Five Ways Marketing Increases The Value of Your Company
Updated: Jan 23, 2019
Businesses with a strong brand positioning are worth more. According to McKinsey, B2B businesses with a strong branded value proposition generate up to 5 percentage points higher total return to shareholders.
So why is marketing so often left in the hands of the CEO or sales team? Or worse, in the hands of a junior digital marketer hired “so we can compete in the 21st century”?
The answer is that marketing is so familiar everybody thinks they can do it. But being bombarded with messages, from You Tube to Facebook, TV to posters on our way to work, doesn’t make us experts. It gives us false confidence that all too often leads to missed opportunities and financial underperformance.
As the saying goes, “you don’t hire a plumber to hit the pipe, you hire him to KNOW WHERE to hit it”. Knowledge is not acquired on the internet. Imagine reclining in the dentist’s chair as he proclaims that he’d learnt everything he knew from You Tube videos!
Value is created in a business by enhancing customer and consumer value - otherwise known as marketing. Just as with a plumber or dentist, there are tools and skills which need to be acquired and experienced in order to perform optimally.
So how can marketing help you add customer value and increase the value of your company?
Five important ways marketing increases the value of your company.
1: Understand the marketplace and the environment. Know your customers’ most important needs and determine how to satisfy them better than your competitors so that customers choose you rather than them.
2: Determine what changes you need to make to your products and services to create the optimum offering that addresses your customers’ needs better, faster or cheaper than anyone else.
3: Create a powerful value proposition that shows your target customers why choosing your products and services will benefit them more than either choosing a competitor’s products or not buying anything at all (inertia is often your biggest competitor).
4: Create a customer-focused marketing strategy – your approach to beating your competition and winning the hearts, minds and wallets of your target customers. Decide on your product and services portfolio, pricing, distribution channels, routes to market, promotions and communications. Agree what resources you will put behind implementing your strategy.
5: With an agreed and budgeted marketing strategy in place, formulate your action plan – also known as the annual marketing plan. Now, with a clear positioning and strategy, all the team, including the junior digital marketer, can do a more efficient job, more cost effectively. Delivering your brand promise to your customers is key.
With these 5 steps you will discover unseen growth opportunities and improve your return from existing marketing efforts. Through this process a team’s marketing capabilities will be enhanced which will have a lasting positive impact on your organisation.
Skilled and professional marketing leadership enhances customer or consumer value which in turn increases your business value.
Your first step is simply to ask yourself honestly; can I describe in a few words who my customer is and why they should buy my product/service. You can almost certainly improve it. If you improve it, you’ll sell more.
Mark Shepherd leads our marketing capabilities at Lighthorne Partners
He is also a member of the faculty of International Business Management at the University of Applied Sciences, Western Switzerland where he lectures in marketing management.
You can contact mark directly: Mark@lighthornepartners.com
+41 79 777 5879