Marketing is an investment - Overviews

Marketing is an investment

In raising the company's profit margin, accountants must be busy looking for items that cost will be reduced. One of the posts that are typically seen is marketing or marketing. Is this a wise move?

Actually how we view marketing costs or marketing costs? We will see as an investment or a cost? If we look at the costs then we will tend to reduce marketing costs.

To increase the profit margin there are two ways to increase revenues or reduce costs. If we reduce the cost of marketing it will affect the overall cost to the company for less than 10%, but if we focus on increasing sales by conducting an effective marketing will increase profit margins many times.

At the time of crisis companies often reduce marketing costs. Actually this is a mistake. At the time a competitor reduce advertising costs, we must add the cost of advertising. Why is that? Logically we see that in the moment brands of competitors ranging invisible, our brand appeared on the market and we can clearly conclude that we can easily draw the attention of the market.

Although marketing is an investment, of course we should not be spending money without measuring it. We must be able to measure where marketing is effective and what is not effective. We will continue marketing effectively and stop ineffective marketing. To measure where marketing is effective and which ineffective marketing can be done by asking every customer where they know the product of our company.