October 8, 2007

The #1 Job of Marketing  Comments 

Filed under: High Tech Marketing — admin @ 4:58 pm

For a long time in my career I believed that the most important function of marketing was to bring the knowledge and understanding of the customer into the company.  This is a critical part of marketing.  However I no longer believe that it is the most important. 

           

I now firmly believe that the #1 job of marketing is to:

Assess the potential of new markets and to plan the entry into the chosen new markets 

This is consistent with my earlier post, The Marketing Wedge http://www.chipdesignmag.com/denker/?p=13.  The key thought of the Marketing Wedge being that market factors are more important than customer factors, and that customer factors are more important than product factors.

 

New markets are the key to long-term continued growth and innovation.  Some of the reasons for this are:

- New markets offer the largest potential gains in revenue.  The gains from a new feature to an existing customer base, or addressing a new customer in an existing market are generally much smaller in the long-term.

 

- New leading edge markets also are characterized by change and innovation.  Participating in these markets will increase your own innovation.  If your growth and innovation are sagging, explore whether you have been resting on the laurels of your current markets, or taking on the challenges of new markets.

 

- Growth does not necessarily continue forever.  Even the best of markets eventually become saturated, then stagnate and decline.

 

- There is always the threat of change to current markets, potentially forcing you into a mad scramble for new markets.  Some changes can be foreseen, but a disruptive technological change is almost impossible to predict.

 

Also remember that new markets take time to develop.  You need to start your entry into a new market years before the new revenue is needed.

 

Too often within established companies the market and channel choices are already set in stone.  Because of this many in the marketing profession do not get exposed to this aspect of marketing.  However, the increasing pace of change in markets, the increasing complexity of the sales channel options, and the broad diversity of customers make ignoring this #1 job more dangerous to your companies’ long-term prosperity. 

 

An insightful analysis of this management behavior is detailed in the book titled, The Innovator’s Dilemma by Clayton Christensen. He explains how rational management decisions can cause management to miss market waves caused by discontinuous changes. 

 

What this means for marketing is that the old model of “the next bench syndrome? which is very incremental approach is even less likely to apply.  That more risks needs to be taken.  It is hard to predict what you will discover in a new market, so flexibility will be needed for success.  Also sales needs to understand that there will be more testing of the knowledge and capabilities of the sales channels.  They will need to be more flexible too.

 

If your company has not been flexing this new market muscle, it will more likely than not wake up one day to find it has to take a crash course in finding new markets in order to survive.

 

Rick Denker

Packet Plus™, Inc.

4 Comments »

  1. A very good marketing strategy is very important in promoting your products both online and offline.

    Comment by Scarlett Morgan — May 18, 2010 @ 8:45 pm

  2. marketing of products is very necessary so that someone will buy it.

    Comment by Ellie Hughes — September 12, 2010 @ 4:02 am

  3. marketing should be your first priority when you want to introduce new products or service.

    Comment by Kitchen Cupboards  — October 12, 2010 @ 8:42 am

  4. marketing really takes some skill and talent if you want to succeed in it.

    Comment by Metal Railings %0B — December 14, 2010 @ 9:10 am

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