Marketing investment can be a tricky and complex decision for CMOs and marketers alike. With the ever-changing landscape of the digital world and the constantly shifting consumer patterns, determining where, when, and how to invest in marketing can be both an art and a science.
Nevertheless, for every marketing strategy and tactic, it is essential to define success and how it will be measured. This will guarantee the investment's efficiency and effectiveness.
Utilizing a mix for optimal growth velocity is one way to determine and influence marketing expenditures. This involves increasing investments in growing market share via new and organic channels, product seeding, events and tradeshows, and earned media.
By doing this, companies can leverage multiple channels to reach their target audience and grow their market share.Another crucial aspect of marketing investment is brand building.
While performance marketing is critical to generating leads and conversion, performance and brand are not mutually exclusive. Companies should invest in long-term brand development in order to solidify brand awareness, influence perception, cultivate trust, and stimulate demand.
Brand building is especially important for companies that offer high-value, complex, or specialized products and services that require a high level of trust and credibility. Creativity also plays a vital role in marketing investment.
This approach can help companies identify what works and what doesn't, enabling them to fine-tune their marketing investment strategy for maximum effectiveness.
To determine marketing investment, companies must consider several factors, including their target audience, the current market landscape, and their business goals.
Companies should also leverage data and analytics to track the effectiveness of their marketing investments continually. This data can help companies identify trends and patterns in consumer behavior, measure ROI accurately, and make data-driven decisions about where to invest their marketing budget.
Determining and influencing marketing investment requires a mix of art and science, as well as a clear understanding of the company's target audience, business goals, and the current market landscape.
Companies should invest in both performance marketing and brand building, leverage multiple channels to grow their market share, and take small principled risks to learn quickly. By doing this, companies can optimize their marketing investment strategy for maximum growth velocity and investment efficiency.