Marketing: Expense Or Investment?

     Business owners are naturally conscious of expenses; they are in a constant battle to keep more money coming in than going out, and the expense of advertising and promotional work can seem very high to them. This is especially true when marketing is not cost effective, a point heightened by our present economic situation. Many business owners are simply hoping to ride out the storm until things get better and customers are once again plentiful.

     But waiting for customers, even in boom times, is never a viable strategy. Complacency will see customers go elsewhere regardless of the economy, which has been part of New London's problem for many years. In our present stagnant economy, it is necessary to do more in order to capture a large enough piece of what markets are out there to sustain your business and be part of the eventual recovery that will come in time.

     Marketing, then, is an investment; like all investments, a return is needed to keep the investment viable. This requires testing of marketing venues and campaigns, with the understanding that some will work and others will not. In time a clear picture of who your customers are, and how best to reach them, will emerge. This is never a finished process, but there will eventually be less dead ends and more clear paths to customer loyalty.

     The mistake most small business owners make is, spending money on advertising for a short period of time and, seeing no appreciable results, terminating the ads and hoping for the best. The truth is, all forms of marketing require consistency for a long period of time, and every business must have many outlets for their marketing efforts to reach their target market. Businesses which rely on a small number of resources put themselves at great risk of not having sufficient customers or cash flow to stay in business. As with any investment, the process must be finished for the results to be seen.
     This does not mean that vast amounts of money need to be spent on marketing; investing time and sweat (which are in greater supply in these times) is also a viable part of the process. Working the internet and social media is a good way to find customers (though in truth this can be a very laborious process at times).Looking for ways to leverage dollars through marketing collaborations with other businesses always makes sense, which I will address in a number of forms in future posts.
     A final word; one would not abandon a half built house or new shop, unless an unforeseen disaster forced such an outcome. Neither should your marketing efforts be abandoned in mid-stream, though modifications are likely to be needed. Building on any success is critical, and the most critical point about all marketing is: 60 to 70% of your marketing should be directed at your current customers. They are the payoff for the investment you have made in your business and your marketing plan; they are the main asset of your business that needs to be nurtured.