Cost and expense reduction is reverse marketing

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 23, 2019

Other way of saying this, "A penny   saved is a a penny  earned"

The back end, the admin accounting side of business should strive to reduce cost and expenses. In a business every body sells  And the way for non marketing people to sell is to reduce cost.  The cost and expense you reduce  in the operations (and even in marketing) means you do not have to sell that amount to generate the revenue and the contribution to overhead to pay for that expense.  If for example you save P1,000 in expense, and your GP rate is 10%, you do not have to sell P10,000 any more

Have time and train your staff and yourself to save reduce cost and expense every time.

Mind of Strategist by Kenichi Ohmae

Ateneo Professor on Entrepreneurship

Rizal  |  Philippines  | December 31, 2013

It is just 7 hours before 2014 and here I am collecting my thoughts on business, management entrepreneurship, and strategy.

I am reminded of Kenichi Ohmae, one of the most brilliant business strategic thinker of the modern times.  He must have advised hundreds of Japanese businesses develop winning strategy.

He is more well known for the 3C triangle:  company, competition and customer.  I remember him for emphasizing the Sales - Cost = GP equation and having a long road map for this;

1. All businesses should emphasize sales/selling growth in sales.  All top efforts must be made to sell. Investments must be made for selling. Selling comes first.  Selling is top priority.  It is a key activity, as fighting, destroying the enemy is in warfare/military.  Make no mistake about this.

Thus what do you do:

      1.  Bundling

      2.  Upselling

      3. Use all marketing channels:   below the line, above the line, internet marketing.  Use autoresponders in internet marketing.   Do viral marketing etc.