What to spend on marketing

From: http://www.bizjournals.com/sacramento/stories/1996/11/11/smallb3.html

Friday, November 8, 1996

What to spend on marketing
Sacramento Business Journal - by Bill "Guerrilla" Gallagher, Ph.D.

You wouldn't be reading this column if you didn't suspect how important marketing is. Fortunately, since you're already a guerrilla, your marketing won't be all that costly. In fact, most guerrilla sales and marketing techniques won't cost you anything.

Still, you need to invest in your own business, and this investment needs to be in your marketing as much as you can possibly afford. Maybe a little bit more, but not too much more, OK?

Now, I know those clever folks from Dean Witter and Prudential-Bache call you every week with the idea that you ought to put some percentage of your income into CDs, stocks, T-bills or mutual funds. This is a fine idea and you'll probably earn a good return on your investment with them. However, this same money invested in marketing your own firm should yield a much much higher return.

So, here's where to spend a few bucks: Set up an account where you pay yourself something like 5 to 10 percent of your gross for marketing, and then spend the balance on your current bills.

I know this sounds a bit wacky or just impossible to some of you. But I assure you that I'm right on the money. Coca Cola, Pepsi and Procter & Gamble spend -- er, invest -- more than 20 percent of their gross on marketing. Are they wrong? No!

Marketing pays off. Big time. And if you'll hire a marketing consultant for a few hours, he or she can show you the way to get the most bang for your marketing bucks.

For example, did you know that you can get a color printing job for a big reduction in cost by knowing the shop's printing schedule? Our local Minute Man Press shop has a different reduced color each day of the week.

Should you not be interested in the daily colors, ask about climbing in on someone else's "gang run." Your printer will explain how you can save some more marketing bucks. Just remember "gang run."

Set up a budget for marketing your business. Spend that money wisely. You'll be the winner! Guaranteed!

Bill Gallagher is head of Guerrilla Sales & Marketing in Diamond Springs and co-author of "Guerrilla Selling." For more information on the topics and ideas in this column, call (800) 800-8086 or send e-mail to bguerrilla@aol.com. If you have a marketing question, send it to The Business Journal, 1401 21st St., Sacramento 95814.