| 14 proven ways to waste your
marketing dollars by
John Graham
A distributor spends $15,000 on a Web
site that attracts only a handful of visitors. A manufacturer sends
out 8,000 direct-mail fliers and gets 26 responses. A distributor
spends $23,000 on an attractive brochure that no one uses.
When analyzed carefully, each of these
is an example of wasted marketing dollars. The distributor's Web site
was technically superior, but there was no plan to attract visitors.
The manufacturer's mailer focused on the product, not the prospective
user of the product. And the $23,000 brochure was 100 percent
self-serving.
These are not isolated marketing
mistakes. They happen every day and they waste valuable marketing
dollars.
To help evaluate a company's marketing
program, here are 14 proven techniques for wasting marketing energy
and dollars.
1) Always shoot from the hip.
This is what we might call the most common marketing plan in business
today. Of course, it's no plan at all, but many otherwise
sophisticated companies believe they are marketing their products or
services effectively by doing a mailing now, a couple of ads in the
fall, and a brochure somewhere in between. And, from time-to-time, they
revise the price sheet.
Someone comes up with a "great
idea" and that's the marketing strategy for this month or this
quarter.
Even though it sounds ridiculous, this
is what passes as marketing in far too many businesses. It all adds up
to no plan, no understanding, no organization, no purpose -- and no
results.
2) Do your marketing only when you
need more sales. Companies of all sizes are guilty of spending
their marketing dollars at one particular point: when sales lag.
That's the time someone finds enough money to sign up for a trade show
or get out a promotional flier. Of course, they don't know what's
going to happen when they arrive at the show or what should be in the
flier, and they don't understand why they should.
"What difference does it make,
anyway?" they say. "It gets our name out there. That's all
that counts." Is it? Even when what's done makes a negative
impact on customers?
Once the crisis passes, marketing is
back on the shelf, until the next time. Every company experiences slow
periods. One reason to market constantly is to make certain business
is coming to you at all times.
3) Make your secretary the marketing
director. If this sounds sexist, it isn't. Many managers feel
everything is in good hands because the sales manager's secretary is
the marketing director. She orders pamphlets and letterhead. And, when
the company needs a brochure, she has a friend, actually he's a cook,
but he really likes to do art work. Anyway, he did the whole job for
$50.
It's unfair to anyone to give them a
title and responsibility when they lack the right experience and
training. Unfortunately, these are the people who fill countless
marketing slots. And then management complains because the marketing
is ineffective.
4) Duplicate exactly what your
competition does. When it comes to stealing marketing ideas, some
businesses rival the CIA. They know exactly what the competition is
doing almost before it happens. Cutting the bad guys off at the pass
is what they consider aggressive marketing.
"We know how to beat them to the
punch," they say.
Why would anyone want a competitor
to drive a company's marketing strategy? Again, it happens every day.
One company offers a rebate and everyone falls into line.
5) Expect huge results from a tiny
budget. There's a certain marketing mindset. Send out a mailing
and someone comes to the conclusion there should be at least a 25
percent response. On what basis? How good was the list? How do we know
it was the right audience? Was the offer strong or weak? Was it
tested?
If you spend $25,000 on a marketing
campaign, why does management expect $2 million in sales? But that's
the thinking. When there's no miracle, someone says, "See,
marketing doesn't work. Just get sales to work a little harder. That's
all we need."
6) Don't waste time and money on
research. Walk into the storerooms of almost any company
(including the Fortune 1000) and what will you find? Cartons and
cartons of expensive brochures, self-mailers, flyers and a dozen other
marketing materials gathering dust.
"We know what we need," says
the company's macho marketing mogul. "We've got the best product
at the right price. All we need to do is tell them about it."
That's right. Who needs research on prospective customers, how they
think, their buying patterns and their problems? Instead, companies
spend dollars on classy brochures, direct-mail and a Web site.
Everything looks great except the results.
7) Don't waste money on expensive
design and artwork. Twisted thinking is the cornerstone of
ineffective marketing. Businesses mount substantial advertising
campaigns, but refuse to allocate the dollars necessary to produce
quality ads. Somehow or other, they think it doesn't really matter
what's in the ad or what it looks like.
The same is true of logos. "Go see
Joe in drafting. He can do a great logo for us, and it won't cost us a
dime."
Quality artwork costs money and it's
worth every dime you pay. In fact, in the long run, you'll save
money because you'll get the result you want.
8) Select advertising based on the
space cost. "Look at those rates. We can't afford that kind
of advertising," they say. So, the ad goes in a publication that
isn't read by the target audience. But because the space is cheap, the
ad goes in. When nothing happens, advertising is declared a worthless
expense.
It isn't surprising that those who
select advertising on the basis of the cost of the space generally
have a low opinion of marketing. Remember what Thomas Jefferson said:
"Never buy what you don't need because it's cheap." And that
goes for ineffective advertising space.
9) Never spend more than $499 on a
Web site. The e-mail has an offer that sounds great. "FREE
Web site." Of course, the site is free. Why not? The idea is to
hook you on free so you'll sign up for the company to host your site.
You're buying the monthly fee.
The Web sites themselves are all the
same: "Just fill in the blanks" or "Send us a copy of
your brochure." There's no strategy, no plan, no objective. And
along with, no results.
10) Never run an ad more than once.
When you pick up Hot Business News, you discover it is coming
out in a few months with a special edition featuring your industry.
So, you cave in and take out an ad. Of course, it doesn't work. Why
should it? You would have been better off not spending the money. A
business-to-business ad must run between three and seven times to
achieve results. Good advertising has a cumulative effect. Running an
ad once is a waste.
11) Publish a newsletter once a year
or once every other year. The new marketing person decides it's
time for a company newsletter. Certainly, a newsletter can be one of
the most cost-efficient ways to stay in touch with both customers and
prospects. A lot of energy goes into getting the first edition in the
mail. In fact, half the company has come to a halt for over a month in
order to meet the deadline. The plan calls for a newsletter four times
a year. But it never happens. More money has been wasted.
12) Be sure your direct-mail looks
like junk mail. If it looks like junk, it is junk. Yet, companies
continually insist on proving this point. Junk mail gets its name from
what it is.
Here's how to break the junk mail
habit: When a pile of mail arrives on Monday morning, go through it
carefully. Think about what you keep and what you throw away
immediately. With this in mind, why do so many firms think they can
beat the odds and send out stuff destined to wind up in the
waste basket? Just another way to waste more money.
All this reveals a lack of respect for
your product, your company and your prospect. If you have a good
story, dignify it with a quality presentation.
13) Refuse to work with the press. The
best way to handle the press is to view editors and reporters as the
enemy. Their goal is to get you and to deliberately misquote you. This
is a popular business view of the press. As a result, company
officials avoid talking to reporters. Yet, when these same firms send
out news releases, they are filled with fluff, puff and hyperbole.
Editors are interested in expertise and
new ideas. Their readers thrive on cutting-edge issues. Communicating
your story through the print and electronic media creates a level of
credibility that cannot be attained any other way. By failing to
utilize the press, companies waste a valuable opportunity.
14) Never seek professional
marketing advice and counsel. For some reason, marketing is often
viewed as a do-it-yourself function. Who needs expensive marketing
experts? Who needs strategy? Who needs a coherent marketing plan? Who
needs quality copywriting for collateral materials? Who needs
top-notch creative thinking? Who needs expertise when it comes to a
Web presence?
Despite the pervasive "we can do
it ourselves" attitude, the evidence points out that most
companies are very poor at marketing. They try to cover it up by
hiring more salespeople or changing sales managers.
But there's another option. Get
yourself marketing counsel, someone who is objective and will tell the
truth.
The 14 ways to waste marketing dollars
are real-world experiences. They happen every day in too many
companies. marketing is too important to a company's success to be
misused. Because marketing can be a company's primary way of getting,
keeping, and pleasing customers, you must spend your money
productively.
John Graham is president of Graham
Communications, a marketing and sales consulting firm in Quincy, Mass.
Reach him at 617-328-0069 or via e-mail at j_graham@grahamcomm.com.
Visit his Web site at www.grahamcomm.com.
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