By Jillian Anderson | January 16, 2009
In the wake of our shifty-eyed economy, a healthy competitive edge is certainly NOT the LAST thing that businesses need. Many companies are cutting prices, cutting employees and (dare I say it) even cutting marketing budgets to stay ahead.
Wait a second! Which one of these is not like the others?
1. Cutting prices
2. Cutting employees
3. Cutting marketing budgets
Well, if you chose number 3, then we are on the same page. In most cases, if your advertising and marketing ROI does not balance out or surpass your advertising and marketing budget, then something is wrong. To save and make money, the answer is not to cut these dollars, but to reset them.
There is more money wasted in advertising by under-spending than by over-spending. Years ago someone said that under-spending in advertising is like buying a ticket halfway to Europe – you’ve spent your money but you never get there. Morris Hite
In this competitive business market, marketing campaigns and strategies are not as simple as they used to be. With greater diversity, precise social and product niches and more forms of media than ever before, there is a lot to consider and understand in order to make the most of an advertising budget.
Contemporary marketing plans should contain a healthy blend of both conventional media (TV, radio, print, etc.) and new media (largely web based and interactive). In many cases, it is ideal to use conventional media,SEO and SMM to get your name out there, all the while directing people to your website to sell the product or service, or to your blog to hold a conversation about your product or service (which may very well get your customers selling for you).
To paint a bit of a picture, in this growingly new media age, at least 20% of your marketing budget should be devoted to SEO and online interactive strategy. Is that more or less than you expected to commit?
Maximizing advertising dollars does not mean cutting corners and only going with the cheapest options for products and services. In order to get the most out of your marketing budget, the quality and effort of the campaign, as well as the design and production, need to reflect the quality of your business’ products and services, targeting the proper demographic.
When executed properly, an ad campaign/marketing strategy will pay for itself, then buy you lunch. It may also help to keep you from having to those cut those prices or employees to stay competitive. Thus, making number 3 not like the others.
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About the authorJillian gets emotional over food, prefers baths to showers and still uses personal checks despite the Visa commercials. She is fascinated by the intricate elements of organic gardening, loves Truth, and says nice things only when she really means it. Find her on Twitter and LinkedIn.
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