Every business owner has to invest in their company. They use capital to purchase more inventories, buy company truck, hire more help, or any other way you would improve your company’s growth.Typically, before they spend their money on any of these items, they would research first, then make a reasonable projection of what return they would get on their investment (ROI). Most managers don’t have as much difficulty in realistically assessing these.
Advertising is also an investment. However, when it comes to projecting the return, many new and inexperienced advertisers often set unrealistic expectations of what their advertising should return. They will commonly overestimate the income it will produce, bet the farm on it, and lose the farm.
Here are two rules that will help you from falling into that trap:
1. Do everything you can to set your business up to survive without relying on advertising. Give great service, make your store shine, give good value for your products or services. Let these carry you business as much as possible.
2. Remember that advertising is a long-term investment. View it more like a savings bond than a lottery ticket.
What Can Advertising Really Do?
Advertising Can:
· make prospects aware that you exist.
· inform and educate.
· create interest and desire.
· compel people to action.
· remind people about your products and services.
· brand you or create a unique position in prospects minds.
The degree of effectiveness for any advertising is predicated on several things. For example:
· Market demand for the product or service
· Your competition’s position and marketing/advertising programs
· Your understanding of your target demo
· Selection of the right media to reach the right target audience
· The noticeably, credibility, and compelling quality of the message
· The relevance of the offer
· The frequency of the message that is required to create a lasting and favorable impression on the audience
In this market, business owners must understand their limitations and expectations -- and be prepared to hand over the controls to folks like us, the marketing team at Red Crow. You want to make money, and we want to make sure your brand is in the eyes of the public. It's a win-win.
