Marketing Is A Long-Term Investment

"Dig your well before you're thirsty" is the title of a wonderful book by Harvey Mackay.
It is smart advice for investing your money, "Save your money before you need it", or growing your business, "Market today for tomorrow".

When times are tough some businesses stop marketing. They reason, 'No one is buying so why should I advertise?' The other time some businesses stop marketing is when they are selling like crazy. Again they figure - 'I can't handle any more business right now so why promote?'

Two key points here. Advertising is only one narrow form of marketing. Marketing is about sending messages. You send messages in a plethora of avenues; advertising, customer service, by association, quality, public relations, sponsorship, awards, etc? And the second point; marketing is a long-term investment.

Selling is immediate. When times are slow you need to crank-up the selling efforts. How do you escape from a sales crisis? Improve selling skills, search out new markets, offer more value and most importantly be systematic. When there is a fire, put out the fire.

That's sales.

Preventing the fires of tomorrow is marketing. That is why marketing is so difficult to justify or measure. The good marketing you do today will pay off in a few weeks, months or even years. Is it worth it? Only if you want to be in business in a few years.

Invest wisely in your marketing. Many of the principles of investing money apply to marketing. Don't put all your eggs in one basket. Your message must reach your prospect along several 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 should 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. Stick to it. 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. But 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. So 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 awareness, goodwill, education, credibility, 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. But you need to mail to the whole list to reach the ones that read it.

You might 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 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.'

Marketing works the same way. 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.

Because marketing is currency there are times when instead of cash you might accept payment in marketing currency. This might be a straight barter deal. I give you $1,000 of my product for $1,000 of your product. This is one way to get 'free' advertising. Trade your product for ad space or media time. This only works if the media company needs your product and don't have budget, (cash), to buy.

My financial planner gave me some good advice when I left the corporate world to start my business. I showed him the corporate package I received and asked how I should invest this money - stocks, funds, or pay down my mortgage? He asked a few questions about my business. He then advised me to invest my money in the business because that is where I would obtain the best return over the next few years - then gradually as business growth levels or slows to invest in other long-term investments. It was smart advice because growing my business was another form of investment. I continue to make both short term and long investments in my business. You might examine your business in the same light.

© George Torok is co-author of the national bestseller, 'Secrets of Power Marketing' Canada's first guide to personal marketing for the non-marketer. He delivers seminars & keynotes to corporations and associations across North America. You can reach him at 800-304-1861.

For more information about his programs visit www.powermarketing.ca

---

Direct Mail Response Rate Boosters (12 tips and ideas)

1. Mail to a different list Your list is the... Read More

How to Measure the Benefit Your Product or Service Offers

Measuring the benefit of your product or service means putting... Read More

Take My Commitment (to Your Biz) Quiz!

Starting and managing a successful small business takes time, energy,... Read More

A Forgotten Marketing Tool ? The Postcard

The postcard can be a very powerful marketing tool. Many... Read More

Ten Deadly Proposal Preparation Pitfalls

Let's face it, the name "proposal" is a great misnomer,... Read More

Marketing For Just Cause

Cause marketing is a relationship between a for-profit and a... Read More

The Fine Art of Relationship Marketing

The buzzword these days is "relationship" marketing. Just what is... Read More

Principles of Marketing 101

Marketing results should be measured in only one way ?... Read More

Professional Marketing

Have you looked for marketing advice on the internet recently?... Read More

Be Prepared for Marketing

For most businesses, making a sale is all important. However,... Read More

Moving a Business Relationship from Free to Fee: Power of Freebies - Part 2

In the last issue we looked at 5 reasons why... Read More

Fundraisers - How to Raise Twice the Money With Half the Sweat

If your members, parents or donors wear clothes, watch t.v.... Read More

Tricks of the Trade: Design your Booth for Maximum Impact

The fight for your customer's attention at a tradeshow has... Read More

Mortgage Marketing - Viral-Email, Referral Marketing Strategy

This is a devastatingly powerful way to extend your marketing... Read More

How To Create Urgency So People Buy Now

..products or services now. They may not revisit your web... Read More

Benefits of Developing & Maintaining a Database

A database is more than a simple list of names... Read More

10 Steps to a Great Newsletter

A newsletter can be a wonderful, economical way to communicate... Read More

The Future of Marketing Part 1

It used to be if you were a small business,... Read More

Making Your Mark With The Millennials

Generation Y--The second-largest crop of young people in America's history,... Read More

15 Ways to Promote eLearning Programs

Pre-note: In this article, teleclass is an example used to... Read More

Mark Twain?s Great Marketing Idea

To tell you the truth (and about 53% of this... Read More

How to Profit from Your Expertise (Part 1 of 2)

Are you looking for a natural way to market your... Read More

Networking, iNetworking, What Is The First Rule?

Networking on the Internet is the same as networking in... Read More

Your Ultimate Competitive Advantage

The biggest secret to success in business is to always... Read More

Fern Reisss PublishingGame.com: Achieve Media Attention for Your Business

Do you want to be quoted by the national press... Read More

Fundraising Letter Envelopes: How To Make Them Irresistible

Readers spend only a few seconds deciding the fate of... Read More

5 Tips to Help You Identify WHO To Market To

If you have your own small business, it's important to... Read More

Basic Marketing Dope

Sometimes the simplest data is the best. Marketing is not... Read More

Creating a Marketing Plan for Your Website

Have you created a marketing plan for your Website? If... Read More

How to Turn a Marketing Calendar into Marketing Success!

Do you have a list of marketing ideas that you'd... Read More

Developing a Contact List- Part Two

In a previous installment, we spoke about how to come... Read More

Website Marketing: 10 Uncommon Bonuses That Will Help Make Your Product Hotly In Demand

Giving away free bonuses is an important website marketing secret... Read More

Dont Let Your Business Cards End Up in the Trash

Business cards are such wonderfully creative little marketing products. Most... Read More