How Much Should You Spend on Marketing?

Posted on Posted in Advertising, Business-general, General Commentary, Innovation, Marketing Techniques and Philosophies Tagged with , ,

Someone asked a very odd question in a discussion group:

How a startup is viewed (by an investor) when its majority spending is on marketing/advertising?

Laney Rosenzweig StoryboardIn my answer, I chose to ignore the investor question (although I hint at it in my last sentence) and discuss it instead from an overall business point of view. Let me share that answer:

Having written several books on how to market effectively with little or no money, I definitely agree. While we don’t all have to be as extreme as Google, which built one of the most profitable companies in the world without spending anything on advertising, I think all of us should be focused heavily on more creative, more interactive marketing—including content, interactive involvement tools on your website, social media actual participation (not just advertising), live appearances, etc.—only using advertising and other paid strategies sparingly if at all. This is something I can help with, BTW. For a very affordable cost, I can create an entire marketing plan for you, rooted in these kinds of strategies as they make sense for your particular business/skill set/interests.

If someone is spending more on marketing than on operations, I’d worry about their long-term viability.
But I found the question quite odd. It’s hard to even wrap my brain around the idea of spending more on marketing than on innovation, product development, manufacturing, distribution, etc., combined. Yes, of course, we’re all in business to sell something, and marketing helps us do that. But we also have to have something worth selling.
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About

A lifelong activist, profitability and marketing specialist Shel Horowitz’s mission is to fix crises like hunger, poverty, racism, war, and catastrophic climate change—by showing the business world how fixing them can make a profit. An author, international speaker, and TEDx Talker, his award-winning 10th book, Guerrilla Marketing to Heal the World, lays out a blueprint for creating and MARKETING those profitable change-making products and services. He is happy to help you craft your messaging and develop profit strategies. Learn more (and download excerpts from the book) at http://goingbeyondsustainability.com