Accounting

Marketing is extremely important when selling a product. Marketing costs are considered period costs. Some of the marketing cost will be fixed and some of the cost will be variable. Choose a product or service that you would like to market. Then, answer the following in your intial discussion post:

What techniques and concepts would you use to optimize the marketing cost? Discuss no more than two techniques and/or concepts.
How can cost volume profit analysis be used in this scenario?

ANSWER

Techniques for Optimizing Marketing Costs

The goal of marketing any product or service is getting the most out of the budget allocated. Businesses need to be prepared for any future uncertainties, and one of the coping mechanisms of unforeseen calamities is optimizing the marketing cost. Various techniques and concepts are used in market cost optimization to remain on a budget and market the product appropriately. In this discussion, I would market women’s cosmetics. The first technique I would use to optimize marketing costs is using data to make decisions (Hirschklau, 2021). Gathering data from the market helps the business gain a broader perspective of what people need and what they don’t. Such data can be obtained from information provided by KPIs (Key Performance Indicators) (Hirschklau, 2021). Crucial data collected in terms of ROI and conversion rates would help the business understand which areas to allocate budget and which ones to avoid.

Another technique would be improving marketing operations using digital marketing platforms. Marketing using various sites like Hubspot and Pardot by using specific SEO would ensure that only the targeted audience is prioritized. This form of prioritization is considerably cheaper and will be helpful for optimizing marketing costs. In addition, another technique would be repurposing existing content. This entails developing new ways of conveying the same marketing message, such as social media posts, blog posts, and visual presentations. Repurposing will ensure no costs are used in marketing the same kind of information while still bringing something fresh to the cosmetic business.

In this instance, cost volume profit analysis will be helpful in understanding and calculating the sales volume needed to cover costs and break even. Through CVP, the cosmetic business will understand the number of units required to be sold or the sales revenue required to cover the costs required to make the product and retrieve the budget used in marketing.

References

Hirschklau, J. (2021). 10 Ways to Optimize Your Marketing Budget. Retrieved from https://interruptmedia.com/optimize-your-marketing-budget/