This week’s problem lies within disagreements between myself and others in the team. Being the marketing director, I was adamant about not wanting to decrease my advertising costs.
Peter had given us a clear indication that we were spending too much on advertising given how our sale:advertising ratio. However, I did not want to decrease it due to the fact that advertising is one of the main components of getting our products out there and raising awareness. In the back of mind, I did not want to make drastic changes because this will drive our sales/possibly help to increase our SHV. After talking to the marketing director of our parent company, I was confused. From one end, I was told we are spending a reasonable amount but on the other end, I was told we are spending too much? So what do I do? Do I meet in the middle or listen to one person? I listened to one person, Peter. And maybe everyone else on the team that was saying to decrease costs.
The way I did this was calculating what 20% of our wholesale sales revenue was and allocating that amount on advertising. In total, I decreased about 2.4 mil from our advertising costs altogether, which broke ma heart doing so, but obviously if it’s the logical thing to do, then why would you not do it?
To see whether this worked, I am going to keep an eye on our reports when the rollover occurs later today. From there, if this has worked out well in our favour, then I will continue to work like this for the last couple of rollovers. I want to try to optimize our marketing costs in the best way possible to ensure the team is happy with all the decisions being made, not just with marketing but overall decisions too.