The Law of Failure Is Misleading - Essay Example in Strategic Marketing

The failure of a business has a long-lasting impact on an entrepreneur. It can be an emotionally and psychologically draining experience, especially for first-time entrepreneurs. Quality leadership stipulates that entrepreneurs should not shy away from the business after failure. Business failure provides an opportunity to learn from past mistakes. However, it is not a must that a company should go through failure for it to be successful. In the book "The 22 Immutable Laws of Marketing," the authors Al Ries and Jack Trout argue that businesses should expect and accept failure (Ries & Trout, 1994). On the contrary, the law is misleading because it not practical. The most important factor is what companies do about business failure. Organizations and business entities should not expect failure but they should invest in ways to promote success. In the current day and age, digital technology has revolutionized marketing strategies. Data mining and analytics, learning from competitors, and planning ahead by thinking about the unexpected are essential strategies to overcome business failure. Integrating these components in the marketing strategy creates a strong foundation for propelling a business into a successful venture.

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According to the law of failure, many companies spend their resources working to fix problems or products rather than dropping things. In other words, various organizations strive to preserve the existing products, marketing strategy, or business model successful in the past than innovating. Ries and Trout (1994) argue that a business should recognize failure early enough for the venture to minimize losses. Business failure is associated with immense financial risks. Moreover, there is a very thin line between succumbing to failure or defeat and giving up. In parenthood, there is a culture that exists which parents use to teach their children to never give up irrespective of the obstacles they may encounter. Likewise, business leaders should be aware of the risks involved in choosing a particular marketing strategy over the other. A strategy might be successful in a rival company but a massive failure to another and vise versa. Furthermore, like the law of success, the ego determines the resistance to accept business failure. If a leader is egoistic, he or she can make the entire organization suffer due to the lack of accepting and acting fast in the circumstances of failure. Historical studies cite egoistic leaders that caused the fall of their empires and the same moral applies to business, and marketing in particular (Ries & Trout, 1994).

In the current digital age, technological advancement has revolutionized marketing techniques especially through the use of data mining and analytics. Businesses have shifted their marketing strategies by utilizing data mining and web analytics techniques carried out over the internet. The consumers have access to product information due to the internet. Before consumers make a decision about purchasing a particular product, they search for information online by browsing through a company's website, social media pages, and product reviews. As a result, marketers have leveraged the use of business statistics because data mining and analytics helps a company to extract information about the consumers. For instance, marketers are able to evaluate the daily number of visitors on their website and social media sites (Mogilko, 2016). Furthermore, companies can extract consumer behavior and preferences via the help of cookies and determine the best product mix for the target company. Therefore, the awareness of consumer preferences, behavior, and purchasing power, companies can provide products that satisfy their market niche and avoiding the risks of business failure. Analytics and data mining provide businesses with prior information that shape the policies and marketing decisions.

On the other hand, companies should think and plan ahead on how to respond to unexpected circumstances. In general, business decisions should well articulated, calculated and monitored. For example, in the 2008 financial breakdown, the Ford Motor Company did not feel the impact of the recession (Prior, 2016). The company had already planned ahead and minimized its debt structure and increased the cash reserve. Likewise, marketers should invest in the right search engine optimization (SEO) tools to promote a marketing campaign as well as utilize both the primary and secondary channels strategy. For instance, a product's consumer may be available on both the digital media such as Facebook and Twitter while the old generation may be reached through traditional media like the TV and newspapers (Mogilko, 2016). There is a ton of available data available to business leaders to aid a company make the favorable and accurate decisions to avoid experiencing business failure. Companies should not just wait for failure to occur, accept and move on. Most importantly, they should be focused on ways of mitigating and evading business failure.

Similarly, businesses should assess and learn from the competitors. Follower companies have a lot of potential in beating the market leaders because the probability of maintaining the top position is low. Therefore, to avert the loopholes that may foster business or marketing failure, organizations should evaluate the weaknesses of the competition. For instance, if the market leader lags behind in maintaining an online presence, the competitor should build a reputable brand name that the digital generation can identify with. Apart from that, analyzing the pillars of growth of the dominant organization can help a business to reorganize its business model to gain a competitive advantage over the rivals. Product differentiation is an important marketing strategy that can help a company to attract a favorable market share that guarantees a return on investment (ROI) (Kotler, Sheth & Urban, 2012). A company should also try out new strategies or approach a similar strategy from a different angle or different budget. The marketing department should also be aware of the fact that marketing strategies can either be a success or a failure. Therefore, by evaluating past mistakes and those made by rivals, the invention of new techniques can steer a company towards a path of success.

On the contrary, the practicality of the law of failure is an important marketing strategy used in the business environment. The expectation of failure and the willingness to accept it prepares marketers with the skills to handle the unfortunate scenario when it happens. The resistance to change due to the lack of accepting failure could lead to the ultimate closure of a business. A business should be flexible because the operating environment is dynamic just like the consumers' perception of a brand changes over time. That is why the trend is important over using marketing fads that rise quickly and end abruptly (Ries & Trout, 1994).

In conclusion, strategic marketing is essential because it determines the success or failure of a business entity. Companies should plan ahead and utilize the available technology to avert experiencing business failure. They should further integrate their marketing promotions to meet their target audience. As such, companies should not just expect failure; they should act and implement strategies to avert it. Data mining and web analytics provide companies with the opportunities to learn about the consumer behavior, preferences, and perceptions. The availability of these data helps companies to implement marketing decisions in line with their customer satisfaction and retention. SEO tools and learning from rival companies also creates an opportunity to prevent the occurrence of a failure. Therefore, the law of failure in marketing is misleading and not practical in the current business environment.

References

Kotler, P., Sheth, J., & Urban, G. (2012). Strategic Marketing. Los Angeles [u.a.]: SAGE.

Mogilko, M. D. (2016). Digital Marketing Strategy. Business Strategies, (5), 5. Doi:10.17747/2311-7184-2016-5-5

Prior, D. (2016). Boundary spanning and customer service styles in business solutions implementation. Industrial Marketing Management, 56, 120-129. Doi: 10.1016/j.indmarman.2015.11.001

Ries, A., & Trout, J. (1994). The 22 Immutable Laws of Marketing. London: Profile Books.