You can’t have profit without sales and you can’t have sales if your target market is not aware of your product. In today’s ultra-competitive business environment companies are having trouble breaking through the noise and getting their marketing communication messaging heard. Added pressure to keep expenses low in order to keep pricing competitive makes this goal even more difficult to achieve.
The key to overcoming these obstacles is properly maximizing your marketing budget. There are several different areas where you can focus your marketing dollars, including:
- Independent Evaluations
- Trade Shows
Each of these activities has pros and cons that need to be evaluated to help you identify where and how much to spend on each activity.
Pros: Advertisements are a good way to deliver your message to a broad audience very quickly. This can provide an excellent return on investment (ROI) if the advertisements’ audience consists of a large percentage of customers that can use your product.
Cons: It can be difficult to find an advertisement that perfectly meets your target market. In addition, these advertisements can be quite costly.
Pros: Potential customers can be very skeptical of data and claims that come from the product’s manufacturer. Utilizing independent evaluations allows you to provide data that is unbiased and valued more highly by your customers.
Cons: These evaluations are even more expensive than advertisements and can cost thousands of dollars. In addition, these evaluations could have long lead times, which could throw a potential product launch behind schedule.
Pros: Samples are a great way to get your product in your customer’s hand in order to get them to try it out. This is a great option if your product’s advantages are experienced by using the product or if you are trying to replace a long-standing competitive product.
Cons: Sampling is a process that can be abused by your sales team. Proper training of your sales team regarding when and how to use samples is essential if your sampling program is going to be successful. Depending on your cost of goods sold (COGS), sampling may take a significant chunk out of your marketing budget.
Pros: Trade shows allow you to demonstrate and discuss your product face to face with potential customers. This interaction allows you to address any customer concerns and increases the likelihood of them remembering your product.
Cons: Most people who attend trade shows are looking to gather information and not make purchases. A poor trade show booth location can lead to very little traffic and interaction. This option provides the riskiest ROI.
Properly utilizing your marketing budget is a critical aspect towards maximizing your profit. If you would like advice on how to properly maximize your marketing budget to maximize your profit, please fill out the form at the Contact Us tab.