Companies or projects need some catchy ways of getting the attention of the masses. Some does it through organic way of gaining followers and users and most does spend a lot of money to market the projects or products that they have.
With channels that are everywhere with the use of internet and someone who knows how to maximize the exposure and engagement of these companies really gets to enjoy the effectivity of it and converts it into sales.
And that is why it is not surprising if companies spends from thousands to millions of dollars into marketing because that's probably just 10%-20% of their income and are convertible into sales profits in gross.
For many brands, this percentage can exceed 30% of the company's general expenses. There are brands that allocate much higher percentages to continuous marketing campaigns. This cost increases according to the increase in competition in the market, and its main goal is to keep the brand in people's minds and not forget it because of the existence of other competing brands. Other companies rely in their industry on the scarcity of products and they do not need to conduct marketing campaigns because the demand for their products is high and does not stop and they do not have competitors and the market is able to support all producers.
It's a very relevant issue, the costs distributed among different industries marketing and how it affects most brands that might have to spend a greater percentage of their budget on marketing just in order to sustain a level of awareness and remain competitive with a rise in competition. It's even more crucial investment to keep in mind when there is a surge in competition so that you don't get left behind.
Whereas, companies in niche markets with high demand can exploit the scarcity of nature. and is not going to require an intense marketing campaign. However, producing loyalty as well as establishing identity is productive to manage volatility in a market.
It reflects the necessity of a customization of the marketing system. What might work for one brand doesn't necessarily have to work for another. A golden mean has to be achieved between quality of product and marketing effort.
The huge budgets that companies allocate within their marketing strategies are not a problem in themselves, but rather the way these budgets are managed is the problem, or it can be said that it is the cause of several problems. One of the most prominent of these problems is that the intense competition between companies in a certain niche can cause more spending on these campaigns, which leads to an increase in the cost of production, which will inevitably lead to price inflation. Also, these huge budgets can lead to a widening gap between small and large companies, which will lead to limiting the growth opportunities for emerging companies, taking into account that the economic fabric of any economic system depends in more than 80% on small and medium-sized companies.
The biggest problem is that these issues cannot be studied from all sides and cannot be dealt with with the necessary efficiency due to free market policies.