Defining “Cost-Effective Marketing” (Dallas, TX)

March 9, 2008 · Filed Under Marketing Tools, Tracking Results 

Phillip CrumHow do you determine if a product or service is a good “investment” of your money? How do you know if the price is a fair one for your purposes?

Too often I hear the term, “cost-effective” used as if it’s a suitable replacement for “cheap”; just a classier way to ask if something costs more than they think it should based on little more than how much change they happen to have in their pocket at the time.

So let’s clear away that brush right now; cost-effective does not mean cheap, inexpensive, low-quality, bargain, discounted, or any other synonym or phrase intended to convey the idea of low-price. If it did, the term would be “cost-cheap” or something like it.

Unpack the term and here’s what you get. “Cost” means exactly that. It sets up the relative equation of what you pay vs. what you get for a value analysis to determine if the deal is worth the doing.

“Effective” means, without consulting Webster’s, that the desired result or something akin to it or of an acceptable level was reached.

So putting both of those ideas together we want to know if the desired outcome justifies the expense or cost of the project. If you can live with the outcome relative to what it costs then the deal is indeed a cost-effective one. If not then either the cost is too high, the outcome is too low, or a combination of the two.

Think that second option through. Just because you buy a product, take it home and refuse to read or follow the instructions doesn’t mean the product is bad when it doesn’t work properly, it means you’re an idiot but that’s another column.

Nevertheless, in that scenario, the purchase would indeed turn out not to be a cost-effective purchase. But this time it’s not the fault of the product, rather it sounds like you may need remedial reading lessons or a kick in the head but again, I digress to another column.

Cost-effective does not mean, “is it cheap”. It’s an equation which pits the probable outcome, in your mind, of utilizing a product or service against the asking price. If the difference is great enough it’s a good deal. If not, it’s not cost-effective and should be avoided or negotiated until the outcome is acceptable.

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Phillip Crum is the Chief Idea Officer of MarketingMeasure and is committed to the idea of helping small business owners do a better job of finding their next customer or client. He and his two sons also own a Sir Speedy Printing franchise and employ those additional capabilities in the overall marketing services menu of offerings. Phillip can be reached at 214-213-7445, or pcrum@MarketingMeasure.com

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