Marketing is a crucial contributor to overall business success, but marketing seldomly gets the recognition it deserves. A person doesn’t choose a brand by accident.
If a person stands in front of a shelf in the grocery store, it’s marketing that makes a person choose one product above the rest. It can be the packaging that stands out, the price that looks attractive (hence why market research is non-negotiable), or it can be that the person chooses a brand because he or she knows that this brand is conscious of the environment. Whatever the reason for the purchase decision, it all comes down to marketing. Marketing is not only a billboard on the highway; it’s the way you communicate your brand values, how you package your products, how you establish your brand with your brand identity, and how you make your customers feel.
Companies that view marketing as an investment understand that in order to grow their businesses, they must continually invest in creating new leads and new customers.
Why some businesses still view marketing as an expense:
- They only rely on word-of-mouth
- They are not digitally adapted and fear the unknown
- They don’t see the value of marketing yet
Here are 5 reasons why marketing should not be seen as a business expense, but rather an investment.
#1 Word-of-mouth is taking on a new form
Have you ever heard the following: “I don’t believe in marketing; I acquire all my customers through word-of-mouth?” Well, that is marketing! Nowadays, word-of-mouth looks a bit different - digital word of mouth is online reviews and recommendations that contributes to social proof, and evidently social proof increases trust. If people do recommend your product or service with the traditional word-of-mouth, do you have a responsive and user-friendly website where you showcase your previous work? Do you emphasise your unique selling points, in order to take the word-of-mouth referral to the next step in the sales funnel?
#2 Acquire and retain customers through marketing
From logo, product, and package design to the key messaging on the home page of your website, everything that communicates with the customer is a marketing decision, and therefore an investment in your business’ vision. Failing to do so, is business suicide.
Marketing is a method to build brand awareness, acquire and retain customers. It should be a continuous process to ensure sustainable business growth.
#3 You won’t always see a direct return on investment, but good marketing WILL result in ROI
Seeing a return on investment is a top priority! But with marketing, not everything is always measurable. For example, when you invest in a user-friendly website, you won’t see the return in the short-term, but once people start spending more time on the site, visiting more than one web page, and decide to add your product to their cart; you’ll realise it was worth the investment. Sometimes, it’s the small things that drive potential customers over the line from consideration to conversion.
#4 It has the power to create an emotional connection with a potential customer
Marketing that allows potential customers to resonate with your brand; is powerful. When a person feels like they can resonate with a brand, they are more likely to make a purchase decision and to stay loyal to the brand. Marketing can bridge that gap between a brand and a customer.
#5 It’s a long-term investment that can SAVE you money.
As a business decision-maker you are not short-sighted (or so we hope) and have a big vision for your brand. Smart marketing can save you money in the long-term. The resources put into marketing and creating brand awareness now, will still produce a return on investment over the long-term.
Marketing is the science of investing in your business and your products for the long-term. Today, companies can’t afford to NOT invest in marketing. If you want to grow, you need to have an effective marketing plan in place.