The Facts About Marketing

• Many business owners do not fully understand marketing.
• Marketing is not Sales.
• Marketing is much more than Advertising.
• Marketing is a process of building your brand identity.
• Consistent marketing builds awareness.
• Business growth occurs through consistent long-term marketing.
• Customers buy from businesses they know and trust.
• Potential customers may or may not know what you offer.
• Customers will shop at competitors who market the best.
• Marketing brings buyers to your door and to your sales process.
• Every business is unique.  What works for one organization may not work for yours.
• Small businesses can and do frequently ‘earn” free press coverage.

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The Building Process

Marketing is a “building process” and takes time, focus, and consistency.   For example, organizations use press releases to introduce and inform editors and reporters about important news or industry trends.   This can result in “free” print, or feature articles with photos.   A pdf file or copy of the article can be made into a plaque for the company offices and can be placed on the website as an endorsement of the company’s credibility and community standing.  A copy or link of the article can be sent to past and present customers through an e-newsletter. This becomes the foundation for a “press kit” that can be used to impress new customers, introduce you to editors of larger publications or even TV producers for more free coverage.  The press kit can accompany business award nominations.  Winning awards builds more credibility and can result in additional “free” press coverage and networking and on and on it goes! Contact us for more information

Marketing Q & A

We really need to get some new customers quickly.   What is the best way we can do that?

First of all, do you want new customers or "new business"?   Are you already working your database and regularly marketing to past and present customers...advising them of new products, services, and special offers?  If so, then it's time to add in a plan to develop new customers. How you do that depends on your type of business.  Retailers, restaurants, places with fixed locations open to the public do well with social networking such as Facebook and Twitter.  Service industries or manufacturing will do well with e-newsletters and traditional marketing such as targeted mailings or advertising.  My best advice is to implement marketing that is sustainable long-term instead of waiting until the last minute to market.  Successful marketing is a building process and it is unlikely you will see overnight success.

I hear a lot about "branding", however, what does that mean to small businesses?  We're not Pepsi or Goodyear so how do we do that?

No matter what your company sells, services or products, and no matter how big or small you are, you may already have a brand identity.  The important question is:  "Is it your brand identity by default or design?"   Think of a person and their personality and what makes you like them or not.  Your business has a personality as well.   Do people know and trust your business?   Figure out what you want your brand image to project (quality, credibility, service, fair pricing, etc.), then develop a plan to promote the brand.  Keep in mind that certain marketing tactics build brand better than others.

Can you please explain "marketing" and "sales"?  Aren't they really the same?

The job of marketing is to build interest and awareness that lead to sales.  Marketing and sales are definitely not the same although they are frequently confused and referred to in a generic way.  Marketing is the whole process, it’s the big picture, it's all of the tasks -- from designing a product, determining how it fits the market in terms of features, price, packaging, and distribution and then creating awareness and interest through advertising, publicity, and promotions.   A sale is the point at which the buyer's decision is finalized and the purchase is made.   

Marketing is the foundation you build for long-term growth and success. Think about how tough it would be to sell something that no one wanted, ever heard of, or didn't understand?

How can I get the most for my marketing dollars?

Social media including e-newsletters or blasts and other strategies is the least expensive.  However, if you are utilizing traditional marketing strategies such as print advertising or direct mailings, be sure to seek publications or mailing lists that target your best customer profile.   Also, communicate regularly with your customer database to remind them of your services and ask for referrals.   These are both economical strategies.

How much should I budget for marketing?

There is no rule of thumb for every industry or business. I have heard that 14% of revenue is a good measure. What is important is that you are pro-active and budget some amount.  My clients frequently ask what they can expect to pay for marketing and I do not have a definitive answer until we do the marketing plan and begin to delve into the details. Marketing costs include items such as advertising, publicity, promotional literature, direct mailing, trade shows, newsletters, and websites.

You will need to determine who will design your ad and what their fee is, frequency and placement of the ad, design of your brochure or mailing piece, printing quantities and cost, distribution costs such as direct mail, and all of the "mechanics" that go along with your marketing strategies. If you elect to hire a marketing professional, you will need to include those fees in your marketing budget as well.

I started a new business a year ago, but do not have the money to do any advertising or marketing yet. How do other businesses handle this?

If you don't have the money to invest in marketing, don't start a business! Businesses that are started without marketing dollars frequently find themselves "out of business" or barely hanging on sometimes for years. Unfortunately, many businesses are started on almost nothing and that' may seem great at the time, but no business can flourish without marketing. Entrepreneurs sometimes are so excited about their services or products, they think people will purchase by osmosis.

For the past 3 years, we have built our business by word of mouth. However, our sales decreased in 2005 and we don't understand why.

It's never a good idea to "put all of your eggs in one basket" and especially to depend on "word of mouth" to do your marketing for you. It's sort of like expecting to earn your bread and butter by betting on the races. Too much risk, especially when the economy is slow.

I would suggest that it's time to revisit your business objectives and develop marketing strategies that support your goals and that you control. A multi-strategic approach is always a good bet! Some type of targeted advertising plus direct mail to your past and present customers plus some publicity would be a much better solution.

We started our business 6 years ago and have continually made a profit, but we seem to be stuck in a rut, just maintaining and not growing. How can we take the business to the next level?

If you want to go somewhere different with the business then you need to do something different in your marketing. Determine what has worked and what has not. Examine your marketing strategies and determine if they can be improved or if you need to expand on what you have been doing. Sometimes there's just no getting around the old adage of…"it takes money to make money". Think about the marketing dollars you will invest in the context of how many new sales it will take to break even. Is it time to hire a marketing professional?

We are constantly being solicited for advertising in community calendars, coupon magazines, fundraisers, and school events. Should we take advantage of these offers?

I would urge you not to make spur-of-the-moment marketing decisions. The charities or community events that you support can be a personal decision of course, but they can also be part of your public relations strategy. Likewise whether to advertise to coupon shoppers is a critical business decision that should be a part of your marketing plan.   Does this form of advertising fit your brand identity?  Do you want coupon shoppers?  Will it be regular?   Is it your target market?

When you have a plan that outlines your marketing tactics and when you have someone dedicated to carrying out your marketing such as a staff person or a marketing consultant, you can easily avoid making snap decisions that will most likely not bring new business or further brand identity.

We offer sports products and I’m not sure where to advertise. There are so many small newspapers that are reasonably priced, but is that where I should be?

Newspaper ads are generally a form of mass advertising unless you take advantage of special editorial sections or newspapers that are targeted such as a business publication. The only time you would want to advertise to the mass public is if you offer a product that everyone and anyone can use. The same can be said for smaller newspapers that do not offer special sections.

My advice is to check out the newspaper’s schedule of editorial sections that can be found on line or by calling the paper. For example, in the warmer months, they may produce a special section on summer sports or golfing in particular. If you have a product that falls into that category, then that’s a great place to advertise. However, keep in mind one such ad will not bring tremendous response. Advertise often and consistently.

What other ways can we compete in a home construction business without being the cheapest in price?

Pricing is definitely a consideration of your overall marketing. It’s one way you can position your company in a competitive market. You can, however, compete by offering superior quality, prestige, service reputation, or unique products and services. The challenge is to convince potential buyers that your value far outweighs any price differential.

Be creative. There are many ways to differentiate your business from others; i.e. Offer your customers a product or service that they can’t get anywhere else and build customer loyalty and retention without being the cheapest.

Stay in touch. Call on past customers who have had remodeling or new builds done by your firm. Past customers can be a source of “more” business or referrals.

Select the right target market -- potential customers who are willing to pay more to get more.

Is publicity the same as public relations? How can I obtain publicity for my business?

Public relations is comprised of all of the activities that help an organization develop a favorable relationship with the public including publicity, community relations, industry associations or relations, crisis management and employee relations.

Publicity is just one part of public relations and it’s “free” if you can convince an editor, reporter, or producer to feature your story, however, there is a lot of behind the scenes work. You will need to know the key media contacts for your market and your industry both print and broadcast. Understand their goals and be sure to always pitch a story about your organization that is newsworthy and timely. Learn how to write an effective press release.

Public relations professionals and marketing consultants can help immensely since they already have the knowledge and the contacts with the world of the media.

What’s the best way to determine my “target” market? We offer a variety of services that many people can use.

You can start by analyzing your customer type. Unless you are a Fortune 500 company, your market is probably not the world. Find out who is purchasing your services now. Where are they coming from geographically? What does the ideal customer look like in terms of income level, age, gender, or other demographics? Should your target market include referral sources?

Along with taking a closer look at your customers, you’ll need to separate out the services they are buying the most. If your records do not include customer data, you will have to make a judgment call or research your industry. Most businesses have more than one target market or customer type. Each customer group may have different demographics and that becomes important in marketing.

Know your customer. The more you can narrow your target market and understand their needs, the more you can focus your marketing messages and generate sales.

We are advertising, but it’s not working and it’s costing a lot of money. How long should we wait for results?

Without knowing where and how you are advertising, the general rule is that people need to see something at least 3 times before they take action. If that’s not happening, go back and rework the ad – make sure you have placed the ad in the correct media, one that is targeted towards your customer. Then determine if the ad clearly communicates something to the readers or audience that they may need or want. Is there a call to action, did you include an offer with a deadline, do the ads convey a consistent image, what does your ad headline say?

There are many decisions to make when advertising from concept to creating copy and design. You should consult a professional. The advertising reps at the newspapers, magazines, and TV stations are a tremendous help but don’t expect them to have a lot of data on what works and what doesn’t. They can help you with the ad layout but they are not experts on your company or your marketing strategies.

I have taken several marketing classes and seminars and believe I have a good understanding of how to market my business, however, what I don’t have are the contacts or connection to the resources that I need to get the job done. Where can I find these services?

If you have the time, you can find many resources on the internet or in your local phone book, or by joining a networking group with marketing communications or advertising members. The difficulty is that you will have no way of knowing if these are the best or the most economical resources without spending valuable time doing research and canvassing them individually.

You can hire an agency with staff or a marketing professional or consultant who will have established contacts to media personnel, designers, web developers, and more. A good marketing professional with credible resources can save you substantial time and money. It’s their business to know who is offering the best services at the most reasonable rates and which of those resources will be the best fit for your business.