How you answer this question will directly translate to how you build your business and marketing strategy.
You Manage Marketing as a Cost Centre:
- You allocate your budget based on a percentage of your turnover and build the marketing strategy from the budget available and your previous year activity. If turnover declines the marketing budget is typically first on the chopping board.
You Manage Marketing as an Investment to Create Equity:
- You see your business and marketing strategy as one, where marketing is not just a means of building sales but equity in the business, and therefore you take more of an ‘investors long term mindset’ approach. You look at how to build on the return of each of your investments. A decline in turnover/performance metrics prompts the question of whether you should be investing more in marketing.
You Manage Marketing as a Profit Centre:
- Where Marketing is not just about building equity in the business, but it becomes its own revenue stream. Through a strong, engaged and growing customer base, you can create business owned media, communication platforms and channels across a range of product categories. You are led by the customer experience.
- A good example of Profit Centre Marketing is Lego. The Lego movie generated revenue from ticket sales and product sales, along with doing a job on brand positioning, value positioning, brand equity and business sustainability. Lego customers are their marketing team, per se. They create Lego events that are not initiated by the company, and are tightly integrated in product innovation.
Or as a Christmas Centre — waiting for the year to turn the corner into Christmas, and then go all in and see what comes back!!!!!!! Merry Christmas Everyone. Thanks for reading. We hope you have been able to take away a thing or two. We also hope that you have enjoyed a good year in business and that the momentum continues in 2018.
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