“Marketing money is like fuel to a car. You take the fuel out of the car and the car stops”- Sergio Zyman.
Businesses that look at their expenses as potential investments tend to make smarter decisions. Whether it be providing free lunches to the employees or having to move offices for extra car park spaces, a large number of expenses can be seen as a means of improving efficiency, effectiveness and morale of those who make your company. If the return (monetary or not) is perceived to be higher than the cost, the expense is an investment.
Marketing can be looked at in the same way. The right marketing strategy can be affordable and provide great long term financial returns.
Let’s see how a marketing investment can help you gain better returns on your initial investment– your brand.
You buy a house with the goal of leasing it for a steady passive income. Your first step post purchase would be to refurbish the house and ensure that its ready for its new tenants. This process could include anything from re-painting to buying new appliances. These refurbishing costs to get your first tenant are your additional setup costs ( the main setup cost being buying the house).
It’s the same with your brand. The main setup cost is the product, whether it be a physical product or people delivering a service. Your additional setup costs to gain customers would be creating a visual identity, getting a website, and starting social media pages to make your brand approachable.
These additional setup costs are marketing expenses/investments that will get you your first customer.
The next step as a house owner would be maintaining the house on a monthly basis. These costs are an investment that pays off by keeping the tenant happy and in the house.
Your brand needs a similar monthly investment. Your company need to invest a part of your revenue every month to maintain and build your brand. These investments provide returns by keeping your brand in the mind of your existing customers and bringing future customers closer to you.
Once every few years, you will need to re-paint the whole house or redo the plumbing in the house. These expenses/investments are made to either help find a new tenant or ensure that your current tenant is more than happy where they are.
Similarly, you will have to make an investment in your brand that is larger than your average monthly costs but smaller than your set up costs. These costs could include doing major updates on your websites, a brand review, a rebrand if necessary or a re-evaluation of your brand position. These investments are critical as they ensure the brand is still current relevant and heading in the right direction.
Maintaining a house can get very time consuming. For this reason, many house owners choose to use real-estate agents to find tenants and maintain your property.
In the same sense, many brands find that the best and most cost effective way to run their marketing is through the use of full service design studios. Design studios or marketing agencies have the capability to manage a brands complete customer lifecycle marketing including design, strategy, branding and development. A full service agency tends to be the ideal solution for a business’s need to invest in itself.
For a downloadable checklist or if you if you would like to know more about how you can get the most from your marketing efforts, please contact us.