Rationale: Dr. Smith’s practice has grown even more as her marketing efforts have paid off. She will still funnel a portion of her marketing budget into the low- risk mediums that continue to perform well for her, but now that her revenues have increased and she has a bigger overall marketing budget, she can afford to diversify into higher-risk mass mediums. In the coming years, she will have the luxury of taking slightly bigger risks with her marketing budget without cutting into her bottom line, allowing her to experiment in these mediums to find a formula that offers higher ROI than the lower-risk mediums.
SUMMARY: Throughout these first six years, Dr. Smith relied on reliable, low-risk marketing fundamentals to increase her practice. Tactics such as referral campaigns, web marketing and direct mail gave her solid returns and helped her grow her revenue and her marketing budget. As her marketing mix evolved to make the most of a growing marketing budget and a maturing strategy, she started allocating an increasing portion of the budget to higher-risk mediums.
Being covered in a wider range of mediums allows her to benefit from the synergy that happens when wider coverage increases and focuses consumer awareness. Participating in higher-risk mediums also allows her to benefit from potentially higher returns on her marketing dollars—without exposing her to unacceptable risk.
Every practice and practice area present their own unique marketing challenges, so no two marketing strategies will be identical. However, the example above illustrates the fundamental principles of marketing budget allocation, and provides a good general guideline in helping you minimize risk and make the best use of your marketing dollars.