the “added
value” of the brand. Now while brands have an importance, for most people
involved in marketing this is not the case. Roughly eighty per cent of business
is run by small companies, where market share and image in relation to “Brand”
have limited importance, but where the image and reputation of the company
are vital. For these businesses, success is measured in revenue, not in brand
image or market share. Someone said that “Brands are for cattle”,
and while brands have an importance in product recognition and reputation,
brands do not of themselves generate revenue. The importance of brand image
is probably more limited than many marketers would like to admit, as the continuing
rise in the success of own label products, indicates that concentrating on
the “image of the brand” is not enough when it comes to producing
actual sustainable and profitable sales revenue.
Customer Relationship Management (CRM) and all its attendant software continued
to remain a prime interest for marketers during the past year. Concerns still
remain on whether investment in CRM is cost effective, with some businesses
claiming disappointing results while others indicate its growing importance
and usefulness in their respective businesses. What is apparent, is that the
CRM market is awash with competing products with little obvious differentiation.
This makes it difficult for the marketer to make informed decisions about
selecting a suitable product in which to make potentially large investments
in time and money. Disappointments in CRM program performance, often stems
from an initial requirement which was unsuitable or ill thought out , expectations
that were unreasonable, and the selection of unsuitable CRM products. Marketers
still need to quantify and evaluate their CRM requirement if they are to select
the right product and get the best out of a CRM package which may be particularly
useful in specific consumer related industries.
Websites are of growing importance to business in general, as is shown by
the increase of 16% in online sales in Britain over the past year, together
with a corresponding rise of the online advertising market. Online advertising
now has a larger percentage share of the media advertising market than national
press advertising. Marketers will need to fully understand the dynamics of
online advertising and business if they are to maximize its contribution to
developing future sales revenue.
The importance of marketing has again appeared in the press as an area of
concern and interest to marketers. At the beginning of the year, the CIM continued
on its quest to define or redefine marketing. While this subject may or may
not be of particular importance to professional marketers, not least members
of the CIM, it is generally obvious that in non marketing quarters the subject
is of little relevance. However, the image that marketers and members of the
CIM give of themselves about trying to redefine what they actually do, by
seeking to redefine the CIM’s generally accepted definition of marketing,
suggests that if marketers cannot define what they do, they can hardly be
expected to be taken either seriously or to express the importance that marketing
has for every business. If marketers cannot be clear about what they do and
quantify their contribution to the business, they will be regarded as an irrelevance
by the commercial world. Navel gazing by marketers about marketing is bad
for the profession and its image in general.
Continual Professional Development (CPD) is an area that has been highlighted
several times during the year, to show its growing importance. In reality,
there is nothing new in marketing. Old knowledge gets forgotten as new markets
and trends arrive, but it is then re-discovered in a new guise. Marketers
need to reappraise old knowledge, which may be new to them, but which is suitable
for different times and conditions. However, the one area where there is always
new knowledge is that of legislation. Marketers, especially those involved
with consumers must ensure that they are up to date with all the legislation
which impinges on their work or their markets. Ignorance of the law is no
excuse, but while the law may constrict marketer’s activities, it can
also provide new opportunities and new markets.
Despite all the warning signs which have been around for those who wanted
to see them for at least twelve months, the words credit squeeze and recession
do not seem to have featured much in the marketing press, and therefore perhaps
not in the minds of many marketers. The sudden down turn in business has taken
many companies by surprise. How many marketers have prepared a “plan
B” in their marketing plans for just such a change of conditions? No
doubt many will be looking to get more out of their marketing budgets with
reduced resources, while many others may be looking for new jobs.
The end of 2008 and the beginning of 2009 will mark “interesting times”
for all marketers. Marketers are responsible for finding, securing and maintaining
the income on which their businesses depend. If those businesses are to survive
the recession, marketers will have to concentrate more on achieving in revenue
targets, than on debating the merits of brand image or professional status.
By achieving the revenue to sustain their businesses, marketers will demonstrate
their importance to business success and increase the status of their profession.
© N.C.Watkis, Contract Marketing Service 11 Nov 08
Contract Marketing Service, (Marketing Performance Measurement Consultants)