Business Insights

Successful marketing begins with a rock-solid strategy. Your company’s goals, how might you achieve them, your marketing plan, creative and – of course – finances are all essential elements. But whether you’re planning for the 12 months ahead or implementing shorter projects throughout the year, even the best-laid plans will fall short without a well-considered budget. Setting the right marketing budget can be a minefield. Sharing notes with our Liberti group partner, The FD Centre, we’ve compiled a list of five budgeting pitfalls to avoid at all costs.

The definition of insanity is repeating the same thing over-and-over and expecting different results. It’s a powerful line. Catchy, cutting and also wrong. Yet there’s a lot to be learnt from it, especially when considering how your company’s behaviour reflects its vision. First, let’s clear-up that line on insanity. Despite being forever linked to great thinkers such as Einstein and Mark Twain, it only first appeared in the 1984 mystery novel Sudden Death. For those interested, insanity is no longer recognised in the medical profession. It in fact only stands in legal circles, to explain not being able to distinguish fantasy from reality when discussing court proceedings.

“Our efficiency is unparalleled, our ROI is fantastic, and we’ll be out of business in five years.” That was the feedback that Les Binet, Head of Effectiveness at advertising agency Adam & Eve DDB, got from one member of the management team when he walked into the UK’s largest breakdown firm, The AA. It might seem like a contradictory statement - surely an efficient business with great ROI is onto a winner? Well, in the short-term, perhaps. The problem with The AA was that they diverted 100% of their brand marketing budget into short-term, performance marketing efforts for eight years.

Introduction The world is full of myths, from fake news to faux facts. Mount Everest is not the world’s tallest mountain, The Great Wall of China can’t be seen from space, and the word “sushi” does not mean “raw fish”. (It’s the vinegared rice on which the fish was traditionally served, and it’s spread to mean the sour taste of the rice - so it describes the flavour of the dishes, not the dishes themselves.)

In business, it’s not just what you sell that matters, but how and where you sell it. This is your route to market. Yours could be selling direct; via Amazon, online, or over the phone – whatever works for your customer. The right route to market is the one that makes it easy for new customers to find you, and therefore buy from you. Get it wrong and they’ll go to your competitors instead. Today, selling via one channel or sticking to what you’ve always known leaves you in danger of being left behind, missing opportunities and losing market share.