The world of marketing seems to be increasingly more competitive each passing day. More and more brands are entering digital marketing in particular which is driving the costs higher to reach potential customers. This trend is happening across all varieties of products and services from traditional digital services to more tangible products such as a swimming pool. As more and more companies realize the wonders of producing marketing plans for the digital world, these prices will only continue to rise. Through these changes, the opportunities for a wonderful return on investment will become more sparse and more difficult to find. Purchasing ad space for pennies on the dollar will only be available in the early stages of a new marketing platform and will not last forever. With that, there are still a ton of benefits to going all-in on a digital marketing plan for your business today! Let’s dive in and take a look at the potential pros and cons of marketing.
Top 3 Risks of Marketing
With that in mind, it is becoming riskier to deploy marketing services than in the recent past. There is a potential for loss on your investment into marketing if it is not done properly. Furthermore, you can now commit to marketing tasks online which are not beneficial to your overall brand. Finally, there is always an operational risk when you deploy internal teams to work on marketing. The same can be said of external teams but usually, there is at least 2X — 3X more expense associated with bringing on an internal team due to benefits and other onboarding processes which an external team would not require. Let’s dive in and take a look at these three points in a more in-depth analysis.
1. Loss of Investment or Poor Return on Investment
The fatal flaw of any marketing plan is if there is no return on investment. If you spend $1 you should expect back at least $1 from your marketing efforts. Yet, this is not always the case. First, you could be targeting the wrong audience or sending them the wrong message. Selecting the correct audience and ensuring they are receiving the messaging properly will be two key aspects to your marketing plan.
2. Brand Disruption
This may include ghostwriting comments on forums or blog posts which feel spammy. The important part here is to ensure whatever your marketing tactics are that you are not frustrating your audience. This is very easy to do in our hyperconnected world today too! One tip to go by if you are advertising try to make it not feel too sneaky. People can detect bullshit and that is true in an online sense as well as in real life. So, make sure you are being authentic with your marketing and value propositions.
3. Operational Risk
As noted above, there is a high cost to bringing on a new team for marketing or even hiring an external team for marketing. The financial costs alone can burden an organization if they are not ready for this transition. Furthermore, it will become vital that to start your marketing program you are not 100% reliant on the results to keep the doors open. Marketing has a natural learning curve to it to make sure you are finding your perfect audience demographic as well as pinning down the value proposition and messaging.
Top 3 Potential Benefits to Marketing
The real reason you are going to deploy any marketing efforts will be to increase your bottom line. A brilliant man once told me, “Marketing is changing consumer behavior while increasing the business’ bottom line” (Thanks Pops!) and he’s absolutely right! It is important that your marketing efforts increase the bottom line of your business which means they need to pay for their own existence. With this in mind, let’s dive into three of the benefits you can get from deploying a new marketing initiative.
1. Positive Return on Investment
The entire point of marketing is to increase your bottom line. In other words, this means you need to see a positive return on your investment into a marketing initiative. This may not be absolute as one program may lose some money while another marketing program earns the difference but as a whole, this should be a baseline metric for your marketing.
2. Increased Brand Awareness
Another key aspect your marketing aspect may include is preparation for tomorrow’s sales. Building brand awareness does just that, it prepares users and potential customers to make a purchase tomorrow from a brand they already trust. This is the power of Nike who has continuously put more energy and dollars into their brand to help their sales capture a higher price point from consumers.
3. Learn for Future Marketing Plans
Finally, the only reason you would really want to see a negative return on investment from your marketing is to test new marketing plans. The world is constantly changing and often times there are emerging platforms which can generate a wonderful return on investment for your business. This is not always the case but for the most part, the world moves fast enough with the digital age here that there is a new platform available for you to market on. In 2019, we project much of the new platforms to include influence marketers and continue within the world of social media which has commanded an amazing return on investment for those who dial in their ads properly.