Marketing is a Long-Term Investment
"Dig your well before you're thirsty" may be the title of a wonderful book by Harvey Mackay.
It's smart advice for investing your money, "Save your money before you need it", or growing your company, "Market today for tomorrow ".
When times are tough some businesses stop marketing. They reason,'Nobody is buying so why should I advertise?' The other time some businesses stop marketing is when they're selling like crazy. Again they figure -'I can't handle anymore business at this time so why promote?'
Two key points here. Advertising is just one narrow type of marketing. Marketing is all about sending messages. You send messages in various avenues; advertising, customer support, by association, quality, public relations, sponsorship, awards, etc... And the next point; marketing is really a long-term investment.
Selling is immediate. When times are slow you need to crank-up the selling efforts. How will you escape from the sales crisis? Improve selling skills, search out new markets, offer more value and above all be systematic. When there is a fire, put out the fire.
Preventing the fires of tomorrow is marketing. That's why marketing is so difficult to justify or measure. The nice marketing you do today will probably pay off in a few weeks, months as well as years. Can it be worth it? Only when you wish to maintain business in a couple of years.
Invest wisely in your marketing. Many of the principles of investing money connect with marketing. Don't put all your eggs in one basket. Your message must reach your prospect along several avenues. That conveys more credibility. For instance; you could advertise in a newspaper, sponsor a residential district event, send news releases and offer extras in your website. Your investment portfolio must be diversified, so should your marketing. Warren Buffet's long-term strategy to'make smart investments and hold'can connect with your marketing. Make a long haul marketing commitment to yourself. Stick to it. Be consistent and persistent. That's smart investing and smart marketing.
Consider the different forms of currency in your business. Cash is the most obvious. A signed order is another. Receivables are currency - you may also use them for collateral - or sell them. However many forms of currency look better than others. If cash is better then you might be tempted to never give credit to customers. But you could lose sales due to that. So you might decide to give credit to approved customers - knowing that you can likely convert the receivable to cash. Even signed orders are currency - you are able to factor them to obtain financing.
Marketing is another type of currency in your business. Good marketing creates customer awareness, goodwill, education, credibility, even desire. Every one of that may be converted into signed orders, receivables and hence cash.Apply These 6 Secret Techniques To Improve IBIS.
All forms of currency are convertible. But the conversion rate isn't 1 to 1 nor can it be totally predictable. Some receivables become bad debt. Some signed orders get cancelled. Some marketing efforts just spin off to the universe like a lost asteroid. For that reason do not expect that every dollar allocated to marketing pays off the same. For instance if you do a large mailing several of those envelopes go undelivered, some never get opened, a couple of get read - and even fewer acted upon. But you need to mail to the whole list to achieve those who read it.
You could feel that cash is really a better currency than marketing. Marketing can be better than cash must be creative marketing campaign can pay back often over. In the event that you realize that whenever you market you're creating currency - you are able to view your marketing in a more productive light. The more creative you're in your marketing - the greater leverage you get.