Marketing Strategy: Expense or Investment?

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Strategic thinking and action are two highly relevant issues in the development and expansion of a business. There are several approaches to strategic development and all are in one respect or another key to achieving the growth objectives of your company.

When we talk about the development of marketing strategies we see two prominent perspectives on the part of top management, those who see the strategy as an expense and those who see it as an investment. Which one are you?

Over the years I have had the opportunity to share with hundreds of company leaders, including Presidents, Managing Partners, Operations Managers, Human Resources, Marketing, leaders in different lines and regularly I have seen a direct proportion between business results and strategic decision making.

In our first work meeting we like to ask and understand what is the vision that the team has for its business. More times than less, I hear things like, "I want to be as well known as Coca-Cola", "have the influence that Disney World has", "that people see my logo and recognize it as they recognize a Toyota" and the least of Sometimes they tell me "I want to have a structure as standardized as McDonald's."

Now, what do these brands have in common? All of them dedicate time, professional resources, and financial resources to the development and execution of strategies in all areas of their business, and to achieve the brand recognition for which so many of us would like to be like them, they constantly invest in marketing and advertising strategies. .

How much are you investing?

How do you know if you are looking at your marketing strategy in the right way?

A very simple way to evaluate your performance and decision making regarding the marketing strategy is to look at the way of thinking of your work team.

A team that sees the development of marketing strategies as an investment, constantly makes decisions with short and medium term impact but understanding that the impact of these will take them where they want to be in the long term. This group also invests throughout the year with a focus on the needs of its business, industry and consumers, managing to carry its message and be present consistently. When we see strategic thinking and action as an investment, we are clear that our strategy will evolve over time and with market changes, and we make the strategy team an integral part of the company's decision-making. These companies, focused on high performance, also have an assigned budget for marketing and measure the results of their investments periodically.

On the other hand, a company that sees strategic development and marketing as an expense, may or may not have a budget to invest in developing its brand, but if it does not achieve results immediately, it tends to cut its budgets immediately, also destabilizing the possibilities of achieve the results in the future. This type of approach unleashes behaviors such as:

  • focus on results today without taking into account results tomorrow.
  • development of very short-term strategies with very aggressive and optimistic return expectations.
  • decision making not based on the client or the long-term relationship, if not focused on the business and the brand today.
  • disappointment and blur of the team in relation to the vision and mission of the company.

A company that invests in its marketing strategy is more likely to capitalize on its potential and to develop a lasting relationship with its consumers. In addition, with a good strategy you maximize your investment by achieving creative positions that will help you obtain more with less.

Building a brand takes time and effort, requires knowledge and research of your consumer and a constant investment in the development and execution of marketing, brand, communication and sales strategies.

Evaluate your paradigms and dare to invest in the strategic development of your company. As an old ad campaign used to say, "the more you participate, the more chances you have to win."

The moment is now!

By: Hebé Lugo, President of Strategic Minds
Twitter: @HebeLugo

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