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Avoiding the 7 common pitfalls of Marketing Alchemy

You might be surprised, but I regularly go into substantial businesses, turning over significant revenue and employing large numbers, where the owners admit to me they have a problem, usually articulated in phrases such as “I don’t do marketing” or “I leave that to someone else”.

Previously, they say, they didn’t need to market – “the product marketed itself” - but now they realise that current sales are dropping and they desperately need to reach more customers.

The trouble is there are hundreds of luminaries out there that are willing to sell them the equivalent of Marketing Alchemy – turning base metal into gold – promising an easy (but not cheap) solution that, they are promised, will be the answer to their prayers. 

If only life were that easy. 

In developing a sustainable, affordable and, ultimately, successful approach, I encourage these businesses to avoid the 7 biggest pitfalls which are so common amongst those practicing marketing alchemy.

The 7 Marketing Alchemy Pitfalls

1.     No budget. 

Although they may spend a lot on marketing, they don’t quantify the sum and certainly don’t allocate boundaries of how much and where to focus efforts.

All companies should set themselves a budget for their marketing activities, including the costs of staff involved in these activities.  Typically, successful companies may spend between 3-10% of their total sales on marketing, although this will vary massively depending on sector, business age and the economic conditions.

2.     Lack of Customer Insight.

Unforgiveable, but some companies have no idea at all where clients hear about them and make no attempt to find out.

Although not always clear cut where a sale comes from, all companies should be rigorous in both asking the question and evaluating the answer. Whether via ongoing tracking or through episodic customer focus groups, there should be no excuses for not attempting to find the preferred customer touch points. They may surprise you!

3.     Insufficient expertise.

Marketing is one of those areas that it seems quite acceptable to throw in a happy amateur to ”have a go”.  Unfortunately, however, just because they might like using FaceBook at home does not pre-qualify them to spearhead the company’s marketing activity.  

Since the digital revolution, marketing has become complex, fast moving and requiring some of the most capable and up to date professionals.  Invest in the best capability whether you employ them directly or outsource to an external organisation.

4.     Unclear messaging.

Does your business fully understand why its’ products or services would be preferred by potential customers?  Even if it does, not all businesses find it easy to communicate this clearly to the customer.

Businesses need to understand their points of difference and what the customer values. Rigorous, consistent and targeted communication of the messaging over the preferred customer channels is then critical.

5.     A non-digital strategy.

Despite there being over 1 billion active websites globally – some companies feel that they are not required, preferring an air of mystery.  If you don’t have a website some potential customers or partners will be doubtful that your company even exists.

A quality website that reflects your preferred messaging is a business essential.  Whatever the sector, whatever the market.

6.     Marketing and sales disconnect.

Some businesses spend lots of time in the digital space but do not convert this activity in to real sales revenue. The equivalent of lots of window shoppers but no one buying…

The most effective marketing strategies look to create an ecosystem where quality leads can be converted effectively into customers - however they first touched the business.

7.     Not measuring return on investment.

Businesses which fail to understand the impact of their marketing spend on the bottom line will be clueless as to how to improve performance.  

The availability of online data for digital strategies make evaluation straightforward with the right advice.  Track trends over time and understand how activities link to customer acquisition. Look at non-digital marketing as well so you assess the whole picture.

Chris Lorimer is a Director of South West Growth Service Limited which supports businesses of all size to become more effective.  To discuss this article or for further information contact Chris at [email protected]