Marketing For your Business

What is Marketing?

If you attended business school, then you probably learned "The 4 P's of Marketing": product, price, place and promotion. Of course, in the real world, marketing your business requires practical action steps.

Many small businesses fail or struggle because they simply don't make efforts to market their businesses. Have you ever been in a retail store or restaurant that had no customers? Do you think these owners are doing everything they can to promote their businesses? Probably not.

Every business needs a marketing plan. Your plan can be fifty pages long, or it can simply be a list of monthly or weekly reminders on your calendar. Regardless of what your plan is, it can't sit on a shelf. You must take ACTION to market your business regularly.

Here is a list of real world actions that you can do to market your business:

Branding
Create a professional logo that is used consistently in all of your business activities. Among other benefits, a good logo will enhance trust and loyalty among your customers. A recognizable logo will make your business significantly more valuable when you decide to sell. (More on this in GOODWILL.)

Location
Unless you are doing business exclusively online or working from home, your location can be an important part of your marketing. Even if you are in the manufacturing or wholesale business, you will benefit from being in a professional building that is close to your customers. In the retail industry, location is absolutely critical. Choose your location carefully, so you will attract both customers and a talented staff.

Signage
Professionally branded signage not only shows customers WHERE you are, it also tells them WHO you are. Signage is a marketing opportunity to portray your business in a positive light. Bad signage can actually deter customers. Stand back and look at your signage. Ask yourself honestly whether you would patronize your own business if you weren't the owner. Consider the cost of your signage as a prepaid marketing expense that pays dividends for the life of your signs. Spend a little extra to make your signage perfect.

Web Sites
Every business MUST have a Web site. The name of your site should be simple, memorable and end with DOT COM. If possible, the name of your site should match the name of your business. Before designing a site, take a look at your competitors' Web sites. Your site should match or exceed the quality of your competitors. To be effective, your site must quickly convey your company's purpose. What is your product or service? What are the benefits? If a visitor is interested, do you want him or her to make a purchase, sign up or contact you? Decide what you want your visitors to do and invite them to take that action. Web sites have several amazing qualities: they are not bound by size or geography, they can perform and organize many functions automatically, they work 24 hours per day, they allow small businesses to compete on equal footing with major corporations and they can provide customers with strategically designed materials to drive sales. Use your Web site to promote your brand, sell products or collect email addresses from new prospects.

Online Advertising
Online advertising has evolved to become the most measurable and immediate form of advertising. Search engine advertisements will attract users searching for specific words and word combinations. Generally, you will only pay for an ad each time a user clicks on it. Tools make it easy to track the number of visitors your Web site receives and the exact number who take action on your site. You can calculate the precise cost of each new customer and each sale, then adjust your campaign. Another option is to create graphic banner ads to be placed on various Web sites. Banner ads can often be arranged directly with individual Web sites or through services that place ads on many sites simultaneously. Typically, banner ads do not target audiences as precisely as search engine ads; however, banner ads provide brand exposure, even if viewers don't click on them.

Traditional Media Advertising
There are many different forms of traditional advertising, some of which can be quite expensive. Your business should evaluate and consider all possibilities in Print, Radio and Television advertising. Even with a limited budget, you may discover that trade publications, local newspapers, late night radio or cable TV can help you reach your target audience affordably. Be sure to track the effectiveness of your ads, so you can spend your advertising dollars wisely.

Outdoor & Indoor Advertising
Many businesses rely heavily on outdoor and indoor advertising. These methods include surface and poster ads on billboards, park benches, bus stops, subways, rest rooms, nightclubs and restaurant table tops. Ads can even be placed in the sky on blimps and airplane banners. Assess these options carefully, because their effectiveness can often be difficult to track.

Catalogs & Mailings
The growth of the Internet has substantially reduced the need for catalogs and mailings. Web sites and Internet advertising is generally more cost effective than physical materials sent by mail. Some industries, such as dry cleaning and pizza delivery, still use mailings regularly. Catalogs that cater to older audiences or loyal readers can also be very successful today.

Phone Books
For many industries, the Internet has become the primary tool for finding phone numbers. This has caused telephone book advertising to become cost prohibitive. However, some industries have less sophisticated customers who still use phone books. Study your target audience's behavior before committing to an expensive phone book advertisement.

Direct Response Campaigns
Direct response ads, or infomercials, are TV or radio ads that elicit viewers to place an immediate order by phone or through a Web site. Products that fulfill a common need and require demonstration may be appropriate for this marketing tactic. Experts should be consulted to assist with your call center, fulfillment, commercial production and media buys.

Home Shopping Channels
Products that are appropriate for direct response campaigns are often suitable for home shopping channels. HSN, QVC and other networks specialize in selling products on TV. To get your product on these networks, you must navigate a screening process and be willing to accept very demanding terms.

Sales
Although every business requires a certain level of salesmanship, many service, manufacturing and wholesale businesses require exceptional sales skills. To be good at selling, you must strive to help each customer rationalize a decision that's good for them. The selling process can generally be broken down into eight common steps:

* Prospecting – find and reach out to your potential customers
* Rapport – find common ground and get the customers to like you and trust you
* Needs Analysis – ask quality questions
* Presentation – offer solutions and let your customers know what's in it for them
* Overcoming Objections – anticipate objections and prepare answers in advance
* Closing – get a commitment for your product or service
* Following Up – make sure your customer is a happy customer
* Referrals – get introductions and testimonials

If you have a product or service that genuinely fulfills a need at a fair price, these basic steps will lead you to more sales. Be confident in your product or service, be persistent and remember A-B-C – Always Be Closing.

Telemarketing
National do not call lists, caller ID and call blocking technology have combined to reduce the effectiveness of telemarketing. It is no longer accepted as an appropriate marketing tactic among the general public.

Retail Distribution
Many businesses that develop a great product, or a cheap product, rely solely on distribution and informative packaging. Although retail distribution is the primary revenue channel for many products, it should not be your only way of marketing your product. Getting a product on store shelves without any promotion (and just hoping it sells) is often called PUSH marketing. Employing other marketing tactics to build your brand and stimulate demand is considered PULL marketing. Retailers will sell more product and place more orders if you are able to enhance your retail distribution by building brand awareness.

POP Displays and In Store
Point-of-purchase (POP) displays and in store marketing can often be good investments. These marketing tools can lead to more impulse buys; however, the incremental sales must offset the cost of the program to be worthwhile.

Couponing
Offering coupons or discounts can be both effective and expensive. You must consider both the cost of printing or distributing coupons as well as the reduced price of your product or service. Often times, customers that would have paid full price end up paying a lower rate. Take all of these factors into account before deciding on a campaign.

Sampling
Getting customers to try your product or service is often one of the most difficult challenges. Grocery stores and food court restaurants use sampling to encourage customers to buy new food items. Sampling tactics can also be applied to many other fields and can be particularly beneficial for high priced items or concepts that are new to an industry.

Grass Roots Marketing
There are many methods of grass roots marketing, including online campaigns and distribution of flyers, posters, prizes and swag (promotional items). Music, movies, beer, liquor and cigarettes are promoted aggressively with grass roots techniques. Companies frequently employ "street teams" to pass out marketing materials by hand and to personally interact with customers.

Viral Marketing
Viral marketing is a means by which the public spreads the word about your business for you. Often times, loyal fans of your product or service are your best advocates; however, some creative marketing people have used entertaining stories, images and videos to encourage people to pass a message along. Fan clubs, loyalty programs, shared Internet links, bookmarking sites, invitation systems and social networks are all aspects of viral marketing.

Affiliate Programs
Affiliate programs reward people for referring others to your Web site or business using prizes or cash. Many Web sites use affiliate programs as a method of advertising. Affiliate members simply sign up and post banners or links on various Web sites. Affiliate members earn commissions in exchange for the promotional help.

Multi Level Marketing
Multi level marketing (MLM) is a tiered reward compensation system, where people share sales commissions along a hierarchy. Although MLM can be done properly and ethically, many scams or Ponzi schemes have abused this marketing concept. Today, it is frowned upon and no longer considered a practical marketing tactic.

Promotions/Contests
There are many ways to arrange promotions and contests. You can organize and manage these activities internally, or you can hire outside firms to handle everything. Promotions or contests that are done well can generate positive publicity and enhance customer loyalty. Like many other marketing tactics, always weigh the costs and benefits of any promotion or contest.

Sponsorships
Sponsoring events, competitions or contests can be an economical way of gaining exposure. Often, sponsorships offer a high value to cost ratio. This means that you will expose your brand to a much larger audience than the same budget would normally allow. Of course, the sponsor is not the focal point of the associated ad campaign, and the media spotlight is shared with the event itself. In addition to the media benefits, sponsorships will place your logo side by side with other respected companies, thus enhancing your goodwill. It is always wise to take an active role in enhancing your sponsorship, because sponsored events often have ancillary benefits that can be overlooked.

Product Placement
Producers of films, television programs and video games have created many opportunities for businesses to promote their wares. Whenever possible, try to involve your product or service into the storyline in a positive way. A passive product or logo in the background of a scene will not be nearly as memorable. Reese's Pieces, used as bait in the film E.T., is often considered one of the greatest product placements in movie history.

Trade Shows/Conventions
Booths or exhibits at industry trade shows and conventions can be effective for making business contacts and sales. Many products find distributors and retailers at these events. To become a leader in your industry, you must have a presence at major conventions.

Events
Whether you own a restaurant, a retail store, a consulting firm or a manufacturing plant, organizing your own events can stimulate business and increase customer loyalty. These events may include parties, exhibitions, seminars, golf outings, concerts or simple meet-and-greets. Promote your events with personal invitations, free tickets, e-mail announcements and advertising.

Newsletters
Keep your customers updated on your business activities by maintaining a weekly or monthly newsletter. For a newsletter to be effective, the content must be of interest to your customers. Don't fill the newsletter with promotional content. Give your customers helpful information about your industry. This will increase the likelihood that it gets read, and your customers will remember you for your genuine helpfulness. Collect e-mail addresses through your Web site and trade shows. Give users an easy way to opt out of the newsletter.

Publicity/Public Relations
Many books have been written on how to generate publicity. A professional press release is widely considered to be the primary tool of a PR campaign.I believe that a publicity strategy is equally important, if not more important, than your press release. Far too often, a business sends a press release to wire services and media lists, but the effort results in no media coverage. A well planned strategy can result in substantial media attention. For maximum effectiveness, your press release MESSAGE must be memorable, simple and compelling. Without a compelling hook or story, writers and reporters will have no interest in it. Prepare your press release with a reporter's mindset. What is the story that they will tell? Will the public see the story and talk about it? Does the story sell newspapers and boost TV ratings?

Influencers
Celebrities, business leaders, politicians, athletes and other high profile people often influence consumers. Many business owners have learned to harness this influence by giving free products to carefully selected people or arranging formal endorsement deals. Use of your product or service by influential people can often increase publicity, credibility and prestige for your brand.

Stunts/Controversy
Richard Branson, Vince McMahon and the legendary P.T. Barnum are masters of generating publicity from stunts. There are also many business executives who gain attention through bold statements or controversies, such as Donald Trump and Mark Cuban. All of these people have learned how to manipulate the media to promote their respective brands. Breaking world records and making controversial statements to the media will certainly get you some exposure, but it is imperative that you consider how these actions will impact the goodwill of your brand.

Philanthropy
Performing good deeds for the public can also serve to enhance the reputation of your company. Charity is not a marketing tactic, and should not be considered as such. However, this secondary benefit should encourage you to contribute time, money and effort to an appropriate cause.

Positioning
As a business owner, you can position yourself as an expert in a field by publishing articles, writing books, appearing on TV programs, participating in panel discussions and simply becoming known for a specific area of expertise. By continually appearing publicly and speaking intelligently about a certain topic, the media will eventually request statements from you when the topic arises. Your positioning as an expert and a leader in your industry will cause growth in respect, customers and revenues.


Before applying these marketing tactics, take careful consideration in deciding where to spend your time and money. Who are your customers? What are the characteristics that define your target audience?

It is usually best to focus on a specialized niche and become known as a leader in your specific field. You can advertise more efficiently toward targeted audiences than to general audiences.

Set a marketing budget and customer acquisition goals. Track your costs and the effectiveness of each marketing technique. If possible, calculate the cost of acquiring each new customer. Discontinue any activities that are not generating results. Some marketing methods complement one another, so keep this in mind when evaluating each activity. Reevaluate your marketing plan on a regular basis.

Have fun while coming up with marketing ideas. This can be one of the most exciting and creative aspects of your business.