A business without marketing is inevitable. The marketing industry has spent approximately 560 billion US dollars in the financial year 2019 all around the world according to a leading source. With the advent of social media, digital marketing is an imminent part of the marketing process. Digital Marketing alone costs about 300 Billion US dollars approximately, a market which has outgrown its numbers and which shows a steady increase day by day.
However, sometimes the expenditure on marketing costs are greater than the actual product. It’s doable when the product’s/business profits outrank the overall costs. And if it’s a miss, a terrible loss. Even if it seems important to invest, it is also important how far you are going to invest in your business marketing. How can you cut off unnecessary consumption/misuse of investments without reduction of salary or justifiable profits?
What factors you can consider ?
- ELIMINATION : Firstly check out the possibility of elimination of expenditure. Use statistics to check the expenditure as a cumulative process and not by an individual.
- EXPENDITURE : Expenditure on meetings, basically time invested in.
- PRODUCTIONS: Excessive productions and distributions which are not in need in a particular season.
- INFORMATION : Lack of information can cause enormous costs if every aspect of business nature is not accounted for.
- STANDARDS : Lack of standards of quality and grades.
- AMPLIFICATION : Amplification of sizes, varieties, and terms.
- DOCUMENTATION : Lack of uniformity of business practices in documentation resulting in misunderstandings, frauds & disputes.
- DETERIORATION : Deterioration of commodities.
- SHIPPING: Inadequate transportation and terminals, to inefficient loading and shipping and unnecessary haulage.
- ORGANIZED : Disorganized marketing.
- DISTRIBUTION : Too many links in the distribution chain and too many chains in the system.
- BAD CREDITS.
- COMPETITION : Destructive competition of people who are in fact exhausting capital through little understanding of the fundamentals of business in which they are engaged.
- SALES PROMOTION : Extravagant sales promotion without adequate basic information.
- UNFAIR practices of few.
- WASTES : Wastes in the use of materials.
The above checklist is important to consider because when it’s enumerated, it will be the main interest to manufacturers and distributors. Since in the end, the public pays the bill. It is either charged into the consumer’s price of goods at one end, or subtracted from the wages of producers of raw materials, such as miners at the other end.Checking up on marketing expenditure, it would reduce less labor,more time for recreation, and no salary reductions.The elimination of unrequited things/costs is a total asset. It has no liabilities.
Source: Herbert Hoover.
