"Marketing is a business philosophy"

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: Internet affects marketing today and how do marketers who have still not cottoned on to the platform cope in the future? What is that one piece of advice that you would give to a consultant who is putting together a marketing strategy for a new firm?

The Internet has revolutionised marketing. It has given buyers the ability to research products of interest without needing to visit a lot of sellers. It has increased the influence of word-of-mouth coming from other consumers who are using the burgeoning social media (eg, My Space, Facebook, etc.) to influence others.

It has allowed companies to more precisely target their communications and offers to affinity groups and even specific individuals, thereby making more relevant offers. There isn’t the space here to list all the ways that the Internet has altered the buying and selling landscape. Therefore my advice to a manager who is putting together a marketing strategy is to factor in all the ways that the new media, in addition to traditional media, can help reach and stimulate customer interest.

Today technology is available to all and is also becoming cheaper. Whenever there is a good idea, many people in the same industry try to imitate it, undermining profits margins in the process. Is there any remedy for that?

We can expect many companies to copy any new idea. Suddenly there will be several manufacturers of microwave ovens, cell phones, and other new items. The products may be similar in features and even in prices. Yet it is the task of the company to develop points of relevant differences that go beyond points of parity. Points of difference need to be captured and reflected in the product’s broad positioning and in its specific value proposition. A smart company doesn’t just make a microwave oven but tries to design some features and benefits that are attractive to some clear portion of the buyers. Products can compete on style, durability, reliability, price, speed, safety and other aspects that different customers care about. Customers usually don’t toss a coin to make their choice. They make their choice based on rational criteria and less conscious thoughts and emotions.

Generally speaking, how much percentage of the total revenue should be spent on marketing?

In others words, what is the connection between finance and marketing?