In this post, we are going to take a look at the economics of marketing, what you should spend on your marketing and promotion, and what you need to expect in return.
What is effective exchange? How much is effective exchange? How do you know you are getting effective exchange?
In today’s social media market, creating ads and hoping that paying for those ads aren’t costing an entire year’s revenue is a daunting task. It is so easy to just throw an ad up on Facebook these days. But done incorrectly, and you end up wasting a lot of money. In his series about effective marketing, Mr. Hubbard stated:
“Marketing is the activity of creating want which can be supplied and it enters into economics the moment that one acquires exchange for it. This is where it subdivides between marketing and economics. One has to market, so as to obtain an exchange, when one markets commercially.
“Therefore, any technology or activity which can create want to the degree of obtaining an exchange for it, for any service or commodity, is marketing.
“The second you start supplying goods, you’re into the field of business management, accounting and all the activities of industry.”
Marketing is an investment. After all, you’re putting your valuable money into something that may be unpredictable or risky, especially if you don’t know how to measure the success of your campaigns in the first place.
To avoid this vicious circle, let’s establish a few stable facts first.