July 24, 2016
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When it comes to organizational cost-cutting, I’ve often heard that the marketing budget is commonly among the first to be cut. Until now, I didn’t know why exactly. However, the preview section of Does Marketing Need Reform? Fresh Perspectives on the Future clarified the factors contributing to the current state of marketing. This book was authored by Jagdish N. Sheth and Rajendra S. Sisodia, and was published in 2006. So, it’s dated but the major themes are still relevant as they are echoed in the 2011 video below.
The following historical facts and figures, as cited by Sheth and Sisodia, put the past and present situation in perspective:
- “In an age when the mantra of business has been ‘do more with less,’ the marketing function has for too long been ‘doing less with more.’ In most industries today, the marketing function consumes over 50 percent of corporate resources, up from less than 25 percent around 1950. At a macro level, marketing represents a tremendous waste of resources that could be better utilized elsewhere.” (p. 20)
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