Finance Articles

The Fallacy Of Return On Investment In Marketing

Return on investment in marketing cannot be measured accurately.

Do you buy a Coke because it is on the billboard; because you saw the ad on television; because you saw the Coke truck; or because the Coke machine is convenient? Was it the ad this month or last? Or was it the ad you saw when you were 10? Or is it the fond memories you have of drinking Coke? Or the nice logo?

The answer is ? you probably don?t know exactly why you buy the Coke at the particular time that you do. It is a combination of all these factors that make up marketing that cause the consumer to take action.

Marketing is the battle for perception. Good marketing can create the perception needed to cause purchasers to buy.

The only type of product that can have an instant return on investment in marketing is something that is truly commoditized. If you are selling water and there is no perception that your water is any different than anyone else?s water, then if you do a marketing campaign or a promotion or a price reduction, you can shift share from a competitor. Most manufacturers should actually be spending their marketing dollars differentiating their product. It is much easier to sell ?Clean Glacier? water over ?bottled city? water if Clean Glacier can sell the refreshment and health benefits of their brand.

The only companies that should want to commoditize their markets are ones that are truly the lowest cost to produce (not to be confused with lowest price). To sell at the lowest price without the lowest cost is a recipe for failure.

There is a great book called Tipping Point, by Malcolm Gladwell, that talks about mavens (product experts) and connectors (natural networkers who spread the word). The thesis in the book is that getting products known by enough mavens and connectors can cause a product to ?tip? and become pervasive and successful.

I sit on the board of Research in Motion (RIM). When RIM was first introducing their products, they spent most of their marketing budget on giving samples of their product to people they identified as mavens or connectors. Most stockbrokers qualified. Because the product worked well, they evangelized it and eventually that lead to more adoption and ultimate success.

A single influencer can persuade hundreds of customers to buy over a long period of time.

The purpose of marketing, then, can be to influence the influencers. Design any program with that in mind.

Marketing is also best done with multiple media. It is best to not only send a flyer but to telemarket, email, fax, press release, demonstrate products in trade show, advertise etc. The different messages reinforce each other and different people get different things from different media.

All marketing tends to be more effective if it is repeated often. It has been said that the first time a person sees something about the company, they don?t see it; the second time, they are vaguely aware of it; the third time they look at it; the fourth time, they read it; the fifth time, they absorb; and the sixth time, they buy it. All marketing effects occur over time.

Because of the difficulty in measuring ROI, some companies will just stop marketing. This is great news for those that keep marketing. In time share will shift to those that continue to invest.

I am a time management person. I pride myself in using my time well. I even authored an eBook and audio CD on the topic. People ask me why I Blog and do I get a return on the time I spend blogging. I do know it has given me a higher profile. It has added to the traditional press I get (I have been written about in the Globe and Mail, Forbes Magazine and many computer trade journals like CRN). Can I measure the ROI? No ? but no long term company can measure ROI accurately.

Jim Estill is the CEO of SYNNEX Canada. You can learn more about his views on marketing and corporate management at http://www.jimestill.com. You can also find information on his new ebook, Time Leadership.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Dr. Martin Weiss Discusses Housing Bust and Mortgage Meltdown in Latest Issue of Money and Markets
Martin Weiss, Ph.D. examines the real estate bust in the U.S. and discusses the major reasons behind it. In this issue of Money and Markets, Dr. Weiss takes a closer look at the relationship between the housing market and rising foreign currencies.

Mortgage Leads, Taking Applications Not Rejections
For those of you that are mortgage brokers or loan officers you know that cold calling is an essential part of the sales game.

International Investment Banking
An International Investment bank is a bank that does not accept deposits but rather provides services to investors and to those who offer securities to investors on a worldwide scale. International investments can provide growth and even poverty reduction which is why the OECD Global Forums on International Investment (GFII) support the services of international investment banks and work to enhance the benefits of investment in developing countries in particular. International investment banks offer similar services to the average local investment bank except that is expanded into the international market. This can be beneficial for investors who wish to expand their portfolios and create a well balanced set of investments. The benefits...

Noble Investment Group Installs Aptech's Targetvue Budgeting, Forecasting and Execuvue Business Intelligence
Noble automates business analysis, budget planning to support growth of rapidly expanding portfolio

Wyoming Mortgage Rate
Wyoming is becoming one of the most attractive states in the West. Located in the breath-taking Great Plains, Wyoming is the least populated of all the States. There is a lot of room for growth. The current population is estimated to be around 509,294. The population has increased by over 3% in the last two years. Wyoming is growing and the some the best land is being sold. Wyoming?s big attraction is Yellow Stone National Park. Yellow Stone was the world's first national park in 1872 it?s located in the far northwestern portion of the state. The second highest peak, the Grand Teton is also located in Wyoming. The State is predominantly republican around 69% of voters. The abundance of land and the good Wyoming mortgage rate is fuelling a f...

Back by Popular Demand: Webinar on Generating Mortgage Leads Using Pay Per Call Advertising on Jan. 24
Integrated Direct LLC and Integrated Interactive LLC, independent direct marketing and interactive marketing agencies, announced today that they will host their first FREE webinar of 2007 on pay per call marketing for mortgage companies on January 24th at 12pm EST.

Mortgage Refinance For People With Bad Credit ? How Much Equity Do You Need To Refinance?
When it comes to refinancing your mortgage, you don?t need to worry about your equity level unless you are planning to apply for a prime loan. With bad credit, you will work with a subprime lender, who isn?t concerned about equity levels. That means you don?t have to carry private mortgage insurance if you don?t have 20% equity built up.

Focus on Long-Term Mortgage Costs When Looking to Save Money, GetSmart.com Shares Advice
When home buyers consider their mortgage, typically they only think about the monthly payment they'll be making. After all, it's easier to focus on and budget for what's coming out of your bank account each month as opposed to what is coming from your savings over the next 30 years.

Mortgage Insurance Protects Your Home
Mortgage insurance can be taken out for a premium each month which you can find cheaply if you look with specialist providers This is one of the best ways to protect your monthly mortgage repayment each month and so protect the roof over your head against repossession

Choosing an Artist For An Art Investment
Shakespeare said in one of his plays, "The plays the thing". For him, this was certainly true. For an art investor, the artist is the 'thing' they should focus on first and most intently. Choosing an artist and their work to invest in can require a lot of time and delving into the history of the artist. The price of the artwork can be determined by the background information of the artist.

Sunrooms: Worth The Investment Price
Sunroom prices vary from $10,000 to $70,000, depending on the style, the location, and the quality of the materials used. You'll have to decide for yourself how much you want to spend.

Exclusive Property Investment Forum Launches at TotallyProperty.com
MoveForward.com, the UK based Internet ventures group has today officially launched www.TotallyProperty.com -- an exclusive overseas property forum which has been designed for the needs of international property investors.

ACF Car Finance Report UK Car Sales Up Despite Credit Crunch
UK car sales rose in September, showing that despite the credit crunch, the car industry is still healthy, according to ACF Car Finance.

How to Compare Mortgage Quotes between Online Companies and Local Brokers.
If you are looking for a new mortgage where do you start to find the right deal for you? It is obviously important that you find the right mortgage at the right price and which suits your circumstances. Once upon a time people tended to just compare interest rates of a handful of lending companies. Nowadays there are numerous types of loan and loan packages. You can obtain your loan from numerous sources including lenders, bankers, finance companies, brokers and credit companies. You can choose to look for your loan from numerous on-line sites or deal with people direct. Working your way through the complex array of options can be mind-boggling. So, how do you know which one to choose?