When are marketing costs and design costs worthwhile?

You don't want to be bothered with the cost of marketing materials or a marketing cost. You're a typical business owner or manager who wants new materials quickly and inexpensively. But wait!

Marketing costs are strategic decisions. And they can pay off if they help you capture new customers or clients. Yesterday, I was reviewing a web site that I'm writing and managing for a company that supplies bedding to mattress manufacturers. It's going to be a basic site. I was asking them assessment questions to get the best text possible.

We finished a brief interview and then the wife of the owner was showing me around the facilities and she said how a new competitor was undercutting them on prices to take away some of their customers. Her husband was willing to try and match the prices but on some deals he refused to go too low or they would lose money and the customer would get an inferior product. She told me the customers eventually come back to them because of their quality.

I got an idea. The wife told me how their components are sold to the customers so I thought "why not make a brief flash presentation or at least a static graphical representation." The prospective customers could see the process and get a better understanding of the price.

It would cost them more but it would tackle one of their business problems: being undercut. It would also serve a second purpose: to show manufacturers that this small company is able to fully service them. In other words, give them an image of strength to show their full capabilities.

I feel good about presenting the option to them. It's not just upselling but it will be a strategic cost for a specific reason. The additional costs could easily pay for themselves with just one or two new orders.

Alice DiPirro of the PR Store in Pasadena, California thinks the same way. She told me about a customer who walked into her store and at first was hesitant to spend money on marketing collateral. But the investment paid off with new business.

In summary,

make sure the money you spend on marketing materials - whether print or on the web - have a specific purpose or tackle a specific business problem.

If you're new, you want materials to show you're knowledgeable.

If you're a small company but produce quality services or products, then you want an image of strength that rivals larger competitors.

If a competitor is undercutting you on price to take away your business, then you want materials in print on the web to show your processes, your knowledge and why your price is the best value.

Remember to think strategically. If you'd like to read up on business strategy, pricing and other issues please visit Donbizbooks.