Marketing Budget Optimization
Sick of Politics as Usual? Write In Mike Sick for Congress - 50th District
Speaking Engagements and Other Events
Sick Consulting on
Marketing Budget Optimization
The new MBO. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book The Practice of Management. Management by Objectives (MBO) is a process
of defining objectives within an organization so management and employees agree to the objectives and understand what they
are in the organization.
What’s new is that marketing today has more metrics,
better tracking and significantly great ability to measure than ever before. A famous retailer once said “half of my
advertising is working; I just don’t know what half.” Fortunately, we have come a long ways since then and successful
companies are focusing on MBO – Marketing Budget Optimization.
have more marketing dollars and more customers than you need or your competition has, you don’t need to worry about
how hard your marketing is working. Some could make a case that maybe General Motors should have figured out what was happening
to their market before they filed bankruptcy. Sadly, the writing was on the wall for GM for a number of years and they failed
to take the actions necessary to improve their results.
Most companies are seeking
different outcomes than GM and tools are available for every size company to optimize their marketing budget. Here are a few
steps you can take to make your marketing dollars work harder:
- Measure. Set up systems to measure everything possible. From Excel to QuickBooks to Google
Analytics to Enterprise level systems, most companies have financial and quantitative tools and are awash in data. We recommend
companies build dashboards that summarize key metrics and seek to verify the correlation to sales and buyer behaviors.
- Test continuously. At
the simplest level, you want to verify that the correlations you have observed in the past are meeting your expectations.
Call volume, PO’s, conversion rates, website traffic are all metrics that are part of the equation. Challenge your thinking
by breaking your marketing into test cells and/or segments. If you are going to fail, you want to fail quickly and small.
Don’t bet the farm every time you or your CEO has an idea. I can’t tell you how many resources have been wasted
following the words “I had an idea while I was driving to the office this morning…..” The first test that
should occur is creating a financial pro forma with all the assumptions expected to occur – response rate, return rate,
ad cost, etc.
- Balance. Feed and care for your pipeline. How often do you buy a product or service the
first time you hear of it from a company you’ve never heard of? It would be great to go out everyday and land that big
customer but in reality that sale is the outcome of a number of touches. Build a marketing plan that is generating awareness
and leads at one end of the sales funnel at the same time that you are closing sales at the other end. In this internet age,
too many companies are fixated on search advertising without any consideration to filling the pipeline at the other end.
- Differentiate. Success
in the market is all about having a winning competitive strategy. Lead with your advantages and build more. Your point of
difference and competitive advantage should be a theme that is consistent in your advertising, your branding, your sales process
and your customer experience. Knocking off the competitor is a common strategy that reminds us all that ongoing product development
is a key strategy for long term success.
- Persistence. Developing a path to customers is
a discipline that requires regular effort and nurturing - not too dissimilar from going to the gym. You wouldn’t go
to the gym a single time and expect to see results. Prospecting for new customers, providing ongoing communications and increasing
the amount of touches is an approach that will generate increasing results over time.
Working smarter is the operative word here. Better and more creative positioning and messaging are part of the solution.
Ongoing analysis and evaluation is the discipline that will lead you to optimizing the impact of your marketing budget. At
Sick Consulting we work with clients to increase the impact of their marketing budgets as their budgets are often limited.
We would welcome an opportunity to help you to optimize your marketing budget.
Sick of Politics as Usual? Write In Mike Sick for Congress - 50th DistrictThis election season
appears to be even more inane than the past. Here in California we see hundreds of millions of dollars being spent to advertise
what a lousy candidate the opponent is. As a sign of my disgust, I have decided to mount a write-in campaign for myself. Please
join me by writing in Mike Sick for the 50th District of Congress if you live in North County San Diego. Read more in my blog post about how government might be able to address solutions rather than symptoms. Deflation Update
Back in June, I wrote
about the deflationary risks that are threatening the global economy and steps companies could take to reduce those impacts.
The New York Times recently published an article that builds on the theme and reports on “The
Great Deflation” in Japan.
Speaking Engagements and Other Events
- Wednesday November 10th – Strategies for Maximizing Profits. I am working with a group to present an interesting financial seminar in the Old
Town section of San Diego. Check out the San Diego Business Resources event page for more information or to register. I’ll look forward to seeing you
- Thursday November 18th – I’ve been invited to speak on a TechAmerica Marketing and Sales Roundtable
panel. The details haven’t been posted online yet, but if you are interested in attending, drop me a line and I’ll
forward the link as soon as it is available.
Consulting – We are an outsourced marketing and management
resource. Our clients benefit from our perspective and insight from our involvement in multiple businesses and industries.
We help fine tune your strategy and then we work with you, your team, your partners and your customers to execute a winning
While we do work with clients on a project basis, most of our business is
with clients who we have multi year relationships with. We either serve as their virtual, part time CMO, or we augment their internal resources. When a client has a
maternity leave, vacation or temporary bandwidth need, turning to a scalable resource that is up to speed on your business
allows you to keep moving forward with your business without missing a beat.
this sound like the type of resource and relationship that would benefit you or someone you know? We would welcome an opportunity
to explore how we might work together in the future. Call Michael Sick today at 858 509-8930 or email at Mike@GetTheSickness.com.
Michael Sick & Jaclyn (Sick) Ream
wedding, August 15th (pictured right)...hence the new name>
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