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