Investing in the Future of Your Company

28 Jan

Friday, January 28, 2011

Now that it’s the new year, we begin with a fresh start. Learning from mistakes and capitalizing on the successes from the last year, you’ve (hopefully) put together your goals for 2011 and began your plan of action for fulfilling them. Are marketing and publicity at the top of your list? Well, quite frankly, they should always be a top priority. I know that in the immediate future, marketing seems like a huge expense. It means many hours of analyzing data and performance, researching your target market and planning new strategies for success. Not to mention implementing your new plan and monitoring your return on investment (ROI). Ok, so I don’t really blame you for thinking that it’s a lot of time and effort. However, it’s time to change your thinking because marketing ultimately strengthens your bottom line.

Don’t think of marketing as an immediate expense, but rather a significant investment into the future of your company.

First, consider the core functions of marketing and implement them into your business model:

  • establishing your product and its innate uniqueness in the marketplace;
  • defining your ideal customer;
  • setting a competitive price for larger volumes of sales;
  • implementing exciting and relevant promotions for your company and product;
  • designating the proper channels of dissemination to attract target audiences.

All of these add up to work to your advantage by contributing to your bottom line and helping you create an exciting company image while powering “fangelism” for your product or service. Marketing takes a great amount of research and strategy but it’s more than worth it in the long run. It may not be evident over night (with the exception of  viral social media campaigns that starts immediate buzz), but long-term you can expect to see a return on your investment.

Next, you need to measure the profitability of your campaign, your return on investment (ROI). Knowing your ROI for each project will help you increase marketing effectiveness in the future. Discontinue the campaigns that aren’t producing and capitalize on the ones that are. I saw a great chart at MarketingMO.com that is useful to illustrate this point.

As a general rule, you can use the following equation to calculate a simple ROI. The outcome is expressed in a percentage; the higher the percentage the better the investment.

(Profit – Investment Cost) = %
Investment Cost

Maybe marketing is not something you’ve considered… or it is, but you don’t have the staff or resources to begin. Give me a call or e-mail me and we can talk about your unique situation. Also, hit the “Subscribe” button below to receive tips and advice that could help you in your efforts.

Million Dollar Question: How are you investing in the future of your company?

~Laura~

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