I read a very interesting article the other day in Deliver magazine about the use of marketing dollars and I thought I would share it with you. It seems that in these tough economic times it’s very important to make the right decisions on where to spend marketing dollars and this article makes a very good, if one-sided, argument. I’m sure that there is an article somewhere that makes a compelling argument for only using TV or Radio, but make up your own minds……..
We’d like a few moments with your CFO; we’ll wait while you go and find him or her. Stuck in a budget meeting? We just want to say that something about staring at numbers all day must affect your vision, because we’re hearing from our marketing brethren about shortsighted attempts to reduce company expenses by cutting the marketing budget.
Far be it from us to explain to those in corner offices that marketing spending is slightly different from the costs associated with the office coffee service, but let’s just say your crew seems hell-bent on making a dent in these “outrageous” costs for promoting your company’s products and services.
We can only assume that clinging to this belief will mean you’ll eventually lay off all those “money-grubbing” employees, shut down those “dollar-sucking” retail outlets and then put all those savings into a nice bank CD where it can earn a staggering 5.4 per cent ad infinitum.
Or maybe, just maybe, you don’t want to do that. Maybe running a company can generate a return slightly higher than that stellar 5.4 percent and you see the value in keeping the doors open, the offices staffed.
Splendid, then why, of why, do you refuse to see that what you spend on marketing is not an expense of doing business, but an investment into your business. Done properly, your marketing has an effective ROI that generates additional (as in more than usual) revenue.
We would be remiss if we did not point out that when it comes to generating ROI, direct mail is one of the best investments you can name.
Recent numbers show that every dollar spent on direct mail generates $16 in revenue. Think about that; cutting your marketing budget may save you $1, but it’s costing you $16 on average in revenue. So be sure to lower your revenue targets for the coming year. Or better yet, suck it up and regard this the way you would any business investment – something you do for the good of the company.
So what’s your opinion?
Sheila Smith, Office Manager
In regards to the importance of direct marketing, I agree with the article. Advertising on TV can at times feel so random and consequently, a waste of money for the advertiser. Unfortunately, I think a lot of direct marketing is a little too noisy and obnoxious. If you did your homework and pegged me as a “model” customer, then why are you screaming and shouting at me. It’s like the annoying kid in the classroom who is frantically waving his or her hand in the air, begging for the teacher to “pick me! pick me!”