It is sad that marketing and brand development is often only viewed as an expense (something that lowers profit). The truth is that these types of efforts would be better viewed as an investment rather than an expense.
“One of our major assets never appears on the balance sheet: the brand names under which we bring our products and services to market. As a result, any funds used to create that asset must be expensed when they are paid, not amortized over the life of the asset. This condition helps create a mind-set where brand-building is viewed as a cost rather than an investment, and where, seemingly, the wisest spending is that which produces immediate results.”
Garth Hallberg author of All Customers are Not Created Equal
A simple shift in mindset can help you spend money on things that are important long-term such as building your brand, offering a great product/service, and focusing on the needs of your customers.
Would your decision to increase or decrease the budget for marketing be different if you took a strategic approach? Is the marketing budget one of the first things that you look to cut when the economic environment changes? How would your business be different if you invested in marketing with the same long-term focus as buying a building or investing in R&D?
