Sunday, November 15, 2009

The Critical Importance of Marketing

For my first real post on this blog, I am going to discuss why marketing is arguably the most important business function in a company’s entire scope of operations, and why it is the most critical element to a firm’s success over the long term.

Before establishing Caddy Marketing and Communications (CMAC), I spent a great deal of time conversing with business owners in countless industries, and assessing their individual experience in, and comfort with, the marketing discipline. The results of these discussions may surprise you. Interestingly enough, only a handful of these principals truly grasped the essence and significance of marketing, and even fewer actually possessed sufficient knowledge to design and implement strategic marketing programs on their own. The vast majority of these executives fell into what I call “Marketing No Man’s Land:” they know that they need it (at least subconsciously), but they have no clue how to do it properly, or whom to turn to for help. Ultimately, these findings propelled me to open CMAC; I knew I could easily fill this void, and trust me, it is a HUGE void.

To be fair and crystal clear, this is not meant to be a criticism of these enterprises in any way, shape, or form. Let’s face it: none of us can possibly know everything, especially when it comes to business, which is why we seek out experienced third parties – professionals such as bookkeepers, certified public accountants (CPAs), attorneys, and real estate agents, to name just a few – to help us in areas where our knowledge is lacking. That’s a smart play. Instead of pretending like we know the law backwards and forwards, we hire an experienced lawyer to review our contracts, file our articles of incorporation, and assess liability risks. Sure, it’s an additional cost, but it is reassuring to know it will be done right, and it gives us more time to focus on what we do best: running our respective businesses.

Unlike legal or accounting services – which most, if not all, business owners immediately recognize as crucial to their ongoing viability – marketing is a completely different animal. It can take many forms; it is often more art than science; and companies have lots and lots of option available to them, both creatively and strategically. For all of these reasons, it can be extremely difficult for a business owner to wrap his arms around on how best to market his product or service…primarily because there is no immediate right or wrong path to take (although some are obviously better than others). Consequently, confusion often sets in, and then the company decides not to do anything on the marketing front because they are simply unsure which direction to pursue, or even worse, convinced they’ll make a grave mistake from which they’ll never recover.

This is the completely WRONG approach. Why? Because marketing is the engine which drives lead generation, and ultimately, sales. It’s as simple as that. Without any marketing activity whatsoever, it is difficult (dare I say impossible?) for a company to uncover prospects and convert them into paying customers; create visibility which makes target audiences aware of offerings; validate the utility and differentiation of products; and countless other important tasks. In short, without marketing, there are virtually no leads, and, in turn, no sales.

As research and history have proven over the years, marketing also fuels short- and long-term growth, primarily through branding activities which keep a company and its product or service top of mind with its customers. Sure, new product introductions over time are important, but Fortune 500 companies today spend billions of dollars ensuring that their brands are ubiquitous whenever a consumer goes to make a purchasing decision.

In summation, this is why marketing is generally regarded as the most important function of them all– in any business, in any industry, and in any market segment. It creates opportunities for businesses that wouldn’t otherwise exist!