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Do Big Companies Depend too much on Marketing, Finance, Lobbying and Tax Rules?
"In his book Antifragile, Taleb stated that the core of business is offering an honest and decent product or service that gives your customers value for money.
If this is not the case, then it's likely that we're dealing with a fragile organization, because of:
1. FINANCE (leverage, debt). If companies spend more time on financial constructions than on a decent product, probably that makes them fragile in the end; see the summary of Taleb's Black Swan Theory.
2. MARKETING / ADVERTISING. Taleb says on marketing:
- Companies mess with your cognitive biases and that's sneaky;
- Marketing is basically bragging and that's bad manners;
- A good product will sell itself. Anything one needs to market heavily is necessarily either an inferior product or an evil one;
- Marketing (beyond conveying information) should not be needed and is a sign of insecurity;
- Marketing is meant to maximally confuse the consumer. For example soft drink companies that (implicitly) promise happiness to their drinkers in advertisements.
3. LOBBYING. Lobby machines of large companies spend more and more on lobbies, because they feel fragile without them. Because they are dependent on finance (low interest rates), big companies friendly regulation and marketing.
These lobby machines of big companies are successful because they can hijack the State or Country they're in, because if they go broke it would cost a lot of people their jobs.
4. TAX RULES. Buy leveraging all kinds of complex financial products, etc.
What do you think, do big companies have products that are good enough, or do they depend too much on marketing, finance, lobbying and tax rules?" |
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Is Marketing Management an Art or a Science?
"Marketing management represents creativity rooted and augmented by data for strategic decision-making and so must it remain. This article presents contending arguments as to the nature of marketing management- whether it is an art or a science- with a presupposition that while traditionally, marketing and the management aspect in it has been considered artistic, it is, contrarily, strongly toward scientific practice- an indication that marketing management is both an art and a science.
Overview
Kotler and Armstrong (2001) defined marketing as “a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others” (p6). Marketing involves anticipating, managing and satisfying demand through exchange of goods and services and involves people, organizations, places and ideas. Fundamentally, marketing management describes the utilization of marketing techniques to manage a firm’s marketing resources and activities. Marketing managers influence the timing, level, and composition of customer demand. The body of knowledge relating to marketing decision and management is complex and large and, therefore, several misconceptions exist about marketing management. The debate often pits “numbers” against “creativity" in defining marketing management. The scientists contend that numbers are the paths that make marketing a management while the artists counter by saying that scientific results alone do not perfectly capture the dynamics and nuances of a market which fundamentally, is made up of people. Additionally, the fact that marketing management is a perfect meeting point for intuition, data, creativity and analysis means it suffices to be an artistic science, a scientific art or both.
Marketing as an Art
That marketing management is an art is an old belief. The belief that marketing management is an art springs from the fact that, as a practice in business, it relies on right brain thinking and creativity to manipulate resources and services for profitability. Art, in itself, is based on complex processes of the mind and not solely on sudden intuition and involves long processes requiring decision making. While intuition is the root of the art process, personal technique, creativity, motivation for a purpose and a lot more account for beneficial practice in business. Contemporarily, it is the aspect of marketing that successfully addresses issues faced by businesses and executives today; a task that requires both creativity and vision. Arguably it is this intuition coupled with practice that makes marketing management possible. In this process, science is not relevant or does not suffice at all.
In pursuit of economic and operational excellence, fluency is paramount. Marketers and their partners rely on fluency described by a financial outcomes language which is capable of establishing a systemised processes and best-practices and which is cognisant of the effects that this activity causes on shareholder value. Under such predetermined action to influence, imagination must take over. This imagination must have an element of free thinking enough to affect real world applications that influence markets. This, proponents of marketing management as an art contend, is pure art.
Marketing as a Science
There is a strong emerging belief that marketing management and its inherent theories are reducible to formulation, experimentation, hypotheses testing and statistics that inform decisions and therefore, the practice is a science. That the practice employs various tools ranging from analysis of the industry, competitive strategy and economics of competitors (cost structure, resources, competencies, product differentiation, degree of vertical integration, historical responses to industry, etcetera), it’s an approach that relies on data and numbers to arrive at workable decisions through an assortment of researches such as qualitative marketing, quantitative marketing, experimental and observational techniques and is therefore, purely scientific. Several competitive intelligence processes and environmental scanning for trend identification and marketing analysis additionally make marketing management a manipulative science with results that are purely numeric-centric.
The absence of measurements in artistic appeals that accompany marketing often keeps artful campaigns in marketing low in marketing strategy scale. There are no known tools to measure image and influence of artistry in marketing appeal except by experimental advertising or display. That measurement-centric strategies account for most planning that takes place in effective marketing means the practice is purely reliant on science that guarantees vision and strategy. Creativity in and of itself in marketing management without vision, strategy or a clearly defined ROI, so proponents of marketing management as a science argue, is not more than "necessary evil" and a service in futility. For example, in the case of Apple iPod, the firm needs to needs to manage its marketing to deliver value to the brand: while the creativity of the iPods needs to remain so to attract clients, the process of determining what is exposed to the market against competition is more of science than an art.
Marketing management involves strategic assessments, customer segmentation, opinions management, critical path management, internal stakeholder engagement, predictive outcome models, investment modelling, budget control, real-time reporting, assumptions reviews, and actual ROI assessments and review and approval checkpoints. These processes distinguish marketing managers more as scientist wanting to prove the unknown from the known than artists wanting to appealingly portray the known. Year after year, creative suppliers and new staff come and go, but the sheer numbers which determine the nature and magnitude of marketing projects remain and never ease off. Rather than the appeal, more research discreetly targeted to customers offer and timing and the utilization of new technologies makes marketing management efficient and economical. Arguably, what people work on in marketing are ones that most people can easily relate to in their daily experiences and are therefore, scientific.
In recourse, however, a school of thought is emerging that considers marketing management a scientific art. According to a definition by Kotler and Keller (2006), marketing management encompasses both the development of new products and services and their subsequent delivery to customers. These viewpoint echoes that of McKenna (1991) who, in his article entitled Marketing is Everything, argued that because marketing management entails all factors incidental to a company’s ability to deliver value to its clientele, it must be "all-pervasive...part of everyone's job description” (p7). In dispelling the belief that marketing management is only an art devoid of science or anything related to it, these views tend to imply that the art-science entangle is rather a cage-match but which, on the contrary, should be a partnership because marketing is both- art and science.
Conclusion
From the foregoing, it is evident that the nature marketing management is a subject of intense disputation. Those who argue in support of its artistic nature cite creativity, experience and innovation as its hallmark. Scientists think it is purely a discipline involving data manipulation, research and numbers. However, there is a strong belief that it belongs in both disciplines. In the presence of the right models and necessary information (along with the ability to process them to make marketing decisions), what turns out is basically science. Lack of these things forces managers to rely on their perfect (or imperfect) qualities, which in reality, are difficult to explain or quantify. However, the fact that marketers in contemporary management practice need to express outcomes numerically, does not mean experience, intuition, self-criticality, and savvy should be abandoned”( Kotler & Caslione, 2009 p54).
Ultimately, perfect marketing management practice is determined by processes and results that arise from the same. How we get there-whether through scientific approach or pure artistry- is rarely a debate under a conscious realization that all measures in the world never mean a lot without artful messages on them. Nevertheless, there is a science to everything as well and the fact that the art of marketing makes the science complete. This is a fundamental proof that the two depend on each other is manifest in the fact that it is necessary to have an artistic mind which presents a business view artistically and an analytical mind to engage the necessary tools that make marketing successful.
There is no credibility in ignoring research and measurements in every marketing strategy. It is also irrelevant to abandon innovation, creativity and the artistic zeal for pure reliance on data and numeric. Conclusively, art is the best original piece of marketing management but for workable marketing strategies in management of businesses, science will make artistic things come true. Similarly, the art of marketing makes the science complete. Marketing management is therefore a scientifically managed art.
References
Kotler, P and Armstrong, G. 2001. Principles of marketing. Ed. Prentice –Hall.
Kotler, P. and Caslione, J. A. May 2009. Chaotics: The Business of Managing and Marketing in The Age of Turbulence. AMACOM Publishing.
Kotler, P., and Keller, K. L. 2006. Marketing management. 12th ed.. Pearson Prentice Hall." |
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Six Deadly Small Business Marketing Mistakes
"Six deadly small business marketing mistakes:
1. Not having a marketing plan.
2. Not differentiating your business from your competition.
3. Not having a systematic referral generating program.
4. Neglecting to communicate and market to your current customers.
5. Make money with other people’s customers.
6. Not realizing you are in the business of marketing your product or service.
Source: Thomas Jefferson Six Deadly Small Business Marketing Mistakes" |
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What is B2B? Precise Definition of B2B
"Dear all, what is B2B may seem obvious at first sight.
However, take the case of office furniture or even office supplies. These are sold to companies and not for profit organizations for use in their own offices. As per the definition of B2B it must be considered a B2B sale.
Assuming that these products do not generate any new product for the companies, and are just for their own use only, do you think that a pencil sold by one company to another company must be regarded a B2B sale?" |
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Marketing Strategy Must be Dynamic
"Our marketing strategy is never completed!
As per my observation I can state this with confidence that every time we target any customer segment or we try to understand any market, we have to come up with new strategies.
We can not replicate the old and established strategies. It's never gonna work.
People as consumers are changing at a rate which is very hard to grasp. They are becoming more and more irrational. If we think that we can get hold of their perceptions and choices, we need to look at the level of the homework which we have done.
We need to think 1 step ahead of our customers and this is possible only when we put ourselves in their shoes. Which most of us forget." |
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Sales Methods, Models and Theories
"I say with a profound bitterness that so far we haven't found a way yet of transforming sales into a science. And it should be...
I've been a student of sales for the past 21 years. I try to read every author who becomes a best seller, every interesting article, etc. So many disappointments...
I know of 4 authors so far that agree on basic stuff and share most of their point of views. Brian Tracy, Jeffrey Gittomer, Paulo Soares and Dave Kurlan. All of them base their theories on studied practice, on studies with statistic relevance and studies made on other areas of knowledge.
If you surf the net looking for sales methods and theories you'll find lots of differences between them. There should be an effort of several "gurus" getting together.
Please add the name and a short summary of a any sales model you believe to be among the main ones in sales. Thanks..." |
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Marketing Ethics are Forgotten
"Many companies have completely forgotten the fact that marketing involves telling potential clients the TRUTH about a product. This is part of of marketing ethics.
I have seen brewery companies encouraging people to take alcoholic drinks for a great night and a nice morning. But whoever drinks them ends up with a hangover!
In developing countries where second hand products have flooded markets, it is common for products to be dubbed by sellers into buying a used product e.g. an electrical appliance which is non functional. Surprisingly, the population accepts it as the normal thing.
Marketing should be highly ethical and professional no matter the kind of product being sold and where it is being sold.
Sellers ought to know that a satisfied customer will market their products at no fee. When you buy a nice suite there are many of your friends likely to ask you where you bought it from so that they buy from the same shop. You indirectly market the seller's product buy referring to him buyers." |
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I Love Marketing. Marketing is to love
"Hi Everybody!
I verily believe that marketing is to love! You first have to feel it, to understand it, to live it and finally do it.
If one is capable of feeling the needs of the market, the appropriate strategy will emanate naturally from there. Feel it and understand what the market voices out... Innovation and creativity are the play roles that will ignite that spark of orienting the way your business and sales shall be conducted.
There are various factors involved in it, exactly like love. Launch the music and let's dance!" |
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Marketing a Holistic Approach
"Marketing doesn’t have a constant definition. It evolves with its environment. Marketing is very diverse and can have many definitions. In general marketing is a subset of organization strategy.
The ultimate aim or objective of marketing is to know your market to adapt yourself and interact with it more efficiently.
This will be achieves through research marketing (surveys), strategic marketing (positioning) and operational marketing (execution)." |
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Marketing is Pathway for Strategic Management
"Marketing has been like a road for a journey rather than a destination. marketing provides a pathway for tomorrows strategic management. Marketing can learn from the recession elements of the market of sales which have been lost - the importance of customer services (making people feel good when they spend their money). Time for redirection and reconnection." |
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Sales versus Marketing
"Most or all of the MBA institutes teach marketing in their programs.
Today's corporate world emerges as sales-oriented with both marketing and sales playing a major role. Many people seem to be recruited for sales jobs.
There seems to be a mismatch between what MBA's are tought and what's required in the real world?" |
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International Marketing
"To what extent should governments control industry and other factors of production in order to promote international business growth." |
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What is Social Media Marketing?
"Hey guys I need your opinion about social media marketing, what do you think what is it, is it a new strategy of marketing or is it just a new concept and related to web technology. " |
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Hard and Soft Marketing Styles... :-)
"These are the various styles of a marketer:
-Hard style: tells he is going to take your money
-Soft style: does not tell he his going to take your money, but at the end he his taking it
-In between: contractual agreement." |
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Marketing a Company in Decline
"How can one market a company in decline though it still produces good quality. I need assistance as to how to communicate to lost customers as I am slightly technically disadvantaged at the production stage." |
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Effect of Culture on Market Plan
"Culture is the foundation of human behaviour. It serves as the benchmark or reference point for one's decision torwards a purchase. Culture moulds one's behaviour." |
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Are Monopoly Industries Unaffected by Marketing?
"Businesses in a monopoly market pay less attention to the contribution marketing can make to create and meet the needs of the market.
Because the product is in a monopoly market, it's harder to justify the marketing component in the product sale price as are looking into the market size and supply-demand situations." |
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Why is Marketing Hard?
"Why is marketing for many firms such a challenge? Here are a few reasons I found:
1. Continuous change of marketing: marketing asks from businesses to change their products all the time, because customers demand changes all the time. New technologies become available. Rivals also renew their products.
2. Long versus short term focus: On one hand, the satisfaction of current users will be the success of the future. And in times of economic depression managers find it hard to keep their focus on the customers and on the long term. They are more interested in short term financial results. It's not easy for businesses to find a good balance between the short and long term.
3. Size / growth of organisations. For example, imagine a bookstore with an owner who does everything alone, including the contact with customers. His business is growing well and he hires a couple of employees to deal with supplier relations, financial accounting and other things. Not all of these functions have contact with customers and employees may have different goals besides those of the firm. What can easily happen is that employees forget what the business is really all about: selling books!
Surely there are more reasons... Please add..." |
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Common Marketing Strategy Mistakes?
"Hi, I am looking for the problems experienced by marketing managers in setting up and implementing marketing strategies. What are the most common mistakes in setting up a marketing strategy?" |
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Tips for Preparing a Business Plan
"Can anyone please inform the main steps to be considered in preparing a business plan? Please reply and mention tips to prepare a business plan. Thanks..." |
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How to Attract Companies?
"I'm a recent MBA Marketing and want to setup my own marketing and promotions business. I would like your help in what are the things that I do to attract business and how I can progress." |
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How to Market a Small Scale Industry?
"I am a student at the moment and i wish to increase my knowledge in the field of marketing and i believe its one of the best and large filed to know about. So my 1st interest is about the strategies which can be used to increase production in small scale industries??? Because if we see there are so many small scale companies around the world and if we can figure out the way to increase their production and profits by utilising the sources in a much better way, it can help in the economy of a country and also in company growth. I will be looking forward to hear from all people those who believe it is possible and have creative ideas about marketing. Thank you for help.." |
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Strategic vs Operational Marketing
"What are the differences between operational and strategic marketing and some examples of these differences?
I can't find the answer anywhere." |
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Linking Consumer behaviour with Marketing
"I have a small question.. If we could really link the consumer behavior and marketing ... we are assuming that the marketeer is capable of understanding the consumer psyche. I have a strong contention here, if a marketeer was so capable to understand human psychology, then forget marketing, we wont have problems existing on planet earth!
" |
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The Study of Consumer Behaviour
"The study of consumer behaviour helps firms to align their product / service offerings to the strongest consumer signals.
Because not all factors of consumer behaviour match together with company offerings, it is important to map/chart what matches to what to achieve efficient and effective sales." |
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Starting a new plant in Romania
"At the moment I'm working on my thesis. The main question is, is it interesting for the greenery b.v. to open a new plant in Romania. (trade in fruit and vegetables)
At the moment we import for example melons from brazil, and we transport them to romania, but perhaps it's much more interesting to do straight import in constanta (port in RO) on the other hand we can better and faster help our customers over there so perhaps we can do more business.
I'm looking for a model that is usefull and compatible with this subject for my thesis. Thanks for helping!" |
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PITA Measurement model?
"Has anyone ever heard of or used the PITA model (population*incidence*times*amount)? I've used it extensively in retail analytics, but now that I'm adapting it to another industry- I really want to understand it's history, original author, etc.....Any Ideas????? Thanks in advance" |
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Radical Marketing Approach
"In their book "Radical Marketing: From Harvard to Harley, Lessons From Ten That Broke the Rules and Made It Big", Glenn Rifkin and Sam Hill lay out a set of marketing innovation guidelines that can help companies to adopt a Radical Marketing approach
1. The CEO must own the marketing function.
2. The marketing department has to start small and flat and stay small and flat.
3. Get face-to-face with the customers.
4. Use market research cautiously.
5. Hire only passionate missionaries, not marketers.
6. Love and respect customers as individuals, not as numbers on a spreadsheet.
7. Create a community of customers.
8. Rethink the marketing mix.
9. Celebrate common sense and compete with larger competitors through fresh and different marketing ideas.
10. Be true to the brand and obsessive about brand integrity." |
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Marketing Weaknesses
"In his book “Ten Deadly Marketing Sins: Signs and Solutions”, Philip Kotler mentions ten deadly sins that identify weaknesses in the marketing function of a company:
1. The company is not sufficiently market-focused and customer-driven.
2. The company does not fully understand its target customers.
3. The company needs to better define and monitor its competitors.
4. The company does not properly manage relationships with stakeholders.
5. The company is not good at finding new opportunities.
6. The company’s marketing planning process is deficient.
7. Product and service policies need tightening.
8. The company’s brand-building and communication skills are weak.
9. The company is not organized for effective and efficient marketing.
10. The company has not made maximum use of technology." |
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What is Marketing? (Kotler)
"It was Philip Kotler who said: "Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers and benefits for the stakeholders."
It amazes me how many marketeers don't recognize this and focus on advertizing and communication instead." |
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The Future of Marketing
"What is the future of marketing? A Dutch marketing magazine (Tijdschrift voor Marketing, October 2007) reported recently that the position of the marketing function in corporations is poor. Finance, HRM, and Strategy are more important, and Sales is seen as more accountable for hard results. Marketeers in the Netherlands are merely focused on creativity, dealing with advertising and promotion, branding, positioning and customer satisfaction measurements. Marketeers do no no longer make it to the top. I wonder, is this trend global?" |
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Marketing Implementation
"A marketing strategy is one thing, successfully implementing it is another! Who knows a good generic marketing implementation theory, or has a method or model to implement a marketing strategy? Thanks," |
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Marketing Community of Interest
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Marketing Education & Events
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Add a method / model
