By Ted Schmidt
Marketing is math?
If you’ve never thought of marketing as a math equation, here’s why I feel that it is.
When conducting any marketing activity as a business owner, you are spending money (except in the case of a trade arrangement, but something of value is still being exchanged).
Therefore, since money is being spent, you will need to see a return on investment. How do you know if you have a return on investment?
You measure everything.
How do you know what to measure? First, decide upon your goal or desired outcome.
For example, we are going to become a sponsor at a local event. The cost is $500 and we are going to do a 60 second commercial in front of 200 people. The 200 people in the room will also receive a program with our logo on it, and our logo will appear on the PowerPoint in the front of the room. This will be good awareness building – but how do we convert this awareness into leads? How many leads do we expect to generate from this event?
If we do the math and determine that we’d like a 10% return on investment that means that we want to make contact with 50 attendees at the event that may turn into clients.
Do you see how you can use this math in your marketing spend?
There are so many incredible ways to market your business.
Develop a goal, and measure results. Understand that sometimes it takes a little while to see a return on investment. Try a variety of things at once.
Marketing is really all about the math!
About the author, Ted Schmidt
Ted is a Spokane native who moved to Seattle at 20 years old to finish college. After graduating with a B.S. in Business from Central Washington University’s Seattle branch, Ted became a partner in a tool and equipment rental company, and lived in Seattle for 24 years. After Ted and his partners sold the business, he and his wife and two daughters moved back to Spokane where Ted started a new career as a business coach.