Factors That Can Affect ROI On Marketing

Marketing and advertising to potential customers is the universal means through which all companies let consumers know about the products they offer. So why are some companies more well known and profitable than others? Endless budget notwithstanding, it’s because they’ve thought about their marketing efforts well in advance rather than simply reacting to a lull in sales. Additionally, successful marketers have taken stock of the five primary factors that can make or break their advertising efforts—audience & reach, message, media, professionalism, and funding—and planned accordingly.

Let’s take a closer look at how those five factors can affect marketing efforts:

• Audience & Reach: Contrary to what you might believe, your product is not necessarily ideal for everyone. In fact, most products aren’t. Therefore, don’t attempt to attract the masses. Instead, focus your marketing efforts on those most likely to want or need your products / services. It’s better to reach a few people who are likely to be interested in your product than to reach tons of people, most of which could care less about what you’re selling. Not sold on the idea? Well, think about it: If you’re the owner of a local children’s shoe store, would it really be smart to use your advertising dollars to send blanket direct mail pieces to all consumers within a 50 mile radius? Of course not! While you will make all of those people aware of your store, only a small percentage of them will care about your store or your products—either because they don’t have a need for children’s shoes or because you’re too far from them. A better way to go about marketing would be to invest in consumer leads with very focused criteria. Households with children ages 1-10 within a 15-mile radius, perhaps. By doing that, you’ll be tapping into an audience that likely has a need for your product and that would be more willing (compared to someone 50 miles away) to visit your store.
  
  
• Message: Anytime you send out information to the public—be it a potential customer, business partner, or media outlet—you have to determine what the purpose of the communication is. Next, you have to determine what you want the recipient of the marketing collateral to do. Finally, you have to be clear on the reasons why taking that action would be of interest or benefit to them. Without those three bases covered, your message will be unclear, non-motivating, and ineffectual.
  
  
• Media: Is the media being used to market your products the most sensible means for reaching your target demographic? For example, say that you sell high-definition TV services. Is radio really the best vehicle to showcase your product? I think not! The ideal media is going to be television because you can not only tell your audience about your product but also show them what your product does. If you’re a printing company, you could purchase TV, radio, or billboard space but your ideal vehicle is going to be direct mail. Again, you can show your target demographic your work.
  
  
• Professionalism: What do your marketing materials say about your company? Your products / services? The answer: Volumes! That’s why you must always insure that your advertising and marketing collateral is as professional as you are. Before sending anything out, always ask yourself, “Could your materials be better designed, written, or presented to provide a better impression of the company and the products / services we offer?” If the answer is “no,” stop everything. Take the time you need to get the materials right because while staying within a certain budget is ideal, it’s often worth a little extra expense to have a professional work on your marketing materials. After all, they’re they only thing left behind to promote your business when the sales people aren’t around.
  
  (NOTE: This applies to your website too!)
  
  
• Funding: Well, you can’t talk about marketing without talking about money matters. It’s simple. Ask yourself: “Does the company have the necessary monies available to maintain marketing efforts for an extended period of time to truly reach potential clients?” It’s a simple question with a simple “Yes” or “No” answer. So, how do you know if you have enough funds? Well, in general, potential customers do not really notice marketing messages the first time they’re exposed to them. They typically need to be exposed to a product (or product advertising) three or more times before becoming familiar with it. That means that you need to put costs for repeat marketing efforts to the same audiences into your budget. Once consumers are familiar with the product, you’ll need to keep promoting your products a few more times to inspire them to actually buy.

If you drop the ball in any of these areas, you will decrease your potential for optimal return on your marketing dollars investment. So, plan your marketing efforts thoroughly before you act and then put your best foot forward to the world! Good luck, and as always, feel free to contact me with any questions.