News

Marketing Clinic in Kauppalehti 19.4.2010

On 19th April, there was an article in Finnish newspaper Kauppalehti. Here's the summary in English translated from the Finnish article:

Strategic role of marketing is seen as part of management, but in surprisingly many companies results are not continuously measured. This paradox is seen in recent State of marketing 2010 %u2013study, were role of marketing was examined in Finnish companies. Over 70% considers marketing strategic role as management, but 40% says that in their company results are not measured continuously. In comparison, this was 30% in 2008. Researcher Johanna Frösén from Aalto university says that this reflects the effects of economic downturn %u2013 in recession, many companies cut marketing budgets before anything else. Marketing is still seen as cost rather than investment.

Due to recession, productivity of marketing has decreased over the last 2 years according to upper management. Only a few percent considered productivity of marketing very good. Approximately 12 % thought that results of marketing in the company are poor or very poor. Changes to 2008 are not great, but that tells the tale of decreased impressiveness of marketing among upper management. Greatest obstacles of marketing measuring is considered to be lack of time (every other respondent). Another bottleneck was lack of knowhow and material. Lack of management and funding are still greatest obstacles for measuring, whereas lack of cohesive materials is not considered as critical as 2 years ago. According to corporate management, marketing investments are made the most when new product areas are entered or when competition tightens. Only 7% said that they invest most in marketing when times are rough and larger customer base is needed.

Even though relationship of marketing, sales and R&D has improved in two years, still about 10% or the companies sees marketing and R&D as two totally different functions. Over 35% said that marketing and R&D work together in most areas. Approximately 50% said that sales and marketing are inseparable. Companies considered effectiveness as their most important competitive edge. This is followed by professional personnel, image within branch and quality control of the products. These four are at least important to 90% of respondents. Less than third of respondents thought that recognition of brand and competitive means of R&D and innovation. Marketing Clinic CEO Catharina Stackelberg is astonished of the results: %u201CEffectiveness is not competitive edge, it is self-evident." Being effective and streamlining is competitiveness, but competitive edge emerges from understanding your clients better that anyone else. According to Stackelberg marketing is still often seen as a gimmick. "Too often companies try to be innovative and come up with new things, instead the focus should be in coherent production of products, services or solutions of which clients are ready to pay more than of other alternatives."

Here is the article in pdf-format (in Finnish):

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