I have long been a believer that when it comes to marketing, businesses fall into two camps – those that know the return they get on their marketing activity … and those that don’t.
Which camp are you in?
Do you believe the amount you spend on marketing is an investment in its future, or an expense/drain on your cashflow? It is not possible or practical to be both.
The ‘marketing is an investment’ camp
Businesses which ‘invest’ in marketing are those whom I have found to be realistic about what marketing can achieve and appreciate that as with all investments, sometimes you win and sometimes you lose. They have measurements in place in order to track their marketing RoI. These are businesses who understand the importance of investing in a tailored strategic plan of activity so their marketing is always heading in the right direction to get the business to where it needs to be.
There are no certainties with marketing but a strategic, rather than ad-hoc, approach is definitely an investment in the future prosperity of your business.
The ‘marketing is an expense’ camp
The type of businesses who see marketing as an ‘expense’ on the bottom line, in my experience, feel that marketing is a drain on their bank balance and are more often than not unrealistic about what marketing will achieve. They generally expect quick results and more than is possible for the amount they spend. If you fall into this camp, do you have a strategic or more of an opportunistic approach to marketing?
Low marketing RoI
I have come across instances where businesses are negative about the benefits of marketing because of either the low marketing RoI they have received. If you are one of these, is it because you have been charged too much for the service you received, perhaps you were tied into a lengthy contract, or the results were not a true reflection of the amount you were charged? It could also be because you do not have measurements in place to track the effects so have no way to measure the marketing RoI.
High marketing RoI
To give marketing the best chance of achieving the return that you want/need means that you have to be in it for the long haul. Just as when you invest in the money markets, your chance of a greater return increases the longer you invest, rather than dip in and out. You need to give marketing a chance to reap rewards.