Business success hinges on consistently attracting and retaining customers over time. Equally vital is minimizing customer loss while growing by adding new clients. One of the biggest challenges for a thriving business is reaching new prospects in an increasingly fragmented media landscape.

The days when a local newspaper ad or radio commercial could reach most of the market, or when word of mouth gradually brought in new accounts, are long gone. A major shift in modern sales is that most of the information-seeking power now rests with the prospect’s computer. This gives buyers an unmatched ability to research products, read reviews, and form their own opinions before ever reaching out to the companies they’re interested in. In fact, as much as 80% of the sales cycle is complete by the time a prospect talks to a sales representative. This means they were positively influenced by brand positioning, marketing, opinions of trusted peers, social proof, and the corporate website.

The most effective way to market is to align the brand promise with authentic messaging and then deliver consistent services, products, and support to customers over time. Annually committing a budget to marketing activities is vital. For industrial companies, we suggest .5%- 6% of gross sales allocated to marketing. The low-end figure of .5% is for manufacturers with high margins, high sales, and a need for branding without aggressive lead generation. The higher end (up to 6%) is for companies desiring to aggressively grow lead generation, new business, and significantly increase brand awareness in untapped markets. Most of our clients allocate 2-3% of their gross sales as an annual marketing budget. Planning for a marketing budget over time and employing a multi-tactic approach to reaching your ideal audience is the secret sauce to business growth.

Investing your entire marketing budget in a single tactic, like paid search through Google or other search engines, is a mistake. Companies risk underspending, which can prevent their marketing efforts from increasing brand awareness, generating leads, or boosting sales. When a company has a limited marketing budget, it’s better to focus on a high-growth sector or narrow the geographic scope of marketing efforts to generate enough income to expand the marketing budget in the future.

Most companies can benefit from the tax advantages of an annual marketing spend. Done correctly, an annual marketing plan attracts high-value, right-fit customers who sustain the long-term success of your company. Personal sales and word-of-mouth referrals are vital, but they are a slow path to growth.

Let’s build a marketing plan that increases your company’s value and fuels lasting success. Contact Gotham today to see how smart marketing investment drives measurable results.

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