Marketing Q & A How can I get the most for my marketing dollars? There are 2 ways to do that - target marketing and database marketing. Target marketing means you market only to the people most likely to buy from you. Determine a customer profile -- who is most likely to buy from you and why, then figure out where they are, what they read, where they shop, and how you will solve their problems. The goal is for your specific target to see and/or hear your name consistently and frequently. Find publications and mailing lists that fit your target market. Even large newspapers have special sections that focus on specific industries and readers. Mailing lists are easily suited to selected demographics. Another way to use your marketing dollars wisely is to try to get your past and present customers to buy more products or services. You should continually be marketing to customers through newsletters, email updates, or post cards. It's less expensive and easier to sell to someone who already knows who you are and what you do! 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. Whatever you do, be sure to do your "homework" by developing a marketing plan including your business objectives. 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 in 2005, 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. If you don't have the finances, then you need to think about alternative funding. Marketing is not a luxury, it's a necessity. Lending institutions recognize the need for marketing and are much more receptive to business owners who get it! How can you build demand for your products or services if your potential customers do not know that you exist or are not convinced to purchase from you? 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. Word of mouth is just one of many marketing tactics that you should be relying on for new business. Mix it up with some other more planned tactics for a more reliable return. 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? I suggest it's back to the drawing board…your marketing plan. This is a good time to take stock of things and think about where you want your business to be. Be as specific as you can about sales and revenue objectives, number of new customers, and profits you would like to achieve. In addition to making sure your operations are running lean and mean, 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. Invest your dollars wisely and it will pay off! 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. 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. Remember that often these deals look tempting and you feel obligated because they are so reasonable and community-focused, but even small dollars add up and can be wasted if there is no return on your investment.