Three Important Effects Of Low Marketing

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In order to maintain a constant growth, it is essential for a company to increase its customer base. In case it is not possible to increase the customer base in the state/district/country in which the company is operating, it may become essential to invest more money and time in marketing the products/services to reach customers in other states/districts/countries. It is practically impossible to earn revenue without informing the customers of the company’s products/services. Therefore, it is important to develop a marketing plan and allocate appropriate budget to the marketing department.  In order to avoid unnecessary marketing expenditure, a company should undertake a cost benefit analysis and formulate appropriate marketing strategiesto obtain best results.

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Three Important Effects of Low Marketing

Low Sales Revenue and Low Profitability

While a business may be able to generate sales in first few years of operation through business contacts, it is not possible to grow and expand operations on the basis of constant sales. Therefore, it becomes important for the company to undertake appropriate marketing initiatives. Low sales revenue can be considered as one of the most important and direct effects of low marketing on the business. Further, low sales revenue will result in low profitability for the company. It is quite possible that company’s sales revenue may not increase while there is a constant increase in its business expenses. In such a situation, it may become difficult for the company to maintain adequate profitability. Further, a company may have to incur loss as a result of rise in business expenses and constant low sales revenue.

Less Market Share

It may become difficult for a company to increase its market share in the absence of adequate marketing. Further, without adequate marketing, it may not be possible to compete effectively with the rival firms in the market. It may become difficult for a company to inform customers of its products/services. Such a situation can provide the competitors with an opportunity to capture the company’s existing market share.

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Loss of market share can have a direct impact on company’s profitability. Marketing should not be considered as the only means of grabbing market share. It is important for the company to perform a thorough market researchin order to design a proper marketing plan. A properly developed marketing plan can help in minimizing the costs associated with marketing initiatives.

Low Employee Motivation

Another important effect of low marketing can be low employee motivation. While marketing cannot guarantee sales, it can certainly increase the chances of generating more revenue. In the absence of adequate revenue, it may become difficult to compensate the employees appropriately. In such a situation, employees may feel dissatisfied. Lack of employee motivation can have an adverse impact on the performance of key business activities. Non performance of key business activities can impact the overall revenue generation process. Generally, sales process starts with marketing. Therefore, it is important for the management of the company to give due attention to the marketing process. Hiring of right resources is one of the most important aspects of successful marketing. Other important factors can include selection of marketing tools, formulation of pricing policies and selection of appropriate distribution channels.