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Are You Throwing Away Your Hard Earned Marketing Dollars?

Would you buy a T-Bone Steak, cut out the tenderloin and then throw the rest of the steak away?

Of course you wouldn’t! If all you need is a tenderloin then that is all that you would buy. Right?

Yet just like the above example I see businesses throwing their advertising dollars away every single day with the money they spend on advertising. So much time and effort goes into operations, manufacturing, regulations, dealing with suppliers, getting staff to do their jobs. Leftover time is allocated for getting new customers in the door.

Typically, marketing decisions are made when some advertising sales rep shows up in some manner and seems to give the business owner a good pitch on why they should use his marketing service. Since most business owners are already overworked they rely on the sales rep to come up with the advertisement and the business owner makes sure it “looks good”. However, advertising sales representatives are selling advertising space not results. What you bought is advertising space and what you want is results. You need a different kind of advertising.

There are two types of advertising. One is image or institutional advertising the other is direct response. Image advertising is what very large companies do. Nike, McDonald’s and Apple. Their advertising is designed to make you aware of their business and HOPE that eventually that awareness will translate into you purchasing their products. It’s a very indirect method of getting results. With it comes lots of waste.

It is estimated that Nike spent some $3.6 billion on advertising in 2019. They have over $37.4 billion in sales. With those kinds of numbers, they can afford image advertising. However, most small to mediums size businesses don’t have the bankroll or the number of outlets to last long enough to see any benefits from image advertising. For the small to medium size business, this kind of marketing is a recipe for disaster. It is similar to going after a mosquito with a nuclear bomb.

Despite this fact, many business owners continue to use image advertising. What they need is direct response marketing. That is, marketing that is designed to produce measurable results every time. Marketing that pays its own way and targeted to reach only people that are similar to your best clients that you already have. That is target marketing. Focusing your marketing resources where it has the best chance of success.

If you can’t measure the amount of business you get from some form of advertising then don’t do it. You need to get hard nosed about this. This should save you thousands of dollars a year. Next, you need to reinvest the marketing dollars that were previously wasted into direct response marketing.

Find out everything about who your best customers are. Match this information with the media that closely resembles this group of people or businesses. Monitor the results. Remember you are paying for all the circulation or coverage of the media you choose. The less waste the better. The people that your advertisement reaches that are not likely to come to your business is wasted money. Shouldn’t you stop throwing away your hard earned marketing dollars?

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