“You’re a marketing and branding person, what do you think, is marketing an expense or an investment?”
This is a pertinent question if you are a SME manager or owner. Usually, this kind of questions come as a result of a myopic management. Let me explain. If you are a very good accountant, you will not understand exactly what does the marketing do. You will get all kinds of payment and settlement requests from him and maybe you will notice he/she is very active on the social media networks, but you will not have a complete understanding of his function and vice versa.
Marketing is either an expense or an investment in the future of the company, one of the two!
What does an investment in marketing brings?
Customer retention – an exponential market is great, but not all of us are operating on growing markets, so retention is an effective means of sustaining a company’s cash flow and profit at considerably lower costs.
New prospects – Business is first about making a profit. Marketing is essential for a company’s sustainability, any sale needs a priori lead generation process as a support. That makes a good marketing specialist.
Visibility and market share – although the paradigm has changed, there are still many companies looking for market share before profit. It depends on industry and strategy. But an effective marketing communication helps you ‘bite’ more of your market. In eCommerce visibility is mandatory.
Brand equity – Sometimes the brand worth more than the product. An iPhone is a recognised brand all over the world although is build in China. If you have a strong brand you will be able to outsource production anywhere and make profit. A good product with an unknown, unpopular or damaged brand will not sell.
Employer Branding – is not a priority for SMEs. It became a priority when started facing the lack of workforce. Many companies need dedicate brand messages to attract potential employees and is an important focus of the marketing function in many companies, especially in a high tech, highly specialised sector.