Tag Archives: tactics

Short term vs long term

There’s always a push between short-term marketing and long-term marketing tactics that any company faces. Some short-term tactics can be very, very effective – but impact a company’s overall long-term growth.

A good pair of examples are spam and pop-up advertising. Both forms, in the short-term can be extremely effective at generating revenue in the short. However, in the long-term the company faces problems with their reputation and building trust.

On the other hand, many good long-term tactics require a lot of time to develop. SEO and word-of-mouth marketing are some of the most effective forms of marketing possible – but both require a large amount of time. In the meantime, you aren’t generating much revenue.

A good marketing plan takes into account both short-term and long-term tactics in development. Planned carefully, short-term tactics can be the foundation of your plan – like certain Pharmaceutical companies have shown.

Pricing and margins

One of the many things I’ve noticed about having worked with E-commerce businesses is that it’s important to understand the effects of pricing on margins.

Pricing is a complicated business that switches from a strategic to tactical decisions on a regular basis. Price too high in relation to your competition and you could price yourself out of the market. Price too low and you could drive yourself out of business as you struggle to make up your profits on volume.

At the same time, deciding to run loss-leaders and sales is a very tactical decision that can have long-term strategic effects. If you have a large sale every month, you can drive your customers to ‘buy the sale’. At the same time, not selling your excess inventory can cause cash-flow problems.

Learning how to balance this often requires both experience in the industry as well as an understanding of your overall strategy. Sometimes all that you need is an understanding ear.