Marketing Needs Lots of MoneyThis is a myth. It is true though however that Poor Marketing Costs A Fortune.. What do I mean by poor marketing? Well, this is where the profit that comes from the business generated from that marketing strategy doesn’t cover at least double the overall cost of the strategy within 3 months. This cost needs to include people’s time spent on it as well. Success is not really defined by anything other than "Return on Investment" that can be tracked back to the campaign. For example, if someone sent out 10 000 leaflets and received two phone calls and converted one of these into a sale, is that poor marketing? Clearly it depends on how much the sale was worth. If, for example, it resulted in the sale of a £1m home with a commission of 1% (i.e. £100 000) then the £500 used to design, print and distribute the leaflets would have been well spent. On the other hand, if you’re selling pizza…….. There are so many ways to waste marketing money that it is scary. Expensive adverts, brochures or mail shots targeting the wrong market, web sites that attract visitors but convert no-one, Yellow Page ads that look exactly the same as everyone else’s. The list goes on. Actually, the better your marketing is, then the cheaper it becomes. If you correctly target your groups then you cut out paying to "hit" customers that are not going to be interested in your offer. For example a mail campaign that hits 500 people with a 1% response rate generates the same response rate as a 10% response from 50 customers. However, this clearly costs considerably less. | Well-produced marketing that stands out from the crowd, offers benefits that your customers want, at a cost that they can afford and which is directed only to them (and not randomly at people who won’t be interested, you’d be surprised at how much marketing does hit the wrong people) is going to be effective. |
|
