“Never solve a product problem with marketing. Screaming louder is not going to help your case very much. Make sure you have something to say before you say anything at all.”
— Flint McGlaughlin, Managing Director, MECLABS Institute
(This article was originally published in the MarketingExperiments email newsletter.)
What if you cut your budget 60 percent but achieved four times the profit?
In this video, Flint McGlaughlin reveals a new heuristic for achieving more performance with less investment. He challenges the classic approach to budgeting, identifying serious errors in our rationale, and provides a methodical system for prioritization.
Whether you’re a small entrepreneur or the CMO of an enterprise, this series can help you optimize your marketing strategy, budget, and planning.
In this first part, you will learn:
• How reversing the direction of your spend can double its impact.
• How to use your value proposition as a force multiplier (maximizing the effectiveness of your media spend)
• How to pay for a web project with “found money” before you invest a dollar in development
• Why the structure of your agency and most vendor relationships is optimized for their gain and not yours
• Why we spend too much too fast on advertising, and how to reinvest the money to produce a stronger ROI
Here are some key points in the video:
- 06:27 Better versus more
- 12:27 The Marketing Priority Heuristic (thinking tool) explained
- 19:40 Optimize your spend for mathematical impact
- 23:40 Mathematical demonstration of how to maximize revenue by reprioritizing your expenditures
- 40:29 How to use your value proposition as a force multiplier
- 45:47 How much to allocate to media and testing
- 48:00 Summary of an optimized spend sequence
- 48:50 Why the structure of your agency and most vendor relationships is optimized for their gain and not yours
- 49:29 Case study – Business software company