How Much Money Should I Spend on Marketing?

How much money should you spend on marketing?

Let's set the question of money aside, okay?

If you want to create a successful marketing campaign to drive more sales to your business then ask another question.

"What are your marketing priorities?"

So how do you figure this?

How do customers typically find out about you? And do you have strategies for the following areas:

1. Internet


2. Print


3. Public Relations


4. Advertising


5. Word-of-Mouth


6. Trade Shows

Let me illustrate with a real life example.

There's an engineering firm that wants to re-do its web site. They do major public works projects like freeways. Search engines are not the first ways people will find them. It will be based on the business relationships they have first. Then, potential clients will go to their web site to see the projects they have completed.

In their case, the web site will validate their credibility.

Now, their print strategy may include a 4-color portfolio of specific projects or a bullet point listing of how they handled neighborhood concerns when working on municipal projects.

Their print may consist of separate "one sheets" on exact projects to match the needs of whoever they've been speaking to. These can be placed in a simple portfolio and mailed as a follow-up or possible introduction. The print can have a web url to build their credibility.

So now they're beginning to develop an internet strategy along with a print strategy.

As they do this, they can then budget their money for how much to spend on each area such as refreshing their web site, print packages, trade show attendance.

If you have specific questions on developing marketing priorities and how to best spend marketing dollars, feel free to email me and I can respond with specific input.

Or, if you have strategies you've developed that would benefit others, then post a comment and let us know.

Stuck for Sales Leads?

Generating leads

keeps the sales cycle pumping and results in cash flow for the business you represent.

But what happens when the leads fall off . . . and your contacts don't return phone calls . . . ?

I just got off the phone with Norman. He's a salesman for a lithography company in Los Angeles producing banners for outdoor advertising and indoor use. Clients include major corporations such as the studios and smaller companies, too.

I met Norman at a business networking function last December sponsored by Washington Mutual Bank and Telemundo.

He told me how he went about doing "detective" work to make contacts in select companies.

I've been sitting in a "sales lead" fog recently and have been fighting distractions. So I called Norman to ask if he knew of networking events coming up. He didn't but mentioned he had made contacts within Subway and he was also going to send me the name of the person responsible for vendor relations at Washington Mutual Bank.

While he didn't give me any specific, concrete leads or solid information I nevertheless benefitted from a call to him. It energized me and got me thinking creatively to market the interactive company I represent and to follow through on some other leads.

In a slump? Find it hard to focus in lead generation?

Then try to have someone you can call even for only a few minutes.

It can give you the spark you need to take a major step forward.

Reasons for Marketing

I'm helping produce a brief video for a person who owns a couple of dozen apartment buildings in Southern California.

Here's why he's spending the money to produce a video:

He wants to engage in marketing to build an awareness of his apartments and to give his company name brand recognition over the long term
.



He wants to remain competitive as newer condos are developed in nearby cities
.



He wants to protect against possible future erosion of his market share
.

Here is what is impressive. He is willing to spend marketing dollars to create a video that will show on YouTube, his web site and other outlets. He wants to create long-term value.

Yet he is in his 70s. His vision to spend money on marketing is as strong as ever -- or stronger than ever -- even at his age.

Why have a Marketing Mix?

If you've ever wondered why you need a marketing mix, then let me ask: did you get a postcard from Yahoo! promoting search for businesses.

I was surprised to get a direct mail piece to "connect with customers searching for what you sell."

I thought the graphic was well done showing diners in a restaurant holding different placards on what they needed.

On the back, was a headline and the url.

But here it is: a major internet presence using direct mail to attract business!

Cash Flow for Service Businesses and Consultants

If you're a business service provider, or especially a consultant, and you feel you're stuck offering a low price to clients then here are some ways to raise prices. The information was passed along to me by a person who recommends the Dan Kennedy style of marketing:

Raise prices
(straight to the point - simply say you had been offering a discount - or in order to provide better service and arm yourself with the latest knowledge you need to raise prices and ultimately, the client will benefit).

Change WHO you are selling to
(find people who are willing to pay premium prices for a more valuable service).

Charge for what you now provide free

Bundle services

Your service is ALWAYS a premium version

Upsells with each sale
(easier to do if you truly have taken time to learn the client's needs).

Upsells after the sale

Locked in renewal
(however, for online marketing, I got mad at a well-known blog marketer and felt his method of locked in renewals wasn't ethical).

Continuity / forced continuity

Change the way you sell and what you sell.


The title to this one-pager handed to me was "ten clever ways to raise prices."

Raising prices also points to why a strong client-provider relationship is helpful. You can have open and honest discussions about sensitive topics like this. You can also find out the client's goals for the next quarter or year and let them a price increase could be coming. If you have a context for mentioning the increase, they'll more likely be receptive.

Viral Marketing . . . Hmm, I got an idea . . . !

Here's an article on TechCrunch about viral marketing.

I often say that marketing requires work and a strategy and this blog post is exactly that . . .

a viral video doesn't just happen, but it's part of a planned strategy.

It's a good read and it gave me an idea about doing a viral video.

I was in a shoot today with friends of mine who are actors . . . they did a fight scene staged like a UFC fight and I was the ref.

Well, a client I just did a marketing report for is a chiropractor. Hmm, I could take clips from the scene to start off with and link them to her website . . . since it could easily deal with headaches, etc.

One idea to stand out from the crowd and mix talents to help a small business achieve visibility.

Market Your Professional Services

Marketing Professional Services

is simply a matter of sharing your knowledge in an efficent manner to gain widespread exposure.

The information you have learned and the advice you have given to others can be put into spoken and written words to help you build a positive reputation and win more business.

1. Choose a topic
: saving money on workers comp, finding reliable investment vehicles, preventing headaches in the workplace.
2. Then put that topic into various platforms
like public speaking, writing and print materials to distribute in your local business district.
3. Find a local coffee house or restaurant
and invite 12 - 20 people to listen. Expect that 7 - 10 will show. Speak to what is of interest to them.
4. Online strategies
will include writing forum posts, blog posts or ezine articles that speak to the needs of your prospective clients.
5. Your Attitude
when you're trying to build business and win new clients don't act like you're desperate for new business. Be more concerned about helping the people you're out to serve.

This attitude will gain trust with the prospective clients you're trying to reach. And when you gain trust, you're going to win new accounts and clients.

Direct mail, telemarketing . . . does it work?

Winning cash flow for a business includes developing new business.

If you rely solely on current clients for a winning cash flow strategy you should be careful. What strategies exist then for winning the cash flow struggle and new business development needs of your company?

So how do you get new business in this age of technology?

Here's how I'm using a sales letter with phone follow-up for a current client:

The client provides managed computer services.

I wrote a letter in the Dan Kennedy marketing style using lively imagery to capture attention regarding the problem.

Then the solution was provided. A Lifesaver candy was attached to the letter.

I'm following up with phone calls to the people who should have received the letter.

I've called about 125 out of 550 recipients during the past three days. Many have remembered the candy and it gave me a chance to joke about it and ease into conversation.

I've been able to set about 2 - 3 appointments with 5 - 7 serious inquiries generated.

The expected return on investment for the project was 1% to 2% meaning it would result in about 5 - 10 sales.

I think we should be able to beat that by the time the project is finished.

The biggest challenge is getting the calls made quickly. Each one is taking about 1 - 2 minutes so I may need to delegate to someone else to help me.

This shows why a marketing mix is helpful: printed sales letter, telephone and web site all combine to get the attention of the target customer.

Direct mail with phone follow-up: consider it as part of your marketing mix.