What do you mean by marketing?

Is marketing dead? Most definitely not, but what do you mean by marketing? The Chartered Institute of Marketing (CIM) defines Marketing as “the management process that identifies anticipates and satisfies customer requirements profitably”. 

The production of income by producing products and services that satisfy customer’s requirements is a management process the CIM calls marketing. However, in reality, for a great many people, marketing is the current word used instead of advertising, promotion and especially selling.  While the CIM’s definition is clear, many marketors use “marketing” as a generic term for advertising, promotion, marketing research, product development, brand management, and selling,  but not as defined as a management process. Thus the value of the word “marketing” has been devalued to the point of almost irrelevance. Even the CIM has succumbed to using marketing, when meaning advertising promotion or sales, rather than the overall management of resources to produce profitable income.

Because the word “marketing” has generally been used differently to the CIMs definition, the importance of “the management process” involved in producing income  has been frequently overlooked. When “marketing” is seen to be more about brand, image, and data, the importance of the  effective management of resources and investment is lost.

Effective management requires knowledge backed up with performance measurements. Decisions in business should be made on the basis of firm knowledge and information. In practise it is more often the case that business decisions are made on assumptions rather that verifiable knowledge. Anticipating and satisfying customer requirements not only requires knowledge of the customer, the market and the competition, but also the “know-how” that comes from experience which is not easy to replicate.

But how can the extent of   an organisation’s corporate knowledge and “know-how” be assessed?

While many organisations may have an archive of important data on their customers, their market and other subjects, the fact is that much of the important knowledge on which the organisation relies for its successful operation, resides in the experience and personal knowledge of its workforce. Such information is rarely written down or recorded, and while businesses may have specific procedures for employees to follow, situations and experience often results in their modification on application. Problems arise through the natural turnover of staff, when important and experienced employees leave or retire, so that vital knowledge is lost. In recent years, many organisations have been run on minimal staffing. While minimal manning makes sense in terms of efficiency and controlling staffing costs, it has inherent dangers, when individual employees’ knowledge and experience become crucial to the running of the business. When such individuals are away on holiday or sick leave, organisations often struggle to manage because a particular individual has specific knowledge and experience which is essential for the efficient running of its operation. Business organisations need to recognise that nobody is irreplaceable, but while the replacement may be qualified, they will not have the accumulated experience specific to the particular organisation.

For the commercial manager, responsible for all those business operations that support and satisfy customer requirements, maintaining and retaining the necessary corporate knowledge and experience is of great importance, although one which frequently is given a low priority.

In terms of an organisation’s strengths and weaknesses, the extent of corporate knowledge and experience can be an intangible, but a very important strength. Conversely, if much of that knowledge and experience resides with only a few individuals, it should be regarded as a distinct weakness, if any of those individuals should leave the organisation. Unless the commercial manager, takes steps  to ensure that such knowledge and understanding of the business, the market, its customers and the commercial environment in which it operates, is up to date, wrong assumptions will be made and poor decision making ensue. While experience will always reside with individuals, corporate knowledge should be maintained and accessible within the organisation. Corporate managers need to establish as far as possible the nature, extent and location of the organisation’s corporate knowledge, as well as what is known and unknown. The effectiveness of business decision making is firmly based in the depth of the commercial function’s knowledge of its market, competition and its own procedures.

In order to keep the corporate knowledge base accessible and up to date, commercial managers should undertake on a regular basis, a detailed “Commercial Audit”, or “Marketing Audit” as it was more frequently known.  The purpose of such an audit is to establish the depth of knowledge that the organisation has and to highlight those areas where its knowledge is limited or non-existent, so that decisions may be based on confirmed  information rather that assumptions or guesswork. A Marketing Audit is a “self- administered” method for identifying and realizing under-utilized  marketing  resources, comprising:

  • the analysis of the market,
  • the business,
  • the organizations own strengths and weaknesses ,
  • the economic environment,
  • the marketing environment
  • the competition.

The process should include questions on :

  • the marketing strategy
  • the planning process,
  • the product/service range,
  • company performance (in terms of strengths weaknesses)
  • the market size and structure
  • the buying process
  • the competitive climate
  • other areas where knowledge is essential or desirable for  informed decision making.

The regular application of a Marketing Audit,  may assist the commercial manager to maintain and develop and retain the necessary corporate knowledge,  that might otherwise be lost.

The management function that produces profitable income for the long term, requires  the effective collective management of all those activities that contribute to producing profitable income by satisfying customer demands, Whether this function retains the title of Marketing, or relinquishes it by popular use, to advertising, promotion or selling, the effective collective management of all those activities whatever it is called,  is fundamental to the commercial success of any business. Marketing by any other name, is still the management function that produces profitable revenue by satisfying customer requirements.

© N.C.Watkis, Contract Marketing Service  07 Jul 26

July 7, 2026   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators  Comments Closed

What do they do all day?

An article in the Daily Telegraph in April this year, highlighted a woman who had a well-paid job, but actively did nothing for a year, and was never challenged, until she became so bored that she resigned. The article drew attention to a problem which is more common in larger companies where jobs become quietly redundant, but are ignored through bad management, or a deliberate policy to maintain headcounts to justify budgets and senior positions.

The late anthropologist David Graeber coined the term “bulls–t job” in his 2013 essay, defined  as “a job that is so completely pointless, unnecessary, or pernicious that even the employee cannot justify its existence, even though they’re obliged to pretend otherwise”.  He went on to say “These aren’t nurses, teachers or refuse workers doing essential work. They’re HR consultants, corporate lawyers, administrators, marketing coordinators,  where if the position were eliminated tomorrow, it would make no discernible difference in the world.”

Are all your employees gainfully employed and fully motivated? How do you know?

Ensuring that employees understand the importance of their contribution to the business objectives, is fundamental in their motivation and productivity. Are all your employees  actively contributing to the business objectives, and are they  doing what they are paid to do?  Using performance measurements to analyse results can illustrate performance and highlight where  they might be better.

Performance is measured by results past and present, presented as quantitative data, indicating where performance meets, or diverges from expectations. But while such data might hint at an underlying cause, it cannot illuminate causes which may be qualitative in nature, or that originate in employee organisation and management. How does the method of working and organisation meet the needs of employees and employers? Is the work process efficient and effective? Does the methodology and levels of responsibility motivate or demotivate employees? Do you know what employees actually do or how they contribute to the commercial objectives?

Order processing, dispatch and credit control, are continuous processes which actively contribute to producing business income. But what about other activities, such as planning, market and sales analysis, advertising and promotion? All these activities contribute directly or indirectly to producing income, but many can now be automated.  Are all personnel gainfully employed, or have changes in organisation and technology necessitated a reassessment of the effective use of time and resources?

Working from home is becoming a more common option for consideration. In principle, allowing workers to work from home using the latest IT, has its attractions. Employees,  do not have the expense of commuting, and can work in their own comfort, while the employer saves on the costs of office space, heat and light. However, there are responsibilities and liabilities of both the employer and employee, especially under the UK’s Health and Safety act 1974,  require ring employers, to provide suitable desks and chairs commensurate with using laptop or desk top computers. If a home worker suffers injury or harm as a result of not having suitable furniture on which to work, who is responsible, the home worker or the employer?

When considering home working, Commercial managers  need to consider:

  • How will database security be maintained, especially to comply with the Data Protection Act, when access is being made away from a secure office?
  • How is the security of company and customer information to be maintained beyond the office?
  • How is moonlighting with company equipment, and information to be prevented?
  • How is the home worker’s time and productivity to be effectively managed?

While home working may seem economically beneficial in the short term for both home worker and employer, the long-term benefits of office working should not be overlooked. For the employee, inter personal contact in the office promotes problem solving, communication, idea generation and reduces individual isolation, which also benefits the employer.

Generally, when employees are fully and constructively occupied, they tend to be well motivated and effective. However, when this is not the case, employees can easily become de-motivated and begin to game the system to their own benefit, rather than that of the organisation.

Clear job descriptions define necessary responsibilities and expectations, for the benefit of both employer and employee  also enabling an employee’s performances to be assessed.  However, the tasks and responsibilities that are written in an employee’s job description may differ from what the employee perceives them to be, and may differ again from what they actually do. Unless periodically reviewed, the tasks engaged in by both managers and staff, can expand and following “Parkinson’s Law”, drift into areas of interest and convenience and away from the planned requirements of the business.

In this situation, there are a number of actions that the commercial manager should routinely and periodically undertake.

  1. Consider the business and commercial objectives.
  2. Assess the resources available, – are they sufficient for the tasks, are they organized effectively? How do you know?
  3. Get all employees to write their own job descriptions, defining what they see as their prime responsibilities, areas of interest and lines of reporting.
  4. Compare each employee’s own job description with their official one, and with others.
  5. How do the job descriptions relate to the task? Where do these job descriptions overlap? Are there any gaps in capability? Where are the gaps?
  6. Consult with employees to establish where and why there are overlaps and gaps. Seek their suggestions for improvement. Evaluate the answers and adjust tasks and responsibilities accordingly with the cooperation of the staff.
  7. Ensure that all job descriptions have clear objectives and responsibilities that are subject to regular progress review.
  8. Are personnel sufficiently trained to meet current requirements?
  9. What training might they need? What training do they consider they need to be more effective with current business situations?

Employees are essential but expensive assets, who provide necessary capability and accumulated experience. All commercial managers need periodically to re-assess how well these assets are used to ensure their effective contribution to income generation. Capability is generally easy to replace as required, but accumulated necessary experience is harder to replace or replicate, but is easy to lose. A reorganisation of tasks and responsibilities to maintain efficiency may be considered necessary, but change for the sake of change is generally expensive and usually counterproductive.

(1045) © N.C.Watkis, Contract Marketing Service 02 Jun 22

 

June 3, 2026   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators, Uncategorized  Comments Closed

Current Affairs Far Away

So the story goes, “ the movements of a butterfly’s wings on one side of the world can produce the cumulative result of a hurricane on the other side”. However implausible this story is, it is true that small events in one place can result in a cumulative and greater event elsewhere.

For many, the Straits of Hormuz, if they knew about them, were far away and of little interest. Now, the current Iran war has brought the Straits into the forefront of  world news, because action there is having an immediate effect on world commerce, primarily through restrictions and shortage of oil and the movement of cargo.  Commercial managers  need to consider  how the closing or partial closing of the Straits  will affect their business. The closing of the Staits will have obvious effects on all who trade directly into the Gulf states, but will also indirectly effect industry and commerce through the increase in the world price of crude oil, shipping costs, agriculture and food costs through agro-chemicals, as well as other general shortages that will increase inflation.

The late Donald Rumfolt, former Secretary of Defence under US President George Bush  said there are things we know we know. … But there are also unknown unknowns—the ones we don’t know we don’t know.

When dealing with the things we know, we can plan accordingly, but however good business or marketing plans may be, they can sometimes go awry because of unexpected events. For the commercial manager, responsible for producing profitable income for the business, any failure to achieve the planned business results and income could be a serious situation for the business.

The whole purpose of business and marketing plans is to prepare for both the expected and  the unexpected event or conditions . Commercial managers need to identify indicators of change in the economic situation, the market, as well as specific customers and technology. They will also need to consider potential problems and the “what if” question.in order to plan effectively.

When things go wrong in business, they can either happen quickly or slowly. Events that develop slowly are those which should more easily be managed. However, it is the rapid and unexpected development, either externally or internally, which usually compromise business and marketing plans and potentially form a serious crisis for the company. It should therefore, be a normal part of the planning process to identify potential threats and opportunities and specifically, to prepare contingency plans and resources to deal with them. It should never be assumed that all will go as planned; customers may provide new opportunities or may fail to complete on expected orders; sales may not reach targets; promotional programmes may yield unexpected demand that creates production problems or alternatively, fail to produce the expected result for the investment made. These are the sorts of events that should be anticipated as potential problems which would require a rapid and planned response to ameliorate the potentially damaging results. But what about other unexpected, or unplanned events?

Unexpected events may take many forms, for example war, or what are often termed Acts of God, usually including earthquake, fire and flood of which the corona virus outbreak may be considered  the  most recent example. The commercial manager should always plan for the best, but be prepared for the worst events. Unexpected events might be accidental, e.g. a major supplier is destroyed by fire, freak weather disrupts transport, acts of war or a political situation. One cannot plan for every possible eventuality, but by using risk assessment it is possible to identify the sorts of unexpected events and assess the probability of their fruition so that the principles of a basic contingency plan may be made.

Most commercial events are predictable to a greater or lesser extent, thus the commercial manager should always have prepared contingency plans that can immediately be enacted. Ultimately, when things go wrong, it is the responsibility of the commercial manager to reduce the negative effects and to exploit and maximize any opportunities that unexpectedly arise. Unexpected events may not be the fault of the commercial manager, but their management actions are fundamental to making matters better or worse. Having a prepared action plan for the “what if” situation, is an essential requirement for the commercial manager and for all senior managers.

In February 2015, the company, Dowty Propellors suffered a catastrophic fire that destroyed its offices and its production centre. Yet by April 2015, it was in production at a temporary site, with over 100 engineers and support staff were re-housed at an alternative site in portable buildings. But despite this setback the company survived, and opened a new factory complex in December 2019.

Stork was a “premium” brand of margarine first produced in 1920. In 1939 the outbreak of the Second World War brought in food rationing. Throughout the war, although not able to sell its branded product, Stork continued to advertise and publicise its name through Stork recipe booklets, so that when rationing finally ended in 1954, the product was relaunched, with most people regarding it as a luxury after the years of “National Margarine, and it was instantly the brand leader.

The international and national effect of the coronavirus is just another example of the unexpected and unforeseeable events that can seriously effect trade and businesses.

 

To mitigate the effects of unexpected events, of war, fire, flood and pestilence there are some actions that can be taken:

 

  • Store continually updated copies of records and data off site and elsewhere – possibly in the “cloud”.
  • Suitable insurance cover.
  • Consider what resources would be needed to maintain business operations even on a reduced scale.
  • Consider where to locate  or  relocate facilities in an emergency.
  • Widen the supply chain to alternative and additional suppliers, to lessen risk of disruption.
  • Consider alternative or additional transport systems.
  • Build a financial war chest big enough to cope with a period of business disruption.
  • Ensure that media specialists are kept informed of all developments at all times, so that they can manage the company’s business news to best effect, with a publicity plan to deal effectively with both positive and negative media coverage.

While specific events may not be foreseen, potential types of events and risks can be identified. Then an assessment of the potential risks may be made and contingency plans in outline and detail prepared accordingly. Being able to deal with the unexpected change of circumstance as they arise, is therefore an important attribute for every commercial manager,

© N.C.Watkis, Contract Marketing Service 28  Apr 26

 

 

 

 

May 4, 2026   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management  Comments Closed

Marketing Plans – Why do you need them?

If a business is to succeed, it needs to have a clear objective, and if it is to achieve that objective, it needs to have a plan of necessary actions. If there is not a satisfactory plan it is unlikely that the objectives will be achieved. But what constitutes a satisfactory plan?

Unfortunately, many executives tend to see business and marketing plans as annual rituals, rather than working documents. For the commercial manager, responsible for producing profitable income for the long term, the marketing plan sets out the financial objectives in terms of the expected level of revenue,  the return on investment,  the marketing strategy to be employed, the sales actions and sales support that are required. If marketing plans are set out properly, they will have clear achievement requirements at regular points throughout the year, so that progress may be assessed and verified

. How much income the marketing function produces, depends in part on the state of the market, in terms of the level of demand, as well as the customers’ ability and desire to purchase.  In addition, the suitability of the product or service to meet the requirements of customers, the strength and activity of competitors, as well as the ability of the marketing organization to find potential customers, and complete profitable sales, are all fundamental in achieving the financial and marketing objectives.

While the commercial manager must continually measure performance against the marketing plan, it is also important to consider the plan in relation to developments in the market. It is especially important to understand how market conditions and financial constraint affect customers and their ability and willingness to continue to buy. . In the current business climate, commercial managers must expect business conditions to be changing, perhaps quite rapidly, and therefore they need to be continually revising their action plans or if necessary, enacting pre prepared contingency actions.

In these circumstances, the commercial manager should consider:

  •  Are the planned marketing objectives still valid in the present market situation?
  • Is the desired level of profitable income, still possible with the existing plan?
  • Are sales targets likely to be achieved from the principal customers, or have their requirements been deferred or no longer needed?
  • Is the money coming in as planned? If not, – why?
  • Are the principal orders likely to be confirmed as planned? How do you know?
  • Are customers intentions still valid, – how do you  know?
  • Will the contingency plan need to be enacted or is it already in operation?

Marketing plans should not be just annual rituals, but working documents in constant use, defining how the income is to be generated. The only elements of the marketing plan  that should be fixed are those of the financial objectives, and possibly the business and marketing strategies to be employed it. But  the plan must be constantly updated, in the light of market conditions and business success. The actions necessary, which produce sustainable business income, may be subject to frequent change.

Ignoring the marketing plan, especially in times of market volatility, means that resources are unlikely to be used efficiently, and objectives, especially in terms of financial revenue are less likely to be achieved.

Thus, the most important activities for the commercial manager are the establishment of marketing objectives, a plan for their achievement, a budget to support the plan, and the management of assets and resources to achieve the objectives.

When preparing a marketing plan, setting objectives is the first priority, because it defines what is to be achieved  These objectives should be largely quantifiable   and thus measurable., because “if you can’t measure it, you can’t manage it.” There are a number of components that are essential for a marketing plan.

A marketing plan should include a description of the market and economic situation in which the plan will operate.  Commercial managers need to ensure that the assumptions made about the prevailing economic and market environment are clearly stated, and the potential risks highlighted.  As both the market and economic situations are dynamic and evolving, so it must be expected that plans, especially those for the longer term will need to be adapted to meet those changes.

Having set out the objectives, the most important part of the planning process is the listing of the actions necessary for their achievement. To be effective, each action needs to have a completion date, together with the identity of those delegated with the responsibility for the action.  Setting completion dates for actions helps to concentrate the mind, because their successful competition may have a profound effect on other important actions and the achievement of objectives. For instance, achieving a major contract may be a major part of the revenue objective. Thus, knowing when that contract needs to be confirmed is of major significance, especially if things go wrong and the expected income has to be found from elsewhere.

Preparing alternative actions to be used when the unexpected happens or the contracts fail to materialize, is an important planning process that is frequently forgotten. Commercial managers must be able to change tack or divert resources into other alternative actions, and to do it quickly, if the primary actions fail to produce the results; being able to do this effectively is the art of good planning and successful management.

Complacency in business, especially in consumer markets is potentially a recipe for disaster. Good planning does not eliminate risk, neither can it cover every eventuality, but it should cover the most obvious ones as well as some of the improbable ones.

© N.C.Watkis, Contract Marketing Service 30 Mar 26

March 31, 2026   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators, Uncategorized  Comments Closed

Decision Making

Many business decisions are made on the basis of what we think we know, rather than on the fact of what we actually know and what we ought to know.

 It often seems that many business problems have their origins in assumptions that prove to be wrong. Whether it is the banking crisis, inept government actions, or failed business ventures, analysis often shows that the decisions made, while apparently logical and justifiable at the time,  have subsequently proved to be wrong having  been made on false assumptions. Assumptions in management often stem from misplaced trust, lack of understanding ,  and idleness, where an attitude of, “it will be alright” encourages complacency.

For those responsible for producing sustainable profitable income for any  business, assumption is a dangerous luxury. Business plans are always based on some assumptions because it is impossible to be certain about all future circumstances. But it is important to define those assumptions on which plans are based, and where possible test their validity and probability. But as anyone involved in producing sustainable profitable income will tell you, making or maintaining the wrong assumptions will result in poor decision making, which can have expensive consequences. When considering those assumptions required for planning, clarity is necessary and verification desirable, but it is often the general assumptions of management that can be the cause of failure. In order to limit the effects of false assumptions, it is necessary  to “check” and check again by asking the right questions.

The task of the commercial manager is to produce the maximum sustainable profitable revenue, while minimizing the level of assets, costs and investment. It is important therefore that business reporting systems provide detail at all levels of the business to indicate the contribution of different aspects of the business to justify the level of cost and  investment.

Having a robust and regular reporting systems so that performance may be recorded is essential and  particularly  regarding the costs and investment in getting and retaining business. Making and maintaining full records of customer contact are necessary in developing customer relations and to enable the anticipation of their potential future requirements.

Business income is produced by anticipating and satisfying customer’s requirement. The ability to anticipate and satisfy  is dependent on the knowledge of customers in particular, and the market in general, as well as the knowledge of competitors, their products and methods. To obtain that information, one has to ask questions. It is important to be certain of what facts are thought to be known,  to be able to verify them. Equally important is to understand what is not known or which is assumed to be known but which is not or cannot be verified. Questioning should be seen as a way to clarify understanding and not as a way to entrapment and blame for employees.

Market research and knowledge from customer account executives may provide  much of the external information that will aid anticipating and satisfying customer needs,  but what about those internal actions within the company that may be crucial to retaining good customer relations in the future?

  • Is there a system for checking that goods and services are despatched correctly and on time?
  • Do you know if the goods or services were received in good order, on time and to specification? How do you know?
  • Are you sure that the customer was satisfied with what they received and how they received it? How do you know?
  • Is there a procedure for checking that invoices are correct, including any special terms, and that all errors are reported on regularly?
  • Are you sure that everything about your customer service is as good as it should be? How do you know?
  • If you don’t know where things may go wrong, you will not be best placed to be able to correct them.

In a world hedged about with increasing amounts of legislation governing business and customer relations it is important that all employees are clear on how legislation impinges upon their actions. Training and verification that it has been received, understood and implemented is important. Businesses need to have a record of all decisions and actions that are taken regarding contact with customers.

Whether in Business or anything else, one cannot know all the answers, however hard one tries, so assumptions have to be made to cover gaps in knowledge. But as far as possible those assumptions should be tested, and where necessary contingency plans should be in place if key assumptions prove to be false.

(752) © N.C.Watkis, Contract Marketing Service 20 Feb 26

Contract Marketing Service, (Marketing Performance Consultants)

 

March 2, 2026   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators, Uncategorized  Comments Closed

Adapt to survive

Judging from the marketing press, many marketers are involved in data capture and analysis or involved in creative marketing communications. Few seem to be involved in the collective management of resources to anticipate and satisfy customer demand.

The Chartered Institute of Marketing (CIM) in 1976 defined marketing as “the management process that identifies anticipates and satisfies customer requirements profitably”.  Although there were moves in the CIM’s centenary year, to revise the definition, the definition remains unaltered. It is surprising therefore that so little thought seems to be given to “the management process”, compared to other marketing related activities including, advertising and promotion, marketing research, and especially brand management.

During the 1980’s, marketing organisations underwent many changes.  Expensive and cumbersome main frame computers, affordable to only large companies, were quickly replaced by the advent of the desk-top and lap-top computers, which were affordable and quickly adopted by businesses of every size. This computerisation saw widespread automation of many activities, which had previously been done manually, as the manipulation of spreadsheets took over from card indexes, and account ledgers. Marketers became computer literate and spreadsheet analysis the order of the day.

In the intervening years the marketing fraternity seem to have developed more to brand development and image; the act of selling being regarded as a separate function, and customer satisfaction of lesser importance than customer revenue. Marketers seem increasingly divorced from their purpose of anticipating and satisfying customers, in order to produce necessary income. All is about to change in the marketing world because of two reasons, the increased use of tariffs in international markets, and Artificial Intelligence, (AI).

Tariffs impose costs on businesses, which they cannot control. Those costs must either be absorbed or passed on to the customer as a price increase. This puts added importance on active salesmanship, which has to justify the price to the customer by demonstrating the quality of the product, its benefits and support service. In a world of tariffs, effective selling will be of prime importance, as will be the management of costs and contribution.

The effect of the increasing use of AI will have a direct effect on those many marketers whose primary activity is the collection and analysis of marketing data, as AI will increasingly take over those activities. The future for many marketers will be directly with customer sales and service as their previous roles will disappear.

Alternatively, marketers will have to become commercial managers, and learn to direct and manage all the necessary activities, and resources required to anticipate and especially satisfy customer requirements. To that extent they will have to fully understand the selling function, as well as the effective use of AI, where its use provides cost effective benefits.

Increased taxes and costs will probably reduce demand, and may result in a recession.

In such circumstances, businesses will look to cut costs where ever they can, and marketing budgets are often mistakenly targeted.

 

Commercial managers will look to increasing efficiency, out sourcing wherever expedient. Marketing data analysis may be offloaded to agencies using AI to produce reports, including many brand management activities. While AI has its uses, customer surveys appear to show a general push back against the use of AI in customer communications such as chatbots, so that without careful introduction, its use may be counterproductive with customers.

It should be remembered, that while AI has great potential for cost saving efficiencies in business, enabling reduced headcount, it is in many cases still unproven. The Alphabet and Google CEO Sundar Pichai has warned against placing blind trust in the output of artificial intelligence (AI) tools. In a recent interview with the BBC, Pichai stated, “AI models can make mistakes and pose potential risks.” He recommended using AI models in conjunction with other tools, noting that they can be particularly helpful for creative tasks. However, he added, “Current AI technology is still prone to certain errors, despite its recent advancements.” While AI will have many benefits for business development, it is not a reliable replacement for the decision making of a commercial manager, with the responsibility of producing profitable income for the long-term future of the business.

The effect of a tariff environment, new technology in the form of AI and potential economic recessions will increasingly require Commercial managers to concentrate on making income generation efficiently. Selling and satisfying customer requirements, in order to retain customers and income levels will need to take primacy. Over the next five years it is to be expected that AI such as ChatGPT will increasingly be used in the creative and data management areas of marketing, reducing employment opportunities, especially in marketing agencies, many of which may close.

Despite these changes, the commercial manager’s primary of objective is to produce profitable income for the long-term future of the business. To that end, the marketing function will have to adapt is to make money for the long-term future, for which Marketers will need to adapt and take different roles as their jobs in their present form are likely to disappear with the increased use of AI.

(846)© N.C.Watkis, Contract Marketing Service 27 Nov 25

 

November 27, 2025   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators  Comments Closed

Getting Results

The purpose of every business is to make money, thus the success of every business can be measured in the amount of money it produces, but also in the amount of investment and cost incurred. Every business requires a business plan that defines its overall objectives, and a  marketing plan to support it. The importance of a commercial or marketing plan is that should set out the detailed actions that are required to achieve the financial and  market objectives, and the measurements of performance required for effective management.

Formal, quantified marketing plans are essential, if resources are to be allocated and managed effectively.  However, marketing plans in themselves are no guarantee of the required results necessary to meet the company’s business objectives. Targets will only be achieved by the successful management of the whole of the business getting activities. Effective commercial managers need to have good leadership skills to inspire, motivate, direct and encourage the staff, who are responsible for delivering the results.

The most important activity of any business is to maintain and develop profitable income for the long-term future of the business and the security of its employees and investors. Achieving this requires the support of all the business activities that are directly or indirectly involved in this activity, which requires effective  management as a whole.

While brand awareness, market penetration, customer retention and many other aspects of marketing are important, their contribution is collectively to assist in making the successful sales from which the revenue is derived. Thus marketing performance must ultimately be measured by the amount of profitable revenue generated, together with the efficient use of assets and investment.

 

If all the business getting activities are to be managed efficiently and effectively, then measuring marketing performance is essential.  While efficiency may be considered to be about the capable use of resources, effectiveness is about decision making and getting things done. Unfortunately, while performance measurement gives an indication of efficiency, it is limited in assessing management effectiveness.

Performance data provides evidence of the effectiveness of the strategy and actions, in achieving the objectives of the business and marketing plan, by indicating which were successful and which were not. If the marketing function operated in a controlled environment, it would be relatively easy to identify successful marketing activities and to repeat them effectively. However, all business getting activities operate in a dynamic environment, where markets, attitudes, technology and the economic conditions are continually changing. Thus the strategies and marketing activities which were successful yesterday will not remain so indefinitely.

 

The terms used for performance measurement are frequently mis-understood. The word “Metrics” often appears as a generic term when speaking of measurement, however, “Metrics” refers to the standards for measurement, providing target values that a company must achieve to reach a certain level of success. By contrast, “Measurements” refers to the raw outcome of a quantification process, such as a company’s numbers, ratios and percentages. “Benchmarks” on the other hand, are the standards against which all others values are judged. Therefore, in most cases, “Benchmarks” are used to establish the value of the metrics to be used for measuring satisfactory performance at any particular time.

To add to misunderstanding, the term “Return on Investment” (ROI), is often confused with the term “Return on Marketing Investment” (ROMI). but these terms are not  interchangeable. Return on Investment (ROI), refers to the net income divided by the capital employed. However, the “Return on Marketing Investment,” (ROMI) is generally used to measure the financial performance of specific marketing activities such as an exhibition or advertisement. Because it is difficult to identify which sales are attributable to which activity, ROMI is generally limited to measuring specific marketing investments, and is not readily applied to the marketing function as a whole.

Frequently, marketing plans consist of a lot of projections,  aspirations, and targets. While the targets are essential  elements of any plan, the required actions and timescales are fundamental to their achievement. In addition, every action should also have a contingency action ready for immediate implementation, should the planned actions not achieve the desired results within the required time.

Regular and continuous monitoring of Performance measurements is essential to ensure that any marketing plan is being successfully enacted , and to highlight when and where results are not  as planned. Whether it is described as the “Bottom Line,” “net earnings”, “income” or “profit”, the commercial manager must always be able to quantify the contribution made by the marketing function and to justify the need for the continuity of investment.

© N.C.Watkis, Contract Marketing Service 29  Oct 25

 

November 2, 2025   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators, Uncategorized  Comments Closed

Does your marketing make money?

Does your marketing make money, -if so – how do you know? Can you justify the investment as necessary for the return? If not – why not? Does your organization actually measure the return it gets for all the money it invests in getting and retaining business? These are questions that everyone in business should ask, yet it would appear that few do so.

As businesses grow, they tend to become more bureaucratic, and lose sight of the fact that the existence and future of the organisation ultimately depends on a consumer buying a product.

Marketing is the management process that should produce profitable income by anticipating and satisfying customer requirements. For the commercial manager responsible for producing profitable income and therefore for marketing, the question remains, does the investment result in the income?

Looking at a recent survey by the magazine “Marketing Week” on business to business marketing, it is clear that there are many marketers who still think that that the prime job  is to provide leads for a sales team, and not the management of resources to satisfy those customers that produce necessary income.

Marketing is not an activity in isolation, but includes all those activities which collectively  satisfy customer demand, thus the measurement of marketing performance must include a lot more than  just a return on advertising and promotional investment. In many businesses marketing is still seen as a separate discipline to sales. but selling is the executive function of “marketing”, which ultimately produces the necessary income. Also, the product or service itself is part of the provision of customer satisfaction, and therefore part of “marketing’s” performance, and the responsibility of the commercial manager. Marketers must be aware of the effect that their activities have on other parts of the business, principally production and finance.  Exceeding the objectives of the marketing plan can be just as bad as failing to meet them. In failing to meet the sales objectives, the reduced revenue may directly reduce profits, but if the sales objectives are exceeded, additional production costs can be incurred as well as additional requirements for finance, which could reduce profit or even incur a trading loss.

The first questions that the commercial manager should ask are;

  • Are we making revenue?
  • Are we making profits and how much?
  • From where do the profits and the costs arise?
  • Is the marketing growing or shrinking and at what rate?
  • Are sales and profits growing in line with or different from the market?

Answers to these questions provide the initial framework on which more detailed analysis of marketing performance may be made.

The most effective way of measuring performance is by measuring output. In many businesses, the first measures of marketing are involved with sales, usually in terms of volume, value and customers. These areas are easy to measure, and having a true and tangible output that is quantifiable, are of fundamental importance. By contrast, measurements of customer perceptions may only be done by subjective surveys which have limited importance.

Performance measurements are given as Metrics, Measurements and Benchmarks. “Metrics” are the standards for measurement, providing target values that a company must achieve to reach a certain level of success. “Measurements” are the raw outcome of a quantification process, such as a company’s numbers, ratios and percentages, while “Benchmarks” as the standards against which all others values are judged.

Measuring marketing performance should be done on a regular and continuous basis. Ideally, business data should be collected automatically and processed into usable metrics so that comparisons and trends may be easily made and identified. Marketing metrics are only indicators of performance, so comparison with other measurements and previous metrics are essential if the data is to have any value. Metrics in isolation are of little or no value.

The prime objective of the marketing function is to generate profitable revenue Metrics should therefore identify those areas of the market, that generate profitable revenue, as well as areas and activities, that incur costs rather than profits.

Establishing the cost effectiveness of the marketing activities that generate the revenue may only be done, by measuring in detail the overall performance of the marketing function, and comparing the results with the rest of the business. In future, commercial managers are likely to be judged not only on the profitable revenue generated, but also on the cost effectiveness of the marketing activities which they manage.

© N.C.Watkis, Contract Marketing Service 02 Oct 25

 

 

October 3, 2025   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance management, performance measurement indicators  Comments Closed

Does Chatbot damage customer relations?

Recent research by Mortar Research, published in the Daily Telegraph of 18 Aug 25 makes interesting reading. Of 2,029 UK adults surveyed from 13-15 May 25, 15 % believe customer service standards have declined in the past year and are turning away from AI and automation. Of those respondents, 54% valued timely responses to questionnaires, 51% preferred being able to speak to a human rather than a Chatbot, while 26% would like to receive a more personalised service.

Effective communications with customers are vitally important especially for consumer-based businesses. For Commercial Managers, responsible for producing a steady flow of profitable income, “making the customer the centre of the business,” has been a mantra for decades, but appears less so in reality.

The sole purpose for any business is to produce profit for the benefit of the owners, but also for the benefit of the employees, without whom the business would not be possible. Profitable businesses remain in being and therefore benefit customers with their  products and services. So where do the customers fit in?  Customers provide the income to the business in exchange for the goods and services provided. However, the purpose of a business is to make money, satisfying customers is not its purpose but only the way in which it gains profitable income.

Customer relationship management (CRM) is largely about managing data regarding customer requirements and buying habits, rather than communicating with them. A good relationship between customer and supplier relies on the service delivered and especially the quality of communications between them. However, in many cases while the bulk of communication may be expected to be from the supplier to the customer, the level of communication from the customer is often impeded by the difficulty of making effective contact with the supplier.

Many companies often give the impression that communication from customers, other than for placing orders and remitting payment, is generally not of interest and is possibly discouraged. Companies appear to hide contact links on web-sites, and make contact phone numbers difficult to find. While standard answers to Frequently Asked Questions (FAQs) may resolve some customer requirements,  in other cases, only direct communication with the company will suffice. While Twitter and other social media have their place in modern  communications, they are still no substitute for direct personal customer contact.

Information from customers is vital for every business. Customers are not always intent on complaints. Many loyal customers want to help their suppliers with ideas, suggestions and other positive information, because it is in their interest to assist them to continue to supply the goods and services they require. Yet somehow, some businesses seem to treat their customers as “the enemy”, so that some refuse to give individual contact names on the grounds of “security”. But customers want to know the identity of an individual who can answer questions and resolve problems, even if that individual answers through a pseudonym for “security” reasons.

How should the Commercial manager assess the company’s communications with customers and what actions might be needed to improve them?

  • Are all telephone numbers for customer service easily accessible? How do you know?

When away from the office, try telephoning, e-mailing and texting the company while acting as if a customer. Ask for help and see how well the system does or does not work. – How easy is it to identify someone in authority and to contact them, how long does it take?

  • How easy is it for customers to find contact points on a Web-site, in order to send in an e-mail enquiry/? – If directions are not clear and simple, the customer may give up trying, and important information lost.
  • Are full contact details of key personnel available, including telephone, e-mail and postal address? If not, why not? Unnecessary secrecy is a barrier to commercial trust. (If security is a problem, provide pseudonyms).
  • Are all telephone calls answered by personnel capable of giving adequate answers or referral to other authority
  • Do all e-mails and letters have a timely response? –

All e-mails should at least have an automatic response, giving details of when a full reply can be expected. – Why? Because                          there is nothing worse for customer relations than for e-mails and letters not to be at least acknowledged in a timely manner.                      Such inaction simply creates frustration and irritation with those who seek to correspond with the organisation.

  • Are the number and type of received customer responses monitored and analysed?  How they are dealt with? Is the level of comment indicative of a problem or a customer requirement?

Using pre-recorded answering systems may appear to be cost effective. However, consider what effect it has on callers and prospective customers, when faced with a menu and press button selection, followed by more menus and press button selection? It creates annoyance and the impression that the company is not interested. Similarly, being put onto automatic telephone hold, while being told that “their call is really important to us” clearly demonstrates to the caller the exact opposite attitude. Chatbots are now often used to answer, what are considered to Frequently Asked Questions (FAQs), and can be quite useful and cost effective for the business. However, any question outside the pre-determined FAQ, often results in protracted questions and responses that fail to satisfy the customer, resulting in frustration and waisted time, which is not conducive to good and productive customer relations. Chatbots are not a replacement for direct human contact. Over reliance on artificial intelligence as opposed to human contact, especially where judgement and decision making are required, will damage customer relations and business activity.

Commercial managers must remember that the production of income only comes from customers, who should not be taken for granted. Showing that the views, comments, and interests of the customer are important and valued, encourage the customer to continue to return, even if they have encountered problems.  It is easier and cheaper to keep existing customers than to have to replace them, but if the customer concludes that a business considers them of little importance, they can always take their business and money elsewhere.

© N.C.Watkis, Contract Marketing Service 28 Aug 25

 

 

August 29, 2025   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing development, marketing management, marketing metrics, marketing ROI, performance management  Comments Closed

Only closing the sale makes the money

For any business, the fact is that only the ability of sales people to close a sale, actually produces the income on which the business depends, despite what some may think about the importance of brand, image, advertising, social media. All the various elements of what is known as the “Marketing Mix” are necessary contributors, but without the act of selling and closing the sale, those elements are irrelevant.

Selling is the foundation of business. But some people have a wrong attitude about the process or profession of “selling”. There are those who consider that, to be a salesman, (male or female), is demeaning, that the process of “selling” makes people buy things they don’t want. But commerce and economic well-being depend on selling. When Governments want to grow the economy, they often forget that in order to generate national income, people have to work harder to be more successful at selling goods or services, in order to produce the income.

Selling is a business skill of which many professional marketers have little or no experience. To be successful in selling relies on the ability to identify a customer’s need, to understand their underlying problem and to provide a solution that overcomes the problem and satisfies the customer’s requirement. Successful sales executives also require a personal confidence to meet new customers, and not be put off by the rejections that inevitably occur. Selling can be a lonely business, which requires careful management to ensure that sales staff are properly directed, trained and motivated, because the future of the business depends on their success. Sales executives often operate in a more isolated and exposed position than others in a company, and without sensitive and effective management, may tend to “Game the system” for their own benefits rather than that of the business.

Selling is more successful if the customer comes to the supplier with the intent to buy, than if the supplier goes to the customer with the intent to sell. In most consumer markets, potential customers are largely self-selecting in that they choose to enter the selling arena of a shop or a web-site. By so doing, potential customers indicate that they have an initial interest in the product or service on offer, even if they are not disposed to buy at that time. The sales assistant may then guide the customer to the product required, thus securing the sale. The action of selling is the only business activity that brings money into a business. Thus, the effective management of the selling process is fundamental to ensuring that costs, investment and use of assets are minimized, while the level of profitable income is maximised.

The art of successful selling lies in differentiating at an early stage, between those who are there to buy, those who would buy if they recognised that they had a problem that could be resolved to their advantage, and those who while they show interest and curiosity, are simply not in the market to buy at that time. For the manager responsible for managing assets and resources for producing sustainable profitable income, often the most expensive part of producing income is prospecting for future sales. How much money should be invested in “bid and proposal”, is an important question.

Traditionally, selling to the customer has been done on a personal basis by trained sales personnel who control the selling process. There are now many businesses that do not use personal selling to provide their income, but rely on other impersonal means, such as through the internet, direct mail, catalogue or social media. Such methods reach many more potential customers than direct personal selling, and are suitable for many consumer low cost products. However, personal direct selling is more suitable for high value consumer and business to business products and services.

Considering that successful selling is fundamental to the producing of profitable income, it is important for commercial managers, to understand the actions  involved in generating customer interest and its conversion to income producing sales, in order that the process is effectively managed.

The process of making a sale may be broken down into four principle actions;

  1. Engaging the attention of the potential customer.
  2. Establishing the customer’s interest.
  3. Developing the customer’s desire for the product or service.
  4. Guiding the customer to easily complete the purchase.

These actions form the basis of every professional sales person’s approach to making and completing a sale with a customer. Making potential customers aware of products and services and thus encouraging them to come and buy, tends to be more cost effective than trying to sell to prospective customers who may not be initially receptive to a sales approach. The best salesmen don’t sell, but recognise those customers who want to buy.

The continuous flow of income, which businesses need for their long-term future, is derived from sales. No sale,- no income. No income, – no business. Thus the ability to sell is of primary importance to the success or failure of a business. Effective selling is fundamental to producing business income, but only effective management can make sustainable profits from that income, for the long-term future of the business.

© N.C.Watkis, Contract Marketing Service 28 Jul 22

July 29, 2025   Posted in: business development, business efficiency, Business Marketing, business performance improvement, business performance indicators, business performance management, business performance measurement, marketing management, marketing metrics, marketing performance measurement, marketing ROI, performance measurement indicators, Uncategorized  Comments Closed