When Ray Kroc bought the right to market the McDonald’s franchise from the McDonald brothers in 1955, the original deal required that he collect 1.9 percent of the sales from the franchisee and pay the brothers half a percent. But he was not making any money. It was not until Kroc figured out that the best way to make money from the franchises was to own the real estate on which a restaurant was situated and charge the franchisee a set monthly fee or a percent of the sales, whichever was greater, that he was catapulted to success. From:  About Real-Estate Empires

R&D perspective:  How do we make a hamburger?

Marketing perspective:  What do our customers want for lunch? How much will they spend? Where, and in what circumstances do they want lunch? How do we tell them about it? How do we want to do business? What other things are associated with this business? What’s imperative, what’s new, what’s next? 

Who should lead?  R&D or Marketing? And like McDonalds, what will ultimately define your business? If McDonalds was NOT a real estate mogul, would we still, today, be enjoying MacDonald’s hamburgers for lunch?

Is it more important to spend precious funds on developing the hamburger? or innovating a delicious marketing mix of product, price, place, and promotion? seeing through to new applications, services, and ways to do business?

Did you say “all of the above?”

And similar to your investment portfolio, allocating resources diversely is wise strategic management.  A team approach to innovation is a wise investment for the company. Put it this way.  If “the hamburger” is the heart of your business, meaning, you cannot live without it, then your marketing strategy would be the brain. And like the brain, your marketing can never, ever stop working — not even for a brief period of time.

Let’s take this thinking one step further.

Instead of this “either or” scenario and thinking — ask, “How can we draw from ALL?” Google has really good ideas about that.


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