The Value of Marketing

The Value of Marketing

Walter Scott Lenox (1859-1920), founder of Lenox China, was a visionary, perfectionist and idealist. Though his early years as a manufacturer were fraught with struggle, he never wavered from his goals. He is credited with pioneering the development of American Belleek and heightening our nation’s appreciation for American-made china.

Lenox grew up among the major potteries in Trenton, New Jersey, where, he learned the rudiments of production and business operations. At the time all fine china was imported from Europe. Lenox’s goal was to manufacture china that would be equial in quality to European pieces.

There were many factors that could have kept Lenox from achieving his dreams. Fine china is difficult and expensive to manufacture. Almost 70% of its production cost is labor. At American wage scales, odds were that a company would go bankrupt trying to produce high-quality ware. Finally, the depression of the early 1890s proved disastrous for many.

Then, too, American manufacturers had to content with the American preference for famous European makers. European goods were esteemed for their refinement, while American wares were purchased for their sturdiness and inexpensive price.

In 1906 Lenox formed Lenox, Inc., which is still in business today. What was Lenox’s secret for success? It was persistence, the strict attention he gave to every aspect of his business, his financial honesty, and his determination to succeed despite the many setbacks he faced.

Marketing strategies also played a major role in name and product recognition. By 1950 Lenox spent 400% more on advertising than its closes competitor, contributing to its greater visibility in the ceramics marketplace and resulting sales. Today Lenox retains prominence among American china companies directly due to its marketing efforts.

The bottom line: Never underestimate the value of marketing. For your business to succeed, you need to include public relations, marketing and advertising in your financial plan.

Yates & Associates provides a full range of cost-effective marketing communications services that produce results. Let Yates & Associates help you grow your business.