Important reasons why you should invest in marketing.
Businesses spend the biggest portion of their budget on marketing. Large companies go as far as to spend over 50% of their total revenue on just marketing. That’s because they know they can’t survive without it. If you don’t invest in marketing, you won’t get much sales, without which no business can last.
We can support a business with our finances only at the beginning. The production and operations are not cheap and you can’t keep wasting money on them without any sales. Even as a small business, you must invest in marketing. If the issue is about money, you can easily get online loans to support your business. Here are more important reasons why you shouldn’t try to ignore this investment in marketing.
People must know your brand and the product or service you offer if you want to become your customer. They won’t know it if you won’t tell them. To tell them, you must reach out to them and present the right message. While sending the right message is one important thing, first you have to reach them, which is not possible without marketing.
There are many marketing channels like billboards, television advertisements, pamphlets, giveaway offers, and online ads that allow you to attract your target audience. Many businesses give away their product to retailers free of cost so they can sell them.
Once your prospects get to know you and what you offer, they will be more willing to give you their money. Remember, it’s a risk for them to spend on something they don’t know. By giving them the first try for free, you have introduced yourself – and that’s just one of the marketing tactics.
Sustains Brand Image
We already know names like Coca-Cola, Apple, and McDonald, and yet they spend the most on marketing to keep their place. You have to build an image of your brand in the eyes of your customers.
Remember, the price of the product or service you offer is decided based on production cost or working hours. It’s the price that your audience is willing to pay because they have a mindset about what you offer.
You can buy a mobile phone for one-fifth of the price with the same specifications as the iPhone, yet most people pay the high price to Apple. That’s the value of building and sustaining brand image. For your information, Apple has a marketing budget of $1.8 billion.
Opportunity to Engage with Customers
Marketing is not just about giving information about your business. It’s also about understanding the target audience. You get to engage with customers and learn about their requirements and complaints. If you don’t change according to the market and audience, you won’t be able to retain your customer base.
This is the reason why every business keeps engaging with its customers for feedback and collect data to see how long they can go on like this and when and how they need to pivot.
Digital Marketing is a Plus
You might be thinking about how you can compete with a budget of $1.8 billion. You are not a trillion-dollar company, and you don’t need that kind of money. Not only is your audience smaller, but you also don’t have to spend that much unless you are scaling on an international scale.
Digital marketing has leveled the ground for everyone. You can start your marketing for as little as $5 and keep increasing it as you grow. You will reach the same people with your message as any other big company. It has given all SMEs a chance to compete in the same line as monopolies and actually get ahead of them by working smart.