Marketing’s Role In Profitability
Role of Marketing in Impacting Profitability
The need for any company to see themselves as global competitors starts with companies putting their markets and customers at the center of their strategies, and measuring how effectively they are attracting, selling, and serving their prospects and customers. This dynamic of making an entire company aligned with the needs of customers is called being demand-driven. The concept of aligning and synchronizing the many departments, buyers, suppliers, and strategies to the needs of customers is called creating a demand-driven organization. The implications of becoming demand driven have been quantified in many different studies of marketing’s impact on an organization’s profitability. Of all these studies, the most significant are those by Columbus (2003) which states the unique perspective of looking at the distribution channels a company sells through from the standpoint of assets and liabilities, and measuring the ROI of strategies aimed at attracting, selling to, and servicing clients. This is interesting research to consider in the analysis of how marketing specifically influences the financial strength and growth of a company. In his research, Columbus claims that Microsoft was able to increase sales by 30% throughout France using lead management and escalation for their mid-market ERP applications.
In quantifying the financial impact of marketing on the profitability and long-term financial performance of any company, the processes surrounding order capture, order management, fulfillment, and order tracking are all critical. Askegar and Columbus (2002) extensive analysis of best practices in high tech manufacturers also highlights the integration of order capture, order management, and order fulfillment systems to the broader marketing systems, the higher the ROI on both the marketing and systems investments. Their best practices grid that emerges is one that shows when marketing strategies across industries are synchronized to sense and quickly respond to demand, there is a corresponding jump in the level of gross margins generated, a lower level of Days Sales Outstanding (DSO), and lower levels of Accounts Receivables as customers pay faster when they are more satisfied with the transaction service they receive. These financial results point to the financial strength of companies who become demand-driven and align all their strategies specifically to the needs of their customers, working to create a value chain that senses and responds quickly to changes in customer preferences and requirements. This agility of marketing strategies is only possible when companies become centered not on their own internal processes, but on the needs, preferences, and wants of their customers. Truly becoming demand driven actually exposes to the most critical of financial measures of performance to the influence of customers. Integration of systems is essential for this level of quick response to market demands is necessary, as the research in this paper discusses.
Where marketing’s impact on the financial performance of a company becomes very clear is in the selling of customized product and service configurations to customers. The continual shift of companies to embrace customization and tailoring of their products and services to the specific needs of customers offers some of the highest rewards for financial gains. AMR Research (2003) discusses this in the context of unifying the marketing of build-to-order production strategies into the broader value chain of a company, and the resulting significant influence on financial performance. The focus specifically in the build-to-order strategy is in the quote-to-order workflow process that spans both direct and indirect channels of distribution as order capture points, followed by managing orders from a distributed standpoint, measuring the effectiveness of specific advertising and promotion programs on order rates and profits per order. The quote-to-order process also has significant implications for managing inventories and increasing inventory turns specifically. With an optimized inquiry-to-order process it is common to see a factor of 5 or more increase in inventory turns per year, a reduction of 30% or more in Days Sales Outstanding, and an increase in average order size by over 40-60% based on the use of more effective quoting and demand sensing and execution strategies throughout a company. The entire value chain for many companies is dependent on their ability to quickly sense and responds to customized product and service requests. At the intersection of quote-to-order strategies and increased financial performance due to greater efficiencies is the effectiveness of marketing’s role in influencing financial results.
Taking a process-centric perspective to the contribution of marketing to a company’s financial results captures the most relevant aspects of how being focused on customers pays off for the long-term. First, with a process-centric approach to analyzing the contribution of marketing to a firms’ financial performance, there’s the need of defining just who the customer is for a specific activity, development, or strategy. Trimming back on or even discontinuing processes that don’t directly influence customer growth is the most significant contribution marketing, from a process-centric approach, can make. Askegar and Columbus (2002) highlight a maturity model that specifically addresses this point from the standpoint of recruiting, growing, retaining or re-directing channel partners. This has major implications for measuring per-channel sales productivity, gross margins, and channel partner revenue contribution. Second, a process-centric view of marketing’s contribution to revenue highlights a series of financial measures that best reflect the immediate impact of changing strategies to make them more customer-centric. These metrics include average cost per order to fulfill, Days Sales Outstanding (DSO), gross contribution margin per order, inventory turns, and percentage of orders fulfilled right the first time (sometimes called the perfect order metric), costs per lead, lead escalation rates. Taking all these metrics together yields a dashboard that highlights how efficiencies gained in marketing processes directly influences the financial strength of a company.
The bottom line is that marketing’s role of revolutionizing an organization to become more agile and aligned with customers’ needs requires a process-oriented approach to removing organizational roadblocks that get in the way of helping customers. This is the strongest contribution of marketing of all to financial performance, and that is a glimpse into what levels of financial performance are possible once processes inside a company are more aligned with the needs of customers.
Askegar and Columbus (2002) – Channel Management Best Practices: It’s All About Orders. AMR Research Report. Monday September 9, 2002. Retrieved from the Internet on September 7, 2007:
AMR Research (2003) – Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retreived from the Internet on September 3rd, 2007 at http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf
Columbus (2003) – Re-evaluate How Your Measure Your Channels’ Performance. AMR Research. Boston, MA December 2, 2003 http://www.lwcresearch.com/filesfordownloads/ReevaluateHowYouMeasureYourChannelDec2003.pdf
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!