When McKinsey & Company reviewed 1,600 US companies between 1990 and 2005, including several in the Pharmaceutical industry, they found that one-third of the Marketing Department received almost exactly the same budget as the previous year.
A Lack of Marketing? Lack of Analytics?
So, despite all their strategic planning and budget allocation exercises, they made only small changes in allocation…and sometimes, no changes at all.
The McKinsey research indicated that companies who seriously examined marketing opportunities each year and allocated their budget accordingly performed better than those that just allocated the same or less every year.
In addition, companies making significant reallocations were 13% less likely to experience a hostile takeover or bankruptcy. Finally, CEOs who allocated less to marketing budgets in their first three years on the job were significantly more likely to be removed in years four through six.
Given how much better companies perform when they fully research the market and the opportunities each year, compared with those that simply do the same thing over and over, it’s surprising how few are willing to break out of the rut.
Could it be a lack of marketing? A lack of analytics designed to show them exactly where their marketing dollars will reap the best reward?
What do you think?
Found this article interesting?
To learn more about how Eularis can help you find the best solutions to the challenges faced by healthcare teams, please drop us a note or email the author at abates@eularis.com.