Economics of Advertising and Marketing

A while back we start talking about general guidelines for budgeting for advertising and marketing. In this particular post we would like to address some very cost effective internal marketing efforts that can reduce the cost of marketing.

In terms of internal resources, many small and mid size businesses utterly fail to maximize untapped internal human capital that can have a great deal of impact on external marketing. Many times the mere idea to integrate frontline workers into overall marketing efforts has not even been thought of, nor has it been given its due evaluation.

Though the above statement may appear to simplistic and centralistic, it is no secret that most marketing executives fail to see the value in the external expertise that can be utilized online as well as offline to achieve a greater brand recognition as well as cost reduction.

The simplest approach to have a true comprehensive, self sustaining and low cost marketing can start by allowing those that have daily interaction with end users and customers to highlight feedback. Nevertheless, the mere collection of such feedback may have no significant impact without accompanying analysis and utilization. This is the place where virtually all small and mid size business go wrong.  Such analysis cannot and should not be conducted by management. It should be done by those that have the real interaction with end user. After that initial analysis, the management and experts should take over and conduct the scientific analysis and implementation of strategic solutions.

The secret is in initial analysis because of the possibility that decision makers and marketing experts may overlook minor details of customer feedback that may or may not be of significance. But once the frontline employees have a unanimous agreement, one can assume that most relevant and vital information has been handed over.

It is unrealistic to expect this concept to work for a large firm. It is equally impossible to cover all the necessary steps that need to be taken in order to make such efforts work. However, as a general concept, small and mid size businesses should never neglect the power of feedback from their front line employees. Such efforts, if implemented properly can have significant impact on the company bottom line by reducing the cost of marketing, reduce the cost in research and development, decrease advertising budget, increase ROI on marketing and advertising budget as well as create an organizational culture that integrates its most valuable asset into its strategic operational vision.

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