In a down economy, businesses look closely at expenses and cut costs where possible to offset declining revenues. Cutting marketing expenses, however, is a bad idea. To build business and increase sales, marketing is critical, especially for small businesses who may be competing with larger companies. It’s tempting to think of marketing as just another expense. But, for small business success, marketing should be viewed as an investment with long-term value. Research shows that, during the past five recessions since 1971, companies that actually increased their marketing budget were more likely to have stronger earnings than those that did not.
Marketing covers advertising, public relations, promotions and sales. A process by which a product or service is introduced and promoted to potential customers, marketing keeps your product or service top of mind with potential customers. It helps you reinforce benefits to the consumer, distinguish yourself from the competition, clarify misconceptions, build your brand and establish your company as reputable and reliable.
Tips for Low-Cost Marketing Efforts
Not all marketing needs to be expensive. Here are a few ideas that will help you keep your business in front of prospective customers without breaking your budget.
Trade Show Alternatives: While you may not have the budget to attend your biggest trade show with a splashy booth this year, you can often work with trade associations to find other ways to get your marketing materials in the hands of trade show attendees. Often there are literature bins, tote bag stuffers, sponsorships and other lower-cost opportunities offered by the association. Consider having a special piece designed just for that purpose that really speaks to that specific audience with your benefit-oriented pitch.
Public Relations: Do you have a new service or product, or an enhancement to an existing product? Generate free publicity with a well-crafted press release delivered to the right media. Find out who to send it to (specific names and email addresses) and follow-up to be sure they got it and answer questions they might have. Include images when possible to make it graphically appealing.
Social Media: If you don’t already have a Facebook, Twitter, Pinterest and LinkedIn presence, set it up and put a plan in place to frequently post updates and answer questions/comments promptly. Post activities, images, promotions and other news that puts your business in a positive light and also encourages engagement. Offer incentives to your followers that will increase business and word-of-mouth referrals.
Sales Collateral: Does your sales team have the most up-to-date materials that convey a clear, compelling benefit to the customer? Or, is the benefit lost somewhere on the page? A new sales flier, brochure or e-blast can give your sales troops, as well as sales, a boost. These materials do not need to be high cost — rather, they need to put your company’s benefits front and center. Good writing and design can help you achieve that.
Advertising: If you feel as if you’ve been burned before by spending a lot of money on a big ad that didn’t produce results, you are not alone. Many small businesses fall for the premise that a big ad will get them big results. A key component to advertising is repetition. Running smaller ads more often reinforces your message and reaches more people than a one-time ad. Another key is to have a strong message. A series of ads that builds on a running theme can help you tell a big story.
Website: When was the last time your website was updated? If it’s been a while, now is a good time to evaluate ways in which your website could be driving more business to your company. Posting a blog that tells your customers more about what your business can do for them is a great way to keep fresh content on your site and move it further up in search engine rankings. Also, the navigation should be easy and important information — your key message — should be front and center.
Without marketing, your potential customers may never be aware of your business offerings and your business may not progress. Using marketing to promote your product, service and company provides your business with a chance of being discovered by prospective customers. The Elliott Group can help with low-cost marketing efforts and advice to help you succeed.
