This is a complicated question, but one that is asked (in different ways) almost every day in advertising. Here are a few helpful hints:
One of the most common mistakes companies make is to wait until the battle is well underway before they start arming themselves. In an attempt to "save" money, they spend none and then are forced to overspend to catch up later (if they can). A little money spent early on the right advertising and marketing strategies can stave off what could later become a major war with a competitor over market share. But don't be discouraged. If you have already waited too long to get started, take comfort in this - we have a great deal of experience successfully fighting uphill.
Another wise and frugal method is to start small (a brochure maybe, a direct mail piece here, a web marketing campaign there) and learn what works for you and your target market. Then, when the road to success is clear, more costly strategies can be implemented (and the rewards commensurately increased).
You are not the boss. Your customer is. To increase the effectiveness of your advertising and marketing spending, be sure you are looking at the communication pieces that comprise your business growth strategy from the point of view of your target audience, not yourself.
There is nothing new under the sun. Really. Someone has done it before. When it comes to advertising, it was probably us. Over the years, we've helped hundreds of clients generate hundreds of millions of dollars in revenue for their businesses. Chances are, we've seen the issues you are facing now before.
So that direct mail piece you did five years ago with your brother-in-law didn't work for you and you haven't tried anything since? We understand (we have brothers-in-law too). But don't give up. The only way that money was truly wasted is if you didn't learn from it. Was the message wrong? Did you have the right audience targeted? Was your list on target? Did you differentiate your product successfully from your competition? Did the sales department really track the thing accurately? Sometimes platitudes are somewhat useful. Here are two: "The only way to lose is to quit;" AND "You can't win if you don't race."