Marketing Campaigns – The Prices
A well conceived marketing campaign always pays off. It does, however, require a considerable investment. This is especially true if you hire a marketing company to develop and implement the campaign. Without an aggressive marketing, on the other hand, it is virtually impossible to increase the sales and raise the business to a higher level. Just about all studies of consumer behaviour show that most people choose a product they have seen on the television, billboards, banner adds or elsewhere over a product that is made by a company they have never heard of before.
How Much Do Marketing Campaigns Cost
Marketing campaigns can be a severe financial burden, especially for small and medium-sized businesses. The prices range from a few thousand to a few hundred thousands pounds, depending on the marketing tools used and on the hired marketing company. But there is good news. Thanks to modern IT technologies and especially the Internet, small and medium-sized firms can now reach thousands of potential buyers at a fraction of the cost of the traditional marketing strategies.
Cheap Marketing Campaigns Can Do More Harm than Good
The times are tough and most firms are forced to cut the expenses wherever possible including marketing campaigns. It is possible to carry out a great campaign at a relatively low cost but it is often a better idea to postpone the campaign for better times rather than to hire a cheap marketing company. Why? Because they often use techniques that do more harm than good. Let’s take online marketing for example. If done correctly, it can make a big difference when it comes to both the sales and brand awareness because it reaches hundreds of thousands or even millions of potential buyers from all over the globe in a matter of seconds. But if it is not well conceived, it may send the wrong message to virtually the entire world.
Marketing Expense to Sales Ratio
When determining the budget for marketing campaign, it is recommended to consider the marketing expense to sales ratio. Obviously, the main purpose of marketing campaign is to increase the sales. In order to make profit, however, the sales must exceed the cost of the campaign. But for start-up firms, the marketing expense to sales ratio will be a lot less favourable than for well established companies. During the first year revenue, marketing expenses may even exceed the sales.