Is marketing a cost?

When I go out on an initial meeting with a client I tend to ask a lot of questions. Questions about their business, customers, strategy, performance, project budget and even questions concerning them personally. I like to know who I am dealing with, and have the necessary knowledge to discover a solution that carries the maximum benefit (believe it or not, their initial “need” is not always the solution that will yield the most favorable return).

Usually our meeting is wrapped up with me throwing out some rough ideas & making some initial suggestions to gauge their interest, and tolerance level for marketing concepts that may be outside their comfort zone. Almost without fail, I am surprised at what happens next. They ask the question…, “So what does that cost?”.

The ideas and concepts I threw out were in a very raw form. They have not been cooked down, polished, or tailored. Despite the obvious flaws to the question, and the complication of quoting a rough idea on the spot, the root of my surprise is in the word choice… “cost”.

Is marketing a cost? The mere definition of a “cost” is in my opinion enough reason to bring a screeching halt to the project from a business perspective. A cost is the value of money that has been used up to produce something, and hence is not available for use anymore. Is that truly what will transpire from this undertaking? If so, do not pass go, because from this perspective you will not be collecting $200 (or any return) if you proceed.

What will you be getting in return for this “cost”? I hope that the reason we were having the meeting in the first place was that this client was looking for some type of return. Maybe they are trying to better connect with their customers to increase customer value. Maybe they are trying to expand their communications with their market to increase sales opportunities. Maybe they are simply trying to realign their marketing effort to showcase the benefits of a new offering. Regardless of the goal, the point is that they are looking to see some type of return.

Are you familiar with the term “ROC”? You know, “Return on Cost”? Never heard of it….me either. I think what we are looking for here is “ROI”. The desired result is a return on an INVESTMENT.

Now that we have identified that there is no “cost”, we can easily determine if the investment in the brand initiative, new design, or marketing campaign is capable of producing an acceptable rate of return for the client. With this distinction behind us, we are able to proceeding to the next level & provide true value for our clients.

Let’s hear from you. What misconceptions affect your ability to provide value to your customers/clients? How do you overcome them?