Marketing Is Only About Earning Profit?

Published by MBA Skool Team, Published on January 13, 2014

It is generally assumed that the dominance of an organization depends upon the level of its market share i.e more the market share, more is the dominance of the organization. Hence the formulation of marketing strategies should be such that it helps in gaining the market share. However, a careful analysis of this assumption raises the questions regarding its profoundness. As per the study conducted the companies which aim at gaining market share lose 1% to 3% of their annual revenue. A high market share might help an organization to take a profitable action. However, contradictory to this approach, those organization which built their marketing strategies with profit at its centre have continued to grow and sustain.

“Sustained success is largely a matter of focusing regularly on the right things and making a lot of uncelebrated little improvements every day”

-Ted Levitt.

Image Courtesy:, Stuart Miles

The strategic steps taken by such firm includes building every aspect of their organization from strategy and sales to marketing and manufacturing that guide their growth in terms of profit. The concepts of marketing are utilised to explore many minor (infact minute) details such that the details explored are more minute than the details explored by the competitor. Every activity related to marketing is analysed to collect the details and evidence that helps in improving the company’s profit. The products are differentiated to match up with the consumer preferences and also concentrate on profitable customer segment. This may even include the widening of customer base (for eg:-Geox shoes, though targets middle to high income market but has widened its customer base by influencing them through the fact that “Nobody wants smelly and wet feets”). In order to maintain its profitability the companies pulls itself back from the sector where they are not strong enough(even if it means ceding market share to the companies. Companies call for profit in a highly contested market by directing their marketing efforts-Pricing, Promotion, Positioning, Promotion towards earning more money rather than selling greater volumes.

The aspects such as culture, values, attitude, behaviour are the tools used by the organisation to define (with mannerism) their objective i.e what they want from the market and hence exert considerable influence on it. The marketing strategist, in order to determine the level of variation to be brought in a product uses the details of Customer Relationship Management(CRM). The details collected through CRM provides quantifiable level of information regarding customer’s taste his inclination towards the product. Also, this information helps in determining how the customer would respond to change in the marketing mix


There are certain factors that makes it necessary for an organisation to look for profitable growth. Some of them are:

-Fierce Competition

-Tendency of Customers to switch from one brand to another.

Apart from it, the companies are supposed to present their performance report after every quarter. In order to maintain its position in the market, it is important for them to show a positive growth rate. Using an innovative pipeline rarely offers Just-in-Time delivery. Creative business models require years to take hold and they do not offer guarantee of success (particularly in short interval of time). Hence in order to deliver the better results the organisations are bound to focus on profits. Marketing strategies, hence, should focus on earning profits(i.e implementation of the strategy should result in the generation of profit). If the organisation fails to do so, then it would not only harm its brand image but also cost them in terms of inventory(pile-up) and would thereby reduce the money multiplier effect. Continuous improvement in strategies and product helps an organisation to improve itself on way from good profit performance to peak profit performance.

Though it remains a fact that “In the end, the customer is the king”, despite that the marketers should formulate fierce marketing strategies to persuade the target consumers to acquire what the marketers are offering and hence selling it in exchange for consumers money.

This article has been authored by Mitwa Dutt Sharma, Vaibhav Rusia from BIMTECH


Manage for profit Not for share(Harvard Business Review)

Marketing Management(Philip Kotler).

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