This week we learn about how and why marketing must become a strategic component of the business. The first step is to start thinking strategically. Not only can marketing make your business a lot more money, it can also save your business a lot of money.
Guest: Andrea Olson, Founder & CEO at Prag'madik
Andrea's book: No Disruptions: The New Future for Mid-Marketing Manufacturing
- [3:15] Quality should trump quantity when it comes to marketing activity. One way to save money is to use marketing automation for the routine activities and focus more on the strategy (marketing and business).
- [5:00] Andrea explains why more manufacturers are not adopting automation for the front of the house when they are embracing it for operations. You have to have a marketing strategy before you can use marketing automation effectively.
- [11:00] Marketing needs to be elevated to a strategic component of the business before it can be a money making part of the business. Ask the tough questions about what should be continued and what should be stopped.
- [13:30] Andrea talks about ROI and attribution, using a trade show as an example.
- [16:00] Any size marketing team can gain these advantages, but if you are a small team, start small with one particular piece and make it better, look at it from the CEO or CFO perspective.
- [18:30] Marketers must understand the financial aspect of the business so they can communicate with the leadership.
- [24:00] Andrea brings up a good point, why does Sales get unlimited touch points, but Marketing gets limited touch points?
- [27:30] Andrea shares a real-life practical example.
Question 1 – Andrea, I’m sure our listeners out there are on the edge of their seats, wondering how they can turn their marketing function into a profit center and, at the same time, save money. Let’s first talk about how they can save money. How does that work?
Question 2 – And, the other side of the topic, how can they turn marketing operations into a profit center?
Question 3 – A lot of manufacturers I talk to have a small, sometimes one person, marketing team. Is this something they can do? Or is it only for larger teams?
Question 4 – It seems like you’re saying that, not only can marketing generate leads, awareness and sales pipeline, but it can also be a revenue stream in and of itself. Could you share an example of a company that has done it?
This week our challenge question comes from the general manager at a Colorado company that makes various composites. Here it is, “I’m the GM at a B2B manufacturer of composites. We sell all over the globe. Our marketing team has always held the role of support to the sales team. They aren’t strategic thinkers and we’ve never thought about marketing as a strategic component up until recently. In reading your book, it seems we might be missing the boat on the opportunity a strategic marketing function can offer. Should we get started making the conversion to a marketing focused strategy from a sales and product focused strategy? What is the first step?”
- Make it a customer focused strategy and break down the sales, marketing, operations silos. First step is to get someone in who understands the strategic component by hiring a VP or bringing in a consultant.
- Yes, start thinking about marketing as a strategic component of the business. It's a matter of survival. First step is to start talking about it and look at the team.
- Define marketing's role in the organization, take a fresh look at how marketing can help solve the current business problems.
- Start to understand the role of the CFO and understanding the finance of the business. For example understand inventory turns, cost of customer acquisition.