| There are many complicated strategies out there | | | | greatest return from the least investment. |
| on the subject of marketing and advertising, | | | | Another point that marketing experts agree on, is |
| covering demographics, different media types, | | | | that customers very rarely buy the first time |
| seasonality and other ingredients of a successful | | | | they see any advertising for a product or service |
| formula. But most of us, who run a small or | | | | from an "unbranded" business. At best, initial |
| medium sized business, don't want complicated, so | | | | advertising just raises awareness. It is only after |
| for the benefit of this article, lets define | | | | the customer becomes familiar with the adverts, |
| marketing as anything that promotes your | | | | product or service, will the decision to buy be |
| business. | | | | made. Of course within "branded" businesses, the |
| I see marketing a bit like investing on the stock | | | | trust with the customer is already there, so the |
| market; invest some money, with the intent of a | | | | decision process is much quicker. So if your |
| good return from the investment. For example | | | | potential customers don't know you, don't expect |
| some shares (offer of the day) could be bought | | | | immediate custom. This suggests that one off |
| to yield an immediate return, some shares could | | | | panic advertising may still not bring in the custom |
| be bought for a longer but safer term to mature | | | | you were expecting, even though you have a |
| and some are just high risk. A seasoned investor | | | | fantastic priced product or service. |
| will probably have a portfolio that covers all these | | | | This is also relevant for start up businesses. A |
| options. | | | | typical strategy would be to form the company, |
| To relate this to your business, do you have | | | | put everything in place and then start your |
| stock you need to sell immediately (special | | | | marketing. An experienced businessman would |
| offers), are you advertising to bring long term | | | | start the marketing plan much earlier. Knowing |
| brand awareness to your business or are you | | | | that the initial advertising would just stimulate |
| trying new forms of advertising that has never | | | | interest and hopefully real sales would coincide |
| been tried before in the hope of a large return. | | | | with the true start date of the company. |
| Just like the investor a seasoned marketer would | | | | What type of advertising is the next question? |
| consider marketing over all these sectors, | | | | Look at what other successful related businesses |
| immediate special offers, long-term branding and | | | | are doing, and then do the same but to better |
| possibly a small amount of high-risk options. | | | | standard. The key word here is "successful". If |
| Spread the risk and then measure the return. | | | | they are successful, then they are doing things |
| However some small businesses see advertising | | | | right and have already gone through the |
| or marketing as an unnecessary expense and | | | | measuring stages. |
| tend only to invest in it when sales are low or at | | | | High-risk marketing should only be done, at times |
| start up. This often means they are only | | | | when your other marketing strategies can |
| marketing for an immediate return, focusing on | | | | support it, unless you have nerves of steel of |
| your special offers just to get customers in. | | | | course. Certain entrepreneurs have broke world |
| Ironically if a longer-term strategy had been in | | | | records crossing the Atlantic in boats and hot air |
| place, the need for panic advertising might never | | | | balloons and have built international mega brands |
| occurred, sales could be more consistent and the | | | | through clever PR. So the rewards are there if |
| products or services sold could be based more on | | | | done right but if it is done wrong, can bring no |
| market prices rather than on specially created | | | | return and even damage a company. |
| deals. | | | | To summarise, if you are running a businesses |
| Longer-term marketing is seen every day in the | | | | that is intended to be around for a long time, then |
| media as the biggest brand names in the world | | | | see your marketing strategy as a long-term |
| still consistently market themselves even though | | | | investment. Long-term customer awareness |
| everyone knows who they are. They know it is | | | | eventually brings word of mouth marketing, which |
| cheaper to stay at the top than to get back up | | | | is the best, and cheapest you can get. If you run |
| there, if their market share slips. | | | | one off adhoc marketing campaigns, it is unlikely |
| A seasoned investor would also regularly keep in | | | | you will get the best return on your campaign until |
| touch with share prices to measure their return | | | | people know who you are, single "one off" |
| on investment. A mistake many businesses make | | | | adverts in your local paper rarely achieve |
| is not to measure their costs against return on | | | | anything. High-risk advertising is just that, can be |
| sales. Using reference numbers in adverts or just | | | | fruitful if successful, but can be damaging with |
| asking the question when receiving phone calls can | | | | little or no return. |
| give you indications of what advertising is working | | | | Finally, measure and review all your marketing |
| and what is not. You may find that just one | | | | costs against the return you are receiving then |
| simple advert in a local paper is paying you | | | | change your plan to suit. You wouldn't invest your |
| dividends, but the radio advertising is not bringing | | | | life savings on the stock market and not check |
| in anything. How do you know, unless you | | | | how much you shares are worth, so why have a |
| measure it? You can then adapt to bring the | | | | different process for your marketing costs. |