Small Business Marketing: 2006

5 Marketing Strategies To Boost Small Business Profits

When most people talk to us about their marketing, they focus on advertising. While advertising is a part of the marketing mix, that's all it is. A part. Marketing is much bigger.

A better way to think about marketing is to envision a pyramid. Marketing is at the top clearly defining the direction of a business or organization while advertising and public relations are at the base supporting the marketing function.

Think of it this way. Marketing is everything you do to make your product or service more visible, more desirable and more profitable. Your marketing plan will clearly define the big picture and provide focus and direction based on the 4 Ps of Marketing: Product, Price, Placement, and Promotion.

Whether it's sending an invoice, handling a complaint call, running a radio ad or sending an e-mail, you're marketing your business if you're touching a customer or a potential customer.

That said, let's talk about ways to use marketing to increase business and get new customers. While there are many tactics available, there are 5 categories that will simplify your efforts and help you get better results. Develop a plan that includes five key components: Advertising; Public Relations; Special Promotions; Community Relations; and Customer Relations

Advertising is paid space that typically includes print, television and radio commercials, signs, direct mailings and Internet messages. You have control over content, format, timing and size because you are paying for it. Because readers and viewers know you are paying for it, they tend to view advertising as biased information with less credibility than public relations. Advertising can be expensive and is often overused as a tactic to meet marketing goals.

Public Relations includes ongoing, slow, build-up activities to build a brand and communicate specific messages to targeted audiences. Time, energy and imagination, rather than big budgets are key to success. Campaigns are typically conducted through the media (newspapers, magazines, television, radio), where readers view content as a credible message from an unbiased source. Editors and reporters have the final say as to publication timing and content. Public Relations can garner media placement and gain more credibility than any of your advertising messages can buy.

Special Promotions include punch cards, t-shirts and special events. They are a great way to reward people and/or personally touch a lot of customers in a short time.

Community Relations is all about your business becoming involved in your community. Perhaps your business donates money to nonprofit associations or events like the American Birkebeiner's Ski for the Cure program. Maybe you and your employees volunteer at a fundraising event or you or your employees join a service club. Community relations boosts credibility by building personal relationships with customers and creating goodwill in the community.

Customer Relations includes anything that builds or strengthens a relationship with a past, present or potential customer. It takes far less money and effort to keep an existing customer than to attract a new one, so customer relations is a vital component of a successsful business.

A good Marketing Plan always incorporates these 5 key marketing components. If one is left out, it is guaranteed that less than 100% effort is being made toward growing your business.

Creating a clearly defined Brand and combining a mixture of marketing
tactics that address these 5 components to promote that Brand are key to business success.

If you define what you want to accomplish, research options, and
develop an excellent plan, you will be on your correct path to attracting more customers, bigger profits and a business you can brag about.

Marketing Spitfires Holly George and Leslie Hamp are creators of the 'Fast Track to Marketing Mastery' program. To learn more about the step-by-step program, and to sign up for their FREE Marketing Mastery Success Kit, visit http://www.boostyourbottomline.com

The 10 Deadly Small Biz Marketing Mistakes

Highly Contagious Marketing http://www.judymurdoch.com/workbook.htm

When asked what their questions were about marketing, one small business owner said, "I'd like to know what not to do." Good question. Most small business owners don't have much training in marketing and do their best by following what other companies are doing. The problem with this approach is that marketing is not a "one size fits all" activity. In fact a lot of business owners waste a tremendous amount of time and money on activities that bring in little or no business.

The top ten marketing activities NOT to do if you're a small business owner are:

1. DON'T buy an ad in a major newspaper

Unless of course, you want to spend your entire annual marketing budget within 30-days and have very little to show for it. Nearly every small business owner I've talked to has the same sad tale: they spent hundreds, sometimes several thousand dollars for a small ad, the ad ran and they got a paltry number of inquiries and then nothing. Nada. Zip.

Advertising in major newspapers, magazines, trade journals, and other publications can be very, very effective if you have strong copy, good images, and can pay for the ad to run over a period of days, weeks, even months. Most marketing, no matter how well done, requires repeated impressions so that your audience will be familiar enough and trust you enough to call.

2. DON'T create a brochure.

Especially using a template on Microsoft Word or Microsoft Publisher. For one thing, you'll end up with a brochure that looks like everyone else's. More importantly, unless you are a skilled copywriter or have hired one, your brochure is likely to be dry, boring, and will do very little to attract the attention of your prospective customers.

By all means, do a brochure but wait until you're clear about who our target market is, what they need, and how you are the best one to provide it.

3. DON'T try to sell something to everyone

A lot of small businesses define their target customer as "someone who is warm and still breathing." Bad idea.

It's understandable because no one wants to miss an opportunity to make money. It's why you have a business, right?

Still, the idea that everyone is a potential customers leads to two problems:

First, by trying to accommodate so many diverse needs, you end up with mediocre products and services. In a competitive market, mediocrity is not what people pay for; at least not a lot of money for.

Second, If you're trying to sell to everyone, everyone selling something even vaguely like what you're selling becomes a competitor. There's little opportunity for collaboration; little opportunity for developing strategic alliances. Finally, selling a product that has been "averaged" to meet the needs of everyone and doesn't stand out on its own puts you at risk for selling a commodity. And, unless you plan to be the low cost provider and can sell at incredibly low prices, that's a game you don't want to get into.

4. DON'T feel compelled to use the "hot new thing" in your marketing

It seems like every six months or so, there's a "hot new technology" that you can exploit to "make millions." For example, in 2003 it was blogs. In 2005 it's been podcasts. Less technical but still hyped are postcard mailings.

Please.

Here's the point: all of these activities have merit and can make your marketing more effective. However, no one technology is going to "bring millions to your website!!!"

To make the most of any marketing activity or technology, you first need to get clear on who your ideal customer is, what products and services you sell, and the unique value you bring to the table.

5. DON'T confuse marketing with marketing activities

When you hear the word, "marketing" what comes to mind? TV commercials? Advertisements in magazines and newspapers? Promotional knick knacks? ECommerce?

All of the above are valuable but they're not marketing. They are activities that enable and support your marketing.

In my book, marketing is simply creating a connection between a buyer and seller so that business transactions can occur.

You probably won't find this definition in any marketing textbook. Yet, it's a very practical way to think about marketing because it greatly expands the types of tools and activities available to you.

6. DON'T perfect your marketing message before you let your prospective customers see it

There are two reasons why this is not a good idea:

First, you will never do much marketing because you can't perfect marketing in a vacuum. The effectiveness of any marketing depends on whether it gets in front of the intended prospect, captures their interest, and, elicits action. If prospective customers never see your "imperfect" marketing, how will you ever know what you need to do to perfect it?

Second, you won't have many customers, if any because without marketing how will anyone know you exist? Businesses without customers are usually called "bankrupt."

7. DON'T expect instant sales

Especially if the product or service you sell is expensive, highly innovative, or requires a large commitment of time on the customer's part.

Oftentimes, someone just starting a new business will get terribly disappointed because they ran an ad or attended a networking event, or sent out postcards and get very little response. They get discouraged and perhaps stop any kind of planned marketing.

Again, marketing is about developing relationships. Most people need to be exposed to a consistent marketing messages at least six times…more if you're selling a high ticket item before they feel like they "know" and "trust" your company enough to take the risk of purchasing.

8. DON'T try to "get" anything from your customer

Ever say something like "I need to get more customers"? No doubt you've heard other people use the word "get" in this way.

The word "get", to me, implies an adversarial relationship between the seller and buyer. The seller wants to sell their product or service to the customer so they can "get" money. It also puts the focus on the seller when in fact, the focus belongs on the buyer.

The truth is, people want to buy things. They like to buy things. People especially want to buy things that will make their problems go away or that will make them feel good.

Instead of trying to "get business" how about "developing" relationships with potential customers by helping them get something they want? The exact phrasing may not feel right for you but it probably feels a lot better to think of yourself as offering something so valuable that people truly WANT to buy from you.

9. DON'T expect to get 100% of your business through referrals

At least not at the very beginning.

Many small business owners like to believe that all they have to do is to do a really great job and word of mouth from their current customers will bring all the business they can handle.

The truth is that while word of mouth marketing is probably one of the most effective marketing for small business owners and entrepreneurs, it takes a long time…at least a year…to develop the critical mass of delighted customers needed to bring in significant business.

While you are cultivating a group of very satisfied current and former customers, you need to employ a variety of marketing activities to bring those customers your way. In addition, most businesses, even those who have lots of loyal customers singing their praises, take an active role in managing what their customers are saying in the marketplace. Activities such as keeping in touch, rewarding and acknowledging customers who bring in referrals, asking directly for referrals, and educating referral sources so that they can spot potential customers, encourage and support your word of mouth marketing machine to work for you.

10. DON'T cold call

Most business owners hate to make cold calls but many do because it seems like the best way to bring in new business.

Guess what. There are more effective ways to bring in new business. Effective meaning the payback that you get for your time, money and energy. Developing business based on word of mouth and referrals being one of the most effective.

But wait, you may be thinking, even saying. If cold calling isn't the most effective approach why do so many successful companies use cold calling?

Two words: numbers and perception

Cold calling is a numbers game. If enough people make enough phone calls to enough people, the laws of probability say a certain percent of those called will buy something. Now, smart sales organizations do all sorts of things to make the odds as favourable as possible: pre-screening, purchasing leads, developing call scripts, and so on but the success of the method still depends on the brute force of making lots of calls.

Seeing lots of people on the phone working their list also gives the perception of productive activity. People are working hard to get business. And you have the number of calls, number of appointments made, number of contracts signed, etc to prove that productivity.

Cold calling may not be the most productive approach to getting business but it sure does look like it is.

BOTTOM LINE

The point here is that marketing is not an exact science. There is no one sure fire-way that will have customers pounding down your doors to buy from you. That's why I find thinking of marketing as cultivating relationships such a useful definition. Successful marketing is about successful business relationships and successful business relationships require time, familiarity, and trust.

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Judy Murdoch helps small business owners create low-cost,

effective marketing campaigns using word-of-mouth referrals,

guerrilla marketing activities, and selected strategic alliances.

To download a free copy of the workbook, "Where Does it Hurt?

Marketing Solutions to the problems that Drive Your Customers

Crazy!" go to http://www.judymurdoch.com/workbook.htm

You can contact Judy at 303-475-2015 or judy@judymurdoch.com

Small Business Marketing: Reverse the Risk and Watch Your Sales Soar

One of the primary obstacles that you must over come is the buyer's sense that they are taking a risk when buying from you. The more they feel that they are taking a risk, the greater will be their reluctance to make the purchase.

To overcome this objection, you must reserve the sense of risk. You must take on the risk yourself.

Has it ever occurred to you how most businesses transfer the inherent risks of running such a business to the customer?

Well, the following is a classic example of how this is done these days:

A few days ago, I went into a store to buy a birthday present for a friend. I noticed a sign on the wall behind the cash counter that said "Absolutely no refund after 15 days" and I thought to myself, "How negative is that?" It sounded so severe and foreboding, even threatening.

I was wondering why these people would want to tarnish their customer's goodwill by stating the policy in such a negative way and run the risk of turning off even one customer. Especially, when the very same message could have been expressed in a much more positive way and help to build lasting customer relationships. For example, the same line on the store's return policy could have read, "We will gladly refund your full purchase price within 15 days."

The difference:

I am sure the difference in the two approaches is quite apparent. In the first statement, it is implied that the customer has to shoulder the burden of responsibility while the second statement indicates that the store management is willing to go out of their way to help the customer.

The above example is only a small one with perhaps only a negligible effect on sales, but the idea is to not state things in a negative fashion when there is a much better and more positive way of saying the same thing.

Your risk, your gain:

The wide range of anti-customer policies employed by various businesses never ceases to amaze me. The point that they all miss here is that, if you believe you have a sound product or service, then you should leave no stone unturned in advertising it to your customers.

For example:

"Our prices are the lowest in town or we'll refund double the difference" or "If we don't have your size in stock, we'll make a special order and have it here within two days" or "Marketing that gets you results or it costs you zilch, nada, zero.

All of the above statements have a powerful and positive psychological impact on the mind of the customer. If you can perform, you must make sure you let people know. If you were the gift shop owner, as in the earlier example, you may get a few returns and refund requests to begin with, but those will be of no consequence at all compared to all the new business you will be getting just by thinking smart and communicating right.

As a matter of fact, studies have generally found that with product guraantees, the longer the guarantee period, the fewer returns. The longer guarantee gives the customer a sense that you really believe in your product.

Take for example an information product. If a customer has not had a chance to really get into the product and consume the information provided within the guarantee period, they may decide to return simply because they haven't had the time to satisfy themselfves that the information is really useful to them.

On the other hand, if the guarantee is for a year, then they don't feel rushed and if they never get to the product and it sits on the shelf unopened, they will have long forgotten all about it and the guarantee when the deadline comes up.

Taking the risk on yourself is good for business.

George Dodge owns http://www.SmallBusiness2BigProfits.com that focuses on Small Business Marketing and hosts Bob Serling's Master Marketing Course for Small Businesses that "Can Literally Double Or Triple The Number Of New Customers Or Clients You Bring Into Your Business."

Effective Marketing for Small Businesses

Effective Marketing for Small Businesses

Author: Amber McNaught

Effective marketing for the small business begins with market research

If you don?t know who your customers are, how on earth are you going to reach them? The most effective small business marketing strategies are the most highly targeted ones: the ones which are based on a clear understanding of who their target audience is. What?s your target age group and income bracket? What publications do they read? What do they do for fun? For it to be truly successful, your marketing should try to address an issue your target market deal with, fulfil a need or answer a problem. To be able to do that, you need to know who they are.

Before you start marketing your small business, identify its strengths and weaknesses.

Nothing will damage your small business quicker that disappointed customers. Don?t oversell your products or services: if you know you can?t deliver what your clients are looking for, refer them to someone who can, rather than taking on the project and doing it badly. People love to complain: don?t give them the opportunity to. At the same time, don?t undersell yourself either: you want to win new customers, after all!

Kick off your small business marketing with a survey

One of the best ways to get to know your customers is to have them fill in a survey. Mail it to them (with a reply paid envelope) with their invoice, hand it out along with their purchases, email it direct, or even put it on your website. However you decide to conduct your survey, think carefully about the types of questions you need to ask. Try not to make it too long, or people won?t bother to complete it, but don?t make it too short either, or you risk not collecting the information you?re looking for.

Analyse the competition

Any small business marketing strategy should take your competitors into consideration. In order to compete effectively, you have to know who they are and what they?re doing. What are their strengths and weaknesses, and how do they compare with yours? Spend time researching your competitors: find out their prices and look at their websites. Once you know what they?re doing to win customers, it?s up to you to do it better!

Amber McNaught is co-owner of Hot Igloo Productions, a UK website design and marketing business specialising in helping small businesses grow through

Effective Marketing for Small Businesses

Author: Amber McNaught

Effective marketing for the small business begins with market research

Before you start marketing your small business, identify its strengths and weaknesses.

Kick off your small business marketing with a survey

Analyse the competition

Amber McNaught is co-owner of Hot Igloo Productions, a UK website design and marketing business specialising in helping small businesses grow through the use of internet technologies and public relations.

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