Some common misconceptions about marketing.
With these marketing myths, remember, a good marketing campaign done right has the potential to increase revenue double fold, while marketing takes time for results to show, it is a long-term investment you should not miss out on.
Is marketing really needed? It’s too much money that could be put to other uses. Many companies question the need for marketing. Often it is money put into a department that may or may not actually produce results. What then, are the myths to look out when your employee proposes cutting the marketing budget.
Myth #1: Marketing is Only to Acquire New Customers
Marketing plans encompass so much more than acquiring new customers. It involves retaining customers and ensuring that your brand stays in their mind. It reinforces who you are as a brand and what you stand for. It increases awareness and reaches out to the target market in ways that are personalized and far more accurate than just placing an ad in the malls. A strong brand image of course dominates the scene. Take a look at the sports industry, among the top brands are Nike, Adidas, Under Armor, Lululemon Athletica, New Balance, Puma, Asics, Columbia Sportswear. Of these brands, in 2019 Nike had a total sales of $39.1 billion, Adidas at $25.6 billion and the remainder of the companies bringing in total sales of less than $10 billion. This leads one to question, is it really the quality of the product that makes a difference?
New Balance may have the most comfortable pair of running shoes yet people still choose Nike over New Balance because of brand image. Nike is perceived as a brand that consumers are able to associate with. The slogan “Just Do It” has served Nike well over the past two decades and continues to do so. People naturally perceive Nike as a brand that only the best use. In the case of Nike, marketing is not just to acquire new customers, its to increase customer retention by converting those that are already aware of the brand into loyal followers of Nike.
Myth #2: Digital Marketing is a Cost, Not a Revenue Generator
Let’s rethink this statement. Digital marketing, without a goal is a cost. On the other hand, a digital marketing campaign with specific goals has the potential to drive your brand. Paid ads online are pricey and if you do not have a plan, you are likely to waste your money trying to guess what works best for your company! Done right, a digital marketing campaign has the potential to target exactly the people you are looking for to buy your product.
Myth #3: The More We Target the More Customers We Will Attract
FALSE! Just as you can’t create a product for everyone, it is impossible to target everyone. If you fail to aim, you fail to hit the mark. To create a marketing plan you first need to identify your goals, whether it is to increase sales, or increase customer retention.
If your goal is to increase customer retention, who are they? What do they do? What are their needs and wants? Why would they choose another brand over yours? While they are all different, you will surely find similarities in different groups of customers. If your goal is to increase sales, how much do you want to increase it by? Why is your product better than the brand on the next shelf?
These questions will help you identify what exactly your marketing campaign should be focused on. Take for example Pepsi’s “Is Pepsi OK?” ad, a common question asked in stores. Their purpose was to show that Pepsi is not a second rate to Coca Cola. With celebrities endorsing the brand and the Super Bowl, Pepsi showed Coca Cola up, assuring viewers that Pepsi is not a second-rate brand to Coca Cola. The message stems from clear marketing goals set to convert soda drinkers to the Pepsi brand.
With these marketing myths, remember, a good marketing campaign done right has the potential to increase revenue double fold, while marketing takes time for results to show, it is a long-term investment you should not miss out on.