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Why Marketing Is an Investment to your business and not a cost

Kevin Spiteri

Throughout the years, marketing professionals have been constantly making efforts in educating clients and business decision makers on just how marketing is essential to a business. 
A very common mindset to debunk is the idea of marketing as a cost, rather than an investment, to the business. 

A cost, in accounting, is defined as the monetary value given up to acquire an asset; you spend, the end. Whereas, an investment is an expenditure made for income-generating assets. 

So, why is marketing an investment?

Market Research

In 1996, McDonald’s marketed a $150 million ad and one of the most expensive flops of all time – the Arch Deluxe burger. The product was targeted to adults with tag lines, “It’s the burger with grown-up taste.”. It includes more “sophisticated” ingredients, higher price, and higher calorie content… which did not fit the taste of their customers (especially children) eventually discontinuing the burger. The problem roots to understanding who their customers are and what they need. 

A good market research allows your organisations to identify, through accurate and systemised data, who you are as a business, who your customers and competitors are – their behaviours, their needs, their buying triggers & powers, and insights on what the market trend is.

Investing in a good market research empowers your organisation to react to these data and formulate effective strategies targeted to your customers, avoiding costly flops.

Analyse and Strategise

Imagine an impromptu road trip with your colleagues to The Great Ocean Road in Victoria. It’s all fun with a stunning view of the coastline – the rainforest, shipwrecks, and the famous Twelve Apostles in the 243 kilometres long trip until… you ran out of gas. No where to refill, no cellphone signal to call for help. What caused the problem? Simple – you did not analyse and plan the trip.
Same goes for marketing. Any effort to reach out to customers will be a cost if you do not analyse and strategise the overall plan. Investing in marketing provides you a roadmap to your destination (goals) with tactical notes on how to execute the plan and overcome roadblocks. 

Customer Retention

Marketing enables your business to deliver and extract more value, and to keep and increase existing and repeat customers. Customer loyalty is a brand and it is the end goal of every sales process. Investing in customer retention marketing promotes growth in your customer’s lifetime value and ultimately increases your revenue.

Marketing is an Investment

Keep the results in mind:

  • Knowing your business, your customers, your competitors, and your market gives you an edge to understanding and anticipating needs. 
  • Implementing strategic action plans fosters effective and efficient use of resources to reach set goals. 
  • Building brand through customer loyalty and retention secures and boosts revenue.

Marketing is about communicating to customers; and, it goes without saying that the more you invest in your marketing, the more customers are targeted, and the more sales it will bring. The key is finding the right marketing that is aligned to your business’ vision, mission, and goals, partnering with you to growth and success.