Finance People simply do not Understand Marketing
Read the article from the link provided below: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/measuring-marketings-worth
In the first paragraph of the article, it brings up a very interesting question: finance people simply do not understand marketing. Finance people want to invest money in places where they can see immediate and tangible results. However, the impacts of marketing activities are sometimes intangible. If you were a marketing manager, how would you defend marketing’s role to a successful business, and argue that marketing creates and adds value to a firm? Please share your opinion with the class.
Marketing is associated with intangible benefits to a business, and these intangible benefits are difficult to measure and quantify. In a business, marketing managers find it challenging to justify the benefits associated with marketing, especially to the finance people. However, a major role of a marketing manager is to defend the function of marketing as far as business success is concerned. To the finance people, understanding the value of marketing to a firm is vital as this amounts to unity of direction and unity of purpose.
The intangible roles of marketing in a business include creation of brand awareness, customer loyalty, i.e., attraction and retention, and promotion of employee morale. These intangible benefits of marketing are more subjective, and neither the finance people nor the marketing people can measure in monetary terms. This is in contrast to the tangible benefits of marketing, like customer conversion rates, click-through rates, email campaign performance, and social media content analytics which can be measured and quantified. If the finance people agree to invest in marketing, both tangible and intangible benefits of marketing will be reaped.
Not only does marketing create brand awareness, marketing also raises sales, grows the business, and helps engage customers. This implies that investing in marketing is a worth venture that brings more value to the firm. Today, consumers are influenced by digital revolution and social media marketing. The emerging marketing channels are the best to consider. Doing a cost versus benefit analysis prior to investing in any marketing channel is always advisable for a business, and this is the role of the finance people. The most feasible, viable, and profitable marketing channels should be considered.
References
Court, D., Gordon, J., & Perrey, J. (2012, May 1). Measuring marketing’s worth. Retrieved from McKinsey & Company: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/measuring-marketings-worth
Gross, J. (2019, December 4). Why marketing is SO important. Retrieved from Moving Targets: https://movingtargets.com/blog/business-marketing/why-marketing-is-so-important/
Mansoor, H. (2019, April 1). Why Is Marketing Important? 9 Reasons Why You Really Do Need It. Retrieved from Business 2 Community: https://www.business2community.com/marketing/why-is-marketing-important-9-reasons-why-you-really-do-need-it-02186221
Redmon, L. (2020, August 5). Tangible Benefits of a Successful Digital Marketing Strategy. Retrieved from Primitive: https://www.leadwithprimitive.com/blog/tangible-benefits-of-a-successful-digital-marketing-strategy