Following our description of a flexible business model to ensure the perpetual survival of businesses for what looks like a long period of economic stagnation, it makes sense to explore how growth can be achieved without ‘betting the farm’ and again flexibility is the key.

While businesses may breathe a sigh of relief if they have followed our advice on how to ensure their survival, it is also necessary to look at the marketing model. The basic principles of flexible marketing are similar to those of survival as they involve tight cash management and being aware of the fixed nature of many contracts for promotion initiatives that either don’t work or become a financial burden.

Marketing can be complicated as it involves getting a mix right between many variables. There are lots of alternative ways to achieve marketing objectives where it is often difficult to measure success in terms of ‘return on marketing spend’ or ‘bang for buck’ when developing a marketing plan.

Quite apart from developing a plan, marketing activities can serve a number of purposes which makes measurement even more difficult. The most effective model will be different for every business, but when markets are so uncertain and cash is tight marketing can make the difference between failure, survival or growth. The real issue is uncertainty where the key is to understand and then manage the relationship between cost and return for different marketing activities. Keeping things flexible reduces the cost of switching between activities which in turn reduces the cost of getting it wrong. The process involves continuously improving your ability to be certain about the cost and outcome of any marketing initiatives.

There are a vast number of possible objectives such as: sourcing new sales leads, selling new or different products or services to existing customers, launching a new product, persuading potential customers to buy from you, or reassuring clients by building a reputation. This latter objective of establishing credibility is common for those firms that sell advice or professional services when they want to set up or move into a new geographical market.
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