#9

Can you move marketing from being a cost to an investment?

"Marketing is not only much broader than selling, it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view." — Peter Drucker        

For years, marketing has been seen as a cost, a business expense that gets cut when budgets are tight. But marketing should be an investment. When done right, it helps businesses grow, strengthens brands, and improves long-term success. Many companies struggle to measure the return on their marketing spend. Without a clear approach, it’s easy to waste money on activities that don’t bring results. The good news? Marketing can become a reliable driver of business growth.

Why You Need a Clear Starting Point

Before making any changes, businesses need to assess where they are. Without a clear picture, decisions are often based on assumptions instead of data. Every company should answer three key questions:

• Where are we now? Understanding current marketing performance, brand positioning, and return on investment.
• Where are we going? Making sure marketing goals align with business objectives.
• How do we get there? Optimizing strategy, execution, and efficiency.

The Need for Proper Diagnosis

Good marketing starts with understanding the customer. Many companies skip proper research and rely on outdated assumptions. A strong marketing strategy is built on:

• Segmentation – Targeting the right audiences with tailored messaging.
• Customer data insights – Using analytics to find trends and make informed decisions.
• Customer research – Understanding buyer motivations, pain points, and behaviors.

For me, segmentation isn’t just about categorizing customers, it’s about identifying where to focus attention. It’s about knowing where the best growth opportunities are so companies can direct their resources effectively. Without clear segmentation, companies often spread themselves too thin, trying to appeal to everyone and losing effectiveness in the process.

The Need for a Proper Strategy

Many companies rush into marketing tactics without a well-thought-out strategy. A good marketing plan should include:

• Objectives – Clear, measurable goals that align with business growth.
• Positioning – What makes your brand unique?
• Targeting – Who are the most valuable customers?

I’ve seen many companies struggle because they lack proper targeting and positioning. They try to appeal to everyone and, in doing so, dilute their message and lose impact. In my approach, everything starts with business objectives, which cascade down to marketing objectives, and finally to communication objectives. A business goal, such as increasing market share, should inform marketing efforts focused on changing customer attitudes or behaviors. Communication should then deliver the right messages to the right audience. This structured approach ensures marketing activities have a clear purpose and drive measurable results.

Building Transparent Relationships with Suppliers

Transparency in business relationships is essential. Many companies fail to optimize their relationships with agencies, media buyers, and other suppliers. Hidden fees, lack of clear contracts, and misaligned incentives lead to inefficiencies and unnecessary costs.

Companies should demand:

• Long-term partnerships based on trust and shared goals.
• Detailed reporting on performance metrics.
• Clear pricing structures from media and advertising partners.

Common Marketing Mistakes

Many businesses make the same mistakes that hurt their marketing success:

• Being reactive instead of proactive. Without a long-term strategy, businesses struggle to grow consistently.
• Ignoring customer insights. Decisions based on assumptions often result in weak messaging.
• Lack of transparency in media buying. Hidden fees and unclear contracts lead to overspending.
• Spending on ineffective media. Without tracking results, businesses often waste money on channels that don’t work.
• Ignoring the full marketing mix. Many businesses focus only on promotions but overlook product strategy, pricing, and placement.
• Only focusing on communication. Marketing is more than ads—it includes pricing, product-market fit, and distribution.

Reading recommendations:

“Ogilvy on advertising” - David Ogilvy

Till next week.

Jakub

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This is a JK’s Week in Review by Jakub Kosmowski.

Once a week, every Friday, you get the most essential information curated by me from the world of business, marketing, and management.

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Let's work together

Speaking and training. Topics below:

These are the topics I prepared for early 2025:

1. The art of briefing - Why is communication between leadership, middle management, and agencies crucial in finding efficient growth? If the leadership miscommunicates objectives, then everything falls.
2. Can creativity be scientific? - What rules and insights can we use to do better, more effective ads that bring results?
3. Media buying: You may be sitting on 25% savings in your digital media spending and not even know it. Where is the biggest dark place for companies?

Contact me if you are interested in other business-related topics, marketing planning, or objective settings. Email me here: info@jakubkosmowski.com