Archive for July, 2008

For most companies, being in the red is not a good place. It means losing money. Losing sales. Losing customers. In the marketing world, it can also be translated into spending money on initiatives with no return on investment. This is what I call “the Marketing Red Zone.”

Clearly, no one wants to be here. But I’m baffled by how many companies are pouring money into initiatives that are most likely not adding to their bottom line. How do I know this? How do I know that companies are not reaping the benefits of their marketing dollars? How do I know there are other initiatives they could be spending money on which would likely result in a much greater return on their investment?

Well, yes, I am a marketing person. I have spent a long time understanding client businesses and then helping them put together a mix of programs that will help them increase sales. That’s what I do for a living, so experience is definitely one way to validate my opinion.

But, I’m also a customer. I am the market research. I am the person you are targeting. And I get frustrated when you miss the mark. When you tell me something that doesn’t make me want to pick up the phone and place an order. When you miss an opportunity to remind me of your sale. When you misinterpret my needs. When you forget to tell me about why you’re better than the next guy.

To me, marketing is not rocket science – it’s actually more like common sense and every day when I speak to clients about their campaigns and their brands and their spending, their reaction is usually a – “Yeah, you are so right” or a – “why didn’t we think of that?” kind of response.

So if it’s so obvious, why are so many companies in the Red?