Last week I talked about how this blog was inspired by a discussion on LinkedIn and then discussed the pros and cons of working to a number given to you by the CFO or accountant. This week we start from the opposite direction and will be going back to the accountant with a required figure.
Pros of starting with the planning
- You consider all possible activities except those you know that will have outrageous costs attached, such as TV advertising
- You’re considering what activities are most likely to deliver the best return in investment, especially if you have done them before and have the evidence to support your thoughts.
- It is more likely to be flexible, especially when you start achieving your business targets
- It is led by the business’ needs, not those of the accountants!
- Depending upon the perceived ROI you have an opportunity to re-visit your budget and decide to spend more.
- Far better to work down from the “Gold Standard” than work up
- If more money does become available, you’ll know exactly what to do with the money
- There is a chance you will spend more than the accountant wants you to
- You’ll have to make sure you track the results so justify yourself to your accountant/CFO
- It takes a bit longer
- You get to argue (sorry – put your point across) with the CFO – is this really a con?
Marketing is all about demonstrating the value you can provide to your customers in order to tempt them into buying from you. It should therefore be the same within the company. The activities/campaigns in the marketing plan need to show value to the wallet holders in order to be authorised.
Its fairly obvious on what side of the fence I fall, but then again I’m a marketer and not a finance geek. I hope this has been useful to you and I look forward to your comments.