For many many years, marketing has been looked at as an art rather than a science. Now, businesses are starting to realize there’s a rhyme and reason behind what marketers suggest. The first thing that we’re teaching in marketing 101?
The 60/40 rule. The long term and short term. Emotion and logic. You get the picture.
Class is in session, let’s learn about this rule and why it’s important to follow.
The 60/40 Rule: What is it?
If you’re following this rule, this means that approximately 60 percent of your efforts and budget should be applied to long-term brand building, and 40 percent should be applied to immediate activation.
Simply put, there are two ways to make marketing work:
Sales activation (40 percent): which are the short-term sales like discounts and BOGO deals.
Brand building (60 percent): which is the long-term sales growth.
Keep in mind is that short sales are great, but they need to be paired with brand building. And, while the brand building will take longer, it will ultimately surpass short-term sales.
This leads us to our favorite fairy tale…
The Goose and the Golden Egg
We all know how this story goes, right? Here’s how it applies to the 60/40 rule.
The goose lays the golden eggs, and the golden eggs have a lot of value right now. However, if you keep going for the golden eggs only, they’ll quickly lose value. You need to protect your goose AND golden eggs. The moral of the story is, don’t always go for that short-term sale because you’ll end up with little to no growth. A great strategy is a mixture of both, the 60/40 rule.
Ready to Go Kamping?
Learn more about the 60/40 rule and much more at our annual Brandkamp seminar Thursday, April 15th, 2021 from 8:30 am - 12:00 pm. Author and Brand Strategist, Chuck Mefford, will share with you his proven strategies for growing your business through storytelling. Spend a day out of your business to work ON your business!