Trig Point Marketing and E-Commerce Consultancy
October 26th, 2011
Richard Branson has been whipping up some PR by talking about how businesses should work to create jobs rather than focusing purely on profit. That is a nice idea if you can afford it and I am sure he is mainly aiming at big multinationals: however it is important to remember that a business’ marketing objectives aren’t always profit.
Many SME owners setup a business to be a lifestyle business; I find they often tend to have too little consideration for profit and have no flexibility if things go wrong. As long as you do consider making a profit first but worry less about how much of a profit though you can potentially build a nice business that you don’t have to work too hard at.
Turnover is sometimes more the objective than profit, often this is the case when you are building a business to sell and customers and volume of custom are what is going to be valuable to a buyer more than profit.
Increasing volume in order to employ more people or have a bigger more valuable business though is another slightly different objective that is common in medium sized businesses and shouldn’t be ignored.
Different marketing objectives first and foremost need a different approach to price and in turn a different approach to a business’ entire value chain.
Repositioning an offering as a mass market low cost option may make a business less profit but increase volume. Moving the other way may give businesses a premium brand that they feel proud of and allows them to follow philanthropic objectives such as giving a percentage of sales to charity or ensuring that they buy from ethical providers.
It is important for marketers to make sure they are clear on the marketing objectives of a business before doing work for them; it may also be necessary to help a client become clear what thier objectives are and make sure marketing objectives aren’t so disparate that it is impossible to achieve both at the same time.