14 Ways of Wasting Your Marketing Budget

by Tom "Bald Dog" Varjan, Organisational Provocateur

1. Doing what the competition does. Many companies think competitors have already figured out what is right for marketing, so the herd of imitators are following them.

2. Marketing only after sales have gone down. Marketing must be an ongoing process, and a marketing budget is one of the best investments a company can make. This is the same as paying your mortgage after you have been evicted from your home.

Peter Drucker wrote this in his 1954 book The Practice of Management: "Marketing is the distinguishing unique function of the business. A business is set apart from all other human organisations by its marketing activities. Any organisation that fulfills its purpose through marketing is a business, and any organisation where marketing is absent or incidental is not a business, and shouldn't be run as such."

3. Keeping away from the press and the media. Many businesspeople perceive them as intruders, but it is important to work with them. An occasional article on the company can make a huge difference. The press in general is helpful to businesses, but you cannot have 100% control of what gets written.

4. Ignoring appealing design and copy. Marketing must combine good message and eye-pleasing appearance. Neither good graphics artists nor good copywriters are cheap. Do not make a mistake of designing your own logo. Do not attempt to be someone else you are not. Let a pro to help you.

Initially you pay more, but will cry only once. According to the Prosavvy Group, businesses waste 38% of their revenues on doing something that is not their core activity. Stick to your knitting, and use casual help with non-core activities. This is the perception-creating process. Give it your absolute best shot, for otherwise it can haunt your for the rest of your life.

5. Doing printing on in-house printers. Most laser printers used in offices can do printing, but when it comes to printing promotional materials - creating perceptions - every business needs proper printing. Just because something can be done, it may not be the best way of doing it. If you need surgery, would you go to a medical student to perform it?

6. Haphazardly buying ad space in papers or randomly sending out letters to the marketplace. All these activities must be parts of the company’s overall marketing plan.

7. Publishing one issue of a newsletter on a “Let’s see” basis. “Let’s see” can come after checking interest over an extended period of time. A newsletter must be at least quarterly, but monthly publication is even better. A lot better. Besides if your level of belief in your own business is just a “let’s see”, maybe you had better pack up the business.

8. Expecting great results on a near-zero budget. Well, it takes money to make money. So what most companies do is hire a few more sales staff, instead of investing that same money into a better marketing programme. Companies must factor in that marketing is not instant gratification, and the sooner they start investing in marketing, the sooner they start reaping the benefits. Noble goals without money are not enough. You must cough up the dough.

9. To save some money on a designated marketing person, the receptionist, sales staff or secretary does marketing. Yes, and the same company can appoint the receptionist’s pet parrot to be the CEO. Why not? It is the same dumb hare-brained idea. Unfortunately many companies do it.

10. Advertising in the cheapest papers. Well, and the cheapest buyers will read the ad, categorising your company as the provider of cheap solutions. What about buyers who need good solutions? They are likely to read different papers, thus hire other companies.

11. Ignoring research and working on the president’s whim. You must not overdo research, but make sure you operate using the right information.

12. Sending out brochures as direct mail pieces. Now, that is junk mail big time. Direct mail must be personalised, and a brochure is just like a letter delivered to your home, addressed to “The Occupier”. A well-crafted letter - either short or long copy - that offers valuable information can be much more successful. I routinely pull 10% plus response rate on one-page letters, without wasting money on expensive brochures.

13. Running an ad only once. That is a huge waste of effort and money. Any ad should run at least 3-7 times to make sure it creates the right impression and all the right people read and understand it, so they can make up their minds.

14. Assuming the company’s own people know everything just because they get well paid. The outsider’s view and broad experience can be a huge asset and can make a huge difference on the overall marketing investment. People who think they know it all are in the vice grips of their egos, and can be very harmful to their companies. There are people who do marketing day in day out. The better the person you hire, the sooner your marketing investment starts paying off. You get what you pay for. A good marketer can bring you a new dimension and a new perspective, and that will make a huge difference to your bottom line.

Copyright 1997-2008 Tom "Bald Dog" Varjan. All rights reserved. You are free to use this article in whole or in part. One favour though: Can I ask you to you include complete attribution, including a live website link. Also, can you please let me know where you plan to publish the article.

The attribution: This article was written by Organisational Provocateur, Tom "Bald Dog" Varjan of Dynamic Innovations Squad, a firm specialising in helping consulting firms to sell their expertise at the highest margins. Get Tom's free Practice Management Black Paper when you sign up for his monthly newsletter, Commando Consulting: Lessons And Practices From The Ultimate Professional Service Firm, The Military. Visit Tom's website at http://www.di-squad.com.

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