As an agency, we are often challenged by clients when it comes to investing in marketing. Small and medium sized businesses, with limited cash flow and budgets, worry about spending their hard earned dollars on marketing their products or services.
It’s not uncommon to be asked:
“Can you guarantee a percentage increase in sales?”
“Will we see a significant increase in market share?”
It feels pretty risky to spend money when there isn’t a direct line back to revenue. Surely the company can continue to grow and reach the desired sales level by following the approach that has got it this far right?
Thinking like that might be riskier than investing back into your company!
Let’s say you are leaning towards staying the course, doing what has worked up to this point to get you to the next level. Choosing to do so is actually going to move you backwards! While you continue to grow as you have, your competitors are learning more about your target market. They are engaging in brand awareness strategies and getting in front of potential customers. Both of these build trust when it comes to future buying decisions. Seeing a loss in market share and sales is only a matter of time.
Marketing is defined as an expense on your PnL (Profit and Loss). However, an effective, profitable marketing campaign should be considered a strategic investment to increase sales and revenue. At first glance, marketing seems like it’s all about spending: market research, strategy development, media buying, and marketing materials on top of agency fees. When in fact, those activities are the long-term strategies and elements that are required to gain new clients and grow your business.
Marketing is not all about spending money, it’s about putting in motion activities that serve to fulfill the goals set in your business plan. It’s a key to your success.
When your company is ready to grow, marketing is an investment that will help you get to the next level. Without a strong marketing plan in place, it is nearly impossible to attract new customers to your business. Marketing generates leads, leads convert into sales and increasing sales means … (your next business goals get inserted here)
With all that said, regardless of the stage of business development you are in, marketing should always be considered as an investment to achieve the business goals.