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0 Comments | Jun 28, 2010

Is Your Marketing And Advertising An Expense Or An Investment?

Oklahoma city copywritingRecently I was comparing two clients. Both are multiple outlet retailers, both are in similar markets, and both had initially pursued comparable marketing plans. The difference was, one (we’ll call Company A) was thriving and one (Company B) was struggling and will likely have to make drastic changes, like closing stores, cutting personnel and even bankruptcy, in the near future.

As I considered their situations and wondered what might have been done differently, I realized the most significant difference was their outlooks. Company A approached advertising as an investment in their company, knowing that it can ultimately provide a return. Company B, however, always looked at advertising and marketing as an expense, or a necessary evil.

While they both started out in similar fashion, Company A set up a solid marketing plan and stuck to it in good times and bad, knowing the money they spent each month would likely be recouped through increased sales and visibility. Company B also set up a marketing plan and stuck to it…for awhile. However, when slower times came along, Company B started cutting expenses and their advertising budget was the first to go under the knife. The problem is, now that their business is struggling even further, Company B doesn’t have the money to put towards the “expense” of advertising, and they’ll likely be unable to generate new business to increase their sales.

Now, consider your advertising and marketing outlook. Is your advertising budget money you’re putting back into your business to help it grow even more? Or, do you see your advertising as a cost of doing business that could be better spent elsewhere? While there’s no set formula for how one feels about advertising, if you want to change your business fortunes, you might have to change your outlook.