“Cada vez que alcanzamos la cima de una cresta decimos ‘quizás ésta es la última’, pero nunca es la última”
Ernest Shackleton

10 de octubre de 2013

Swinging investment or marketing investment?

Sales are down in most of sectors in Spain…maybe it’s a question of investment in marketing or in sales force? Maybe it’s a question of promotion or price? Even service? Maybe… or not.
Depending of sector and depending of each company, is some cases the market of our target is changing faster than our own adaptation, sometimes for new technologies others because there are substitutes in same market. In the other hand there are companies which should change their own business, swinging in a total way because their product it’s different to the reality of demand.
For example, if we speak about sector of training or education, first there are new technologies with they are creating new channels to offer this service, like all types of e-learning (webex, webminars, platforms like Moodle, MOS, etc.), different ways of documentations, and that’s why prices are down, there are a big democratization of information and clients can found detail the best course adapting to their needs. Clients don’t want a typical course, face to face or traditional e-learning, only with a very good trainer and a good topic, now people have a lot of information and possibilities at the tip of their fingers. They want something else. The business model are changing because people only want to pay for an add value, not only for a good service and product.
It’s similar in editions, to read a paper book is substituted by to read an e-book, you don’t want to buy paper books, but you think the price of e-book is always high for an electronic and immaterial book.  The business model is changing.
When the business model is changing is time to swing. The business should to find their new add value as demand swinging, because to keep old values is to wear the company to their own end. Maybe the “lean start up” is the new strategy. Really there are a lot of companies with problems and not only by the crisis but their own lack of flexible strategy.
To build a strong marketing strategy only works with a correct business strategy. For example, Kodak has swung their focus, and actually it’s a new company, but it was in the limit to disappear.