MARKETING: SHARE OF MIND OR SHARE OF MARKET?
When starting out it seems like the checks pay for payroll, product, and marketing.
Rinse and repeat. Right?
We can’t get outside of COGS and the cost of doing business, and marketing too. Yes, marketing goes here.
Just like you have to learn what your MVP, lean 6 looks like, so too must you learn the same things when developing a marketing strategy.
How do you know which marketing pieces are the best investment when you are as flat as possible? And how do I tell the difference between Share of mind- and share of market-marketing?
Business is seasonal! Streaky. And under increased pressure by the world, Amazon, Google, local and regional competitors.
Financial acumen and marketing learning are two skills you can’t leave behind in the classroom. Actually, what’s more likely, is, you didn’t learn the tricks that make up financial acumen and marketing for SMBs in the classroom. Right?
You developed that out here, out of the vacuum, in real time, in the costly, real-world. Not many things are worse than wasting money on a marketing piece with no trackable ROI. One of the big differences between Share of Mind-Marketing and Share of Market-Marketing – the use of tracking mechanisms, such as UTMs, Tags, Goals, Codes, or anything resembling a unique identifier for tracking purposes.
Before you go on, make sure you understand the language of marketing.
SHARE OF MARKET
Typical share of market pieces include shared mail (RSVP, Money Mailer, Valpak), direct mailers, some magazines, email campaigns (with UTMs), and sales teams. Basically anything that CAN BE MEASURED.
Some marketing sources can have overlap between share of market and share of mind, but there is one certain way to delineate them. The Trackability. For instance, if I were going to market in April of 2020 with RSVP I would put on the bottom corner of my coupon 0420RSVP.
In the tracking software or spreadsheet I will enter the price I paid and track how many dollars the marketing piece collects, typically returning value as far out as three to five months, depending on your market and best practice.
If I can run a return on investment, I spent $1 dollar and I make four, then my ROI is 4 to 1, share of market.
If you do not track the cost of the marketing piece and the dollars generated from that piece, all though in reality it may be share of market, we can only consider it share of mind. Which is much harder to track and less measurable. Often times, much higher in the conversion funnel, but without tracking metrics in place, even those marketing channels that high high conversion and are low in the conversion funnel, can only be listed as marketing.
In a last ditch effort to attribute wins to marketing, (when UTMs, goals, tags are not in place) create a return on marketing metric, ceteris paribus, attribute additional sales against the ad spend/marketing.
Before you move on – are there technical issues holding your website back? Find out.
SHARE OF MIND
Typical share of mind marketing pieces are billboards, radio, television, and P.R. All the glam! All the visibilty…but with low conversions.
These pieces rarely get the phone ringing instantly.
They are NOT targeted marketing. In reality, the whole population is not your potential client base, but those that are might watch or hear and be compelled to purchase.
More often, these marketing channels put you in front of non-clients, but when it gets you in front of your potential buyer, you gain a share of the person’s mind. Share of Mind Marketing.
Catching customers closer to when they are purchasing (lower in the conversion funnel) increases the return of share of mind marketing.
Both marketing types are important. The key is to use both wisely.
If you do not play darts, you never hit the bulls’ eye.
Marketing is testing, iterating, testing, and iterating. A GREAT marketing Strategy is clear in the rearview. All the tempering, the tracking, the dialing in is where that greatest was hashed out.
It can take years, and definitely lots of dollars, to develop a sound market strategy, a marketing tailwind, analytic data, trends or even pattern recognition.
Marketing is the tree that needs to be pruned, just make sure you know the difference between the different trees and those pruning needs.