The economics of selling. Bainpublished a particularly interesting article noting that historically companies in the B2B market – “consistently grew their revenue faster than their sales and marketing expenses.”
But that was then; this is now. Over the last decade the game has begun to change. Bain analyzed 200 large US-based companies between 2003-2011 – “over half of the companies had increasing sales and marketing expenses as a percentage of revenue.” Profit margins are under increasing pressure.
Now, it is safe to say that no one single factor is the cause of this trend. But one deserves particular attention.