ODEA’s been in the marketing business for a while. And while we probably haven’t heard them all, we have heard quite a few marketing misconceptions that trigger responses ranging from scratching our heads to cringing in disbelief. “A good product doesn’t require marketing.” Oh boy. “Marketing is a waste of money.” Make it stop!
We felt like it was time to set the record straight on a few of the most popular misconceptions we hear in this business.
Marketing Should Only Be Geared Towards New Business
Of course, you want your marketing efforts to attract new customers. But don’t forget about your existing customers. The new and improved sales funnel reminds us that the buyer’s journey doesn’t stop after a purchase is made, so nurturing relationships with your existing customers is a must. The goal is for those faithful customers to stay loyal and always be reminded of why they love your brand/product/service so much!
According to Invesp, existing customers are 50% more likely to try new products you offer and they spend 31% more compared to new customers. And remember, just because a consumer is committed to your brand right now, it doesn’t guarantee they’ll stay that way. You must work to keep them on Team Insert-Your-Business-Name. When you begin charting out your marketing efforts, make sure to show some love to those that love you!
Good Marketing = Fast Results
If only this were true! You will hear the phrase “Marketing is a marathon, not a sprint” quoted in the ODEA office at least six times a day. Our overuse of the phrase doesn’t make it any less true. Like all good things in life, marketing takes time. Research tells us that it will take anywhere between three months to a full year to see results from most types of digital marketing. While that does depend on your business and the product or service you’re marketing, it’s unlikely you’ll see instantaneous results. So, buckle in because the moment you begin to feel tired of hearing that brilliant campaign line your team carefully crafted is the moment that others begin to take notice. Patience is a virtue, my friend.
One Size Doesn’t Fit All
Every marketing budget should be based on the same criteria, right? Or at least built to look much like your competition? Not so fast! Your business isn’t the same as the one next door or exactly like your closest competitor, so your marketing budget shouldn’t be either. There are so many factors that go into determining a budget: the industry you’re in, the lifecycle stage of your business, the products and services you offer, if you’re launching brand new products or services, and the list goes on. We know the burning question that leads to is, “So what should my budget look like?” We’ll answer that with another phrase heard constantly in our offices, “It depends.” You can find lots of different studies that say marketing budgets as a percentage of revenue can range from 3% to over 10%. Gartner’s CMO survey has shown marketing spend holding steady the last two years at 11.2% of revenue. But marketing budgets aren’t one-size-fits-all. If you’re looking for help with determining your spend for 2020, we’ve got an information-packed podcast and infographic about ODEA’s 2018 marketing budget to help you get started.
Now that we’ve set the record straight on some of our hot-button misconceptions, what marketing misconceptions have you heard? Send them our way and we’ll dispel them in this blog. And if after reading this you’re feeling inspired to start on your company’s marketing journey, we’re always happy to chat! Drop us a line at [email protected]. For more marketing insights, subscribe to our newsletter HERE.