People who receive newsletters electronically can forward them easily to others, thus extending readership. Advertising and marketing can be among the biggest expenses in a company's budget, and determining where to invest marketing dollars is key. Dollar for dollar, few marketing vehicles deliver more return on investment than newsletters. While they can't replace all other forms of promoting the business, newsletters are a valuable component of a well-rounded marketing program.

Maintain Relationships

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Newsletters are a good way to keep in touch with customers or interested people for little effort. With today's desktop publishing software, newsletters are easy to produce in appealing formats and send instantaneously to everyone on the company's email list. Sending newsletters on a regular basis reminds readers about the company. When people need a product or service the company offers, they're likely to call one they hear from regularly.

Educate and Inform

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One big benefit of newsletters is that the sender controls all the content. Newsletters can educate readers about new products, highlight employees, share successes and announce upcoming events or promotions. They even can serve as another advertising vehicle by offering coupons or specials only for those who read the newsletter, which is a smart way to track readership. If a company has received negative press or customer feedback, the newsletter is an ideal place to clear up misconceptions or explain the company's viewpoint.

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Reach Target Market

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Newsletters get right to the company's target market -- the people who already have shown an interest by buying a product, working for the company or signing up for the company's email list. Because the company already knows this audience's buying preferences or interests, it can address topics that it knows will interest these readers. Newsletters do this in a friendly, unobtrusive way, by informing and keeping the audience updated without overtly asking for a sale or contribution.

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Low Cost

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Compared with other advertising and marketing vehicles, newsletters are relatively inexpensive to produce. Most newsletters are sent electronically, eliminating even the cost of paper and postage stamps. A two-page or four-page newsletter doesn't require the addition of a new employee but can be worked into existing employees' workloads. Once the newsletter's format and scope have been determined -- perhaps even outlining recurring columns -- the newsletter becomes even easier to produce as time goes on.