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Executive Summary

This article provides a comprehensive overview of the role of marketing to achieve investment success and avoid failure, particularly in the context of startups. Despite receiving investments, a significant number of businesses fail due to a lack of effective marketing strategies. The article looks into the common reasons for these failures and emphasises the importance of a well-planned and executed marketing strategy.

The process of securing investment is also discussed, highlighting the necessity of a solid business plan and marketing strategy to achieve investment success. The root causes of startup failures are also examined, with a particular focus on the role of outdated marketing tactics and strategies.

The evolution of business marketing and the current MarTech landscape are explored, along with the impact of the short tenure of CMOs on business marketing. The article presents strategies and tactics for achieving investment success, emphasising the role of the following disciplines and digital consulting, which includes:-

Digital Selling 

Digital Marketing 

It also suggests strategies for the investment industry to reduce losses, stressing the importance of due diligence and evaluating marketing plans before making investments.

The article concludes with a call to action for businesses to rethink their marketing strategies and for investors to evaluate marketing plans before making investments. It also offers key takeaways and answers to frequently asked questions about the role of marketing in business success and failure, and how to achieve investment success by considering help from salesXchange.  


Contents

  1. Introduction: Achieving Investment Success
  2. The Problem with Startups and Marketing
  3. Investment Success: Angel, Venture Capital or Private Equity
  4. The Root of the Startup Problem
  5. The Background to Business Marketing
  6. The MarTech Landscape
  7. The Short Tenure of CMOs and Its Impact
  8. The Answer to Investment Success
  9. How the Investment Industry Can Reduce Their Losses
  10. Frequently Asked Questions
  11. Key Takeaways
  12. Conclusion

1. Introduction: Achieving Investment Success

In today's competitive business landscape, securing investments is often seen as a significant milestone for startups. However, despite receiving substantial financial backing, a staggering number of businesses fail. According to a Harvard Business School study, the failure rate for startups is between 75-95%, depending on how failure is defined. This alarming statistic raises a critical question - why do so many businesses fail despite receiving investments?

One of the primary culprits behind this high failure rate is marketing, or rather, the lack thereof. Marketing plays a pivotal role in business success or failure. It is the vehicle that drives a company's message to its target audience, builds brand awareness, and ultimately, generates sales. However, many businesses, particularly startups, often underestimate the importance of marketing, leading to their downfall.

In the digital age, traditional marketing strategies are no longer sufficient. Businesses, and specifically B2Bs need to embrace digital selling to reach a wider audience and stay competitive. This includes leveraging various digital channels, such as social media, email, and search engines, to connect with potential customers. Furthermore, content marketing, which involves creating and sharing valuable content to attract and engage a clearly defined audience, has become a crucial component of effective digital marketing strategies.

However, implementing these strategies is not as straightforward as it may seem. It requires a deep understanding of the market, the target audience, and the latest marketing trends and technologies. This is where many businesses fall short. They either lack the necessary knowledge and skills or fail to keep up with the rapid changes in the digital marketing landscape, leading to ineffective marketing strategies and, ultimately, business failure.

In the following sections, we will delve deeper into these issues, explore the importance of digital marketing and digital selling in achieving investment success, and provide insights on how businesses can overcome these challenges.

2. The Problem with Startups and Marketing

Startups are often associated with innovation, disruption, and potential for exponential growth. However, the harsh reality is that the majority of startups fail. According to a report by CB Insights, 70% of upstart tech companies fail, usually about 20 months after first raising financing. The reasons for these failures are manifold, but one factor that consistently emerges as a significant contributor to a lack of investment success is marketing, or rather, the lack thereof.

37 CB Insights chart 3 768x1920

Marketing is the lifeblood of any business. It is the process through which a business identifies its target audience, determines their needs and preferences, and delivers products or services that meet those needs. However, many startups, particularly those in the tech sector, tend to overlook the importance of marketing. They often focus on developing innovative products or services, believing that the quality and uniqueness of their offerings will automatically attract customers. This product-centric approach, while important, is not enough to ensure business success.

One common mistake that startups make is failing to understand their target audience. They often assume that everyone is a potential customer, which leads to a lack of focus in their marketing efforts. Without a clear understanding of who their target audience is, what their needs and preferences are, and where they can be reached, startups cannot develop effective marketing strategies.

Another common issue is the lack of a well-defined value proposition. A value proposition is a clear statement that explains how a product solves a customer's problem, delivers specific benefits, and tells the ideal customer why they should buy from you and not from the competition. Many startups fail to articulate a compelling value proposition, making it difficult for them to differentiate themselves from their competitors.

Moreover, many startups do not invest enough in marketing. They often view marketing as an expense rather than an investment, leading to inadequate marketing budgets. This lack of investment in marketing can severely limit a startup's ability to reach its target audience, build brand awareness, and generate sales.

The role of marketing in startup failures underscores the importance of having a well-planned and executed marketing strategy. A good marketing strategy should define the target audience, articulate a compelling value proposition, and outline the tactics and channels that will be used to reach the target audience. It should also include a plan for measuring and evaluating the effectiveness of the marketing efforts, allowing for continuous improvement.

In the digital age, a well-planned marketing strategy should also incorporate digital marketing and digital selling. This includes leveraging various digital channels, such as social media, email, and search engines, to reach a wider audience. It also involves using content marketing to attract and engage the target audience by providing them with valuable and relevant content.

In conclusion, while startups face numerous challenges, many of these can be mitigated with a well-planned and executed marketing strategy. By understanding their target audience, articulating a compelling value proposition, investing adequately in marketing, and leveraging digital marketing and digital selling, startups can significantly increase their chances of success.

3. Investment Success: Angel, Venture Capital or Private Equity

Achieving investment success is a critical step in the growth journey of many startups. The infusion of capital allows startups to scale their operations, invest in product development, and expand their market reach. However, securing investment is not an easy task. It requires a compelling business plan, a promising product or service, and a solid marketing strategy. In this section, we will explore the process of securing investment and the importance of having a solid business plan and marketing strategy when seeking investment.

The Process of Securing Investment Success for a Startup

Securing investment for a startup typically involves three types of investors: angel investors, venture capitalists, and private equity firms. Each type of investor has different expectations, investment criteria, and involvement in the business.

Angel investors are typically high-net-worth individuals who provide capital for a business startup, usually in exchange for convertible debt or ownership equity. They often invest in the early stages of a startup and provide smaller amounts of funding compared to venture capitalists or private equity firms.

Venture capitalists (VCs) are institutional investors that invest in startups and early-stage companies that have the potential for high growth. VCs provide funding in exchange for equity in the company and usually expect a high return on their investment. They often play an active role in the company, providing guidance and support to the management team.

Private equity firms, on the other hand, typically invest in mature companies that are looking to expand, enter new markets, or improve their performance. They provide large amounts of capital and often take a controlling interest in the company.

The process of securing investment involves identifying potential investors, pitching your business idea to them, and negotiating the terms of the investment. This process can be challenging and time-consuming, requiring a compelling business plan, a promising product or service, and a solid marketing strategy.

The Importance of Having a Solid Business Plan and Digital Strategies When Seeking Investment

When seeking investment, having a solid business plan and marketing strategy is crucial. Investors want to see that you have a clear plan for how you will use their capital to grow your business and generate a return on their investment.

Your business plan should provide a detailed overview of your business, including your business model, target market, competitive landscape, and financial projections. It should clearly articulate your value proposition, explain how your product or service meets the needs of your target market, and outline your plans for scaling your operations and achieving profitability.

Your marketing strategy, on the other hand, should outline how you plan to reach your target market, attract customers, and generate sales. It should include your marketing objectives, target audience, marketing channels, and tactics. It should also include a plan for measuring and evaluating the effectiveness of your marketing efforts.

Investors want to see that you understand your market, have a compelling value proposition, and have a plan for reaching your target audience and generating sales. They also want to see that you have a plan for measuring and evaluating the effectiveness of your marketing efforts, allowing for continuous improvement.

In conclusion, securing investment is a critical step in the growth journey of many startups. However, it requires a compelling business plan, a promising product or service, and a solid marketing strategy. By understanding the process of securing investment and the importance of having a solid business plan and marketing strategy, startups can increase their chances of securing investment and achieving business success.

4. The Root of the Startup Problem

Startups are often associated with innovation and disruption, but the reality is that the majority of startups fail. According to a report by CB Insights, 70% of upstart tech companies fail, usually about 20 months after first raising financing. The reasons for these failures are manifold, but one factor that consistently emerges as a significant contributor is marketing, or rather, the lack thereof. In this section, we will take a deeper look into the root causes of startup failures and the role of outdated marketing tactics and strategies in these failures.

A Deeper Look into the Root Causes of Startup Failures

Understanding the root causes of startup failures is crucial for preventing them. According to a study by CB Insights, the top reason for startup failure is the lack of market need for their product, with 42% of startups citing this as the reason for their failure. This suggests that many startups fail to conduct adequate market research before launching their product, leading to a product that does not meet the needs of the market.

Other common reasons for startup failures include running out of cash, not having the right team, getting outcompeted, and pricing or cost issues. These issues often stem from poor business planning, inadequate financial management, and a lack of strategic direction.

However, one factor that is often overlooked in discussions about startup failures is marketing. Many startups underestimate the importance of marketing and fail to invest adequately in their marketing efforts. This can lead to a lack of brand awareness, poor customer acquisition and retention, and ultimately, business failure.

The Role of Outdated Marketing Tactics and Strategies in Startup Failures

In the digital age, traditional marketing tactics and strategies are no longer sufficient. Consumers are increasingly turning to digital channels to research products, compare prices, and make purchases. As a result, businesses need to embrace digital marketing and digital selling to reach a wider audience and stay competitive.

However, many startups fail to keep up with the rapid changes in the digital marketing landscape. They often rely on outdated marketing tactics and strategies, such as cold calling, print advertising, and mass email blasts, which are no longer effective in today's digital-centric world.

Moreover, many startups fail to leverage the power of content marketing, which involves creating and sharing valuable content to attract and engage a clearly defined audience. Content marketing is a powerful tool for building brand awareness, establishing credibility, and driving customer acquisition and retention. However, it requires a deep understanding of the target audience, a clear content strategy, and the ability to create high-quality, relevant content.

The root causes of startup failures are manifold, but marketing, or rather, the lack thereof, consistently emerges as a significant contributor. By understanding the importance of marketing, keeping up with the latest marketing trends, such as digital selling and technologies, and investing adequately in marketing efforts, startups can significantly increase their chances of success.

5. The Background to Business Marketing

B2B marketing involves the sale of one company's product or service to another company. It has a long history and has evolved significantly over the years, particularly with the advent of digital technology. In this section, we will explore the history of business marketing, its evolution, and the role of marketing automation in modern business marketing.

A Brief History of Business Marketing and Its Evolution

The concept of business marketing dates back to the industrial revolution in the late 18th century, when businesses began to sell products to other businesses. However, it wasn't until the 20th century that business marketing became a recognised field of study and practice.

In the early days of business marketing, the focus was primarily on sales. Businesses used direct sales techniques, such as cold calling and face-to-face meetings, to sell their products to other businesses. Advertising was also used, but it was often generic and focused on the product rather than the needs of the customer.

However, as the business environment became more competitive, businesses began to realise the importance of understanding their customers' needs and preferences. This led to the emergence of the marketing concept, which emphasises the importance of customer orientation, coordinated marketing efforts, and profitability.

With the advent of digital technology, business marketing has evolved significantly. Today, businesses use a variety of digital channels, such as websites, email, social media, and search engines, to reach their target audience. They also use data and analytics to understand their customers' behavior and preferences, allowing them to tailor their marketing efforts accordingly.

The Role of Marketing Automation and Its Impact on Business Marketing

One of the most significant developments in business marketing in recent years is the advent of marketing automation. Marketing automation refers to the use of software and technologies to automate repetitive marketing tasks, such as email marketing, social media posting, and ad campaigns.

Marketing automation has had a profound impact on business marketing. It has made it possible for businesses to reach a larger audience, personalise their marketing messages, and track the effectiveness of their marketing efforts. It has also freed up time for marketers to focus on more strategic tasks, such as planning and strategy development.

Moreover, marketing automation has made it possible for businesses to nurture leads and build relationships with their customers. By automating follow-up emails and personalised messages, businesses can stay in touch with their customers, provide them with valuable content, and guide them through the buying process.

But here is the real 'corker'.  Marketing Automation was desogned for B2C, for the consumer market, not the B2B market.  B2B's who adopted this technology along with many other SaaS products that made up their MarTech or Technology 'stack' have realised that 80-90% of business buyers want to remain anonymous, rendering marketing automation useless.  Furthermore, many marketing automation directives of structured in conjunction with pay per click campaigns.  The reluctance of buyers to complete online registration forms to download content wastes up to 90% of the related marketing spend. 

Business marketing has a long history and has evolved significantly over the years. The advent of digital technology and marketing automation has transformed the way businesses market their products to other businesses, making it possible for them to reach a larger audience, personalise their marketing messages, and track the effectiveness of their marketing efforts. However, for businesses to succeed, they need to change their strategies and stay abreast of the latest marketing trends and technologies to stay competitive, this must involve live streaming and podcasting.  More on this later.

6. The MarTech Landscape

Marketing Technology, or MarTech, revolutionised the way all businesses approach marketing. With the advent of digital technology, the marketing landscape has become increasingly complex and diverse, leading to the emergence of a wide range of MarTech tools. In this section, we will provide an overview of the current MarTech landscape and discuss the role of various MarTech tools in business marketing.

Whilst MarTech has become the de facto standard pretty much everywhere, there is one massive problem; it doesn't work for B2Bs.  The whole automation eco-system was designed for B2C, which naturally is the larger market.  But the psychology of B2C vs B2B is dramatically different.  And it is for these reasons B2Bs must change their approach if they are to increase their chances of investment success. 

An Overview of the Current MarTech Landscape

The MarTech landscape is vast and continually evolving. According to the 2023 MarTech Landscape Supergraphic by Chief Martec, there are over 11,000 MarTech solutions available in the market, a significant increase from just 150 in 2011. These solutions span various categories, including advertising and promotion, content and experience, social and relationships, commerce and sales, data, and management.

37 martech platforms 2023

The above infographic(s) have been compiled by Scot Brinkler of Chief Martech magazine.

One of the key trends in the MarTech landscape is the shift towards integrated platforms. As businesses use a wide range of MarTech tools, the need for integration has become increasingly important. Integrated platforms, also known as marketing clouds, provide a suite of marketing tools that work together seamlessly, allowing businesses to manage their marketing efforts more efficiently and effectively.

Another key trend is the increasing use of artificial intelligence (AI) and machine learning in MarTech solutions. AI and machine learning can analyse large amounts of data, identify patterns, and make predictions, enabling businesses to personalise their marketing messages, optimise their marketing efforts, and improve their decision-making.

Despite the vast and complex MarTech landscape, it's important to note that having more tools doesn't necessarily lead to better marketing. Businesses need to choose the right MarTech tools that align with their marketing objectives, target audience, and resources.

The Role of Various MarTech Tools in Business Marketing

MarTech tools play a crucial role in business marketing. They enable businesses to reach a larger audience, personalise their marketing messages, track the effectiveness of their marketing efforts, and make data-driven decisions.

For instance, Customer Relationship Management (CRM) systems help businesses manage their relationships with customers and prospects. They provide a centralised platform where businesses can track customer interactions, manage customer data, and analyse customer behavior.

Email marketing tools, on the other hand, allow businesses to send personalised emails to their customers and prospects. They provide features such as email automation, segmentation, and analytics, enabling businesses to nurture leads, build relationships, and track the effectiveness of their email marketing efforts.

Social media management tools enable businesses to manage their social media presence. They provide features such as post scheduling, social listening, and analytics, allowing businesses to engage with their audience, monitor their brand reputation, and track the performance of their social media efforts.

The MarTech landscape is vast and continually evolving, offering a wide range of tools that can help businesses improve their marketing. However, businesses need to choose the right MarTech tools that align with their marketing objectives, target audience, and resources. By leveraging the power of MarTech, businesses can reach a larger audience, personalise their marketing messages, track the effectiveness of their marketing efforts, and make data-driven decisions, ultimately leading to improved marketing outcomes.  This is why you need to be mindful of digital selling including live streaming, video and podcasts as well as part of your content marketing efforts.

7. The Short Tenure of CMOs and Its Impact

The role of the Chief Marketing Officer (CMO) is crucial in any organisation. They are responsible for overseeing the planning, development, and execution of an organisation's marketing and advertising initiatives. However, recent trends show that CMOs often have the shortest tenure in the C-suite, which can have significant implications for business marketing. In this section, we will explore the trend of short tenures for CMOs and its impact on business marketing, and discuss the role of CMOs in shaping and executing marketing strategies.

The Trend of Short Tenures for CMOs and Its Impact on Business Marketing

According to a variety of studies and reports on the Internet, the average tenure of a CMO at the top 1,000 U.S. companies is just 18 months, the shortest of all C-suite roles. This is a concerning trend, as the short tenure of CMOs can lead to a lack of continuity and consistency in marketing strategies, which can, in turn, impact the overall performance of the business.  That’s right 18 months (I've even seen it as low as nine months).

* It is a bit strange that in 2015 'they' were saying it was 42 months, then the following year in 2016 it was 18 months!

Seth Godin on London Real August 2020 – 39:23 min mark, states the same statistics for Fortune 500 companies in the USA, based upon the premise that CMOs promise to change everything, can't deliver and get moved on.

There are several reasons for the short tenure of CMOs. One reason is the rapidly changing marketing landscape. With the advent of digital technology, the role of the CMO has expanded significantly, encompassing not just traditional marketing, but also digital marketing, data analytics, customer experience, and more. 

Another reason is the high expectations and promises made by CMOs. They often promise to deliver quick results, despite the fact that many marketing initiatives take time to show results. This pressure to deliver quick results can lead to short-term thinking and a focus on tactical activities, rather than strategic, long-term initiatives.

The short tenure of CMOs can have significant implications for business marketing. It can lead to a lack of continuity and consistency in marketing strategies, as each new CMO brings their own approach and ideas. This can confuse customers and dilute the brand message. It can also lead to a lack of long-term strategic thinking, as CMOs focus on delivering quick results to secure their position.

The Role of CMOs in Shaping and Executing Marketing Strategies

Despite the challenges, the role of the CMO is crucial in shaping and executing marketing strategies. They are responsible for understanding the needs and preferences of the target audience, developing a compelling value proposition, and communicating this value proposition through various marketing channels.

The role of the CMO has expanded to include digital marketing, data analytics, and customer experience. They are responsible for leveraging digital channels, such as social media, email, and search engines, to reach the target audience. They also need to use data and analytics to understand customer behavior and preferences, and to measure the effectiveness of marketing efforts.

Moreover, CMOs play a crucial role in shaping the customer experience. They need to ensure that all customer touchpoints, from the website to customer service, deliver a consistent and positive experience that aligns with the brand promise.

While the trend of short tenures for CMOs presents challenges, the role of the CMO is supposed to be crucial in shaping and executing marketing strategies. Businesses have supported their CMOs by providing them with the resources and time needed to develop and implement effective marketing strategies, however they have failed because of focusing on the wrong areas of new business development.

Many CMO's have a B2C mentality and adopt these B2C practices, expecting them to work in B2B's.  B2B's are not selling jeans, rather, they are selling solutions to business buyers who are acquiring new products with the sole intention of generating an ROI.  They are also purchasing these items out of company finances or leasing.  They are not spending their own money as consumers do!   

Whilst businesses recognise the importance of long-term strategic thinking in marketing, evaluating the performance of their CMOs must be based on both short-term results, visible from an exacting marketing plan, they should be presenting, and an illustration of what the possibilities should be for the future.  Too often CMO's are hired to execute an already poor existing marketing plan, yet the encumbent CMO has no idea what needs to be changed to have an impact.  A bit like the blind, leading the blind.

8. The Answer to Investment Success

Investment success is the goal of every investor, whether it's an angel investor, venture capitalist, or private equity firm. However, achieving investment success is not a straightforward process. It requires a deep understanding of the market, a clear investment strategy, and the ability to identify and seise opportunities. In this section, we will explore strategies and tactics for achieving investment success, and discuss the role of content marketing and digital selling in this process.

Strategies and Tactics for Achieving Investment Success

Achieving investment success requires a clear strategy and a disciplined approach. Here are some strategies and tactics that can help investors achieve success:

  1. Understand the Market: The first step to investment success is understanding the market. This involves conducting market research to understand the needs and preferences of the target audience, the competitive landscape, and the trends and developments in the market.

  2. Develop a Clear Investment Strategy: Once you understand the market, you need to develop a clear investment strategy. This should outline your investment objectives, risk tolerance, and investment criteria. It should also include a plan for diversification to spread risk and enhance returns.

  3. Identify and Seize Opportunities: The ability to identify and seise opportunities is crucial for investment success. This requires staying abreast of the latest trends and developments in the market, and being ready to act when opportunities arise.

  4. Monitor and Adjust Your Strategy: Investment success requires ongoing monitoring and adjustment of your strategy. You need to regularly review your portfolio, assess the performance of your investments, and adjust your strategy as needed.

In most cases all of the above is adhered to, either by the finance house, or the investor knows their chosen market reasonably well.  However, many markets are viewed as being somewhat lacklustre based upon the average turnover per person per annum, especially in the Technology, SaaS and Services industries, which is currently approx. $145,000.  What makes this intersting is that virtually every B2B in this space follow sthe same pattern of one-to-one marketing and using telesales in an attempt to generate new business, hence the average turnover.  Our approach to digital selling completely changes these ratios based upon restructuring the entire marketing eco-system.

The Role of Content Marketing and Digital Selling in Achieving Investment Success

In the digital age, content marketing and digital selling play a crucial role in both achieving investment success and demonstrating a startups ability to exploit and drive new business in a more effective way than their comnpetition. Digital selling provides a way for businesses to reach a larger prospective audience as well as engage with potential investors, and showcase their value proposition.

Content marketing involves creating and sharing valuable content to attract and engage a clearly defined audience. For businesses seeking investment, this could involve creating clusters of topical authority articles as well as white papers, and other content that showcases their business model, products or services, and market potential. Content marketing is fused with your ability to master the raft of activities and checklists required to succeed in digital marketing, from SEO (For more information, take a look at our Essential B2B SEO Guide for CEOs), to analytics, to copywriting and to the delivery of your website offering.  This content helps attract potential investors, build credibility, and generate interest in the new  business as they can see how you engage your prospects and the long term effort you are putting in.

Digital selling, on the other hand, involves using digital channels to sell products or services. Starting with using high quality technology when using Zoom or Teams, through to mastering live streaming weekly shows, B2B videos and Podcast Production.  For businesses seeking investment, this will involve using social media, email, and other digital channels to reach potential investors, share your content, and engaging in a variety of conversations. Digital selling helps businesses reach a larger prospective audience, generate leads and build relationships with potential investors.

In conclusion, achieving investment success requires a clear strategy, a disciplined approach, and the ability to identify and seize opportunities. Content marketing and digital selling can play a crucial role in this process, providing a way for businesses to reach a larger audience, engage with potential investors, and showcase their value proposition. By leveraging these strategies and tactics, investors can increase their chances of achieving investment success.

9. How the Investment Industry Can Reduce Their Losses

Investment inherently involves risk, and losses are a part of the investment process. However, there are strategies that the investment industry can employ to mitigate these risks and reduce potential losses. In this section, we will explore these strategies and discuss the importance of due diligence and evaluating marketing plans before making investments.

Strategies for the Investment Industry to Reduce Losses

Reducing losses in the investment industry requires a strategic approach, a deep understanding of the market, and a disciplined investment process. Here are some strategies that can help the investment industry reduce losses:

  1. Diversification: Diversification is a key strategy for reducing investment risk and potential losses. By spreading investments across a variety of assets, sectors, and geographical regions, investors can mitigate the risk associated with any single investment.

  2. Risk Management: Effective risk management is crucial for reducing losses. This involves identifying potential risks, assessing their impact, and implementing strategies to mitigate them. Risk management should be an ongoing process, with risks regularly reviewed and strategies adjusted as needed.

  3. Due Diligence: Before making an investment, it's crucial to conduct thorough due diligence. This involves researching the company, its management team, its financials, and its market. Due diligence can help identify potential red flags and reduce the risk of investment losses.  But you already knew this.  In addition, it is essential a startup fully understand how to generate new business without using cold callling, pay-per-click or spam email.  They don't work and naturally,  an investor will want to see what other strategies thy have planned. 

  4. Long-Term Investment Strategy: A long-term investment strategy can help reduce losses by mitigating the impact of short-term market volatility. By focusing on long-term growth and value, investors can weather short-term market fluctuations and reduce the risk of panic selling.

The Importance of Due Diligence and Evaluating Marketing Plans Before Making Investments

Due diligence is a crucial part of the investment process. It involves a comprehensive appraisal of a business intended to establish its assets and liabilities and evaluate its commercial potential. When conducting due diligence, it's important to evaluate not just the financial aspects of the business, but also its marketing plan.

The marketing plan provides insight into the company's market, its target audience, its competitive landscape, and its marketing strategy. It can provide valuable information about the company's growth potential and its ability to generate returns on investment.

Evaluating the marketing plan can help identify potential red flags, such as a poorly defined target audience, a lack of competitive differentiation, or unrealistic marketing objectives. It can also help identify opportunities, such as a strong brand, a unique value proposition, or a robust digital marketing strategy.

In addition to evaluating the marketing plan, it's also important to assess the company's marketing capabilities. This includes its marketing team, its marketing technology, and its ability to execute its marketing plan.

A key marker is their understanding of coralling their total addressable market, filtering out those who are looking to buy in any given week and demonstrating their ability to engage with their market at scale.  Failure to explain this will more than likely result in a typical success rate or failure as all the other B2B Tech, SaaS and Services businesses. 

In conclusion, reducing losses in the investment industry requires a strategic approach, a deep understanding of the market, and a disciplined investment process. Due diligence, including evaluating marketing plans, is a crucial part of this process. By employing these strategies, the investment industry can mitigate risks, reduce potential losses, and increase the likelihood of investment success.

10. FAQs

Why do many startups fail despite receiving investments?

Startups often fail due to a lack of market need, poor marketing, and outdated marketing tactics. It's crucial for startups to have a well-planned and executed marketing strategy to avoid being part of the 75-95% of failed businesses.

What role does a solid business plan and marketing strategy play in securing investment?

A solid business plan and marketing strategy are essential when seeking investment. They demonstrate the startup's potential for success and provide a roadmap for growth. Without these, the risk of failure increases significantly.

What are the root causes of startup failures?

The root causes of startup failures often lie in outdated marketing tactics and strategies. Many startups still rely on ineffective methods like cold-calling, which don't resonate with today's consumers. A lack of focus, passion, or burnout can also contribute to failure.

How has business marketing evolved over time?

Business marketing has evolved from traditional methods like newspapers, telephone, radio, and TV to digital channels. The advent of the Internet and marketing automation has significantly changed the marketing landscape, but many businesses still follow a linear approach, leading to slow identification of successful tactics.

What is the MarTech landscape?

The MarTech landscape refers to the various marketing technology tools available for businesses today. Despite advancements in MarTech, issues like generating and qualifying leads persist, leading to tension between sales and marketing departments.

Why do CMOs often have short tenures, and how does this impact business marketing?

CMOs often have short tenures due to the high expectations and pressure to deliver immediate results. When a CMO fails or is fired, the company often reverts to outdated marketing approaches, which can be costly and unsustainable.

What strategies can help achieve investment success?

Content marketing and digital selling are key strategies for achieving investment success. Startups need to create high-quality, targeted content and distribute it effectively to attract and engage potential customers.

How can the investment industry reduce their losses?

The investment industry can reduce losses by performing due diligence and evaluating marketing plans before making investments. Companies seeking investment need to demonstrate their ability to attract new business through their content, which can be tracked using current marketing technology.

11. Key Takeaways

Here are the key takeaways from the above:

  1. Marketing is Crucial for Business Success: The success or failure of a business, especially startups, is heavily influenced by its marketing strategies. A well-planned and executed marketing strategy can significantly increase the chances of success.

  2. Securing Investment Requires a Solid Plan: When seeking investment, having a solid business plan and marketing strategy is essential. Investors want to see a clear roadmap for growth and potential for success.

  3. Outdated Marketing Tactics Can Lead to Failure: Many startups fail due to reliance on outdated marketing tactics. Embracing modern marketing strategies, such as content marketing and digital selling, is crucial.

  4. The MarTech Landscape is Evolving: The marketing technology landscape is constantly evolving, offering businesses a range of tools to enhance their marketing efforts. However, it's important to choose the right tools that align with the business's marketing strategy.

  5. Short Tenures of CMOs Can Impact Marketing: The trend of short tenures for Chief Marketing Officers (CMOs) can disrupt the continuity of marketing strategies, impacting the overall business marketing.

  6. Content Marketing and Digital Selling are Key to Investment Success: To achieve investment success, startups need to focus on content marketing and digital selling. These strategies help attract and engage potential customers, increasing the chances of conversion.

  7. Investment Industry Can Reduce Losses with Due Diligence: The investment industry can reduce losses by performing due diligence and evaluating marketing plans before making investments. This helps ensure that the startups they invest in have a high potential for success.

  8. Call to Action: Businesses need to rethink their marketing strategies to ensure success. Investors also need to evaluate marketing plans before making investments. For more guidance, businesses and investors can reach out to salesXchange for expert advice.

12. Conclusion

In the rapidly evolving business landscape, the importance of effective marketing in achieving business success cannot be overstated. It is the engine that drives visibility, engagement, and ultimately, growth. From startups seeking to establish their presence to mature businesses aiming to expand their reach, a well-planned and executed marketing strategy is crucial.

Throughout this article, we've explored the high failure rate of businesses despite receiving investments and the role of marketing in these outcomes. We've looked into the common reasons why startups fail and the importance of having a robust marketing strategy to avoid these pitfalls. We've also discussed the process of securing investment and the necessity of a solid business plan and marketing strategy in this endeavor.

We've examined the root causes of startup failures, particularly the role of outdated marketing tactics and strategies, most of which were designed for the B2C market. We've also looked at the evolution of business marketing, the current MarTech landscape, and the impact of the short tenure of CMOs on business marketing.

Moreover, we've highlighted strategies and tactics for achieving investment success, emphasising the role of content marketing and digital selling. We've also suggested strategies for the investment industry to reduce losses, stressing the importance of due diligence and evaluating marketing plans before making investments.

In conclusion, achieving business success and investment success is a multifaceted process that requires a deep understanding of the market, a clear strategy, and the right tools and tactics. Marketing, particularly digital marketing, plays a crucial role in this process.

As we move forward, it's essential for businesses to rethink their marketing strategies to align with the changing market dynamics. It's equally important for investors to evaluate marketing plans before making investments to ensure they are investing in businesses that have the potential for growth and success.

If you're a business looking to revamp your marketing strategy or an investor seeking to understand the marketing potential of your prospective investments, with our expertise in digital marketing and selling, we can provide you with the insights and strategies you need to achieve success. Contact us today to learn more.

Go to our Digital Selling pages to see how you can change the way you work and scale up your business.

Author

The author and founder of salesXchange, Nigel Maine is a B2B marketing and sales expert with a proven track record in scaling up growth for Technology, SaaS, and Professional Services organisations. With 30 years hands-on experience and unique approach, Nigel has developed an effective strategy that dramatically increases exposure and profitability for B2B organizations.

Nigel has founded multiple start-ups, is a published author, public speaker and hosts both a podcast and business live streaming show, broadcast on LinkedIn Live, YouTube & Facebook. He also has extensive knowledge of MarTech software, creative hardware and software, and A.I. prompting tools.  Contact: 0800 970 9751 or email This email address is being protected from spambots. You need JavaScript enabled to view it.