It’s so easy to waste money on marketing projects especially if you did not study them or analyze them very well. But with all those money wasting projects, here are some that standout. Are you guilty of wasting money on any one of them?
Why do companies join trade shows? First reason is of course, to generate sales leads. Other reasons might be for brand awareness and to close existing transactions. Do you just keep joining trade shows with these in mind? Have you ever thought of putting the trade show attendees into the equation? How many are actual clients, how many are vendors and how many are competitors? You might be wasting your time and money pitching to another vendor or an unemployed person.
Be wary of organizers who mislead exhibitors by giving false attendee statistics. This is their way to lure you into joining the trade show. Before joining anything, plan your investment and make sure that you will get a reasonable ROI. If the numbers tell you it’s going to blow in your face, then just don’t join. Make sure the trade shows have a good foot flow and are relevant to your target audience. An up and coming list can be found here.
Advertisements for Brand Awareness
How much are you spending on your brand awareness campaigns? How much sales do you get in return? Remember that building brand awareness takes some time. If your product is good and your service is excellent, these factors will create your brand and push it to the top. Don’t hurry and invest a sizeable chunk of your money to advertisements or marketing collaterals without calculating how much sales you will get from them. This is one of the reasons why a lot of small business owners go out of business and lose a lot of money. They focus so much on building their brand and not on sales and product improvement and R&D.
Marketing should never be ignored. You need to invest some time and money in this department as well. Just make sure that all your campaigns give you a good ROI.
Focus Groups, Surveys and other market researches
If done correctly, a market research can give you very useful data about your consumers and their buying behavior. If done without a specific goal in mind, you will end up with invalid data. For instance, everyone is saying to test your product on a focus group first. How big is this group? 10, 20 people maybe? All you will get at the end of the session are the opinions of 20 people. 20 is not necessarily your target number of customers. Some independent research firms also adjust the results of a market research so that companies will be happy about their study. Rather than spending a lot of money on these studies, you can just do some research yourself online and get data and statistics that are publicly available. These usually cover a wide range of audience and sometimes even cover several countries.
Marketing is great for any business. Just don’t overdo it and focus more on improving your product and service. Word of mouth will follow and that is one of the most powerful marketing tools ever. The best thing is, it’s free.