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Foundational Marketing vs. Transactional Marketing

Foundational Marketing
At Pinpoint Marketing we are always helping our clients focus their marketing efforts on what we call Foundational Marketing. Foundational Marketing is the kind of marketing that continually, over time, results in increased sales and revenues. Foundational Marketing is organic. Foundational Marketing is the kind of marketing, when built and implemented correctly, only needs minor tweaks and adjustments. Foundational Marketing is “a set it and forget” application. Foundational Marketing will always have a positive ROI—it’s never a question of marketing efforts paying off. The only question is when and how high are the profits going to be.

Transactional Marketing
Whereas Foundational Marketing is always going to give you an positive ROI, Transactional Marketing is hit and miss game. Transactional Marketing is where you pay to use a particular advertising medium for a specific amount of time and hopefully you increase revenues enough to justify the cost. Examples of Transactional Marketing are sending out a mailing, executing a Google Ad Words campaign, or taking out an advertisement in a magazine. You pay a certain price for a certain amount exposure over a certain amount of time. It starts and then it stops. And hopefully it reaps enough sales to justify the cost and you actually make money.

Is Transactional Marketing Bad and Evil?
It isn’t that Transactional Marketing is bad or even evil. The problem lies in that most business are not set up to do Transactional Marketing because they do not have their Foundational Marketing fully integrated. It’s kind of like trying to ride a bike for the first time. Not only are you going to fall quite a bit, but this bike you were given doesn’t have the front tire screwed on tightly. My point is—it’s all going to all fall apart and you are going to get hurt. Most businesses, and when I say most—I mean 99.9% of businesses have flushed thousands of dollars on Transactional Marketing, many of which ultimately have been forced to close their doors.

The Solution
The solution to growing your business is to focus on Foundational Marketing. It is where you will see the best “bang for the buck.” The return on investment on Foundational Marketing—dollar-for-dollar, over time, will exceed anything that can be done with Transactional Marketing. If you would like to learn more on how Pinpoint Marketing can help you with your Foundational Marketing, please shoot us an email or give us a call.

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