Organizations fail to implement a marketing plan into their business unit strategy because efforts are focused on production, and because marketing is expensive.
In many organizations, marketing takes a backseat to innovation and development. Resources are focused on designing and building a product, brand, or service – the “fun stuff.” When that phase is complete, many firms are left scratching their heads, faced with the concept of actually selling the product. The marketing strategy is an afterthought to the production, when the two processes should be working in unison for the overall success of the company.
Another reason for the lack of importance placed on marketing in the organizational hierarchy, may be, simply, that marketing is expensive. Half of a product’s overall cost may come from marketing. This is money spent in an area that may not provide results in a timely manner. It takes time to build a customer base, hence, the importance of having a marketing plan functioning alongside the production, financial, and other business plans.
A firm that gives little importance to marketing either because of the costs associated with planning and implementing a marketing strategy or due to a lack of ability to see past the design phase, ultimately fails. Marketing helps sell products, which, in turn, generates profit for the company. Marketing also connects an organization to its customers. This is important, given the current business environment in which customers find themselves with seemingly unlimited options and an inversely proportional amount of dollars. Companies have to find a way to make their brand stand out among a myriad of copycats and true competitors.
The smart phone industry is an excellent example of marketing strategy at its best and worst. The general consumer would be hard-pressed to name a device other than the iPhone and the Galaxy S.