Question

Explain the relationship between Marketing efforts and actual Revenue dollars?  How does Marketing efforts drive Revenue?

Answer 1

We see a direct linear relationship between marketing and the revenue a company achieves. It is not to say that more marketing simply translates to higher revenue generated by the company, rather, the fact that a larger number of potential leads are generated by the company’s marketing efforts, which would then need to be converted to actual sales by the sales team. How the offering appears to the customer has a lot to do with how it is placed, priced, promoted and therefore, the customers would already be inclined to view it. The marketing efforts are therefore critical in generating more sales dollars as a result and therefore, the marketing team is given the necessary objective of approaching the balance between the amount the company can spend as a capital investment in marketing and the sales the process generates. The company then closely monitors its engagement, choosing the platform most likely to respond to the marketing and focus its efforts throughout the market. The company’s marketing team then change the marketing process employed to set the nuanced approach and in doing so, end up creating the highest possible engagement from customers, convert the highest number of individual leads to sales and drive up the revenue as a result.

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