📊 Marketing Profit: Key Aspects
Profit from marketing is the only real way to make a profit. In the modern world, the contribution of marketing to profit reaches 95%. However, among most businessmen, there is a widespread opinion that marketing is an expensive undertaking that does not bring profit, and a marketer is almost superfluous in a company..
The marketer is always the first in line to be fired, because marketing does not generate profit, and therefore marketing is a luxury, not a means of doing business. For this reason, many businesses simply refuse marketing and marketers, and in vain, because by doing so they further aggravate the situation in business.
In the modern world, marketing is not a luxury, but the only way to make a profit. There is profit from marketing, as well as profit from marketers, if everything is organized correctly. Stereotypes that marketing does not make a profit are spread by businessmen who have not used quality marketing, which alone can bring profit.
How to Calculate Marketing Profits
Marketing is involved in generating profits and very significantly. Any businessman who practices quality marketing will confirm this. Moreover, according to many experts, it is marketing that brings at least 80% to the final sales. This means that if marketing is not used, then sales make up only 1/5 of the possible volume.
As a result, we have net profit from marketingProfit from marketing is that it allows you to increase sales volumes at least 4 times. From here, you can calculate the profit from marketing. If marketing is used, the sales volumes must be multiplied by 4. After that, from the resulting amount, you need to select the profit itself, and from the profit, select all marketing costs.
As a result, we have net profit from marketing. Having net profit from marketing means only one thing – if suddenly problems start in the company, then you should not give up marketing, on the contrary, you need to strengthen it. This is beneficial to everyone, because if there is no marketing, sales will definitely drop. If sales drop, many will become unemployed.
How to Profit from Marketing
The word “unemployment” seems abstract to many people, everyone thinks that everyone can be unemployed except them. It is abstract as long as the market situation is favorable, but when it becomes unfavorable, unemployment begins to loom before everyone. With unfavorable conditions comes a decrease in sales, incomes and profits.
Accordingly, the first to be hit are marketers. Companies are seized with hysteria, emotions begin to take over reason, and a search for quick ways out of the situation begins. One of the areas is cost reduction. It is clear that, first of all, they are reduced by firing people who do not directly bring in profit. Paradoxically, but first of all, they look at marketers.
Their participation in receiving income is controversial for many. In turn, it is impossible to work without accounting, and it is also impossible without the financial service. If you remove sales, then there will be no sales at all. Accordingly, the first to be dealt with are marketers. In general, of course, marketers are the most vulnerable category among all employees of any company.
Maximum profit from marketing
Marketers are vulnerable because if sales fall, many logically believe that this is the marketers' fault, and if they are not laid off, they are fired as having failed to cope with their responsibilities. Others will be hired in their place, and everything will start from scratch. But the whole point is that, given a favorable situation, one marketer can cope with the task.
Therefore, you should not fire the marketer, but look for another oneWhen the market situation falls, the marketer has more work and he simply cannot cope. Therefore, you should not fire the marketer, but look for another one. You can not hire him on staff, you can work with him in other ways, for example, through outsourcing. At the same time, the efficiency of the marketer often falls also because he is constantly under pressure.
This situation cannot be considered normal, because like any other person, a marketer can work effectively only in stable conditions in which his fate is clear to him at least for a certain period. Therefore, before hiring a marketer, you need to understand why marketing is needed and how profit is made from marketing.
Why Sales Fall Without Marketing
Very often the marketer is not at all to blame for the drop in sales, especially when he is not the one developing the marketing strategy. A drop in sales in 90% of cases happens precisely when a weak marketing strategy is used. Accordingly, the real blame for the drop in sales lies with those people who developed it and who adopted it.
… not everyone knows how marketing is involved in the production chain… A marketer needs to spend a little time to protect themselves from such a situation, they need to clearly show the management the moments that interfere with good sales and thereby show their necessity and importance. You can show your necessity only when you show the management how to make a profit from marketing.
Although many people know about marketing, not everyone knows its essence, and accordingly, not everyone knows how marketing participates in the production chain and how it generates profit. Even fewer people know how to develop a quality marketing strategy and how the interaction of marketing and sales generates profit.
How Marketing Is Built Into Business
You can try to follow standard paths to explain how marketing works and how profit is made from marketing. However, it has been proven that they do not work. If you show that marketers study markets, conduct marketing research, segment, search for needs and requirements, then few people take all this into account.
Only this way will show how to make a profit from marketing. This is due to the fact that it is not entirely clear how all this can affect sales volumes. When sales are going without this, it is not at all clear why all this is needed, because sales are already there and why in this case hire a marketer and pay him a salary, and even money for some incomprehensible marketing. Accordingly, you need to go another way.
Another way is to show how marketing is integrated into the company's production chain. Only this approach will convince management that marketing is a necessary part of the company, that marketers are always needed, not just when there is money for them. Only this way will show how to make a profit from marketing.
Successful Business with Marketing
This way will show how marketing can create the foundations of a successful business and thus a strong business. If the management is convinced that marketing is just as involved in the final result of the company as all its other departments, then in this case the chances of being unemployed are much smaller, they are almost zero.
Marketing allows them to be identified, and therefore it is needed for this. This is the only strategy that allows a marketer to protect himself from layoffs and dismissals. At the same time, it is obvious that one must be resourceful. One of the opinions says that marketing begins with needs and requirements. Marketing allows them to be identified, and therefore it is needed for this. This may be its role in the production chain.
It is obvious only to marketers, but not to management, which does not always have an education., it is not obvious how marketing is integrated into the production chain with this approach. Marketing's involvement in the production process is obvious when business processes use a model according to which everything starts with an idea.
How Marketing Creates Profits
It is obvious that everything starts with an idea. For example, first we have an idea that we need a car, then we buy it, i.e. we implement the idea. First we have an idea that we want to relax, then we start implementing it, searching for a tour, studying the offers available on the market.
In fact, marketing is the very beginning of the production chain. Accordingly, it is quite easy to show this layout to management and convince them that the idea is at the core. Then you just need to show what role marketing plays in this action. Marketing plays the main role in this action. It allows you to implement ideas, implement them, manage their development and thereby create demand for goods. or services.
Thus, marketing provides at least 80% of the final sales volume. In fact, marketing is the very beginning of the production chain, and therefore it is simply impossible without it. The effectiveness of the company and its future in general depend on whether or not there is marketing in the company. in general depend on whether there is marketing in the company or not. The volume of sales depends on how well the marketers worked.
Why there is no profit without marketing
Accordingly, if you remove this link from the chain, the chain breaks, and when the chain breaks, it no longer performs its function. Thanks to marketing, the foundation is built on which everyone then works: sales managers, accountants, production workers, financiers. In general, marketing is the foundation on which the entire company rests.
Accountants and financiers draw profits, but marketers create them anyway. To understand what this looks like, it is enough to imagine a pyramid. Divide it into parts in proportions of 1/5 and 4/5. In this case, the 4/5 part is the foundation and marketing, and the rest is everything else. If you remove the foundation, it is easy to see what remains of the company. Accountants and financiers draw profits, but marketers create them anyway.