Download Advertising Age - 21 March 2011 by Abbey Klaassen (Editor) PDF

By Abbey Klaassen (Editor)

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6 MARKETING INSIGHT Already, companies led by chief executives with a proactive orientation that stretches beyond the end of the current fiscal year have begun to show results visibly better than the old reactive companies with only a short-term vision. One Scandinavian capital goods manufacturer was devoting its energies to stock control, headcount reduction, cash flow and the like. The problem, however, was one of falling demand. Had it not been pointed out to the Board that this underlying marketing issue had to be addressed, it is easy to imagine how anorexia industrialosa could have resulted (an excessive desire to be leaner and fitter, leading to emaciation and, eventually, death).

As it was, the company spent a small fortune telling people something that was largely irrelevant! Understanding the marketing process 13 In reality, many companies spend more on advertising when times are good and less on advertising when times are bad. Cutting the advertising budget is often seen as an easy way of boosting the profit and loss account when a firm is below its budgeted level of profit. This tendency is encouraged by the fact that this can be done without any apparent immediate adverse effect on sales.

S. Caulkin (2005) ‘Escape from the budget straitjacket’, Management Today, January, pp. 47–49) Finally, on budgets, a major bank has been criticized for its contribution to personal debt of £1 trillion in the UK: Employees are set tough targets for selling loans and double their low salaries, which encourages customer abuse and leaves many borrowers facing ruin. Banks are no longer there to help customers find the most suitable solution. (‘We have a target-driven culture that staff must hit targets’, A Major Bank, 10 May 2005) Apart from the need to cope with increasing turbulence, environmental complexity, more intense competitive pressures, and the sheer speed of technological change, a marketing plan is useful: ● ● ● ● ● ● ● ● ● for the marketer for superiors for non-marketing functions for subordinates to help identify sources of competitive advantage to force an organized approach to develop specificity to ensure consistent relationships to inform The marketing planning process: 1 The main steps ● ● ● ● 35 to get resources to get support to gain commitment to set objectives and strategies.

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