Why Spend on Marketing

When determining the investment figure on marketing, first thing that comes to mind is - ROI or returns. How much revenue will I get from this spend? While it is true that returns constitute the basic premise of why a marketing budget is set, there are also a couple of things to consider:

• Awareness. Setting up a business is futile if nobody knows about it. Marketing should be part of an initial cash out requirement. People should know that you exist

• Market positioning. It is important for the company to set itself apart from its competitors. It follows then that proper messaging be established and disseminated. This requires marketing. Not only does the company have to be different/ unique from its competitors, it also has to prove superior.

• Lead generation. While the primary goal of marketing is to let the world know that your company exists, it is also imperative that marketing brings in prospects or potential clients. This will serve as the gauge for the marketing campaign’s success or failure.

• Customer retention. As much as gathering new customers is important, so is retaining satisfaction of current customer base. Once the company has accumulated a pool of clients, satisfaction has to be guaranteed. An intelligent marketing campaign should follow suit to emphasize the client’s value to the company, not only for future revenue generation or repeat business, not to mention positive word of mouth, but also reminding customers that it is to their favor that they continue to transact their business with the company.