Getting more for less in sales and marketing

Danish companies can save up to DKK 50 billion

Are marketing people a bunch of egocentrics who think they're better than they really are? Can they work strategically? Do they only follow half of the marketing plan once they've finally prepared it?

Such preconceived notions of marketing people are not always very flattering, which is why a group of researchers from CBS are now working on Denmark’s largest research project on the subject. They will take a look at how the marketing departments of Danish companies run and, at the same time, will try to find out how to make companies’ marketing efforts more effective.

-Danish companies spend up to 15% of their turnover on marketing and sales so there is a great potential for their marketing efforts to be more effective, says Per Østergaard Jacobsen, External Lecturer.

Hocus pocus or a strategic tool?

-Marketing has had the reputation of being a load of hocus pocus lacking the professionalism of other areas, such as economics, IT, and logistics. But now, the time is ripe to change this reputation, because while costs are going up, the impact of marketing is diminishing, says Per Østergaard Jacobsen who is one of the researchers behind the project.

According to his estimates, the marketing and sales budgets of Danish companies amount to DKK 200 billion, and he believes that companies could save up to DKK 50 billion by streamlining their marketing efforts.

-Marketing departments need to take a different approach to spending money; they need to be more strategic. When companies draw up their budgets, they all too often do so in one of two ways (neither of which is particularly appropriate): they either do as they have always done, or they copy everyone else, explains Claus J. Varnes, Associate Professor.

Incorporate marketing everywhere

The researchers suggest that marketing efforts should be incorporated into all areas of the company and not just be something that takes place in the marketing department. Maybe some of the money that is currently spent on sponsorships or TV commercials could be invested more efficiently in marketing in other departments.

A good example is the insurance company, Topdanmark. The company has discontinued mass communication and is instead concentrating its marketing efforts on sales and its relationship with customers, and one of the ways in which this is being done is by spending money on staff training.

More information

You can read more about the project on www.effektivmarketing.dk where companies can also complete the project questionnaire.