Even though large corporations and big, long-established companies are fond of going on about the “digital future”, many continue to rely on traditional rather than online marketing services to keep them moving forward and generate profitable leads. The world of online marketing services, it seems, has been inherited by the little guys – the small fish swimming in a big pond, and not the whales.
What makes big companies so tentative when it comes to innovation in marketing? Are they simply stuck in their old ways or are they unconvinced they’ll achieve the same levels of return on investment if they take the plunge and enlist the aid of an online marketing company? The answer is probably a combination of these and other factors – and in general, these are the ones that play the biggest roles:
They focus on the highest-margin audience of consumers
When you’re already at the top of your game, there is a tendency to get complacent with your loyal and long-standing clients without actively hunting for the clients of the future. For older companies, the highest-margin consumers are the bullseye. Today, however, these consumers present a problem when it comes to reaching them through online marketing, and the simple reason is that, unless it’s absolutely necessary, they spend very little time online. The consumers with the most money tend to be older, and older people tend to be less computer-savvy than the youngsters being courted online by smaller start-ups.
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They focus on top-shelf, premium products and services
An online marketing company brainstorming about how best to position an exciting product or brand is first concerned with which markets it believes can be turned into a customer base. This is precisely the opposite of most big companies, who would prefer to hold onto their existing high-margin clients. Nowadays, consumers are looking for the right tools for a specific job, and at the best price possible. A premium product is often seen as too expensive, and “too good” for their needs – they would rather buy a “good enough” product or service, and these usually come from innovative niche start-ups.
They focus heavily on asset-utilisation
Investors and stakeholders of larger companies want to see not only ROI, but ROA as well. The “return on assets” emphasis places pressure on top decision makers to stay within the framework of assets the company already possesses, making them less likely to innovate or take risks with new marketing strategies. It’s no secret that in today’s recession-hit industries, marketing budgets are already the first being cut, so many a CEO is keen not only to avoid new marketing techniques, but also to be much more cost-savvy when it comes to their existing marketing exercises.
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