Is
marketing considered an overhead expense? Is it just an ongoing business
expense that does not contribute to the bottom line of your business or is it
an operating expense: one that is directly linked with the production of goods
and services?
Now
before the accountants reading this throw something at their computer, I know
where marketing is categorized for bookkeeping purposes – it is an overhead
expense. But all too often, that bookkeeping category gets engrained in the
thinking of the people responsible for marketing. They begin to believe that
their mission is just meant to keep the company brand name in front of your
customers and that’s the end of it. To them, marketing is much like a large
sign on the top of your building that makes the public aware of the name of
your business. When marketing is just seen as an overhead function of brand
awareness, it falls short of being a key function of sales of products and
services that keep your doors open.
In
a sequential marketing plan, brand awareness plays a big role. It is the first
step we take to gain the attention of the consumers we are trying to sell.
However, a good marketing plan will take the next step and promote for the
sale. This transition is critical to getting new customers to try your products
and services for the first time. In this way, marketing is intricately tied to
the ongoing operation of your business. If you don’t market well, you don’t
sell anything new. If sales don’t happen, your operation will shut down.
There
is one more aspect of this sequential marketing plan that is critical to your
operations: turning first-time sales into lifelong customers. That involves
several different follow-up activities after the sale that your marketing
should cover. First, find out how satisfied your new customers are with your
brand. That typically involves four different interactions between them and
your company:
• Was the quality good for the price
paid?
• Was the price competitive?
• Did they get it on time?
• Were they treated well by the
employees they interacted with during the process of buying from you?
Second,
after you find out the customers’ satisfaction level, give them a reason to buy
from you again. There are several good reasons to do this. It is easier to sell
to an existing customer than to a prospect. The customers have already
purchased from you once, so they should not have to be reintroduced to your
brand. If they were satisfied with the first purchase, they should give you the
nod in subsequent purchases. However, don’t take this for granted. You have to
market to them and give them a reason to buy from you again. This also gives
you a ready subset of your target market to which you can introduce new
products and services. Loyal customers love to be rewarded for buying within
their favorite brands, so use your marketing to do just that.
Third,
people who are sold on your brand will tell others about it. Your marketing
should give them a reason to tell their friends about you. Incentivize them to
help sell your brand. In the day in which we live, a good brand reputation
through the positive response of customers is the golden marketing ticket.
Make
sure you are planning your marketing from an operational significance mentality
and not as an overhead expense. If your marketing is just to make sure your
brand is seen but is not helping to drive sales, you need to change your
marketing.