Marketing Marvels

Marketers need to be financially savvy

Lumbini EDIRISINGHE

The greatest challenge for present day marketers in the current day context is that they lack of financial acumen, General Manager, Sales and Marketing Chevron Lubricants Lanka Plc, Bertram Paul said.

He said the majority of marketers are not financially savvy as a result of which shareholders prefer to trust the destiny of their business to a finance guy who understands shareholder value better. "This is extremely unfortunate and marketers need to elevate their position to proper business managers by acquiring an appreciation of financial tools and techniques," Paul said.

Only then will they be considered seriously. CIM, UK recognised this a while back and in fact drove a campaign called 'hard edged marketing' to get marketers to move beyond the soft elements of customer satisfaction, brand awareness which has now long way to go, Paul said. Further, he said it is the need of the hour to be financially savvy by marketers under any circumstances because the financial factor is the most important aspect in any company, he said.

Q: As a renowned marketer, what's your view on the current debate on whether irresponsible marketing led to the current economic crisis facing the world?

I believe it's incorrect to consider 'marketing' as the root of all evil and blame it for the collapse of the major corporates particularly in the US. The collapse of the sub prime US mortgage market which triggered the current global economic crisis can be essentially traced to irresponsible lending and to the greed of consumers who were basically living beyond their means.

Yes, marketers do need to be responsible and ethical but the goings on here were much bigger than 'marketing' for it to take the rap for the chaos.

Q: There are also those who question the relevance of 'Marketing' in an economic downturn when customers are tightening their belts?

On the contrary, I believe marketing is extremely relevant in the current environment since marketing is all about correctly assessing customer requirements in conjunction with the environmental factors and matching organisational competencies to effectively satisfy customer requirements in a way that delivers shareholder value.

Marketers therefore need to identify what customers are looking for in these changing times and adapt their offerings to match same.

I also believe that in such tough times, consumers are looking for value for money and that does not necessarily mean the cheapest price around. In the lubricant industry for example, the company I work for - Chevron or Caltex as it is better known, offers premium products which offer double the performance of mass market products and are yet not priced twice as much, so the consumer actually get better value.

Q: Isn't it true that Marketing Budgets are the first to be axed when Companies face increased cost pressure and lower profits? How should marketers respond to this?

While what you say is true in smaller and less enlightened companies.

It is not so in marketing oriented companies, especially the MNCs where they appreciate the value marketing activities such as branding, promotion, CRM etc. add to the business. In these tough times there is a need for marketers to trim the fat and be prudent in the activities they invest monies behind so that waste is eliminated and only those activities that yield adequate ROI are pursued.

Q: What's your view on whether marketing is practiced in its true form in Sri Lankan companies?

That's a good question since I believe we have two extremes here. Most local Companies. Unfortunately do not practice marketing except for tactical activities such as branding, packaging and a bit of advertising and promotions. For most other business critical decisions they rely on gut feel and past experience. This results in sub optimal decisions being taken such as in the area of which products to offer, what their features and benefits need to be and also on what channels to advertise in. Enlightened companies. on the other hand which are marketing oriented and I must say most Multinationals come into this category, practice marketing in its truest form basing business decisions on sound market research and sophisticated media evaluation techniques such as channel and audience ratings. Advertisements are well researched and tested, as are new product concepts, which are also test marketed before commercialisation.

Q: What would you say has been your biggest achievement in the field of marketing?

Well there are so many achievements such as the fact that I was behind the launch of Sri Lanka's first UHT milk product - 'Daily' back in the mid nineties and the fact that during my tenure as Marketing Director of the Anglo Dutch Multinational - Reckitt Benckiser, I launched six major new product categories within the space of six months including Airwick Air Fresheners, Veet Hair Removal Cream and Mortein Vaporizers. However probably what I would consider my greatest achievement was my launching a whole new Retail Bank in Dubai, UAE when I was head of Emirates Bank in Dubai which today is the largest Bank there. What was so special about this was the fact that I was new to the industry when I joined the Bank in 1999. The just two years later, I was directly responsible for the development and launch of a whole new Retail Banking Channel in the country which achieved the distinction of 150,000 sign ups within the first 12 months in a highly overbanked environment of 48 banks in a population of under 3 million. The promotional campaign I put together for the launch also resulted in the banking brand being awarded 'Superbrand' status in the very first Superbrand ranking done in the UAE in 2002. My profile as brand guardian is in fact included in the very first Superbrands book published in the UAE.

Q: How important is it for marketers to get into the Boardrooms of corporates?

As someone who headed a task force for the Chartered Institute of Marketing Sri Lanka Region, tasked with the mandate of getting marketing into the Boardrooms of Sri Lankan corporates, I can confidently state that it is of prime importance. It is today recognised world over that the key to creating shareholder value is through the creation of superior customer value and the latter is what marketing is all about. If I may share a related personal experience, in my previous role as CEO of Sri Lanka's biggest large format retailer or hypermarket operator - Arpico Supercentres, one of my colleagues once remarked at the difference between having a CEO who was a marketer by profession Vs one who was an accountant, where the latter tries to boost the bottom line by cost cutting while the former boosts it by driving top-line growth. I think that neatly sums up the value marketing can bring to the business and why the discipline needs to be elevated to a strategic level rather than tactical activities such as advertising and promotions.

Q: As someone also extensively involved in Marketing Education, what advice would you offer to budding marketers?

I'd tell them to get more financially savvy and also not to shy away from starting at the bottom when it comes to work experience. Some students have a chip on their shoulder after they pass a couple of parts of professional exams such as CIM where they do not wish to get into a sales role and instead want to get into brand management.

This is a fundamental fallacy since a marketer essentially needs to understand how field sales works, interact with customers and intermediaries if he wants to be successful. There is no substitute for experience and you have to get your hands dirty.