how strategic marketing management can turn cash starved companies into cash rich entities

How Strategic Marketing Management Can Turn Cash

Starved Companies Into Cash Rich Entities?

We love to talk about things we feel most comfortable talking about. Ask anyone

how they are doing and they will often tell you what they are very happy to tell you, not necessarily what may be important to

know. Social conversations are about putting people’s mind at ease and building the rapport that is so essential to remain

mutually likeable. However strategic marketing management demands

surfacing some inconvenient truths. 

Management Consulting Firms in India

Given the volatility of the market and the poor liquidity conditions, several countries in Europe, sections of industry and millions of consumers are considered ‘risky bets’ by lenders. They may boast of high turnover and profitability, but may be starving for

cash and living hand to mouth. 

Cash is market power and a cash based marketing can influence our

business confidence; help us borrow on terms we need to borrow and not on the terms others may be willing to lend us. No matter how uncertain the future may seem nor how mature the industry, cash rich companies keep

the wheels of business turning to be everlasting.

If we believe that business is a game of chance, we may borrow at will and walk out when  the

situation turns unfavourable. Instead of worrying about compounding the earnings

quickly, regrettably, we spend more time and money on getting the accounts right. Daily cash flow is the pulse of the business, but

more time is spent on finding innovative ways to get subsidies and concessions.

Consequently instead of managing our cash intelligently, we are content to maintain our

books diligently.

On the contrary, if we conduct the busies with an ‘ownership mindset’, we may

approve of the strategic marketing plan only after reassuring ourselves that it can

deliver accelerated rate of cash inflow. When the strategic intent of the business is clearly articulated in terms of the rate of cash flow acceleration demanded, the

go to market strategy may be less academic and more businesslike.

techniques of time management

For example, if one were to simultaneously expand the market size and deepen their

presence in a cash rich market segment, the strategy would focus on the ways to carve out a unique identity and lock out imitations. Sacrifice the temptation to generate revenue from cash starved customers and deepen the prospects for repeat sales and referrals from a smaller

base of loyal customers, instead. Assured cash inflows means learning to earn at a faster rate than the rate of increase in input costs. That

makes immense strategic business sense, especially in times of looming uncertainty.

Strategic Marketing Management

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A faulty marketing plan will have expenses riding far ahead of income, sell more on

credit and less on cash and keep borrowing at a faster rate to post higher revenues but

get more risky. The acid test for a good plan is its ability to

deliver more with less cash. Such companies generate higher premiums,

collect more cash by end of day and borrows less and less. Gains are tangible,

 measurable and sustainable.

How to detect the signals in a strategic marketing plan that will accelerate

cash flow? 

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Contact Shekarsan thought catalyst, executive coach and management consultant. Shekarsan can be

reached at shekar@shekarsan.com or by phone at 91 44 4350 2000 Or mail using the contact page

in www.shekarsan.com  About Shekarsan LLP: Shekar aims to promote

strategic thinking and viable execution, for Multinational companies and owner promoted,

family owned small and medium enterprises. Shekar is a transformational thinker and avid advocate of

‘Customer Centricity’ that he championed as a Director for Xerox, GE Capital and Citibank.

Contact Person: Shekar Rangarajan Business Address: 3A, Prasantham,141,

St. Mary's road, Alwarpet, Chennai, Tamil Nadu - 600018, India.

Business Phone : +91 9884074802Business Email : rshekar@mac.com

Business Website: http://www.shekarsan.com/