Marketing is so much more
than advertising or sales.
It's an essential, strategic component of starting and running a business. Doing marketing properly can help in any number of situations:
An uncertain economic environment or industry conditions
No one can predict which way the wind will blow. And a small business is more likely to be influenced by changes in the economic climate than a small business can influence the environment in which it operates. However, you can be ready for the changes when they come, and they surely will. Market research can help you spot trends that affect your business. Scenario planning (alternative plans of action) can help you manage whatever comes your way.
Insufficient cashflow
There are several ways to address this issue -- sell more products, increase your price (of course this can have a downward effect as well), bill earlier, collect earlier, get rid of deadbeats, etc. Marketing may not be able to help you winnow out the deadbeats, but it can help sell more products through improved promotional planning and execution. It can also help you determine if changing your price makes sense. Or if you need to add new products, find another target market or new channels of distribution.
Increasing competition
Marketing can help you gauge competitive activity, so you can see what's coming down the pike before it hits you full in the face. It can also help you find ways to rise above the competition. And the promotional side of marketing is there to help you stand out from the crowd.
Difficulty in raising financing
This is especially important for startups and early stage businesses. Do you have your product nailed down? Do you know how to tell your story? Do you have a killer presentation that will convince friends, angels and VC's to invest? If you don't, you need marketing help.
Trouble finding business opportunities
You've got to know your target before you can find the business. Marketing can help you determine who to go after, where to reach them, how to speak to them, and what approach to take to get your foot in the door.