Seven Questions to Ask Before You Invest Your Marketing Dollars

This is what I ask my marketing students to do before they invest their marketing dollars…

Prove to yourself that it will give you the return on investment you are looking for BEFORE you invest.  I call it the test before you invest strategy.

These are the seven questions that I have my clients answer BEFORE they invest their marketing dollars.

Question #1 –  Who is your target Market?

Marketing means nothing if you do not know you are marketing to.  To answer this question you must ask yourself who needs what I am offering and why would they want it.

Question #2 – Is this medium (place to advertise) what they read or where they go?

Example:  If your target market is 35 years old or younger, news paper advertising isn’t the best choice.  Why?  For most people under the age of 35 their main source of information is the internet.  They do not read the newspaper.  They subscribe to RSS feeds, Blogs, Face book and other social marketing sites.

Question #3 – How many people in MY target market will SEE this?

Don’t be fooled into investing your marketing dollars in to high number sources.  I will use the newspaper example.  Your regional paper my have a circulation of 50,000 readers vs.  Your local paper who has a circulation of 10,000.  Which is a better bank for your buck?  If your target market primarily reads the local paper you have a better chance of return on investment.

It is true that MORE people are SEEING your ad but there are a higher number of INTERESTED buyers reading your local paper or direct mail advertisement.

Question #4  – How many people can I expect to respond?

This is an important question because it speaks to your return on investment and sales goal.  Your ad should bring you AT least 2-3x your investment to make it worthy of your investment dollars.  The average direct mail piece/newspaper ad brings is less than 1% response.  If it is well crafted and specifically targeted with a compelling call to action the numbers improve.  So think carefully….If you have a high ticket item it may be worth the investment.  If you have a low ticket item figure out how many sales you must receive to break even on the ad.  If the number seems reasonable go for it.  If not, regroup and think of another way to market your product.

Question #5 – What is my compelling call to Action?

BEFORE you invest in any marketing activity, make sure you have a compelling reason for your target market to say yes and take action right now.  It may be a coupon or a discount.  I could be a free gift or drawing to win a great prize.  It may be an answer to an immediate pain or problem.  If you are going to take a marketing action make sure it includes a compelling reason to buy now.

Questions #6 and #7 – How fast/quickly will I get a response back? Or how fast can I expect a sale?

These questions are very important as they speak to your ROI (return on investment) and your ROI time horizon.  If you need sales this month and you are signing up for something that will not be distributed until the New Year you are looking at a 3-5 month time on your ROI.  That strategy will leave you broke.  If your product has a 3-month sales cycle and you are gearing up for the New Year now is the right time to be putting your marketing plan in action.

Knowing how fast and how long it will take to get a sale is critical when it comes to maximizing your marketing results.

Let me know how these questions help you and your business.  Leave a comment below.

Feel free to share this article on your blog or with friends.  Add this line to your blog.  This article was shared by Kim Kasparian, Success Genie LLC.