Companies which know how to use marketing can be more competitive than those who do not. One of the main reasons companies do not use marketing is that their staff do not know what marketing is. Making and buying products, selling them, hiring people, accounting, are all obvious and needed. Marketing is not so obvious and there is no immediate need to understand it.
The paradox is that all companies use marketing all the time, but they do not formalize it. By not formalizing marketing, I mean that there is no marketing team, processes, budget, projects. Marketing work must always be done, but in companies which do not formalize it, it is done informally by sales, owners, and others. Most of these people are not aware they are doing marketing and that someone else could help them with it.
Lack of formal marketing pushes marketing decisions, which can not be avoided, to staff who already have other responsibilities. These other responsibilities suffer because any individuals can only solve a limited amount of problems in a day, week, or a year. Marketing problems, such as managing a market position, are complex and require dedicated focus by trained individuals.
Marketing is the only tool inside a company which manages the market position. It is an error to associate marketing with promotion or advertising, which are parts of marketing operations.
The question “does the company need marketing?” is incorrect one. Correct question is “do we need to formalize marketing by giving it its own budget, team, and goals?”.
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