| -- End Ad Box ---> | | | | Time squandered will never come back, we don't have |
| Do you gamble with your marketing dollar? Do you | | | | the time to do it right but always find the time to do it |
| invest it wisely and expect a return? | | | | again, etc., etc. Time is both infinite and in short-supply |
| These simple questions still throw people off and many | | | | and in the heat of action moves at the speed of light |
| feel the need to justify and explain why they can't. The | | | | but when business is not coming in, it moves at the |
| usual excuses are "you don't understand what we do," | | | | speed of a snail. We could go on. You understand the |
| "it can't be measured," it's all about long-term branding," | | | | metaphors. |
| etc., such answer could easily constitute a book of | | | | Time is your second big risk factor. You need to use it |
| excuses in itself. | | | | in the best you can as it moves without fail towards a |
| The situation is simple, you must expect positive | | | | result (one that you might not even like.) Don't get me |
| returns from your marketing, it's not a gamble. Hope | | | | wrong, it's not about controlling time, it's about controlling |
| has nothing to do with it. | | | | your use of it. |
| Marketing is a risk | | | | There are mainly two ways to control it better: reach |
| Every marketing strategy or tactic you implement has | | | | and frequency (one just doesn't go without the other.) |
| the potential to bring in returns or help you close shop. | | | | Reach is simple, do you have access to the people |
| Either, way it's your choice. | | | | that matter in your sales cycle? |
| Risk, in a nutshell, can be explained as follows: "You | | | | If the answer is no, then you need to redesign your |
| size up the odds, weigh the costs and benefits, and | | | | database strategy as no great database, no great |
| attempt to avoid negative outcomes" (Ben Warwick, | | | | business'. It is the life blood of your marketing |
| Handbook of Risks.) This simple definition of risk should | | | | operations and now includes analytics where you |
| become the modus operandi for marketers who are | | | | develop more and more relevant segments based on |
| focused on helping their business grow. | | | | statistical behaviour. This level of segmentation allows |
| The evolution of marketing | | | | you to develop the right campaigns which, coupled with |
| Marketing is a fairly old (but not often respectable) | | | | sending them at the right time, can turn your marketing |
| discipline having evolved through many stages from | | | | into a powerful business force. |
| the mum-&-pop shops of old to the gigantic marketing | | | | So implementing a campaign at the right time is the |
| budget many FMCG companies exhibit today. And in | | | | first aspect of leveraging time to the fullest. The |
| no time in its history as it been more important to | | | | second is sending it frequently enough so that each |
| define its true value than today. It's interesting that in | | | | campaign has an impact (but not too often so that it |
| the days of risk analysis, marketing has largely | | | | doesn't become a nuisance.) That balance is crucial in |
| remained unscathed, untouched. The past few years | | | | an opt-in world where customers have more |
| have seen a revival of Marketing ROI but not an | | | | opportunities to complain, or walk-away, than ever |
| advent, as it existed before. Measuring marketing risk | | | | before. |
| however is fairly new and is still evolving as a discipline. | | | | Money |
| There are many ways to calculate risk and the | | | | Where would business without money? |
| formulas are often as complex as the person behind | | | | It's best not to answer that question, the rhetoric would |
| them wants them to be. For the purpose of tightening | | | | take too long. |
| marketing, we can look at three basic economic | | | | If you are like most businesses your marketing budget |
| principles to ensure that our investment in marketing is | | | | (and others) will be finite. So what can you do to |
| near risk-free as we possibly can. These elements are | | | | maximize (or optimise) it? Answer: Treat your budget |
| people, time and money. | | | | just like any other financial investment and conduct a |
| People | | | | risk analysis. |
| What could you do without people? Where could you | | | | A typical risk analysis will comprise both a qualitative |
| go? | | | | and quantitative aspect forcing you to look at each |
| The problem today is extremely acute: We can find | | | | element and ask what would happened if we didn't |
| good marcom people but not business-focused, true | | | | invest it? What are the internal and external factors |
| marketers. | | | | influencing this investment? What are the threats? Etc. |
| In the past ten years, the quality of marketing people | | | | One of the most important question is what would |
| has increased tremendously and it is now fairly easy | | | | happen if we invested this amount in another project? |
| to find good public relations managers, direct | | | | The last question is crucial as we all take for granted |
| marketers, event managers and even strategists. It is | | | | that investing in marketing is necessary. It's not. If you |
| however difficult to find people with enough business | | | | do it badly, you're better-off investing that money into a |
| acumen to turn their skills into true business weapons | | | | more secure project where the returns outweigh the |
| for your arsenal. There are two missing elements to | | | | costs. This is a crucial issue and no marketer should |
| this equation: | | | | expect to have his or her budget simply because the |
| - Few of them have ever sold anything directly | | | | department exist. |
| - Most of them have never run a business | | | | Fundamentally, marketing is a necessity in today's |
| The good news if you are a marketer is that both skills | | | | environment but not matter how big the investment is, |
| are easier to get than ever before. It is now easy to | | | | it should be subject to scrutiny just like any other |
| set-up a small business and if you are early in your | | | | business investment. The funny thing is, it is not and |
| career, you should consider it, it will make you a better, | | | | often marketers expect their budget to grow from |
| more rounded business person and your contribution to | | | | year to year without really questioning its relationship to |
| any future business will increase proportionally. As for | | | | other parts of the business. |
| selling, it would be useful for all marketers to either | | | | There you have it. Marketing is a risk and you can't go |
| start in sales or do a few years stint there before | | | | on happily thinking that whatever you're doing is |
| moving to marketing. Once you understand the hunger | | | | working for the best of the organisation. By the time |
| and fear that comes with missing your quarter, as well | | | | you do so, the market will have shifted from under |
| as the elation when you meet it, the better you'll be at | | | | your feet. |
| setting-up strategies and tactics that matters to the | | | | One last point, when doing a risk analysis remember |
| business, not to the award committees. | | | | that marketing is often an opinion. An opinion tainted by |
| On that note, if you are looking for marketing people | | | | the marketer's worldview, or his boss's, an opinion |
| today, add these two points to your recruitment list, it | | | | based on campaigns that worked and are expected |
| will increase your chances to succeed. | | | | to work again. Let's face it, marketing evolves even |
| Time | | | | though some of its fundamental precepts are eternal. |
| If there is one element that we're all in short supply of, | | | | So the risk here is not just people, time and money, but |
| it's time. The funny thing is that we are also all given | | | | to be closed minded, not be open to testing, not trying |
| the same amount every day. | | | | new things, that is the biggest risk of all. |