Marketing: Share Of Mind, Share Of Market | William Nozak, MBA | Harper’s Hut Shaved Ice
Forget boom, recession, recovery. Checks pay for payroll, product, and marketing; rinse and repeat. Right? I mean throw in the bills and other costs of doing business but this seems to be the business cycle. If you had to choose, what was paid it would be payroll, product, and of course marketing. So how do you know which marketing pieces are the best investment when you are as flat as possible? Business is seasonal, streaky, and under increased pressure, requiring financial acumen and marketing genius. Not many things are worst then wasting money on a marketing piece that needed to have a Return on Investment (ROI) but did not procure one client. The first key, understand the difference between Share of Market and Share of Mind.
Share of Market
Typical share of market pieces include shared mail (RSVP, Money Mailer, Valpak, Groupon, Living Social, Amazon), direct mailers, Magazines, newspaper ads, email campaigns, and sales teams. Marketing is rarely either/or but a continuum, most often functioning as both share of market and share of mind. One certain way to decipher where on this continuum the piece sits is to include a marketing code. Always use a marketing code on your marketing pieces. For instance,I purchase a marketing piece in April of 2015 with RSVP I put on the bottom corner of the coupon 0415RSVP. Then in a program or spreadsheet I enter the price and then track how many dollars the marketing piece generates, typically ballooning over the next three months. I then run a return on investment. Say I spent $1 dollar and made four, then my ROI is 4 to 1. This is a great return for marketing pieces, but some can get as high as 20-30-40 and others can still be profitable as low as 1.2. 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.
Share of Mind
Typical share of mind marketing pieces are billboards, radio, television, P.R., and social media. These pieces might not get the phone to instantly ring. The reason is 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. These pieces put you in front of clients and non-clients, capturing mind share versus a share of the market. Catching customers closer to when they are purchasing can increase the return on share of mind marketing. Both are very important. The key is to use them wisely.
If you do not play darts, you never hit the bulls’ eye. Marketing is testing, iterating, testing, and iterating. A Go-To-Market Strategy is clear in rear-view or when following an innovator. It takes years to develop a market strategy, a marketing tailwind, analytics, trends and pattern recognition. Marketing is the tree that needs to be pruned, just make sure you know the difference between the trees.