The Point of Marketing

Ask yourself this question, what is the point of marketing?'

You probably thought of one or a combination of the following:
  • • To get new business
  • •To get your name out there
  • •To get more customers and clients
  • •To build your brand
If you're thinking along these lines you're not far off, but you're still not quite there.
The point of marketing is to make a proft.

Three Words
Remeber these three words when reviewing or planning your own marketing, Return on Investment (ROI). ROI is the difference between the profit you make from it and the amount it's costing your business.
Lets use Google Adwords as an example.
It might cost £2 per click for an advert using your keyword(s). Many business owners will consider the cost far to expensive but these are the individuals who are looking at it the wrong way.
To continue with the example let's say you're selling a product for £200 and making a profit of £100 on average with each sale. If one in every 20 people who have clicked on your advert then it works out like this:

Profits from sale = £100
Cost of clicks: 20 x £2 = £40
Net Profit: £100 - £40 = £60

As simplistic as the example may seem the process is clear to see and so is the point... you're making a profit. Any marketing should always make more money than it costs.
Try to look at it this way, it's an investment, not a cost. Those who see it as a cost are the business owners for whom marketing isn't working.

Make this slight change in the way you view your own marketing process and you can judge whether or not it's working for your business.

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