Wise Investments – Issues and Their Solutions
You should invest wisely in your marketing. Many principles of investing money apply to marketing. Do not put all your eggs in one basket. Your message must reach your prospect along many avenues. That conveys more credibility. For example, you might advertise in a magazine, sponsor a community event, send out news releases and offer extras on your website. Your investment portfolio must be diversified, so should your marketing. Warren Buffet’s long-term strategy to ‘make smart investments and hold’ can apply to your marketing. Make a long term marketing commitment to yourself. Be consistent and persistent. That is smart investing and smart marketing. Consider the different forms of currency in your business, cash is the most obvious. A signed order is another. Receivables are currency – you can even use them for collateral – or sell them. Anyway, some forms of currency look better than others, if cash is best then you might be tempted never to give credit to customers.
But you might lose sales because of that. You may decide to give credit to approved customers – knowing that you can likely convert the receivable to cash. Even signed orders are currency – you can factor them to obtain financing.
Marketing is another form of currency in your business. Good marketing creates customer goodwill, credibility, awareness, education even desire. All of that can be converted into signed orders, receivables and hence cash. All forms of currency are convertible. But the conversion rate is not 1 to 1 nor is it totally predictable. Some receivables become bad debt. Some signed orders get cancelled. Some marketing efforts just spin off into the universe like a lost asteroid. For that reason do not expect that every dollar spent on marketing pays off the same. For example if you do a mass mailing some of those envelopes go undelivered, some never get opened, a few get read – and even fewer acted upon. You may believe that cash is a better currency than marketing. Marketing can be better than cash because a creative marketing campaign can pay back many times over, if you realize that when you market you are creating currency – you can view your marketing in a more productive light. The more creative you are in your
Marketing – the greater leverage you get. Marketing is like currency is synergistic. When you have money the banks will loan you more – but when you have none and want some, what do they say? ‘You got none so we can’t give you any.’ the same way – marketing works. When you generate lots of exposure – you get more. When you are hot everyone wants you. When you are cold – you get the freezer. Keep sending your marketing messages regularly. Some businesses get busy with business and forget to market. And then the feast runs out and they start marketing again.
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