How can the cost implication be justified in the practice of marketing?
Marketing is beneficial for any organization. It improves brand recognition, therefore, raising profitability (Iglesias et al., 2019). However, some marketing techniques, such as advertising through mass media and print media, are cost-intensive. The business needs to consider the cost implication of the marketing strategy before venturing into it. In this case, market research is the best route for the company to take. The goal of any business is to make a profit, and profit remains after it has paid all its expenses and liabilities. In marketing, a business has to incur costs which an expense to it. If the marketing strategy adopted fails to bring customers, then losses will result in the company.
Marketing strategies that help an organization attract many customers are said to be useful and worth investing in it. After luring customers, the company still has the responsibility to retain them that they may continue buying the products (Gee, Coates & Nicholson, 2008). Customers’ buying behavior is influenced by several factors, both inside and outside the business. Therefore, the organization needs to know these factors so that it many understand the customer’s buying behavior. With this understanding, the organization can build a strategic marketing plan that will continue attracting and retaining customers.
Cultural, economic, physical, and political factors can affect the customer’s buying behavior (Mohammed et al., 2013). The organization needs to take into account these factors in its marketing efforts. To understand the impact of each factor, the company needs to conduct research. Factor like culture may dictate that its affiliates should not use a particular product. The research will help inform the company concerning the same, and it will not invest in marketing efforts targeted to their regions as they are not potential customers. In any marketing, effort cost has to be incurred, but if those efforts bring in customers, the business will profit overshadow the cost. In that way, marketing cost implication is justified. How can a business rise above all the factors that affect its profitability negatively?
References
Mohammed, J. A., Almsafir, M. K., & Alnaser, A. S. M. (2013). The Factors That Affects E-Commerce Adoption in Small and Medium Enterprise’: A. Australian Journal of Basic and Applied Sciences, 7(10), 406-412.
Iglesias, O., Markovic, S., Singh, J. J., & Sierra, V. (2019). Do customer perceptions of corporate services brand ethicality improve brand equity? Considering the roles of brand heritage, brand image, and recognition benefits. Journal of Business Ethics, 154(2), 441-459.
Gee, R., Coates, G., & Nicholson, M. (2008). Understanding and profitably managing customer loyalty. Marketing Intelligence & Planning.