Marketing has in recent years become one of the most important aspects in defining the well being of any firm. For a firm to be termed a successful one, its management must have invested heavily in marketing strategies. This investment in marketing amounts to what is popularly referred to as the cost of marketing. The WebFinance.Inc (2012) defines cost of marketing as the entire cost incurred during the process of delivering goods and/or services to customers. From this perspective, it is very evident that there should be a balance between the cost of marketing and all the other transactions that relate to a specific business.
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There are several factors to consider during the process of marketing. These factors each come with a cost of its own. Therefore, the cost of marketing can be outlined as the cost incurred during the packaging, transporting, branding and advertising of a product. Basically, most marketing costs are incurred in the process of providing information to customers. Chances of selling a product increase when there is an increased number of customers with access to the information regarding the product. To attain this goal of marketing, there probably arises more need of investment in the whole cycle of marketing. As earlier stated, this clearly illustrates why it is important to competently take into the study of the cost of marketing.
With the study of the cost of marketing, a firm can be at a position to determine its weaknesses. The weaknesses that most firms have to deal with usually involve their customers. As popularly understood, customers determine the success of a firm and that at all times their needs should be addressed first. The role of marketing, and therefore any cost incurred therein, is intended to cater for the information of the customer. In this regard, the customer plays a vital role as per to why firms should determine their costs of marketing of the products they deal in. In simpler terms, the cost of marketing of a firm should at all times be a reflection of what customers need from the trading activities that the firm gets involved in.
Determining the profits and losses of a firm are also another important task that force a firm into conducting a study of its cost of marketing. It has been observed that firms that pay attention to the funding that they set aside for their marketing purposes are more profitable than those who just do their marketing plans without a structural organization (Farris, Bendle, & Pfeipfer, 2010). To exactly determine whether a firm has had a profitable venture or not, the cost of marketing should be calculated. In the case that the cost of marketing becomes an excess over the amount the sale of the product generates into the firm, then that venture is termed to be a loss to the company. However, when the cost of marketing does not exceed the amount generated by the sale of the product, then that can automatically be termed as a profitable venture. Clearly, without the statement of the cost of marketing, then how profitable a firm is cannot be determined.
In summary, it can be assumed correct to state that the cost of marketing that a firm incurs actually includes all the funds that the firm puts into its strategy to remain competitive in the market. From the technological improvements that the firm might want to undertake to the hiring of the subordinate staff or any other effort that a company puts in order to curb its challenges sum up into the cost of marketing. Therefore, the conclusion that the cost of marketing fully defines the existence of any firm in the market can be only accepted as true. Because of this, it is inevitable that firms conduct assessments to determine whether their cost of marketing is relative to their success or not.
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