What is Your Marketing Mix?

When reviewing the way that you're marketing the business (and for some of you I emphasize "when" rather than "whether" because we all need to be marketing), you need to remember to market effectively and efficiently.

For instance, if, over time, you're spending $1500/mo on direct mailing with the results being mixed while your organized referral efforts bringing in most of the business, I would recommend a redistribution of your budget and time into the referral area.  It may sound crazy, but small businesses go for months and even years with an inefficient marketing mix.

Here's an example of a service business with monthly marketing expenses--

Monthly print ad in trade mag        $700        Avg Leads--6   Converted sales--1
Weekly print ad in regional newspaper     $800     Avg leads--15    Converted sales--2
Referral plan with architects        $300    Avg leads--5     Converted sales--4
Website (w/Google adwords)   $100     Avg leads--0     Converted sales--0
Leads clubs and associations    $200   Avg leads--2    Converted sales--1
Direct mail    $1500    Avg leads--10   Converted sales--1

Now one needs to take into account the time invested in addition to the money, but it appears as if the referral plan is paying off best.  I'd want to look at each approach within those tactics but it might suggest a deeper investment in the referral strategy.

It's really common sense but what a lot of companies fail to do is simply sit down and look at where they're getting the bang for the buck.  What is your marketing mix and how effective are the tactics?

Comments

[Total Marketing Tool Box]

Interesting comparisons regarding advertising and ROI
In my Marketing MBA we've covered this too and it completely makes sense to work those referrals!
I blog about marketing tools to make your marketing message stand out at www.TotalMarketingToolboxBlog.com