Marketing and selling in tough economic conditions :

How to be world class in marketing

Present PERERA, -Marketing and Management Consultant, Chartered Marketer, CIM U.K.

This is a question that I have been asked many a time. Hence for the benefit of the majority, I will endeavour to share my thoughts. The question itself is not easy to answer, since there are many dimensions to address.

Which organizations in your opinion are the best in Marketing?

There are many Fortune 500 companies that have demonstrated their excellence in marketing over several years if not decades. I would say that several Sri Lankan companies too have proved their marketing capabilities.

How important is the CEO for an organization?

Very important. No doubt about that. The customer philosophy of an organization has to be driven from the top. If the CEO is not committed to marketing, there is very little that operations marketers could accomplish. Take Tony Fernandes of Air Asia. He is the Chief Marketing Champion and Brand Custodian of the airline. The results are clear to observe. Richard Branson and the Virgin Empire. Richard leads from the front and is very customer focused.

Who is more important - the customer or shareholder?

They are both important stakeholders of any organization. Customers need to be first satisfied. Satisfied customers demonstrate loyalty, which in turn results in higher sales, profits, market share and cash flows. Needless to say, this will result in shareholder satisfaction and value creation.

Is market research important to be world class in marketing?

Market and marketing research are both very important. Through decision oriented research, pertinent developments in the market place can be analysed and evaluated. This will enhance the quality of the decision making.

World Class organizations in marketing also engage in market sensing, which is a futuristic assessment of the trends in the market. For example the aging population syndrome in Sri Lanka, which will create both opportunities and threats for several organizations.

There is confusion between marketing and selling most companies. Is this the case in companies that are world class in marketing?

The confusion between marketing and selling is compounded by certain CEO's who separate the two functions and create rivalry. Marketing and selling are inter-related and need to compliment each other. For example, you cannot sell a product without the rest of the marketing mix in place. The reverse is also true - to market a product, sales persons need to go out and sell. (Create transactions).

In world class marketing companies, marketing and sales are integrated under the leadership of a Board Level Director. This ensures the cohesion between the two and the strategic direction. Sales is simply an element in the marketing mix, but an important one.

How Important is brand building, in world class marketing companies?

World class marketing companies venerate their brands and acknowledge their status as the assets of greatest value. Both corporate brands and product/service brands are built by world class marketing organizations. The reason is simple - they see the synergies between the two. Further, world class marketing companies acknowledge their employees as "internal brand ambassadors." (Internal branding is practised).

Do world class marketing companies rely on their existing products or on new products?

The answer is both. Existing products deliver present day revenue and profits.

New products are the engine of future growth. World class marketing organizations have well developed NPD (New Product Development) systems, that produce a stream of new products based on market situations. Hence, these organizations are able to sustain revenue streams through very balanced product portfolios.

Is it true to say that world class marketing organizations create markets, as well as satisfying existing ones?

Satisfying existing markets is a must for any organization. There is little competitive advantage to be gained. However, creating new markets and demand can result in above average sales and profits. World class marketing organizations, continuously create and satisfy new markets.

The classical example is the Sony Walkman. Sony created a Walkman generation, when no customer really identified a need for portable music. Take the Apple i Phone and i-Pad. These too would be good example of market creation.

How do world class marketing organizations sustain their competitive advantage?

Sustaining competitive advantage is no easy task in today's fiercely competitive marketplace. World class marketing organizations, invest in building their organizations capability, which comprises both assets and competencies. Assets are both tangible and intangible, but to be world class in marketing, intangibles are important such as brands, intellectual property (IP) customer loyalty to name a few.

Competency development is also paid attention by world class marketing organizations. Specially areas such as brand management, customer relationship management, key account management and sales management.

A final word of advise to any organization aspiring to be world class in marketing. Be always close to your markets and customers. Believe in your brands and employees. Motivate your employees and encourage them to be proud brand ambassadors. Invest in R&D in order to launch products which are innovative and value creating to shareholders.

Do not forget the bottom line! All excellent marketing organizations, ensure that their strategies deliver value to both customers and shareholders.

"Marketing is Business. Business is Marketing.

It is impossible to separate the two." (Anonymous)