Originally Posted by Owl
If you have a marketing budget of say £5,000 and you spend it on a series of ads and they produce £7,500, would you stop because the budget got used up?
Probably, because if I had to spend £5,000 on marketing to get £7,500 worth of business, we'd be bankrupt once I'd paid all the other expenses!
But I know what you are trying to say. However, you have to think what a 'budget' is. It is really only a plan - as is a 'target'. Neither are absolute figures, so if part of your marketing budget was used on a particular marketing campaign which produced good results, your sales target would be exceeded - therefore you would have additional money available to funnel towards your marketing budget and could continue to spend on the particular marketing campaign which was paying off.
The problems really arise when you have used your marketing budget on campaigns which do not
work. In this case, what do you do once you've used you budget? Give up marketing for the rest of the financial year? Continue throwing money into the budget by 'robbing Peter to pay Paul' in the hope that the next campaign will be the one that will produce good leads?
"Cost-effective marketing" is a phrase which is banded about quite liberally, but until you have tried something, you do not know whether it will work - everyone selling marketing services of any kind will claim that their service is just what you need, but I have yet to find any that will give you a guarantee, or offer you your money back if it doesn't pay off!!!!!