Overspending or underfunding marketing programs happens when you have a shop-a-holic mentality.
If a little marketing works then let’s buy a lot, right? Wrong.
Let’s spread our marketing dollars around and experiment with everything, right? Wrong.
The result is almost always buyer’s remorse.
When Does Overspending Occur?
Overspending on marketing happens when you make last-minute decisions.
- You can’t take advantage of early-bird discounts which are a staple in marketing.
- You lose the opportunity to book related travel in the hotel hosting an event, costing you more in time, money, and convenience.
- You miss out on bundled marketing packages or bulk purchases.
- You end up with the leftovers:
- The worst spot on the trade show floor.
- The presentation slot at the end of the conference when everyone is gone.
- The least desirable 1/4 page ad space positioned across from your competitor’s full-page, full-color ad.
So not only have you overspent, you haven’t maximized the effectiveness of your marketing dollars and have little to show for it.
Why Would You Ever Underfund?
First of all, you wouldn’t do it on purpose. Underfunding occurs when you don’t have enough information or experience to make informed decisions.
- You book a trade show but can’t afford a lead retrieval system at the show.
- You schedule a press conference but don’t hire a photographer.
- You don’t have promotional funds for a new product or service launch because you blew the budget in the first quarter.
- You buy one-off email lists rather than having a full campaign strategy.
In this case, you spread the money so thin that nothing is working well because it was short-changed from the beginning.
What’s the Cure?
If you know me at all, you know that the answer has something to do with a budget. Your budget is your bible. It clearly defines what you are spending and when you are spending it.
Marketing moves fast. Marketers are working months and even a year or two ahead of a product release or event. Decisions must be made and contracts signed.
When you commit to a marketing activity, you are always committing to a schedule and payment plan. If you cancel, you very rarely get all your money back.
Wouldn’t you want to make your decisions in the most informed way possible? Take a look at my ebook 5 Easy Steps to Building a Marketing Budget.