Big or small budget - it's what you do with it

Marketing budgets come in many sizes. Having a "small" budget, doesn't preclude you from being successful.

The Globe and Mail recently ran an article about a new company called Cenabal Gourmet Organics. In this piece, the article commented: "Standing in the way of her spreading the word is a modest marketing budget of $25,000 a year. Says Ms. MacDonald: 'I need advice on effective ways to create buzz around a product, without a lot of money.' "

For some small companies, that isn't a modest budget at all. It really comes down to making the most of the money you do have. And that doesn't mean cheaping out on your marketing endeavours either.

For Cenabal, an "expert" recommended that she modify the label - and if she can't afford to do that then she should create a small booklet that ties around the neck of the bottle. A much less expensive way to go would be to create a shelf-talker. This piece of cardstock can draw the consumer's eye to your product and inform them at the same time. And yes, you'd need a designer for it to be professional, but as an alternative to a booklet around the neck of the bottle, infinitely less expensive and potentially more effective as the booklet still relies on the consumer picking up the bottle to be informed.

The most expensive part of a small company's marketing budget should be the time put into knowing you have the right answer to reach your audience and make every penny count. And that doesn't mean finding the cheapest printer or designer. It means developing tactics that give you great returns, even if they cost a little bit more.

For example: It will cost you $50 to be a minor sponsor at a charity event. You get your logo on their website and a mention in the program. Value? You also have the opportunity to spend $100 partnering with a related business on a one-colour insert in your local Chamber of Commerce newsletter. If your budget is tight, which would you choose?

The insert costs twice as much, potentially four times as much once you get the writer and designer involved. What you would discover however is minor sponsors of charitable events rarely get any business from only a logo on the website and a mention in the program. So $50 out the window. (But keep in mind that it is important to be a good corporate citizen and do your part, either with the $50 knowing it isn't going to get you any business or volunteer your time)

With the insert, you are reaching hundreds of potential customers and could easily wind up with 10 or 12 new customers. So it cost you four times as much and you get 10 times the customers.

Get where I'm going with this? Don't pick the cheapest thing just because it's the cheapest. Always have your return-on-investment (ROI) in the front of your mind when you build your plans and pick the tactics that will get results, even if they cost more than the alternative.