Marketing

To succeed, entrepreneurs must attract and retain a growing base of satisfied customers. Marketing programs, though widely varied, are all aimed at convincing people to try out or keep using particular products or services. Business owners should carefully plan their marketing strategies and performance to keep their market presence strong.

What is Marketing?

Marketing is based on the importance of customers to a business and has two important principles:

1. All company policies and activities should be directed toward satisfying customer needs.
2. Profitable sales volume is more important than maximum sales volume.

To best use these principles, a small business should:

• Determine the needs of their customers through market research
• Analyze their competitive advantages to develop a market strategy
• Select specific markets to serve by target marketing
• Determine how to satisfy customer needs by identifying a market mix

Market Research

Successful marketing requires timely and relevant market information. An inexpensive research program, based on questionnaires given to current or prospective customers, can often uncover dissatisfaction or possible new products or services.

Market research will also identify trends that affect sales and profitability. Population shifts, legal developments, and the local economic situation should be monitored to quickly identify problems and opportunities. It is also important to keep up with competitors' market strategies.

Marketing Strategy

A marketing strategy identifies customer groups which a particular business can better serve than its target competitors, and tailors product offerings, prices, distribution, promotional efforts, and services toward those market segments. Ideally, the strategy should address unmet customer needs that offer adequate potential profitability. A good strategy helps a business focus on the target markets it can serve best.

Target Marketing

Owners of small businesses usually have limited resources to spend on marketing. Concentrating their efforts on one or a few key market segments - target marketing - gets the most return from small investments. There are two methods used to segment a market:

1. Geographical segmentation - Specializing in serving the needs of customers in a particular geographical area. For example, a neighborhood convenience store may send advertisements only to people living within one-half mile of the store.
2. Customer segmentation - Identifying those people most likely to buy the product or service and targeting those groups.

Managing the Market Mix

Every marketing program contains four key components:

• Products and Services
• Promotion
• Distribution
• Pricing

These are combined into an overall marketing program.

Products and Services

Product strategies may include concentrating on a narrow product line, developing a highly specialized product or service, or providing a product-service package containing unusually high-quality service.

Promotion

Promotion strategies include advertising and direct customer interaction. Good salesmanship is essential for small businesses because of their limited ability to spend on advertising. Good telephone book advertising is also important. Direct mail is an effective, low-cost medium available to small business.

Price

The right price is crucial for maximizing total revenue. Generally, higher prices mean lower volume and vice-versa; however, small businesses can often command higher prices because of their personalized service.

Distribution

The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agents generally is easiest for small manufacturers. Small retailers should consider cost and traffic flow in site selection, especially since advertising and rent can be reciprocal: A low-cost, low-traffic location means spending more on advertising to build traffic.

The nature of the product or service is also important in siting decisions. If purchases are based largely on impulse, then high traffic and visibility are critical. On the other hand, location is less a concern for products or services that customers are willing to go out of their way to find. The recent availability of highly segmented mailing lists, purchased from list brokers, magazines, or other companies, has enabled certain small businesses to operate from any location yet serve national or international markets.

Marketing Performance

After implementing a marketing program, entrepreneurs must evaluate its performance. Every program should have performance standards to compare with actual results. Researching industry norms and past performance will help to develop appropriate standards.

Entrepreneurs should audit their company's performance at least quarterly. The key questions are:

1. Is the company doing all it can to be customer-oriented?
2. Do employees ensure the customers are satisfied and leave wanting to come back?
3. Is it easy for the customer to find what he or she wants at a competitive price?

(from the United States Small Business Administration)

100+ Marketing Ideas

Marketing is all about satisfying customer needs. The following represents a comprehensive list of marketing ideas. Use the list of marketing ideas to help better understand customer needs and ways to satisfy those needs.

(Note: not all the ideas presented here will apply to your particular business.)

General Ideas

• Never let a day pass without engaging in at least one marketing activity.
• Determine a percentage of gross income to spend annually on marketing.
• Set specific marketing goals every year; review and adjust quarterly.
• Maintain a tickler file of ideas for later use.
• Carry business cards with you (all day, every day).
• Create a personal nametag or pin with your company name and logo on it and wear it at high visibility meetings

Target Market

• Stay alert to trends that might impact your target market, product or promotion strategy.
• Read market research studies about your profession, industry, product, target market groups, etc.
• Collect competitors’ ads and literature; study them for information about strategy, product features and benefits, etc.
• Ask clients why they hired you and solicit suggestions for improvement.
• Ask former clients why they left you.
• Identify a new market.
• Join a list-serve (email list) related to your profession.
• Subscribe to an Internet usenet newsgroup or a list-serve that serves your target market.

Product Development

• Create a new service, technique or product.
• Offer a simpler/cheaper/smaller version of your (or another existing) product or service.
• Offer a fancier/more expensive/faster/bigger version of your (or another existing) product or service.
• Update your services.

Education, Resources and Information

• Establish a marketing and public relations advisory and referral team composed of your colleagues and/or neighboring business owners to share ideas and referrals and to discuss community issues. Meet quarterly for breakfast.
• Create a suggestion box for employees.
• Attend a marketing seminar.
• Read a marketing book.
• Subscribe to a marketing newsletter or other publication.
• Subscribe to a marketing list-serve on the Internet.
• Subscribe to a marketing usenet newsgroup on the Internet.
• Train your staff, clients and colleagues to promote referrals.
• Hold a monthly marketing meeting with employees or associates to discuss strategy, status and to solicit marketing ideas.
• Join an association or organization related to your profession.
• Get a marketing intern to take you on as a client; it will give the intern experience and you some free
  marketing help.
• Maintain a consultant card file for finding designers, writers and other marketing professionals.
• Hire a marketing consultant to brainstorm with.
• Take a "creative journey" to another progressive city or country to observe and learn from marketing techniques used there.

Pricing and Payment

• Analyze your fee structure; look for areas requiring modifications or adjustments.
• Establish a credit card payment option for clients.
• Give regular clients a discount.
• Learn to barter; offer discounts to members of certain clubs/professional groups/organizations in exchange for promotions in their publications.
• Give "quick pay" or cash discounts.
• Offer financing or installment plans.

Marketing Communications

• Publish a newsletter for customers and prospects. (It doesn’t have to be fancy or expensive.)
• Develop a brochure of services.
• Include a postage-paid survey card with your brochures and other company literature. Include check-off boxes or other items that will involve the reader and provide valuable feedback to you.
• Remember, business cards aren’t working for you if they’re in the box. Pass them out! Give prospects two business cards and brochures -- one to keep and one to pass along.
• Produce separate business cards/sales literature for each of your target market segments (e.g. government and commercial, and/or business and consumer).
• Create a poster or calendar to give away to customers and prospects.
• Print a slogan and/or one-sentence description of your business on letterhead, fax cover sheets and invoices.
• Develop a site on the World Wide Web.
• Create a "signature file" to be used for all your e-mail messages. It should contain contact details including your Web site address and key information about your company that will make the reader want to contact you.
• Include "testimonials" from customers in your literature.
• Test a new mailing list. If it produces results, add it to your current direct mail lists or consider replacing a list that's not performing up to expectations.
• Use colored or oversized envelopes for your direct mailings. Or send direct mail in plain white envelopes to pique recipients' curiosity.
• Announce free or special offers in your direct response pieces. (Direct responses may be direct mail, broadcast fax, or e-mail messages.) Include the offer in the beginning of the message and also on the outside of the envelope for direct mail.

Media Relations

• Update your media list often so that press releases are sent to the right media outlet and person.
• Write a column for the local newspaper, local business journal or trade publication.
• Publish an article and circulate reprints.
• Send timely and newsworthy press releases as often as needed.
• Publicize your 500th client of the year (or other notable milestone).
• Create an annual award and publicize it– as an outstanding employee of the year.
• Get public relations and media training or read up on it.
• Appear on a radio or TV talk show.
• Create your own TV program on your industry or your specialty. Market the show to your local cable station or public broadcasting station as a regular program. Or, see if you can air your show on an open access cable channel.
• Write a letter to the editor of your local newspaper or to a trade magazine editor.
• Take an editor to lunch.
• Get a publicity photo taken and enclose with press releases.
• Consistently review newspapers and magazines for possible PR opportunities.
• Submit "tip" articles to newsletters and newspapers.
• Conduct industry research and develop a press release or article to announce an important discovery in your field.
• Create a press kit and keep its contents current.

Customer Service and Customer Relations

• Ask your clients to come back again.
• Return phone calls promptly.
• Set up a fax-on-demand or email system to easily respond to customer inquiries.
• Use an answering machine or voice mail system to catch after-hours phone calls. Include basic information in your outgoing message such a business hours, location, etc.
• Record a memorable message or "tip of the day" on your outgoing answering machine or voice mail message.
• Ask clients what you can do the help them.
• Take clients out to a ball game, a show or another special event– just send them two tickets with a note.
• Hold a seminar at your office for clients and prospects.
• Send hand-written thank-you notes.
• Send birthday cards and appropriate seasonal greetings.
• Photocopy interesting articles and send them to clients and prospects with a hand-written "FYI" note and your business card.
• Send a book of interest or other appropriate business gift to a client with a handwritten note.
• Create an area on your Web site specifically for your customers.
• Redecorate your office or location where you meet with your clients.

Networking and Word of Mouth

• Join a Chamber of Commerce or other organization.
• Join or organize a breakfast club with other professionals (not in your field) to discuss business and network referrals.
• Mail a brochure to members of organizations to which you belong.
• Serve on a city board or commission.
• Host a holiday party.
• Hold an open house.
• Send letters to attendees after you attend a conference.
• Join a community list-serve (email list) on the Internet.

Advertising

• Advertise during peak seasons for your business.
• Get a memorable phone number, such as "1-800-WIDGETS."
• Obtain a memorable URL and email address and include them on all marketing materials.
• Provide Rolodex® cards or phone stickers pre-printed with your business contact information.
• Promote your business jointly with other professionals via cooperative direct mail.
• Advertise in a specialty directory or in the Yellow Pages.
• Write an ad in another language to reach a non-English-speaking market. Place the ad in a publication that market reads, such as a Hispanic newspaper.
• Distribute advertising specialty products such as pens, mouse pads or mugs.
• Mail "bumps," photos, samples and other innovative items to your prospect list. (A bump is simply anything that makes the mailing envelope bulge and makes the recipient curious about what’s in the envelope!)
• Create a direct mail list of "hot prospects."
• Consider non-traditional tactics such as bus backs, billboards and popular Web sites.
• Project a message on the sidewalk in front of your place of business using a light directed through words etched in a glass window.
• Consider placing ads in your newspaper’s classified section.
• Consider a vanity automobile tag with your company name.
• Create a friendly bumper sticker for your car.
• Code your ads and keep records of results.
• Improve your building signage and directional signs inside and out.
• Invest in a neon sign to make your office or storefront window visible at night.
• Create a new or improved company logo or "recolor" the traditional logo.
• Sponsor and promote a contest or sweepstakes.

Special Events and Outreach

• Get a booth at a fair/trade show attended by your target market.
• Sponsor or host a special event or open house at your business location in cooperation with a local non-profit organization, such as a women's business center. Describe how the organization helped you.
• Give a speech or volunteer for a career day at a high school.
• Teach a class or seminar at a local college or adult education center.
• Sponsor an "Adopt-a-Road" area in your community to keep roads litter-free. People that pass by the area will see your name on the sign announcing your sponsorship.
• Volunteer your time to a charity or non-profit organization.
• Donate your product or service to a charity auction.
• Appear on a panel at a professional seminar.
• Write a "How To" pamphlet or article for publishing.
• Produce and distribute an educational CD-ROM, audio or video tape.
• Publish a book.

Sales Ideas

• Start every day with two cold calls.
• Read newspapers, business journals and trade publications for new business openings and for personnel appointment and promotion announcements made by companies. Send your business literature to appropriate individuals and firms.
• Give your sales literature to your lawyer, accountant, printer, banker, temp agency, office supply salesperson, advertising agency, etc. (Expand your sales force for free!)
• Put your fax number on order forms for easy submission.
• Set up a fax-on-demand or email system to easily distribute responses to company or product inquiries.
• Follow up on your direct mailings, email messages and broadcast faxes with a friendly telephone call.
• Try using the broadcast fax or email delivery methods instead of direct mail. (Broadcast fax and email allows you to send the same message to many locations at once.)
• Using broadcast fax or email messages to notify your customers of product service updates.
• Extend your hours of operation.
• Reduce response/turnaround time. Make reordering easy– reminders. Provide pre-addressed envelopes.
• Display product and service samples at your office.
• Remind clients of the products and services you provide that they aren't currently buying.
• Call and/or send mail to former clients to try to reactivate them.
• Take sales orders over the Internet.

(National Women's Business Center, Washington, D.C., 4/97)

Top of Page